TEXTRON INC
For the period ended Oct 3, 2026. Filed Oct 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 3, 2026 · Filed Oct 29, 2026
TXT$83.54-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-07-04; filed 2026-07-28.
0000217346-26-000036
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-10-03; filed 2026-10-29.
0000217346-26-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 121 current paragraphs.
68 unchanged; 44 reworded; 8 added; 12 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Selling and administrative expense increased $14 million, 5%, and $45 million, 5%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The increase in selling and administrative expense in both periods reflected a net $10 million decrease in a gain associated with the early termination of a vendor contract in the third quarter of 2025 at the Textron Systems segment. The increase in selling and administrative expense in the first nine months of 2026 also included higher compensation expense.
Current report
Textron Aviation’s cost of sales increased $181 million, 16%, and $427 million, 13%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025, primarily reflecting higher aircraft volume and inflation of $45 million and $137 million, respectively.
Current report
Bell’s cost of sales decreased $63 million, 7%, in the third quarter of 2026, compared with the third quarter of 2025, largely due to lower volume and mix described above.
Current report
Bell’s cost of sales increased $114 million, 5%, in the first nine months of 2026, compared with the first nine months of 2025, primarily due to higher net volume and mix described above and inflation of $31 million.
Current report
Low-Rate Initial Production Option
Current report
Textron Systems’ selling and administrative expense increased $9 million, 75%, and $10 million, 15%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The increase in selling and administrative expense in both periods reflected a net $10 million decrease in a gain associated with the early termination of a vendor contract in the third quarter of 2025.
Current report
Textron Systems’ segment profit increased $10 million, 21%, in the third quarter of 2026 compared with the third quarter of 2025, primarily due to higher volume, partially offset by higher selling and administrative expense described above.
Current report
Textron Systems' segment profit increased $18 million, 14%, in the first nine months of 2026, compared with the first nine months of 2025, primarily due to higher volume and lower research and development costs, partially offset by higher selling and administrative expense described above.
Removed paragraphs (12)
Previous report
Business Environment
Previous report
Since early 2025, the United States has made various changes to its trade policy resulting in new or higher tariffs on goods imported from numerous countries. We are principally a North American manufacturer and 69% of our 2025 revenues were generated in the U.S. Many of our aircraft materials and components qualify under the rules of the United States-Mexico-Canada Agreement for preferential treatment on tariffs imposed by the U.S. on imports from Canada and Mexico. In addition, our operations outside of North America primarily source materials and components from outside of North America and manufacture products for non-U.S. customers. Many of our businesses with operations in North America also source materials and components from outside of North America. These businesses have been and will continue to be impacted by these imposed U.S. tariffs. In order to mitigate these impacts our businesses have been managing, and will continue to manage, pricing and supply chain optimization strategies. To date, we have not experienced a material adverse impact from these tariffs.
Previous report
We will continue to evaluate the ongoing impact of tariffs and any further developments or changes in global tariff policies on our business and financial position.
Previous report
•Higher Industrial revenues of $3 million, reflecting higher revenues of $53 million at Kautex, primarily due to a favorable impact from foreign exchange rate fluctuations, higher pricing and higher volume and mix, largely offset by lower revenues of $50 million at Textron Specialized Vehicles, mostly due to the impact from the disposition of the Powersports business in April 2025, partially offset by higher pricing.
Previous report
Cost of sales increased $477 million, 8%, in the first half of 2026, compared with the first half of 2025, largely due to higher net volume and mix of $332 million and a $148 million impact from inflation and higher LIFO inventory provision, partially offset by the impact from the Powersports disposition. Gross margin as a percentage of Manufacturing revenues decreased 100 basis points in the first half of 2026, primarily due to lower margin at the Bell segment.
Previous report
Research and development costs decreased $33 million, 12%, in the first half of 2026, compared with the first half of 2025, largely reflecting lower costs of $13 million and $7 million at the Bell and Textron Systems segments, respectively, as described above, along with $9 million in lower costs related to certain development projects reported within corporate expenses as discussed in the Segment Analysis section below.
Previous report
Selling and administrative expense increased $8 million, 3%, and $31 million, 5%, in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025. The increase in selling and administrative expense in the first half of 2026 was primarily due to higher share-based and other compensation expense.
