Textron Raises 2026 Outlook as Jet Deliveries Climb and MV-75 Funding Clears

Textron raised its full-year earnings and cash flow outlook on Thursday after higher Citation jet deliveries lifted third-quarter results and Congress cleared funding for the Army's MV-75 Cheyenne tiltrotor program built by its Bell unit.

The aerospace and defense company now expects 2026 adjusted EPS from continuing operations of $6.55 to $6.65, up from $6.40 to $6.60, according to the earnings release it filed with an 8-K on Thursday. It raised its GAAP EPS outlook to $5.64 to $5.74 from $5.39 to $5.59, and lifted expected manufacturing cash flow before pension contributions to $800 million to $900 million from $700 million to $800 million.

Textron said the updated outlook reflects congressional approval of the U.S. Army's Above Threshold Reprogramming request for the MV-75 Cheyenne program and the related contract modifications obligating that funding.

Quarter at a glance

Third-quarter revenue rose 4%, or $149 million, to $3.8 billion. Income from continuing operations was $1.56 a share, up from $1.31 a year earlier, and adjusted EPS rose to $1.76 from $1.55.

Net cash from operating activities of the manufacturing group rose to $512 million from $348 million, and manufacturing cash flow before pension contributions jumped to $418 million from $281 million. Textron returned $239 million to shareholders through share repurchases.

"Higher jet deliveries at Textron Aviation and program execution at Textron Systems drove double-digit revenue growth at each of these segments," CEO Lisa M. Atherton said in the release. "Bell continued to make significant operational progress on the MV-75 Cheyenne program."

Jets up, helicopters down

Textron Aviation revenue rose 14% to $1.7 billion as the unit delivered 51 jets, up from 42 a year earlier, while commercial turboprop deliveries fell to 32 from 39. Aircraft revenue rose $152 million on higher Citation jet volume and mix, and aftermarket parts and services revenue increased $49 million on higher volume and pricing. Segment profit rose 4% to $179 million, held back by manufacturing inefficiencies. Aviation backlog stood at $8.0 billion.

Bell was the soft spot. Revenue fell 9% to $933 million, driven mainly by lower military revenue on reduced MV-75 volume, along with fewer commercial helicopter sales. Segment profit dropped 17% to $76 million. Bell's backlog was $7.6 billion.

Defense and industrial

Textron Systems revenue rose 16% to $360 million on higher volume in armored land vehicles and military training and support services, and segment profit climbed 21% to $57 million. Its backlog was $3.5 billion.

Industrial revenue edged up 1% to $765 million, as a 9% gain at Textron Specialized Vehicles offset a 5% decline at fuel systems maker Kautex. Segment profit rose 23% to $38 million.

The Finance segment's profit fell to $5 million from $18 million, mainly because the year-earlier quarter included $11 million of gains from selling non-captive assets.

Through the first nine months, total revenue reached $11.273 billion, up from $10.624 billion a year earlier. Textron hosted a conference call at 8 a.m. ET on Thursday to discuss the results.

Sources

1. Textron Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000217346-26-000043)

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