Detailed financial statements for Textron Inc. (TXT): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Textron Inc. (TXT) is a diverse global enterprise with significant involvement in the aerospace, defense, industrial, and financial sectors. Its Textron Aviation division is responsible for the production, sale, and maintenance of a variety of aircraft, including corporate jets, turboprop and piston-engine planes, and military trainer and defense aircraft.
Analysis Summary
Textron Inc. reported revenue of $14.80B in the most recent fiscal year, growing at a 5-year CAGR of 4.9%. Net income reached $921.0M, with a 24.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 16.5%, operating margin 8.3%, net margin 6.1%. Free cash flow grew at 5.5% CAGR over 5 years.
At the current price of $77.27, TXT trades at a P/E of 14.58 and an ROE of 11.93%. Market capitalisation stands at $13.3B, placing it among large-cap names.
Balance sheet quality for TXT: current ratio of 1.8, net debt of $2.26B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $884.0M represents 96% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $13.79B | $14.20B | $13.97B | $13.63B | $11.65B | $12.38B | $12.87B | $13.68B | $13.70B | $14.80B |
| Cost of Revenue | $11.34B | $11.83B | $11.59B | $11.41B | $10.09B | $10.30B | $10.20B | $10.84B | $11.20B | $12.10B |
| Gross Profit | $2.45B | $2.37B | $2.38B | $2.22B | $1.56B | $2.08B | $2.67B | $2.85B | $2.50B | $2.69B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | $619.0M | $601.0M | $570.0M | $491.0M | $521.0M |
| Selling, General & Admin | $1.32B | $1.33B | $1.27B | $1.15B | $1.04B | $1.22B | $1.19B | $1.23B | $1.16B | $1.17B |
| Operating Expenses | $1.32B | $1.33B | $1.27B | $1.15B | $1.56B | $1.22B | $1.79B | $1.79B | $1.65B | $1.69B |
| Operating Income | $1.13B | $1.04B | $1.10B | $1.07B | 0 | $864.0M | $883.0M | $1.05B | $855.0M | $1.00B |
| EBITDA | $1.50B | $1.38B | $1.99B | $1.53B | $839.0M | $1.41B | $1.52B | $1.56B | $1.42B | $1.66B |
| Interest Expense | $174.0M | $174.0M | $166.0M | $171.0M | $166.0M | $142.0M | $107.0M | $77.0M | $97.0M | $126.0M |
| Pre-tax Income | $876.0M | $762.0M | $1.38B | $942.0M | $282.0M | $873.0M | $1.02B | $1.09B | $943.0M | $1.14B |
| Income Tax | $33.0M | $456.0M | $162.0M | $127.0M | -$27.0M | $126.0M | $154.0M | $165.0M | $118.0M | $214.0M |
| Net Income | $962.0M | $307.0M | $1.22B | $815.0M | $309.0M | $746.0M | $861.0M | $921.0M | $824.0M | $921.0M |
| EPS | $3.56 | $1.17 | $4.83 | $3.52 | $1.35 | $3.33 | $4.05 | $4.62 | $4.38 | $5.12 |
| EPS (Diluted) | $3.53 | $1.14 | $4.83 | $3.50 | $1.35 | $3.30 | $4.01 | $4.56 | $4.33 | $5.11 |
| Shares Outstanding (Diluted) | $272.4M | $268.8M | $253.2M | $228.0M | $226.4M | $216.9M | $215.0M | $201.8M | $190.3M | $180.3M |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $1.30B | $1.26B | $1.11B | $1.36B | $2.25B | $2.12B | $2.04B | $2.18B | $1.44B | $2.02B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $1.06B | $1.36B | $1.02B | $921.0M | $787.0M | $838.0M | $855.0M | $868.0M | $949.0M | $823.0M |
