Slides
Page 1
Q4 2025 Earnings Call Presentation JANUARY 28, 2026 THE DATA IN THIS PACKAGE SHOULD BE READ IN CONJUNCTION WITH THE TEXTRON EARNINGS RELEASE AND ACCOMPANYING TABLES.
Page 2
Forward-looking Information Certain statements in this package and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the risks and uncertainties set forth under "Forward-Looking Information" in our fourth quarter 2025 earnings release. Additional information on risks and uncertainties that may impact forward-looking statements is discussed under "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. 2
Page 3
Contents I. Fourth Quarter & Full-Year 2025 Financial Summary (Page 4) II. 2025 Financial Highlights (Page 9) III. 2026 Outlook (Page 18) IV . Recast of 2025 Financial Results for eAviation Segment Reporting Change (Page 26) 3
Page 4
I. Fourth Quarter & Full-Year 2025 Financial Summary 4
Page 5
Fourth Quarter and Full-Year 2025 Financial Summary 5 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit, Adjusted EPS and Manufacturing cash flow before pension contributions are non- GAAP measures that are defined and reconciled to GAAP in our earnings release. FOURTH QUARTER FULL -YEAR Q4 2025 Q4 2024 % Change FY 2025 FY 2024 % Change Revenues $ 4.2B $ 3.6B 15.6% $ 14.8B $ 13.7B 8.0% Segment Profit $ 380M $ 283M 34.3% $ 1,363M $ 1,200M 13.6% EPS $ 1.33 $ 0.76 75.0% $ 5.12 $ 4.34 18.0% Adjusted EPS $ 1.73 $ 1.34 29.1% $ 6.10 $ 5.48 11.3% Manufacturing Cash Flow Before Pension Contributions $ 510M $ 306M 66.7% $ 969M $ 692M 40.0%
Page 6
Fourth Quarter 2025 Segment Results REVENUE SEGMENT PROFIT (1) SEGMENT PROFITABILITY Segment Q4 2025 Q4 2024 % Change Q4 2025 Q4 2024 % Change Q4 2025 Q4 2024 Textron Aviation $ 1,749M $ 1,282M 36.4% $ 208M $ 100M 108.0% 11.9% 7.8% Bell $ 1,257M $ 1,129M 11.3% $ 101M $ 110M (8.2%) 8.0% 9.7% Textron Systems $ 323M $ 311M 3.9% $ 43M $ 42M 2.4% 13.3% 13.5% Industrial $ 821M $ 869M (5.5%) $ 30M $ 48M (37.5%) 3.7% 5.5% eAviation $ 7M $ 11M (36.4%) ($ 15M) ($ 22M) 31.8% N/M N/M Finance $ 18M $ 11M 63.6% $ 13M $ 5M 160.0% N/M N/M Total $ 4,175M $ 3,613M 15.6% $ 380M $ 283M 34.3% 9.1% 7.8% 6 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. N/M = not meaningful. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release.
Page 7
Q4 2025 Revenue Growth REVENUE GROWTH DIVESTITURE IMPACT ORGANIC GROWTH FX IMPACT UN(FAV) ORGANIC GROWTH BEFORE FX Textron Aviation 36.4% - 36.4% - 36.4% Bell 11.3% - 11.3% - 11.3% Textron Systems 3.9% - 3.9% - 3.9% Industrial (5.5%) 8.5% 3.0% (2.1%) 0.9% Textron eAviation (36.4%) - (36.4%) (18.1%) (54.5%) Manufacturing Segments 15.4% 2.4% 17.8% (0.6%) 17.2% Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. Organic Growth includes revenue changes resulting from volume, price, and foreign exchange as compared to the corresponding p eriod in the prior year. For our segments that contract with the U.S. Government, volume represents changes in revenue related to these contracts. 7
Page 8
Textron Consolidated Net Debt 8 ($ AMOUNTS IN MILLIONS) YEAR -END 2025 YEAR -END 2024 Cash $ 2,025 $ 1,441 Finance Group Debt $ 339 $ 341 TXT Manufacturing Group Debt 3,539 3,247 Total Debt $ 3,878 $ 3,588 Net Debt $ 1,853 $ 2,147 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. Note: Cash, Total Debt, and Net Debt reflect total balances inclusive of The Finance Group.
