# EDGAR Filing Document

**Accession Number:** 0000217346
**File Stem:** 0000217346-25-000077
**Filing Date:** 2025-10
**Character Count:** 132041
**Document Hash:** 6db3b84adc0dc777d9890a932bd5c675
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000217346-25-000077.hdr.sgml**: 20251023

**ACCESSION NUMBER**: 0000217346-25-000077

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 77

**CONFORMED PERIOD OF REPORT**: 20250927

**FILED AS OF DATE**: 20251023

**DATE AS OF CHANGE**: 20251023

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TEXTRON INC
- **CENTRAL INDEX KEY:** 0000217346
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIRCRAFT & PARTS [3720]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 050315468
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0103

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-05480
- **FILM NUMBER:** 251412092

**BUSINESS ADDRESS:**
- **STREET 1:** 40 WESTMINSTER ST
- **CITY:** PROVIDENCE
- **STATE:** RI
- **ZIP:** 02903
- **BUSINESS PHONE:** 4014212800

**MAIL ADDRESS:**
- **STREET 1:** 40 WESTMINSTER ST
- **CITY:** PROVIDENCE
- **STATE:** RI
- **ZIP:** 02903

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN TEXTRON INC
- **DATE OF NAME CHANGE:** 19710510

?xml version='1.0' encoding='ASCII'? txt-20250927

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended September 27, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ______ to ______.**

**Commission File Number 1-5480**

**Textron Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **<u>Delaware</u>** | **<u>05-0315468</u>** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **<u>40 Westminster Street, Providence, RI</u>** | **<u>02903</u>** |
| (Address of principal executive offices) | (Zip code) |

---

**<u>(401) 421-2800</u>**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol (s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common stock, $0.125 par value | TXT | New York Stock Exchange (NYSE) |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗹 No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗹 No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act (Check one):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Large accelerated filer | 🗹 | Accelerated filer | **☐** | Non-accelerated filer | **☐** |
| Smaller reporting company | **☐** | | | Emerging growth company | **☐** |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes **☐** No 🗹

As of October 10, 2025, there were 176,224,064 shares of common stock outstanding.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**TEXTRON INC.**