| Inventory | $4.46B | $4.15B | $3.82B | $4.07B | $3.51B | $3.47B | $3.55B | $3.91B | $4.07B | $4.28B |
| Total Current Assets | $7.21B | $7.21B | $6.73B | $7.24B | $7.50B | $7.44B | $7.47B | $7.82B | $7.15B | $8.00B |
| Property, Plant & Equipment | $2.58B | $2.72B | $2.62B | $2.80B | $2.87B | $2.91B | $2.90B | $2.85B | $2.89B | $2.98B |
| Goodwill | $2.11B | $2.36B | $2.22B | $2.15B | $2.16B | $2.15B | $2.28B | $2.29B | $2.29B | $2.32B |
| Intangible Assets | $767.0M | $765.0M | $658.0M | $589.0M | $489.0M | $438.0M | $461.0M | $399.0M | $362.0M | $338.0M |
| Total Assets | $15.36B | $15.34B | $14.26B | $15.02B | $15.40B | $15.83B | $16.29B | $16.86B | $16.84B | $18.13B |
| Accounts Payable | $1.27B | $1.21B | $1.10B | $1.38B | $776.0M | $786.0M | $1.02B | $1.02B | $943.0M | $1.19B |
| Short-term Debt | $363.0M | $14.0M | $258.0M | $776.0M | $585.0M | $62.0M | $61.0M | $412.0M | $412.0M | $63.0M |
| Total Current Liabilities | $3.89B | $3.66B | $3.51B | $4.01B | $3.30B | $3.14B | $3.67B | $4.38B | $4.39B | $4.35B |
| Long-term Debt | $3.32B | $3.90B | $3.53B | $3.04B | $3.79B | $3.76B | $3.55B | $3.52B | $3.23B | $3.87B |
| Total Liabilities | $9.78B | $9.69B | $9.07B | $9.50B | $9.55B | $9.01B | $9.18B | $9.87B | $9.63B | $10.25B |
| Retained Earnings | $5.55B | $5.37B | $5.41B | $5.68B | $5.97B | $5.87B | $5.90B | $5.86B | $5.61B | $5.78B |
| Total Equity | $5.57B | $5.65B | $5.19B | $5.52B | $5.84B | $6.82B | $7.11B | $6.99B | $7.20B | $7.88B |
| Total Debt | $3.68B | $3.91B | $3.78B | $4.09B | $4.72B | $4.15B | $3.94B | $4.25B | $3.96B | $4.28B |
| Net Debt | $2.38B | $2.65B | $2.68B | $2.73B | $2.47B | $2.03B | $1.90B | $2.07B | $2.52B | $2.26B |
| Working Capital | $3.32B | $3.55B | $3.23B | $3.23B | $4.21B | $4.30B | $3.80B | $3.44B | $2.75B | $3.65B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2026-Q1 | 2026-Q2 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $1.52B | $2.02B | $1.61B | $1.61B |
| Total Assets | $17.38B | $18.13B | $18.14B | $18.13B |
| Total Liabilities | $9.89B | $10.25B | $10.14B | $10.08B |
| Total Equity | $7.49B | $7.88B | $8.00B | $8.05B |
| Total Debt | $3.73B | $3.88B | $3.81B | $3.81B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $698.0M | $843.0M | $306.0M | $1.22B | $815.0M | $309.0M | $747.0M | $922.0M | $922.0M | $1.60B |
| Depreciation & Amortization | $444.0M | $434.0M | $431.0M | $424.0M | $405.0M | $379.0M | $376.0M | $395.0M | $392.0M | $391.0M |
| Stock-based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Working Capital | -$175.0M | -$458.0M | -$273.0M | -$305.0M | -$398.0M | -$119.0M | $355.0M | -$38.0M | -$287.0M | -$121.0M |
| Operating Cash Flow | $1.09B | $1.01B | $936.0M | $1.11B | $1.01B | $768.0M | $1.60B | $1.27B | $1.27B | $1.27B |
| Capital Expenditure | -$420.0M | -$446.0M | -$423.0M | -$369.0M | -$339.0M | -$317.0M | -$375.0M | -$402.0M | -$402.0M | -$384.0M |
| Acquisitions | -$81.0M | -$186.0M | -$331.0M | $784.0M | -$2.0M | $18.0M | $41.0M | -$1.0M | $17.0M | -$10.0M |
| Stock Repurchased | -$219.0M | -$241.0M | -$582.0M | -$1.78B | -$503.0M | -$183.0M | -$921.0M | -$1.17B | -$1.17B | -$1.08B |
