Stock of the Day

December 21, 2020

Textron (TXT)

$75.10
+$1.30 (+1.8%)
Market Cap: $12.69B

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

Today's Trend

Textron Inc. (NYSE: TXT) shares decreased as investors focused less on the company’s second-quarter earnings beat and more on cautious guidance, operational challenges and cash-flow pressure.

  • Textron reported adjusted second-quarter EPS of $1.62, above the $1.55 analyst consensus, while revenue increased 3% year over year to $3.83 billion. Higher aircraft pricing and sustained Bell helicopter demand supported the results. Reuters earnings report
  • Bell revenue rose 6%, with commercial helicopter deliveries increasing to 36 from 32 a year earlier. Textron also returned $209 million to shareholders through share repurchases. Textron revenue and shareholder returns
  • Textron Aviation’s Cessna Citation CJ3 Gen3 completed its first flight, moving the next-generation light jet closer to certification. All three Citation Gen3 light jets are now in flight testing. Cessna Citation CJ3 Gen3 first flight
  • The company began a sale process for its Industrial segment. A divestiture could sharpen Textron’s focus and unlock value, but it also introduces execution and timing uncertainty. Textron Industrial segment sale
  • Textron reiterated—not increased—its 2026 adjusted EPS outlook of $6.40 to $6.60, which was viewed as insufficient after the quarterly beat and roughly brackets consensus expectations.
  • Textron Aviation profit fell 3% as manufacturing inefficiencies, lower aircraft volume and an unfavorable mix offset pricing gains. Manufacturing cash flow before pension contributions dropped to $154 million from $336 million a year earlier.
  • The outlook assumes additional fiscal 2026 funding for the MV-75 Cheyenne program. Without it, adjusted EPS could be reduced by $0.20–$0.30 and cash flow by $150 million–$250 million. Supply-chain challenges and broader Middle East-related operational and cyber risks add further uncertainty. Textron Q2 earnings call highlights
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