**Index to Form 10-Q**

**For the Quarterly Period Ended September 27, 2025** 

**&nbsp;&nbsp;&nbsp;&nbsp;**

---

| | | |
|:---|:---|:---|
| | | Page |
| <u>[PART I.](#ic006bc7e740d4a32a9511b6fbdcb63c3_10)</u> | <u>[FINANCIAL INFORMATION](#ic006bc7e740d4a32a9511b6fbdcb63c3_10)</u> |  |
| <u>[Item 1.](#ic006bc7e740d4a32a9511b6fbdcb63c3_13)</u> | <u>[Financial Statements](#ic006bc7e740d4a32a9511b6fbdcb63c3_13)</u> |  |
|  | &nbsp;&nbsp;<u>[Consolidated Statements of Operations (Unaudited)](#ic006bc7e740d4a32a9511b6fbdcb63c3_16)</u> | [3](#ic006bc7e740d4a32a9511b6fbdcb63c3_16) |
|  | &nbsp;&nbsp;<u>[Consolidated Statements of Comprehensive Income (Unaudited)](#ic006bc7e740d4a32a9511b6fbdcb63c3_19)</u> | [4](#ic006bc7e740d4a32a9511b6fbdcb63c3_19) |
|  | &nbsp;&nbsp;<u>[Consolidated Balance Sheets (Unaudited)](#ic006bc7e740d4a32a9511b6fbdcb63c3_22)</u> | [5](#ic006bc7e740d4a32a9511b6fbdcb63c3_22) |
|  | &nbsp;&nbsp;<u>[Consolidated Statements of Cash Flows (Unaudited)](#ic006bc7e740d4a32a9511b6fbdcb63c3_25)</u> | [6](#ic006bc7e740d4a32a9511b6fbdcb63c3_25) |
|  | &nbsp;&nbsp;<u>[Notes to the Consolidated Financial Statements (Unaudited)](#ic006bc7e740d4a32a9511b6fbdcb63c3_31)</u> | [8](#ic006bc7e740d4a32a9511b6fbdcb63c3_31) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 1.&nbsp;&nbsp;&nbsp;&nbsp; Basis of Presentation](#ic006bc7e740d4a32a9511b6fbdcb63c3_34)</u> | [8](#ic006bc7e740d4a32a9511b6fbdcb63c3_34) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 2.&nbsp;&nbsp;&nbsp;&nbsp; Accounts Receivable and Finance Receivables](#ic006bc7e740d4a32a9511b6fbdcb63c3_37)</u> | [9](#ic006bc7e740d4a32a9511b6fbdcb63c3_37) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 3.&nbsp;&nbsp;&nbsp;&nbsp; Inventories](#ic006bc7e740d4a32a9511b6fbdcb63c3_40)</u> | [10](#ic006bc7e740d4a32a9511b6fbdcb63c3_40) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 4.&nbsp;&nbsp;&nbsp;&nbsp; Accounts Payable and Warranty Liability](#ic006bc7e740d4a32a9511b6fbdcb63c3_43)</u> | [10](#ic006bc7e740d4a32a9511b6fbdcb63c3_43) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 5.&nbsp;&nbsp;&nbsp;&nbsp; Leases](#ic006bc7e740d4a32a9511b6fbdcb63c3_46)</u> | [10](#ic006bc7e740d4a32a9511b6fbdcb63c3_46) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 6.&nbsp;&nbsp;&nbsp;&nbsp; Debt](#ic006bc7e740d4a32a9511b6fbdcb63c3_49)</u> | [11](#ic006bc7e740d4a32a9511b6fbdcb63c3_49) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 7.&nbsp;&nbsp;&nbsp;&nbsp; Derivative Instruments and Fair Value Measurements](#ic006bc7e740d4a32a9511b6fbdcb63c3_52)</u> | [11](#ic006bc7e740d4a32a9511b6fbdcb63c3_52) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 8.&nbsp;&nbsp;&nbsp;&nbsp; Shareholders' Equity](#ic006bc7e740d4a32a9511b6fbdcb63c3_55)</u> | [13](#ic006bc7e740d4a32a9511b6fbdcb63c3_55) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 9.&nbsp;&nbsp;&nbsp;&nbsp; Segment Financial Information](#ic006bc7e740d4a32a9511b6fbdcb63c3_58)</u> | [16](#ic006bc7e740d4a32a9511b6fbdcb63c3_58) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 10. Revenues](#ic006bc7e740d4a32a9511b6fbdcb63c3_61)</u> | [18](#ic006bc7e740d4a32a9511b6fbdcb63c3_61) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 11. Retirement Plans](#ic006bc7e740d4a32a9511b6fbdcb63c3_67)</u> | [20](#ic006bc7e740d4a32a9511b6fbdcb63c3_67) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 12. Special Charges](#ic006bc7e740d4a32a9511b6fbdcb63c3_70)</u> | [20](#ic006bc7e740d4a32a9511b6fbdcb63c3_70) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 13. Income Taxes](#ic006bc7e740d4a32a9511b6fbdcb63c3_73)</u> | [21](#ic006bc7e740d4a32a9511b6fbdcb63c3_73) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 14. Commitments and Contingencies](#ic006bc7e740d4a32a9511b6fbdcb63c3_76)</u> | [21](#ic006bc7e740d4a32a9511b6fbdcb63c3_76) |
| <u>[Item 2.](#ic006bc7e740d4a32a9511b6fbdcb63c3_79)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic006bc7e740d4a32a9511b6fbdcb63c3_79)</u> | [22](#ic006bc7e740d4a32a9511b6fbdcb63c3_79) |
| <u>[Item 3.](#ic006bc7e740d4a32a9511b6fbdcb63c3_97)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#ic006bc7e740d4a32a9511b6fbdcb63c3_97)</u> | [33](#ic006bc7e740d4a32a9511b6fbdcb63c3_97) |
| <u>[Item 4.](#ic006bc7e740d4a32a9511b6fbdcb63c3_100)</u> | <u>[Controls and Procedures](#ic006bc7e740d4a32a9511b6fbdcb63c3_100)</u> | [33](#ic006bc7e740d4a32a9511b6fbdcb63c3_100) |
| <u>[PART II.](#ic006bc7e740d4a32a9511b6fbdcb63c3_103)</u> | <u>[OTHER INFORMATION](#ic006bc7e740d4a32a9511b6fbdcb63c3_103)</u> |  |
| <u>[Item 1A.](#ic006bc7e740d4a32a9511b6fbdcb63c3_106)</u> | <u>[Risk Factors](#ic006bc7e740d4a32a9511b6fbdcb63c3_106)</u> | [33](#ic006bc7e740d4a32a9511b6fbdcb63c3_109) |
| <u>[Item 2.](#ic006bc7e740d4a32a9511b6fbdcb63c3_109)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ic006bc7e740d4a32a9511b6fbdcb63c3_109)</u> | [33](#ic006bc7e740d4a32a9511b6fbdcb63c3_109) |
| <u>[Item 5.](#ic006bc7e740d4a32a9511b6fbdcb63c3_112)</u> | <u>[Other Information](#ic006bc7e740d4a32a9511b6fbdcb63c3_112)</u> | [33](#ic006bc7e740d4a32a9511b6fbdcb63c3_112) |
| <u>[Item 6.](#ic006bc7e740d4a32a9511b6fbdcb63c3_115)</u> | <u>[Exhibits](#ic006bc7e740d4a32a9511b6fbdcb63c3_115)</u> | [34](#ic006bc7e740d4a32a9511b6fbdcb63c3_115) |
|  | <u>[Signatures](#ic006bc7e740d4a32a9511b6fbdcb63c3_118)</u> | [35](#ic006bc7e740d4a32a9511b6fbdcb63c3_118) |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**PART I. FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**TEXTRON INC.**