| Dividends Paid | -$22.0M | -$22.0M | -$21.0M | -$20.0M | -$18.0M | -$18.0M | -$18.0M | -$16.0M | -$16.0M | -$19.0M |
| Free Cash Flow | $670.0M | $566.0M | $513.0M | $738.0M | $675.0M | $451.0M | $1.22B | $864.0M | $864.0M | $884.0M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2026-Q1 | 2026-Q2 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $349.0M | $700.0M | -$117.0M | $304.0M |
| Capital Expenditure | -$76.0M | -$173.0M | -$133.0M | -$95.0M |
| Free Cash Flow | $273.0M | $527.0M | -$250.0M | $209.0M |
| Dividends Paid | -$4.0M | -$7.0M | -$3.0M | -$4.0M |
| Stock-based Compensation | 0 | 0 | 0 | 0 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +3.0% | -1.6% | -2.4% | -14.5% | +6.3% | +3.9% | +6.3% | +0.1% | +8.0% | |
| Net Income Growth (YoY) | -68.1% | +298.0% | -33.3% | -62.1% | +141.4% | +15.4% | +7.0% | -10.5% | +11.8% | |
| EPS Growth (YoY) | -67.1% | +312.8% | -27.1% | -61.6% | +146.7% | +21.6% | +14.1% | -5.2% | +16.9% | |
| Shares Change (YoY) | -1.3% | -5.8% | -10.0% | -0.7% | -4.2% | -0.9% | -6.1% | -5.7% | -5.3% | |
| FCF Growth (YoY) | -15.5% | -9.4% | +43.9% | -8.5% | -33.2% | +171.2% | -29.4% | +0.0% | +2.3% | |
| Gross Margin | 17.8% | 16.7% | 17.0% | 16.3% | 13.4% | 16.8% | 20.7% | 20.8% | 18.3% | 18.2% |
| Operating Margin | 8.2% | 7.3% | 7.9% | 7.9% | 0.0% | 7.0% | 6.9% | 7.7% | 6.2% | 6.8% |
| EBITDA Margin | 10.9% | 9.7% | 14.2% | 11.2% | 7.2% | 11.3% | 11.8% | 11.4% | 10.4% | 11.2% |
| Net Margin | 7.0% | 2.2% | 8.7% | 6.0% | 2.7% | 6.0% | 6.7% | 6.7% | 6.0% | 6.2% |
| FCF Margin | 4.9% | 4.0% | 3.7% | 5.4% | 5.8% | 3.6% | 9.5% | 6.3% | 6.3% | 6.0% |
| Effective Tax Rate | 3.8% | 59.8% | 11.7% | 13.5% | -9.6% | 14.4% | 15.2% | 15.2% | 12.5% | 18.8% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $2.46 | $2.11 | $2.03 | $3.24 | $2.98 | $2.08 | $5.69 | $4.28 | $4.54 | $4.90 |
| Dividends Per Share | $0.08 | $0.08 | $0.08 | $0.09 | $0.08 | $0.08 | $0.08 | $0.08 | $0.08 | $0.11 |
| Shares Outstanding (Basic) | $270.3M | $261.5M | $253.2M | $228.0M | $226.4M | $216.9M | $212.8M | $201.5M | $189.9M | $179.9M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 11.93% |
| Return on Invested Capital | 7.42% |
| Return on Assets | 5.17% |
| Gross Margin | 16.50% |
| Operating Margin | 8.33% |
| Net Margin | 6.12% |
Financial Health
| Debt / Equity | 0.47 |
| Current Ratio | 1.86 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 2.60 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 13.64 | 48.37 | 9.52 | 12.67 | 35.80 | 23.18 | 17.48 | 17.41 | 17.63 | 17.00 |
| P/B | 2.35 | 2.62 | 2.24 | 1.84 | 1.87 | 2.46 | 2.12 | 2.32 | 2.03 | 1.99 |
| P/S | 0.95 | 1.04 | 0.83 | 0.75 | 0.94 | 1.35 | 1.17 | 1.18 | 1.07 | 1.06 |
| Gross Margin | 17.8% | 16.7% | 17.0% | 16.3% | 13.4% | 16.8% | 20.7% | 20.8% | 18.3% | 18.2% |
| Operating Margin | 8.2% | 7.3% | 7.9% | 7.9% | 0.0% | 7.0% | 6.9% | 7.7% | 6.2% | 6.8% |
| Net Margin | 7.0% | 2.2% | 8.7% | 6.0% | 2.7% | 6.0% | 6.7% | 6.7% | 6.0% | 6.2% |
Related companies: ALLE · AVY · CSL · ERJ · HII · KTOS · LTM
Explore sector: Industrials · Aerospace & Defense
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