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Textron: Can Industrial Separation Unlock A Pure-Play A&D Growth Story?

Textron Inc. reported a solid start to fiscal 2026, with first-quarter revenue of $3.7 billion, a 12% increase year-over-year, and segment profit rising 10% to $320 million. Adjusted earnings per share rose 13% to $1.45. The company’s Aerospace and Defense (A&D) businesses showed robust performance, marked by strong commercial orders at both Textron Aviation and Bell, contributing to a growing backlog totaling $19.2 billion exclusively in A&D. Key growth drivers include a substantial expansion in Textron Aviation’s backlog—up more than fourfold since 2019 to $8 billion—and Bell’s progress on the MV-75 Cheyenne program, which is moving toward prototype deliveries and production ramp-up, supported by heightened U.S. military funding projections. Textron Systems also recorded double-digit revenue growth, bolstered by programs including Ship-to-Shore and Advanced Training systems. A major strategic development announced is the planned separation of Textron’s Industrial segment, housing Kautex and Textron Specialized Vehicles, from its A&D operations.