Textron Reports Strong Q2 Earnings but Shares Fall Amid Funding Risks
Textron Inc. (NYSE:TXT) reported second-quarter earnings that beat analyst expectations, with adjusted EPS of $1.62 compared to the estimated $1.54 and revenue reaching $3.8 billion—up 3% year-over-year. Despite this positive performance, shares fell in pre-market trading due to concerns over potential funding risks for its MV-75 Cheyenne programme. The company maintained its full-year adjusted EPS guidance of $6.40–$6.60 but noted that without additional fiscal 2026 government funding for the programme, earnings could drop by up to $0.30 per share and cash flow may decline between $150 million and $250 million. Textron's segments showed mixed results: Textron Aviation saw a revenue increase but lower segment profit due to manufacturing inefficiencies; Bell improved sales from military demand, though profits dipped slightly; while Textron Systems delivered strong growth in both revenue and profitability.
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