Page 9
II. 2025 Financial Highlights 9
Page 10
2025 Full-Year Financial Highlights CONSOLIDATED REVENUE $14.8B SEGMENT PROFIT (1) $1.4B ADJ. EPS (1) $6.10 ($5.12 GAAP EPS) MANUFACTURING CASH FLOW BEFORE PENSION (1) $969M KEY HIGHLIGHTS 13% revenue growth at Textron Aviation, including 6% growth in aftermarket Acceleration of MV-75 program at Bell Multi-domain program growth at Textron Systems 8% revenue growth 14% growth in segment profit Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit, Adjusted EPS and Manufacturing Cash Flow before Pension Contributions are non- GAAP measures that are defined and reconciled to GAAP in our earnings release. 10
Page 11
Textron Aviation – Full Year Highlights $5,284 $5,955 FY24 FY25 REVENUE 11 ($ AMOUNTS IN MILLIONS) $566 $694 FY24 FY25 SEGMENT PROFIT (1) 10.7% Profit Margin 11.7% Profit Margin $7,169 $7,845 $7,724 2023 2024 2025 BACKLOG Revenue up 13% for the full year; Segment Profit up 23% Delivered 171 jets and 146 commercial turboprops (up from last year with 151 and 127, respectively) Continued to see solid order flow across the product portfolio Achieved certification on the Ascend, CJ3 Gen2, and autothrottles on the M2 Gen2, all of which began deliveries by year end Strong Aftermarket performance with 6% growth Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. $1,796 $1,910 $2,033 2023 2024 2025 AFTERMARKET REVENUE ($M)
Page 12
Bell – Full Year Highlights ($ AMOUNTS IN MILLIONS) $3,579 $4,282 FY24 FY25 REVENUE $370 $363 FY24 FY25 SEGMENT PROFIT (1) 10.3% Profit Margin 8.5% Profit Margin Revenue up 20% for the full year Military revenue up 28% for the full year (second consecutive year of 20% growth in military) Strong commercial order flow $4,780 $7,469 $7,795 2023 2024 2025 BACKLOG Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. 12
Page 13
Textron Systems – Full Year Highlights ($ AMOUNTS IN MILLIONS) $1,241 $1,247 FY24 FY25 REVENUE $154 $175 FY24 FY25 SEGMENT PROFIT (1) 12.4% Profit Margin 14.0% Profit Margin Strong revenue performance in light of challenging headwinds (Shadow winddown, termination of development contracts) Excellent profit margin performance, up 160 bps YoY Awards across multiple domains drove $710 million of backlog growth YoY $1,950 $2,594 $3,304 2023 2024 2025 BACKLOG Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. 13
Page 14
Industrial – Full Year Highlights $3,515 $3,213 FY24 FY25 REVENUE 14 ($ AMOUNTS IN MILLIONS) $151 $145 FY24 FY25 SEGMENT PROFIT (1) 4.3% Profit Margin 4.5% Profit Margin Ended the year with positive organic growth in the fourth quarter at both Textron Specialized Vehicles and Kautex Streamlined portfolio through the divestiture of the powersports business Continued growth at Kautex in hybrid and battery electric vehicle offerings New products and opportunities at Textron Specialized Vehicles – e.g., Cushman Hauler XL and new business pursuits with PACE Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release.