Previous report
Textron Aviation’s cost of sales increased $26 million, 2%, in the second quarter of 2026, compared with the second quarter of 2025, primarily reflecting inflation of $47 million, partially offset by lower aircraft volume. Cost of sales increased $246 million, 12%, in the first half of 2026, compared with the first half of 2025, primarily reflecting higher aircraft volume and inflation of $92 million.
Previous report
Bell’s cost of sales increased $76 million, 9%, and $177 million, 11%, in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025, largely due to higher net volume and mix described above.
Previous report
The U.S. Government is pursuing an ATR request for $350 million in additional fiscal 2026 funding for the MV-75 program. The U.S. Government has advised that it is not obligated to reimburse Bell for costs incurred beyond currently obligated funding and performance beyond the allotted funds is at Bell’s own risk. If the additional funding is received, it will be used to offset the costs incurred on the program in the third quarter of 2026. Subsequent to the end of our second quarter, in mid-July 2026, Bell substantially exhausted all available fiscal 2026 program funding and has continued performing work at its own risk. If additional funding is not approved and obligated, we could incur unreimbursed costs and recognize an unfavorable cumulative catch-up program adjustment of up to approximately $120 million, assuming $350 million in costs incurred in excess of available funding which would also negatively impact our cash flows by approximately $350 million. For additional information, see the MV-75 Program - Funding section in Note 12. Commitments and Contingencies.
Previous report
Textron Systems’ segment profit increased $4 million, 10%, in the second quarter of 2026 compared with the second quarter of 2025, primarily due to lower research and development costs. Segment profit increased $8 million, 10%, in the first half of 2026, compared with the first half of 2025, primarily due to higher volume described above and lower research and development costs.
Previous report
•The risk that additional U.S. Government fiscal 2026 funding for the MV-75 program is not approved and obligated pursuant to a contract modification and we incur significant unreimbursed costs.
Reworded paragraphs (44)
Previous wording
Revenues increased $111 million, 3%, in the second quarter of 2026, compared with the second quarter of 2025. The revenue increase primarily included the following factors:
Current wording
Revenues increased $149 million, 4%, in the third quarter of 2026, compared with the third quarter of 2025. The revenue increase primarily included the following factors:
Previous wording
•Higher Textron Aviation revenues of $291 million, reflecting higher aircraft revenues of $238 million, largely due to higher volume and mix, and higher aftermarket parts and services revenues of $53 million.
Current wording
•Higher Textron Aviation revenues of $201 million, reflecting higher aircraft revenues of $152 million, primarily due to higher volume and mix, and higher aftermarket parts and services revenues of $49 million.
Previous wording
•Higher Textron Systems revenues of $23 million, largely due to higher volume.
Current wording
•Higher Textron Systems revenues of $50 million, largely due to higher volume.
Previous wording
•Higher Industrial revenues of $9 million, reflecting higher revenues of $17 million at Kautex, partially offset by lower revenues of $8 million at Textron Specialized Vehicles.
Current wording
•Higher Industrial revenues of $4 million, reflecting higher revenues of $26 million at Textron Specialized Vehicles, partially offset by lower revenues of $22 million at Kautex.
Previous wording
•Higher Bell revenues of $58 million due to higher military aircraft and support programs revenues of $47 million and higher commercial revenues of $11 million.
Current wording
•Lower Bell revenues of $93 million due to lower military aircraft and support programs revenues of $59 million and lower commercial revenues of $34 million.
Previous wording
Revenues increased $500 million, 7%, in the first half of 2026, compared with the first half of 2025. The revenue increase primarily included the following factors:
Current wording
Revenues increased $649 million, 6%, in the first nine months of 2026, compared with the first nine months of 2025. The revenue increase primarily included the following factors:
Previous wording
•Higher Textron Aviation revenues of $22 million, reflecting higher aircraft revenues of $17 million and higher aftermarket parts and services revenues of $5 million.
Current wording
•Higher Textron Aviation revenues of $492 million, reflecting higher aircraft revenues of $390 million, primarily due to higher volume and mix, and higher aftermarket parts and services revenues of $102 million.
Previous wording
•Higher Textron Systems revenues of $62 million, largely due to higher volume.
Current wording
•Higher Textron Systems revenues of $112 million, largely due to higher volume.
Previous wording
•Higher Bell revenues of $145 million, due to higher military aircraft and support programs revenues of $208 million, largely from the MV-75 program, partially offset by lower commercial revenues of $63 million.
Current wording
•Higher Bell revenues of $52 million, due to higher military aircraft and support programs revenues of $149 million, partially offset by lower commercial revenues of $97 million.
