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SEC filingTextron delivered double-digit revenue growth and EPS expansion in Q1 2026, fueled by higher aviation and defense volumes including Citation jets, turboprops, and Bell's MV-75 program, while navigating cost inflation through pricing and supply chain strategies.
Net income rose 6.3% to $220 million, with diluted EPS expanding 10.6% to $1.25. Textron Aviation's segment profit improved due to higher aircraft volume and mix, though tempered by elevated selling, administrative, and warranty costs. These gains supported overall profitability despite pressures elsewhere. Cost of sales increased in line with volume expansion, reflecting higher net volume/mix and inflation impacts including LIFO provisions, which the company is addressing through ongoing pricing adjustments and supply chain optimization.
Operating cash flow showed seasonal use of $117 million, an improvement from $124 million prior year, as working capital efficiency offset inventory builds tied to production ramps. Management continues to allocate capital disciplinarily within its two separate borrowing groups for financings. The MV-75 program at Bell is accelerating toward a long-lead Low-Rate Initial Production award in late 2026 or early 2027, with the overall program expected to deliver positive margins post-adjustments.
These results underscore Textron's ability to leverage aviation and defense demand while managing cost headwinds, positioning the company for sustained performance amid strategic program advancements.