Textron releases financial results, intends to separates industrial segment

Textron announced on Thursday that it will be separating its Industrial segment from its core aerospace and defense businesses. It claims the separation is to enhance its strategic and operational focus and drive long-term value for stakeholders.
Its core franchises include Textron Aviation, Bell and Textron Systems, which it calls New Textron. Its industrial segment is composed of Kautex and Textron Specialized Vehicles. Textron is still exploring what to do with the separated subsidiaries. Possibilities include selling the businesses or a tax-free separation into a standalone, publicly traded company. New Textron is expected to benefit from increased strategic flexibility and the ability to tailor capital allocation strategies.
“This planned separation creates greater clarity and focus for both businesses,” said Textron CEO Lisa M. Atherton. “New Textron will move forward as a pure-play aerospace and defense company positioned for higher growth, while Industrial gains the independence to pursue strategies aligned with its distinct strengths—unlocking long term value for all stakeholders.”
The separation is expected to be completed within 12 to 18 months.
Textron also released its financial results of the first quarter of 2026 (1Q26). It reports a net income of $1.25 per share, compared to $1.13 in the first quarter of 2025 (1Q26). It used $107 million in manufacturing operations, which is $7 million less than last year. Its total revenue was $3.7 billion and the company was able to return $168 million to shareholders through share repurchases.
Textron Aviation specifically had a revenue of $1.5 billion, with aircraft revenue at $221 million and aftermarket parts and services revenue at $48 million. Segment profit was $154 million in 1Q26. 37 jets and 35 commercial turboprops were delivered, an increase of 31 and 30 aircraft delivered respectively. Its backlog at the end of the quarter was $8 billion.
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Bell had a revenue of $1.1 billion in 1Q26, which is 9% increase from 1Q25, but its profit was $72 million, a $18 million decrease. Textron states this was caused by the mix of military programs and lower commercial volume and mix. Military aircraft had a $161 million revenue, but commercial helicopters, parts and services revenues decreased $74 million. It also had a decrease in helicopter deliveries, dropping from 49 to 20 commercial helicopters delivered. Bell’s backlog at the end of the first quarter was $7.6 billion.
Textron Systems revenues jumped 13% to $338 million in 1Q26. Textron claims this is largely due to a higher volume on the Ship-to-Shore Connector program and military training and support services provided by Airborne Tactical Advantage Company (ATAC). Its profit increased by $4 million to $42 million and its backlog at the end of the first quarter was $3.6 billion.
“Textron delivered double-digit revenue and EPS growth in the quarter,” said Atherton. “Strong growth in Aviation deliveries, continued scaling of the MV-75 Cheyenne at Bell, excellent execution at Systems and good performance at Industrial all contributed to a successful quarter.”