Previous wording
Cost of sales includes cost of products and services sold for the Manufacturing group. Cost of sales increased $126 million, 4%, in the second quarter of 2026, compared with the second quarter of 2025, primarily due to a $67 million impact from inflation and higher net volume and mix of $44 million. Gross margin as a percentage of Manufacturing revenues decreased 100 basis points in the second quarter of 2026, primarily due to lower margin at the Bell segment.
Current wording
Cost of sales includes cost of products and services sold for the Manufacturing group. Cost of sales increased $138 million, 5%, in the third quarter of 2026, compared with the third quarter of 2025, primarily due to a $75 million impact from inflation and higher net volume and mix of $45 million. In the first nine months of 2026, cost of sales increased $615 million, 7%, compared with the first nine months of 2025, largely due to higher net volume and mix of $377 million and a $210 million impact from inflation. Gross margin as a percentage of Manufacturing revenues decreased 70 basis points in the first nine months of 2026, primarily due to lower margin at the Bell segment.
Previous wording
Research and development costs decreased $21 million, 15%, in the second quarter of 2026, compared with the second quarter of 2025, largely due to a decrease of $11 million at the Bell segment, reflecting a reduction in costs on several programs, and a decrease of $6 million at the Textron Systems segment, due to a reduction in costs on certain U.S. Government development programs.
Current wording
Research and development costs decreased $8 million, 7%, and $41 million, 11%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The decrease in the first nine months of 2026 was primarily due to lower costs of $22 million at the Bell segment, reflecting a reduction in costs on several programs, and $10 million at the Textron Systems segment, due to a reduction in costs on certain U.S. Government development programs.
Previous wording
Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group. In the second quarter and first half of 2026, interest expense, net increased $2 million, 6%, and $7 million, 12%, respectively, compared with the corresponding periods of 2025, primarily due to higher average debt outstanding. Gross interest expense totaled $40 million and $39 million in the second quarter of 2026 and 2025, respectively, and $83 million and $77 million in the first half of 2026 and 2025, respectively.
Current wording
Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group. In the third quarter and first nine months of 2026, interest expense, net increased $2 million, 7%, and $9 million, 10%, respectively, compared with the corresponding periods of 2025, primarily due to higher average debt outstanding. Gross interest expense totaled $41 million and $39 million in the third quarter of 2026 and 2025, respectively, and $124 million and $116 million in the first nine months of 2026 and 2025, respectively.
Previous wording
Our effective tax rate was 18.4% and 18.0% for the second quarter and first half of 2026, respectively. The effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to the favorable impact of research and development credits and tax deductions for foreign-derived deduction eligible income, which replaced foreign-derived intangible income beginning in 2026.
Current wording
Our effective tax rate was 16.1% and 17.4% for the third quarter and first nine months of 2026, respectively. The effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to the favorable impact of research and development credits and tax deductions for foreign-derived deduction eligible income, which replaced foreign-derived intangible income beginning in 2026. These benefits were partially offset by an increase in tax provision due to the repatriation of cash related to non-U.S. jurisdictions in the third quarter of 2026.
Previous wording
Our effective tax rate for the second quarter and first half of 2025 was 18.6% and 16.6%, respectively. The effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.
Current wording
Our effective tax rate for the third quarter and first nine months of 2025 was 25.6% and 19.9%, respectively. In the third quarter of 2025, the effective tax rate was higher than the U.S. federal statutory rate of 21%, largely reflecting the impact of certain provisions of the One Big Beautiful Bill Act, primarily those that affected tax deductions for foreign-derived intangible income and research and development credits. In the first nine months of 2025, our effective tax rate was lower than the U.S. federal statutory rate, primarily due to the favorable impact of research and development credits.
Previous wording
Textron Aviation’s revenues increased $291 million, 11%, in the first half of 2026, compared with the first half of 2025, reflecting higher aircraft revenues of $238 million and higher aftermarket parts and services revenues of $53 million. The increase in aircraft revenues was primarily due to higher volume and mix, largely reflecting higher commercial turboprop volume and the mix of Citation jets sold in the period, partially offset by lower defense volume. We delivered 77 Citation jets and 79 commercial turboprops in the first half of 2026, compared with 80 Citation jets and 64 commercial turboprops in the first half of 2025. The increase in aftermarket parts and services revenues was primarily due to higher pricing.