**Consolidated Statements of Operations (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions, except per share amounts)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| **Revenues** |  |  |  |  |
| Manufacturing product revenues | $3114 | $2955 | $9082 | $8229 |
| Manufacturing service revenues | 462 | 460 | 1485 | 1821 |
| Finance revenues | 26 | 12 | 57 | 39 |
| Total revenues | 3602 | 3427 | 10624 | 10089 |
| **Costs, expenses and other** |  |  |  |  |
| Cost of products sold | 2597 | 2462 | 7504 | 6668 |
| Cost of services sold | 351 | 347 | 1123 | 1445 |
| Research and development costs | 118 | 126 | 387 | 375 |
| Selling and administrative expense | 257 | 282 | 858 | 891 |
| Interest expense, net | 30 | 26 | 90 | 71 |
| Special charges |  | (2) | 4 | 25 |
| Non-service components of pension and postretirement income, net | (67) | (66) | (200) | (198) |
| Total costs, expenses and other | 3286 | 3175 | 9766 | 9277 |
| Income from continuing operations before income taxes | 316 | 252 | 858 | 812 |
| Income tax expense | 81 | 29 | 171 | 128 |
| **Income from continuing operations** | 235 | 223 | 687 | 684 |
| Loss from discontinued operations | (1) |  | (1) | (1) |
| **Net income** | $234 | $223 | $686 | $683 |
| **Basic earnings per share** |  |  |  |  |
| Continuing operations | $1.32 | $1.19 | $3.81 | $3.60 |
| **Diluted earnings per share** |  |  |  |  |
| Continuing operations | $1.31 | $1.18 | $3.79 | $3.56 |

---

See Notes to the Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**TEXTRON INC.**

**Consolidated Statements of Comprehensive Income (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| **Net income** | $234 | $223 | $686 | $683 |
| **Other comprehensive income (loss), net of tax** |  |  |  |  |
| Pension and postretirement benefits adjustments, net of reclassifications |  |  |  | 2 |
| Foreign currency translation adjustments, net of reclassifications | (1) | 59 | 130 | 12 |
| Deferred gains (losses) on hedge contracts, net of reclassifications | (3) | 2 | 1 | (2) |
| Other comprehensive income (loss) | (4) | 61 | 131 | 12 |
| **Comprehensive income** | $230 | $284 | $817 | $695 |

---

See Notes to the Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**TEXTRON INC.**