Page 15
eAviation – Full Year Highlights $33 $27 FY24 FY25 REVENUE ($ AMOUNTS IN MILLIONS) ($76) ($63) FY24 FY25 SEGMENT PROFIT (1) Realigned business effective at the start of 2026 – Commercial platforms are now part of Textron Aviation – Manned and unmanned platforms for military programs, as well as related R&D activities, are now part of Textron Systems – R&D activities encompassing digital flight control and air vehicle management systems, which we expect will benefit several of our segments, will be reported within Corporate expenses Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. 15
Page 16
Textron Financial – Full Year Highlights $50 $75 FY24 FY25 REVENUE ($ AMOUNTS IN MILLIONS) $35 $49 FY24 FY25 SEGMENT PROFIT (1) Strong financial performance Current year results include $17 million in gains on the disposition of non-captive assets Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. 16
Page 17
Significant Investment for Growth $364 $383 $650 FY24 FY25 FY26E CAPITAL EXPENDITURES $491 $521 $480 FY24 FY25 FY26E RESEARCH & DEVELOPMENT COSTS • CONTINUED INVESTMENT IN PRODUCT DEVELOPMENT • ONGOING CAPEX TO SUPPORT THE BUSINESS AND GROWTH OPPORTUNITIES • LONG -TERM INVESTMENT FOCUS ACROSS DEFENSE AND COMMERCIAL Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. ($ AMOUNTS IN MILLIONS) 17
Page 18
III. 2026 Outlook 18
Page 19
2026 Full-Year Outlook Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Adjusted EPS and Manufacturing Cash Flow before Pension Contributions are non- GAAP measures that are defined and reconciled to GAAP in our earnings release. $6.40 - $6.60 Adjusted EPS (1) $700M - $800M Manufacturing Cash Flow Before Pension Contributions of ~$50M(1) ~$15.5B Revenue 19
Page 20
2026 Full-Year Outlook – Segment Details Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Reflects elimination of Textron eAviation as a separate reporting segment and realignment of its business activities within other segments. 2026E 2025 REPORTED 2025 RECAST (1) Segment Revenue Segment Profitability Revenue Segment Profitability / (Loss) Revenue Segment Profitability Textron Aviation ~$ 6.5B ~11% - 12% $ 6.0B 11.7% $ 6.0B 11.1% Bell ~$ 4.4B ~8% - 9% $ 4.3B 8.5% $ 4.3B 8.5% Textron Systems ~$ 1.35B ~12% - 13% $ 1.2B 14.0% $ 1.3B 13.1% Industrial ~$ 3.2B ~4.5% - 5.5% $ 3.2B 4.5% $ 3.2B 4.5% eAviation N/A N/A $ 27M ($ 63M) N/A N/A Finance ~$ 50M ~$ 20M $ 75M $ 49M $ 75M $ 49M 20
Page 21
2026 Full-Year Outlook – Other Items 21 ($ AMOUNTS IN MILLIONS) Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) See slide 33 for reconciliation of reported Corporate Expenses & Other, net to recasted amount. (2) Adjusted Income Tax Rate is a non-GAAP measure. The GAAP tax rates for 2026E and 2025 Recast are ~19.5% and 18.8% respective ly. 2026E 2025 RECAST Corporate Expenses & Other, net (1) ~$ 180 $ 172 Interest Expense, net for Manufacturing Group ~$ 140 $ 108 LIFO Inventory Provision ~$ 200 $ 199 Intangible Asset Amortization ~$ 30 $ 32 Special Charges - $(4) Non-service Pension Income ~$ 280 $ 266 Adj. Income Tax Rate (from continuing operations) (2) ~20.5% 19.9%
Page 22
2026 Full-Year Outlook – Other Items ($ AMOUNTS IN MILLIONS) 2026E 2025 REPORTED Research & Development % of Mfg Revenues ~$ 480 3.1% $ 521 3.5% CapEx ~$ 650 $ 383 Depreciation ~$ 400 $ 365 Diluted Average Share Count ~175M ~180M 22 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026.