Current wording
Textron Aviation’s revenues increased $201 million, 14%, in the third quarter of 2026, compared with the third quarter of 2025, reflecting higher aircraft revenues of $152 million and higher aftermarket parts and services revenues of $49 million. The increase in aircraft revenues was primarily due to higher volume and mix, largely reflecting higher Citation jet volume, partially offset by lower commercial turboprop volume. We delivered 51 Citation jets and 32 commercial turboprops in the third quarter of 2026, compared with 42 Citation jets and 39 commercial turboprops in the third quarter of 2025. The increase in aftermarket parts and services revenues was due to higher volume and pricing.
Previous wording
Textron Aviation’s revenues increased $22 million, 1%, in the second quarter of 2026, compared with the second quarter of 2025, reflecting higher aircraft revenues of $17 million and higher aftermarket parts and services revenues of $5 million. The increase in aircraft revenues was due to higher pricing, partially offset by lower volume and mix. The decrease in volume and mix largely reflected lower Citation jet and defense volume, partially offset by higher commercial turboprop volume. We delivered 40 Citation jets and 44 commercial turboprops in the second quarter of 2026, compared with 49 Citation jets and 34 commercial turboprops in the second quarter of 2025.
Current wording
Textron Aviation’s revenues increased $492 million, 12%, in the first nine months of 2026, compared with the first nine months of 2025, reflecting higher aircraft revenues of $390 million and higher aftermarket parts and services revenues of $102 million. The increase in aircraft revenues was primarily due to higher volume and mix, largely reflecting higher Citation jet and commercial turboprop volume. We delivered 128 Citation jets and 111 commercial turboprops in the first nine months of 2026, compared with 122 Citation jets and 103 commercial turboprops in the first nine months of 2025. The increase in aftermarket parts and services revenues was due to higher pricing and volume.
Previous wording
Textron Aviation's selling and administrative expense increased $2 million, 2%, in the second quarter of 2026, and increased $23 million, 11%, in the first half of 2026, compared with the corresponding periods of 2025. The increase in the first half of 2026 was primarily due to higher compensation expense.
Current wording
Textron Aviation's selling and administrative expense increased $12 million, 12%, and $35 million, 11% in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025, primarily due to higher compensation expense.
Previous wording
Textron Aviation's segment profit decreased $5 million, 3%, in the second quarter of 2026, compared with the second quarter of 2025, primarily due to an unfavorable impact from manufacturing inefficiencies and lower aircraft volume and mix, partially offset by lower warranty costs.
Current wording
Textron Aviation's segment profit increased $7 million, 4%, in the third quarter of 2026, compared with the third quarter of 2025, primarily due to higher aircraft and aftermarket volume and mix, partially offset by an unfavorable impact from manufacturing inefficiencies.
Previous wording
Textron Aviation's segment profit increased $27 million, 9%, in the first half of 2026, compared with the first half of 2025, primarily due to higher aircraft volume and mix, partially offset by an unfavorable impact from manufacturing inefficiencies and higher selling and administrative expense described above.
Current wording
Textron Aviation's segment profit increased $34 million, 7%, in the first nine months of 2026, compared with the first nine months of 2025, primarily due to higher aircraft and aftermarket volume and mix, partially offset by an unfavorable impact from manufacturing inefficiencies and higher selling and administrative expense described above.
Previous wording
Bell’s military aircraft and support programs revenues increased $47 million, 7%, in the second quarter of 2026, compared with the second quarter of 2025, largely due to higher volume on H-1 production and the MV-75 program. Commercial helicopters, parts and services revenues increased $11 million, 3%, in the second quarter of 2026, compared with the second quarter of 2025, primarily due to higher pricing. We delivered 36 commercial helicopters in the second quarter of 2026, compared with 32 commercial helicopters in the second quarter of 2025.
Current wording
Bell’s military aircraft and support programs revenues decreased $59 million, 9%, in the third quarter of 2026, compared with the third quarter of 2025, largely due to lower volume on the MV-75 program. Commercial helicopters, parts and services revenues decreased $34 million, 10%, in the third quarter of 2026, compared with the third quarter of 2025, largely due to lower volume and mix. We delivered 29 commercial helicopters in the third quarter of 2026, compared with 30 commercial helicopters in the third quarter of 2025.
