Jan 28 (Reuters) – Textron posted a rise in fourth-quarter results on Wednesday, as its mainstay aviation segment benefited from strong demand for aftermarket services and higher aircraft deliveries.
However, shares of the Rhode Island-based company fell 4% before the bell after its 2026 profit outlook came below Wall Street estimates.
The segment, which manufactures Cessna and Beechcraft aircraft, saw a 36% rise in quarterly revenue as the supply chain improved and production recovered from the disruption caused by last year’s work stoppage from the IAM union strike.
Robust demand for its aftermarket parts and services also buoyed profits in the aviation segment.
Textron Aviation delivered 49 jets in the quarter, up from 32 last year, and 43 commercial turboprops, an increase from 38 in the previous year.
The Bell unit, which makes helicopters and tiltrotors, posted an 11% rise in quarterly revenue.
The segment continued to benefit from higher military demand from the Bell MV-75 tiltrotor aircraft program with the U.S. Army, which offset weaker commercial demand.
The company forecast 2026 revenues of approximately $15.5 billion. Analysts on average expect it to post a revenue of $15.46 billion, according to data compiled by LSEG.
On an adjusted basis, annual profit is expected to range between $6.40 and $6.60 per share, compared to estimates of $6.84 per share.
For the quarter ended January 3, Textron’s adjusted profit stood at $1.73 per share, compared with $1.34 a piece last year, while its total revenue rose 16% to $4.18 billion.
Analysts on average expected quarterly profit of $1.70 per share and revenue of $4.10 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Vijay Kishore)
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