Page 23
2026 Full-Year Outlook – Adjusted EBITDA 2026E 2025 REPORTED Income from Continuing Operations Before Income Taxes ~ $ 1,200 $ 1,137 Add: Interest Expense, net for Manufacturing group 140 108 Depreciation Expense 400 365 Intangible Asset Amortization 30 32 LIFO Inventory Provision 200 199 Special Charges - 4 Adjusted EBITDA (1) ~ $ 1,970 $ 1,845 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Adjusted EBITDA is a non-GAAP measure that is defined on slide 25. ($ AMOUNTS IN MILLIONS) 23
Page 24
2026 Full-Year Outlook – Pension 2026E 2025 REPORTED Discount Rates – U.S. Plans 5.65% 5.80% Assumed Long-Term Rate of Return 7.25% 7.25% Service Pension Cost/(Income) (1) ~$ 75M $ 74M Non-Service Pension Cost/(Income) ~(280M) (266M) Total Pension Cost/(Income) ~$ (205M) $ (192M) Pension Contributions ~$ 50M $ 41M Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Includes the cost associated with the defined contribution component included in certain of Textron's U.S. -based defined benefit pension plans. 24
Page 25
Non-GAAP Financial Measures We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures. These non-GAAP financial measures exclude certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures may be useful for period-over-period comparisons of underlying business trends and our ongoing business performance, however, they should be used in conjunction with GAAP measures. Our non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define similarly named measures differently. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. We utilize the following definitions for the non- GAAP financial measures included in this release and have provided a reconciliation of the GAAP to non-GAAP amounts for each measure: Adjusted Earnings Per Share Adjusted earnings per share excludes the following, net of tax: LIFO inventory provision, intangible asset amortization, special charges, and gains/losses on major business dispositions. LIFO inventory provision is excluded to improve comparability with other companies in our industry who have not elected to use the LIFO inventory costing method. Intangible asset amortization is excluded to improve comparability as the impact of such amortization can vary substantially from company to company depending upon the nature and extent of acquisitions and exclusion of this expense is consistent with the presentation of non-GAAP measures provided by other companies within our industry. Management believes that it is important for investors to understand that these acquired intangible assets were recorded as part of purchase accounting and contribute to revenue generation. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. Adjusted EBITDA Adjusted EBITDA represents income from continuing operations before income taxes adjusted to exclude the following: interest expense, net for Manufacturing group; depreciation expense; intangible asset amortization; LIFO inventory provision; and special charges. Interest expense, net for Manufacturing group is excluded as it is dependent on the company’s capital structure and can vary substantially between companies. Depreciation expense is a non-cash item that is also excluded as it can vary substantially between companies depending on the assumptions used regarding useful economic life, salvage value and depreciation method. Intangible asset amortization is excluded to improve comparability as the impact of such amortization can vary substantially from company to company depending upon the nature and extent of acquisitions and exclusion of this expense is consistent with the presentation of non-GAAP measures provided by other companies within our industry. LIFO inventory provision is excluded to improve comparability with other companies in our industry who have not elected to use the LIFO inventory costing method. We consider items recorded in special charges, such as enterprise-wide restructuring, certain asset impairment charges, and acquisition-related restructuring, integration and transaction costs, to be of a non-recurring nature that is not indicative of ongoing operations. 25
Page 26
IV . Recast of 2025 Financial Results for eAviation Segment Reporting Change 26
Page 27
2026 Segment Reporting Change Effective January 4, 2026, the beginning of our fiscal year, the business activities of the Textron eAviation segment were realigned within other Textron reporting segments resulting in the elimination of the Textron eAviation segment as a separate reporting segment. This realignment includes the following changes: – Commercial platforms are now part of Textron Aviation – Manned and unmanned platforms for military programs, as well as related R&D activities, are now part of Textron Systems – R&D activities encompassing digital flight control and air vehicle management systems, which we expect will benefit several of our segments, will be reported within Corporate expenses The new segment reporting structure will be reflected in the 10-Q for the first quarter of 2026. 27 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026.