Previous wording
Bell’s military aircraft and support programs revenues increased $208 million, 16%, in the first half of 2026, compared with the first half of 2025, reflecting higher volume on the MV-75 program and H-1 production, partially offset by lower volume on V-22 production and on military sustainment programs. Commercial helicopters, parts and services revenues decreased $63 million, 9%, in the first half of 2026, compared with the first half of 2025, primarily due to lower volume and mix. We delivered 56 commercial helicopters in the first half of 2026, compared with 61 commercial helicopters in the first half of 2025.
Current wording
Bell’s military aircraft and support programs revenues increased $149 million, 8%, in the first nine months of 2026, compared with the first nine months of 2025, largely reflecting higher volume on the MV-75 program and H-1 production, partially offset by lower volume on V-22 production. Commercial helicopters, parts and services revenues decreased $97 million, 9%, in the first nine months of 2026, compared with the first nine months of 2025, due to lower volume and mix, partially offset by higher pricing. We delivered 85 commercial helicopters in the first nine months of 2026, compared with 91 commercial helicopters in the first nine months of 2025.
Previous wording
Bell's research and development costs decreased $11 million, 29%, and $13 million, 17%, in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025, reflecting a reduction in costs on several programs.
Current wording
Bell's research and development costs decreased $9 million, 27%, and $22 million, 20%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025, reflecting a reduction in costs on several programs.
Previous wording
Bell’s segment profit decreased $5 million, 6%, in the second quarter of 2026, compared with the second quarter of 2025, and its profit margin decreased 90 basis points, primarily due to an unfavorable impact from contract performance and from the mix of military programs described above, partially offset by lower research and development costs.
Current wording
Bell’s segment profit decreased $16 million, 17%, in the third quarter of 2026, compared with the third quarter of 2025, and its profit margin decreased 90 basis points, primarily due to lower volume and mix described above.
Previous wording
Bell's segment profit decreased $23 million, 14%, in the first half of 2026, compared with the first half of 2025, and its profit margin decreased 160 basis points, largely reflecting an unfavorable impact from the mix of military programs described above, lower commercial volume and mix and contract performance, partially offset by lower research and development costs.
Current wording
Bell's segment profit decreased $39 million, 15%, in the first nine months of 2026, compared with the first nine months of 2025, and its profit margin decreased 150 basis points, primarily reflecting an unfavorable impact from the mix of military programs described above, lower commercial volume and mix, contract performance and manufacturing inefficiencies, partially offset by lower research and development costs.
Previous wording
As the MV-75 program continues to progress, we expect that we will be awarded the long-lead Low-Rate Initial Production (LRIP) phase of the contract in late 2026 or early 2027. Upon award of the LRIP option, which is largely fixed price, we expect to record an unfavorable cumulative catch-up program adjustment, reflecting higher costs than originally anticipated from when the program was bid, in the range of $60 million to $110 million. We expect the overall MV-75 program to continue to generate a positive profit margin after the adjustment.
Current wording
As the MV-75 program progresses, we expect to be awarded the long-lead Low-Rate Initial Production (LRIP) phase of the contract. The award is dependent on the approval of the U.S. Government’s 2027 fiscal year budget, the timing and availability of funding for the MV-75 program in the approved budget, and resulting mutually agreed-upon program schedule. Upon award of the LRIP option, which is largely fixed price, we expect to record an unfavorable cumulative catch-up program adjustment, reflecting higher costs than originally anticipated from when the program was bid. If the LRIP option is awarded during 2027, we now expect to record an unfavorable cumulative catch-up program adjustment in the range of $110 million to $150 million, depending upon the timing of the award during the year, as well as the program schedule and the funding available on the program. Our previously disclosed range of $60 million to $110 million reflected an award in late 2026 or early 2027. We expect the overall MV-75 program to continue to generate a positive profit margin after the adjustment.
Previous wording
Textron Systems’ revenues increased $23 million, 7%, in the second quarter of 2026, compared with the second quarter of 2025, primarily due to higher volume on armored land vehicles and military training and support services provided by Airborne Tactical Advantage Company (ATAC).
Current wording
Textron Systems’ revenues increased $50 million, 16%, in the third quarter of 2026, compared with the third quarter of 2025, largely due to higher volume on armored land vehicles and military training and support services provided by Airborne Tactical Advantage Company (ATAC).
Previous wording
Textron Systems’ revenues increased $62 million, 10%, in the first half of 2026, compared with the first half of 2025, primarily due to higher volume on military training and support services provided by ATAC and the Ship-to-Shore Connector program.
