Textron Reports $1.54B Q2 Revenue, Focuses on Efficiency

Business jet makers reported strong results. General Dynamics’ Gulfstream posted a “special quarter” with Aerospace revenue up 15% to $3.5bn, margins up to 14.5%, and $5.3bn in new orders. Bombardier Q2 revenue rose 6% to $2.15bn, adjusted net income to $257m, free cash flow to $228m, backlog to $21.8bn. Dassault and Textron also reported figures.

By Aatreyee Dasgupta July 28 (Reuters) - Textron beat second-quarter profit and revenue estimates on Tuesday, owing to higher aircraft pricing, but productivity issues at its aviation unit weighed on jet deliveries, sending its shares down more than 6% in morning trading. The business jet maker's larger aviation segment, which manufactures the Cessna jet and Beechcraft aircraft, delivered nine jets fewer than a year ago.

Textron CEO Lisa Atherton said about 50% of Textron Aviation’s workforce joined in the past five years, up from under 30% in 2019, reflecting post-pandemic labor shortages. On its Q2 earnings call, Textron reported $1.5B revenue, $165M profit, and 11.2% margin, citing inefficiencies. The company aims to raise jet output to about 200 annually by late 2027, investing in capacity, process and suppliers, with an $8B backlog.

Textron Aviation reported Q2 revenue of $1.5bn, up 1% y/y, as jet deliveries fell to 40 from 49 while commercial turboprops rose to 44 from 34. Segment profit was $165m, down 3%, due to manufacturing inefficiencies and lower volume. Backlog held at $8bn. Management guided similar Q3 revenue profile and margin improvement in Q4, and initiated a sale process for its Industrial segment.

Textron said it will self-fund some MV-75 tiltrotor program activities while awaiting a U.S. Army above-threshold reprogramming request to Congress. CEO Lisa Atherton expects approval could slip until September. CFO Dave Rosenberg said failure to receive reprogramming could cut full-year results by 20-30 cents per share and reduce cash by $150-250 million.

Textron’s Q2 2026 earnings call focused on separating its Industrial segment to become a pure-play aerospace and defense firm. Management cited Aviation margin pressure from manufacturing inefficiencies and supplier issues, with margin growth expected in Q4 2026 and incremental margins targeting 20% to 25% in 2027. MV-75 Cheyenne funding is central, with $350M additional FY2026 funding assumed and potential EPS and cash flow impacts if reprogramming is denied.