Textron (TXT) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 11:34 AM CDT 42 min read

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Date

Thursday, April 30, 2026 astatine 8 a.m. ET

Call participants

• Chief Executive Officer — Lisa Atherton

• Chief Financial Officer — David Rosenberg

Full Conference Call Transcript

Lisa Atherton: Thank you, Scott. Good morning, everyone, and convey you for joining us. Today is an incredibly breathtaking and important time for Textron. Our archetypal 4th results item a precise beardown commencement to the year. We generated $3.7 cardinal successful revenue, representing 12% maturation for the quarter. We besides grew conception nett successful the 4th by 10% to $320 million. This reflects beardown show crossed each of our A&D businesses, including robust commercialized bid enactment astatine some Aviation and Bell. We besides generated $1.45 of adjusted EPS, up 13% from a twelvemonth ago. Turning present to Slide 5. In summation to announcing our archetypal 4th results today, we besides announced our intent to abstracted our Industrial conception from our A&D businesses.

This is simply a consequential and breathtaking measurement successful our improvement establishing caller Textron arsenic a pure-play A&D institution aligned to its halfway franchises of Textron Aviation, Bell and Textron Systems. In presumption of structure, we mean to research aggregate paths to impact this planned separation, including a merchantability of the concern businesses oregon a tax-free spin-off into a stand-alone publically traded company. We volition enactment done alternatives connected the attack implicit the coming quarters and are targeting a completion of the separation wrong 12 to 18 months. In the interim, we volition proceed to run successful the mean people of business. Turning to Slide 6. We judge these actions volition thrust semipermanent worth for our shareholders.

First and foremost, this establishes New Textron arsenic a pure-play A&D company. Each of our A&D franchises are aligned with highly charismatic extremity markets with tremendous opportunities successful beforehand of them. For New Textron, this separation besides enhances clarity astir our superior allocation and investments arsenic good arsenic our strategical flexibility. The MV-75 Cheyenne programme is simply a cleanable example. We are pulling guardant our concern arsenic we enactment the [indiscernible] acceleration of the program, which is aligned with our semipermanent maturation strategy. As for Industrial, these aforesaid principles apply. The concern volition payment from a tailored superior allocation and caller strategical flexibility. The concern successful maturation successful opportunities specified arsenic Pentatonic, Allegro and PACE technologies are bully examples of this.

While we've considered variations of this successful the past, present is the close clip arsenic some our A&D and concern businesses are good positioned for the future. In A&D, Textron Aviation is successful a precise beardown presumption having accrued its backlog by much than 4x since pre-COVID from $1.7 cardinal successful 2019 to $8 cardinal astatine the extremity of this quarter. Bell is advancing rapidly connected the MV-75 Cheyenne and volition soon determination into prototype deliveries and Textron Systems is besides showing coagulated maturation crossed programs of grounds specified arsenic Ship to Shore and astatine ATAC. In Industrial, Kautex continues to execute good and Textron Specialized Vehicles is operating from a stronger footing pursuing past year's powersports divestiture.