Current wording
Textron Systems’ revenues increased $112 million, 12%, in the first nine months of 2026, compared with the first nine months of 2025, largely due to higher volume on military training and support services provided by ATAC, armored land vehicles and the Ship-to-Shore Connector program.
Previous wording
Textron Systems’ cost of sales increased $23 million, 9%, and $60 million, 13%, in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025, primarily due to higher net volume described above.
Current wording
Textron Systems’ cost of sales increased $34 million, 14%, and $94 million, 13%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025, primarily due to higher net volume described above.
Previous wording
Textron Systems’ research and development costs decreased $6 million, 38%, and $7 million, 27%, in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025, primarily due to a reduction in costs on certain U.S. Government development programs.
Current wording
Textron Systems’ research and development costs decreased $3 million, 23%, and $10 million, 26%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The decrease in the first nine months of 2026 was primarily due to a reduction in costs on certain U.S. Government development programs.
Previous wording
Industrial segment revenues increased $9 million, 1%, in the second quarter of 2026, compared with the second quarter of 2025. Kautex revenues increased $17 million, 4%, largely due to a favorable impact from pricing and from foreign exchange rate fluctuations of $8 million. Textron Specialized Vehicles' revenues decreased $8 million, 2%, reflecting lower volume and mix and the impact from the disposition of the Powersports business in April 2025, partially offset by higher pricing.
Current wording
Industrial segment revenues increased $4 million, 1%, in the third quarter of 2026, compared with the third quarter of 2025. Textron Specialized Vehicles' revenues increased $26 million, 9%, reflecting higher volume and mix and a favorable impact from pricing. Kautex revenues decreased $22 million, 5%, largely reflecting lower volume and mix, partially offset by higher pricing.
Previous wording
Industrial segment revenues increased $3 million in the first half of 2026, compared with the first half of 2025. Kautex revenues increased $53 million, 6%, due to a favorable impact of $28 million from foreign exchange rate fluctuations, higher pricing and higher volume and mix. Textron Specialized Vehicles' revenues decreased $50 million, 7%, largely reflecting a $61 million impact from the disposition of the Powersports business, partially offset by higher pricing.
Current wording
Industrial segment revenues increased $7 million in the first nine months of 2026, compared with the first nine months of 2025. Kautex revenues increased $31 million, 2%, due to a favorable impact of $33 million from foreign exchange rate fluctuations and higher pricing, partially offset by lower volume and mix. Textron Specialized Vehicles' revenues decreased $24 million, 2%, reflecting a $61 million impact from the disposition of the Powersports business, partially offset by a favorable impact from pricing and higher volume and mix.
Previous wording
Industrial's cost of sales decreased $1 million and $18 million, 1%, in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025. The decrease in the first half of 2026 primarily reflected the impact from the disposition, partially offset by an unfavorable impact from foreign exchange rate fluctuations and higher net volume and mix discussed above.
Current wording
Industrial's cost of sales decreased $1 million and $19 million, 1%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The decrease in the first nine months of 2026 primarily reflected the impact from the disposition, partially offset by inflation and an unfavorable impact from foreign exchange rate fluctuations.
Previous wording
Industrial's segment profit increased $15 million, 18%, in the first half of 2026, compared with the first half of 2025, primarily due to manufacturing efficiencies, which included the benefit of cost reductions resulting from prior year restructuring activities, and higher pricing, net of inflation, partially offset by lower net volume and mix. Pricing, net of inflation includes $21 million of tariff recoveries as described above.
Current wording
Industrial's segment profit increased $7 million, 23%, and $22 million, 19%, in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The increase in the first nine months of 2026 primarily reflected manufacturing efficiencies, which included the benefit of cost reductions resulting from prior year restructuring activities, and higher pricing, net of inflation, partially offset by lower net volume and mix.
Previous wording
The U.S. tariffs were imposed under various legal authorities, including the International Emergency Economic Powers Act (IEEPA). On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the IEEPA were not authorized by the statute. During the second quarter of 2026, we submitted refund requests for the IEEPA tariffs and have begun to receive refunds for previously paid tariffs.
Current wording
Pricing, net of inflation includes $21 million of tariffs recovered in the second quarter of 2026 that were previously imposed under the International Emergency Economic Powers Act (IEEPA). In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the IEEPA were not authorized by the statute, and in the second quarter of 2026, the U.S. Government began refunding previously paid tariffs.