**Consolidated Balance Sheets (Unaudited)**

---

| | | |
|:---|:---|:---|
| *(Dollars in millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| **Assets** |  |  |
| **Manufacturing group** |  |  |
| Cash and equivalents | $1446 | $1386 |
| Accounts receivable, net | 1057 | 949 |
| Inventories | 4464 | 4071 |
| Other current assets | 775 | 687 |
| **Total current assets** | 7742 | 7093 |
| Property, plant and equipment, less accumulated depreciation <br>&nbsp;&nbsp;&nbsp;&nbsp;and amortization of $5,721 and $5,471, respectively | 2475 | 2529 |
| Goodwill | 2321 | 2288 |
| Other assets | 4155 | 4248 |
| **Total Manufacturing group assets** | 16693 | 16158 |
| **Finance group** |  |  |
| Cash and equivalents | 76 | 55 |
| Finance receivables, net | 596 | 603 |
| Other assets | 16 | 22 |
| **Total Finance group assets** | 688 | 680 |
| **Total assets** | $17381 | $16838 |
| **Liabilities and shareholders' equity** |  |  |
| **Liabilities** |  |  |
| **Manufacturing group** |  |  |
| Current portion of long-term debt | $356 | $357 |
| Accounts payable | 1199 | 943 |
| Other current liabilities | 3024 | 3094 |
| **Total current liabilities** | 4579 | 4394 |
| Other liabilities | 1884 | 1945 |
| Long-term debt | 3038 | 2890 |
| **Total Manufacturing group liabilities** | 9501 | 9229 |
| **Finance group** |  |  |
| Other liabilities | 47 | 64 |
| Debt | 340 | 341 |
| **Total Finance group liabilities** | 387 | 405 |
| **Total liabilities** | 9888 | 9634 |
| **Shareholders' equity** |  |  |
| Common stock | 23 | 23 |
| Capital surplus | 2083 | 1960 |
| Treasury stock | (722) | (82) |
| Retained earnings | 6282 | 5607 |
| Accumulated other comprehensive loss | (173) | (304) |
| **Total shareholders' equity** | 7493 | 7204 |
| **Total liabilities and shareholders' equity** | $17381 | $16838 |
| Common shares outstanding (in thousands) | 176139 | 182964 |

---

See Notes to the Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**TEXTRON INC.**

**Consolidated Statements of Cash Flows (Unaudited)**

**For the Nine Months Ended September 27, 2025 and September 28, 2024, respectively**

---

| | | |
|:---|:---|:---|
| | **Consolidated** | **Consolidated** |
| *(In millions)* | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Income from continuing operations | $687 | $684 |
| Adjustments to reconcile income from continuing operations to <br>net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Non-cash items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 289 | 279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 124 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on business disposition | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 101 | 88 |
| &nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (126) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (437) | (471) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (5) | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 262 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (46) | (77) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net | (39) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension, net | (174) | (169) |
| &nbsp;&nbsp;&nbsp;&nbsp;Captive finance receivables, net | (30) | 4 |
| &nbsp;&nbsp;Other operating activities, net | 11 | 18 |
| Net cash provided by operating activities of continuing operations | 613 | 569 |
| Net cash used in operating activities of discontinued operations | (1) | (1) |
| Net cash provided by operating activities | 612 | 568 |
| **Cash flows from investing activities** |  |  |
| Capital expenditures | (210) | (211) |
| Net proceeds from corporate-owned life insurance policies | 77 | 27 |
| Net proceeds from business disposition | 16 |  |
| Proceeds from sale of property, plant and equipment | 9 | 3 |
| Net cash used in business acquisitions | (1) | (13) |
| Finance receivables repaid | 22 | 23 |
| Finance receivables originated | (40) | (18) |
| Proceeds from the disposition of non-captive assets | 66 |  |
| Other investing activities, net | 16 |  |
| Net cash used in investing activities | (45) | (189) |
| **Cash flows from financing activities** |  |  |
| Net proceeds from long-term debt | 495 |  |
| Principal payments on long-term debt and nonrecourse debt | (367) | (375) |
| Purchases of Textron common stock | (635) | (890) |
| Proceeds from options exercised | 25 | 84 |
| Dividends paid | (11) | (8) |
| Other financing activities, net | (14) | (25) |
| Net cash used in financing activities | (507) | (1214) |
| Effect of exchange rate changes on cash and equivalents | 21 | 1 |
| **Net increase (decrease) in cash and equivalents** | 81 | (834) |
| **Cash and equivalents at beginning of period** | 1441 | 2181 |
| **Cash and equivalents at end of period** | $1522 | $1347 |

