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Textron (TXT) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Industrials•Aerospace & Defense
B
GoodMetricSide Score: 60/100
ProfitabilityProfit15/30
GrowthGrowth20/25
Balance SheetBalance17/25
Cash QualityCash8/20
Price & Volume
Market Cap $16.15B

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in 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, as well as offers maintenance, inspection, and repair services; commercial parts; and advanced flight training devices. The Bell segment supplies military and commercial helicopters, tiltrotor aircraft, 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; plastic tanks for catalytic reduction systems and other fuel system components; lightweight and composite pentatonic battery systems for use in electric vehicles primarily to automobile original equipment manufacturers; 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.

Moat Signals

Competitive analysis based on 61 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~7.3% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~11.8% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Moderate Moat

6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (6 of 7 quarters up), with ~9.3% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 61 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~7.7% — no sign of cost or pricing stress.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Shares decreased 8.0% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of April 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$15.19B
9.5%
Q. Revenue
$3.69B
TTM EBITDA
$1.57B
17.6%
TTM Op. Income
$1.16B
22.8%
Q. Op. Income
$267.00M
TTM Net Income
$934.00M
12.5%
Q. Net Income
$220.00M
EPS
$1.26
Shares Out.
$174.56M
4.3%
$15.19B in TTM revenue grew 9.5% YoY, reaching $3.69B last quarter. TTM EBITDA of $1.57B and TTM operating income of $1.16B shows growth is flowing through. Net income of $934.00M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
9.8%
Op. Margin
7.2%
0.9%
Net Margin
6.0%
4.9%
Op. margin of 7.2% is down 0.1% YoY — costs are rising relative to revenue. Net margin at 6.0%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
17.3x
P/S Ratio
1.1x
P/B Ratio
2.0x
At 17.3x P/E, the stock trades in line with market averages — fairly valued. P/S of 1.1x and P/B of 2.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$18.14B
Cash
$1.61B
Long-Term Debt
N/A
Book Value
$8.00B
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-117.00M
Free Cash Flow
$-250.00M
38.9%
FCF Margin
-1.6%
FCF / Net Income
-1.1
FCF of $-250.00M on $-117.00M in operating cash flow. The FCF / Net Income ratio of -0.3x shows cash consumption — the business is not yet self-funding.

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