Previous wording
Finance segment revenues decreased $1 million in both the second quarter and first half of 2026, compared with the corresponding periods of 2025. Segment profit increased $2 million and $4 million in the second quarter and first half of 2026, respectively, compared with the corresponding periods of 2025, primarily related to recovery of amounts that were previously written off.
Current wording
Finance segment revenues decreased $13 million and $14 million and segment profit decreased $13 million and $9 million in the third quarter and first nine months of 2026, respectively, compared with the corresponding periods of 2025. The decrease in revenues and segment profit for both periods primarily reflects $11 million of gains recognized in the third quarter of 2025 from the disposition of non-captive assets. The decrease in segment profit in the first nine months of 2026 was partially offset by the recovery of amounts that were previously written off.
Previous wording
In the first half of 2026, cash flows from operating activities decreased $153 million to $128 million, compared with $281 million in the first half of 2025, largely due to changes in working capital, partially offset by $62 million in lower net income tax payments.
Current wording
In the first nine months of 2026, cash flows from operating activities increased $11 million to $640 million, compared with $629 million in the first nine months of 2025, largely due to lower net income tax payments of $76 million, largely offset by changes in working capital.
Previous wording
Cash flows used in investing activities included $228 million and $134 million of capital expenditures in the first half of 2026 and 2025, respectively. In the first half of 2025, cash flows used in investing activities also included $57 million of net proceeds from corporate-owned life insurance policies and $16 million of net proceeds from the disposition of the Powersports business.
Current wording
Cash flows used in investing activities included $330 million and $210 million of capital expenditures in the first nine months of 2026 and 2025, respectively. In the first nine months of 2025, cash flows used in investing activities also included $77 million of net proceeds from corporate-owned life insurance policies and $16 million of net proceeds from the disposition of the Powersports business.
Previous wording
Cash flows used in financing activities in the first half of 2026 included $377 million of cash paid to repurchase an aggregate of 4.1 million shares of our common stock and $75 million of payments on long-term debt, partially offset by $61 million of proceeds from the exercise of stock options granted to employees. In the first half of 2025, cash flows used in financing activities included $429 million of cash paid to repurchase an aggregate of 5.8 million shares of our common stock and $353 million of payments on long-term debt, partially offset by $495 million of net proceeds from the issuance of long-term debt.
Current wording
Cash flows used in financing activities in the first nine months of 2026 included $616 million of cash paid to repurchase an aggregate of 7.0 million shares of our common stock. In the first nine months of 2025, cash flows used in financing activities included $635 million of cash paid to repurchase an aggregate of 8.4 million shares of our common stock and $355 million of payments on long-term debt, partially offset by $495 million of net proceeds from the issuance of long-term debt.
Previous wording
The Finance group’s cash flows from investing activities included finance receivable originations of $71 million and $111 million in the first half of 2026 and 2025, respectively, and collections on finance receivables totaling $115 million and $81 million, respectively. In the first half of 2026 and 2025, investing cash flows also included $24 million and $59 million of proceeds from the disposition of non-captive assets, respectively. In the first half of 2025, financing activities included payments on long-term and nonrecourse debt of $11 million.
Current wording
The Finance group’s cash flows from investing activities included finance receivable originations of $183 million and $167 million in the first nine months of 2026 and 2025, respectively, and collections on finance receivables totaling $154 million and $119 million, respectively. In the first nine months of 2026 and 2025, investing cash flows also included $24 million and $66 million of proceeds from the disposition of non-captive assets, respectively. In the first nine months of 2025, financing activities included payments on long-term and nonrecourse debt of $12 million.
Previous wording
In the first half of 2026, cash flows from operating activities decreased $77 million to $187 million, compared with $264 million in the first half of 2025, largely due to changes in working capital, partially offset by a net cash inflow of $72 million from captive financing activities and $64 million in lower net income tax payments.
Current wording
In the first nine months of 2026, cash flows from operating activities were unchanged compared with the first nine months of 2025, as $72 million in lower net income tax payments was largely offset by changes in working capital.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Higher Industrial revenues of $7 million, reflecting higher revenues of $31 million at Kautex, partially offset by lower revenues of $24 million at Textron Specialized Vehicles.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Industrial's segment profit increased $5 million, 9%, in the second quarter of 2026, compared with the second quarter of 2025, primarily due to higher pricing, net of inflation, partially offset by lower volume and mix. Pricing, net of inflation includes $21 million of tariffs recovered in the second quarter of 2026 that were previously imposed under the IEEPA as described in the Business Environment section on page 21.