Page 28
Full Year 2025 Reported To Recast Reconciliation – Revenues REPORTED REVENUES TEXTRON eAVIATION ADJUSTMENT (1) RECAST REVENUES Textron Aviation $ 5,955 $ 16 $ 5,971 Bell 4,282 - 4,282 Textron Systems 1,247 11 1,258 Industrial 3,213 - 3,213 Textron eAviation 27 (27) - Manufacturing 14,724 - 14,724 Finance 75 - 75 Total Revenues $ 14,799 - $ 14,799 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Reflects elimination of Textron eAviation as a separate reporting segment, and realignment of Textron eAviation’s financial results into other segments. ($ AMOUNTS IN MILLIONS) 28
Page 29
Full Year 2025 Reported to Recast Reconciliation – Segment Profit REPORTED SEGMENT PROFIT (1) TEXTRON eAVIATION ADJUSTMENT (2) RECAST SEGMENT PROFIT RECAST SEGMENT PROFIT MARGIN Textron Aviation $ 694 $ (30) $ 664 11.1% Bell 363 - 363 8.5% Textron Systems 175 (10) 165 13.1% Industrial 145 - 145 4.5% Textron eAviation (63) 63 - - Manufacturing 1,314 23 1,337 9.1% Finance 49 - 49 N/M Segment Profit $ 1,363 $ 23 $ 1,386 9.4% Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. (2) Reflects elimination of Textron eAviation as a separate reporting segment, and realignment of Textron eAviation’s financial results into other segments and corporate expenses (see slide 33 for recast corporate expenses). ($ AMOUNTS IN MILLIONS) 29
Page 30
Full Year 2025 Reported to Recast Reconciliation 2025 REPORTED TEXTRON eAVIATION ADJUSTMENT 2025 RECAST Segment Profit $ 1,363 $ 23 $ 1,386 Corporate Expenses (149) (23) (172) Interest Expense (108) - (108) LIFO Inventory Provision (199) - (199) Intangible Asset Amortization (32) - (32) Special Charges (4) - (4) Non-Service Pension Income 266 - 266 Income from Continuing Ops before tax 1,137 - 1,137 Income Tax Expense (214) - (214) Net Income from Continuing Ops $ 923 - $ 923 Earnings per share – GAAP $ 5.12 - $ 5.12 Adjusted Earnings per share – Non-GAAP $ 6.10 - $ 6.10 Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. (2) A portion of eAviation R&D costs, as described on slide 27, will be reported in Corporate Expenses as we expect these R&D activities to benefit severa l of our segments. (3) Adjusted EPS is a non-GAAP measure that is defined on slide 25. ($ AMOUNTS IN MILLIONS) 30
Page 31
Segment Profit Recast by Quarter – Textron Aviation Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. Q1 2025 Q2 2025 Q3 2025 Q4 2025 Reported Adjustments Recast Reported Adjustments Recast Reported Adjustments Recast Reported Adjustments Recast Revenues $ 1,212 $ 4 $ 1,216 $ 1,517 $ 5 $ 1,522 $ 1,477 $ 2 $ 1,479 $ 1,749 $ 5 $ 1,754 Cost of Sales (929) (4) (933) (1,171) (7) (1,178) (1,149) (4) (1,153) (1,388) (5) (1,393) R&D Costs (57) (3) (60) (53) (6) (59) (52) (3) (55) (52) (6) (58) S&A Expense (99) (2) (101) (113) (2) (115) (97) (2) (99) (101) (2) (103) Segment Profit (1) $ 127 $ (5) $ 122 $ 180 $ (10) $ 170 $ 179 $ (7) $ 172 $ 208 $ (8) $ 200 Profit Margin 10.5% 10.0% 11.9% 11.2% 12.1% 11.6% 11.9% 11.4% ($ AMOUNTS IN MILLIONS) 31
Page 32
Segment Profit Recast by Quarter – Textron Systems Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Segment Profit is a non-GAAP measure that is defined and reconciled to GAAP in our earnings release. Q1 2025 Q2 2025 Q3 2025 Q4 2025 Reported Adjustments Recast Reported Adjustments Recast Reported Adjustments Recast Reported Adjustments Recast Revenues $ 296 $ 3 $ 299 $ 321 $ 3 $ 324 $ 307 $ 3 $ 310 $ 323 $ 2 $ 325 Cost of Sales (219) (2) (221) (244) - (244) (235) (3) (238) (241) (2) (243) R&D Costs (8) (2) (10) (15) (1) (16) (10) (3) (13) (12) (2) (14) S&A Expense (29) (1) (30) (22) (2) (24) (10) (2) (12) (27) (1) (28) Segment Profit (1) $ 40 $ (2) $ 38 $ 40 - $ 40 $ 52 $ (5) $ 47 $ 43 $ (3) $ 40 Profit Margin 13.5% 12.7% 12.5% 12.3% 16.9% 15.2% 13.3% 12.3% ($ AMOUNTS IN MILLIONS) 32
Page 33
2025 Corporate Expenses Recast by Quarter Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Reported Corporate Expenses & Other $(43) $(36) $(26) $(44) $(149) Textron eAviation Adjustment (10) (6) (3) (4) (23) Recast Corporate Expenses & Other (1) $(53) $(42) $(29) $(48) $(172) Textron Inc. Q4 2025 Earnings Call Presentation: January 28, 2026. (1) Recast 2025 Corporate Expenses & Other reflects the reclassification of Textron eAviation-related expenses, including research and development costs. ($ AMOUNTS IN MILLIONS) 33