---

See Notes to the Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**TEXTRON INC.**

**Consolidated Statements of Cash Flows (Unaudited) (Continued)**

**For the Nine Months Ended September 27, 2025 and September 28, 2024, respectively**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Manufacturing Group** | **Manufacturing Group** | **Finance Group** | **Finance Group** |
| *(In millions)* | **2025** | **2024** | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |  |
| Income from continuing operations | $655 | $660 | $32 | $24 |
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;Non-cash items: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 289 | 279 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 144 | (17) | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on business disposition | (4) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 101 | 100 |  | (12) |
| &nbsp;&nbsp;Changes in assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (126) | (21) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (437) | (471) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (4) | 170 | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 262 | 77 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (37) | (70) | (9) | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net | (51) | 5 | 12 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension, net | (174) | (169) |  |  |
| &nbsp;&nbsp;Other operating activities, net | 11 | 18 |  |  |
| Net cash provided by operating activities of continuing operations | 629 | 561 | 14 | 4 |
| Net cash used in operating activities of discontinued operations | (1) | (1) |  |  |
| Net cash provided by operating activities | 628 | 560 | 14 | 4 |
| **Cash flows from investing activities** |  |  |  |  |
| Capital expenditures | (210) | (211) |  |  |
| Net proceeds from corporate-owned life insurance policies | 77 | 27 |  |  |
| Net proceeds from business disposition | 16 |  |  |  |
| Proceeds from sale of property, plant and equipment | 9 | 3 |  |  |
| Net cash used in business acquisitions | (1) | (13) |  |  |
| Finance receivables repaid |  |  | 119 | 99 |
| Finance receivables originated |  |  | (167) | (90) |
| Proceeds from the disposition of non-captive assets |  |  | 66 |  |
| Other investing activities, net | 15 |  | 1 |  |
| Net cash provided by (used in) investing activities | (94) | (194) | 19 | 9 |
| **Cash flows from financing activities** |  |  |  |  |
| Net proceeds from long-term debt | 495 |  |  |  |
| Principal payments on long-term debt and nonrecourse debt | (355) | (360) | (12) | (15) |
| Purchases of Textron common stock | (635) | (890) |  |  |
| Proceeds from options exercised | 25 | 84 |  |  |
| Dividends paid | (11) | (8) |  |  |
| Other financing activities, net | (14) | (25) |  |  |
| Net cash used in financing activities | (495) | (1199) | (12) | (15) |
| Effect of exchange rate changes on cash and equivalents | 21 | 1 |  |  |
| **Net increase (decrease) in cash and equivalents** | 60 | (832) | 21 | (2) |
| **Cash and equivalents at beginning of period** | 1386 | 2121 | 55 | 60 |
| **Cash and equivalents at end of period** | $1446 | $1289 | $76 | $58 |

---

See Notes to the Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**TEXTRON INC.**

**Notes to the Consolidated Financial Statements (Unaudited)**

**Note 1. Basis of Presentation**

Our Consolidated Financial Statements include the accounts of Textron Inc. (Textron) and its majority-owned subsidiaries. We have prepared these unaudited consolidated financial statements in accordance with accounting principles generally accepted in the U.S. for interim financial information. Accordingly, these interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The consolidated interim financial statements included in this quarterly report should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 28, 2024. In the opinion of management, the interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.

Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group's activities, investors, rating agencies and analysts use different measures to evaluate each group's performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. All significant intercompany transactions are eliminated from the Consolidated Financial Statements, including retail financing activities for inventory sold by our Manufacturing group and financed by our Finance group.

**Use of Estimates**

We prepare our financial statements in conformity with generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Operations in the period that they are determined.

*Contract Estimates*

For contracts where revenue is recognized over time, we recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.

In the third quarter of 2025 and 2024, our cumulative catch-up adjustments increased segment profit by $18 million and $10 million, respectively, and net income by $14 million and $7 million, respectively ($0.08 and $0.04 per diluted share, respectively). In the first nine months of 2025 and 2024, our cumulative catch-up adjustments increased segment profit by $43 million and $41 million, respectively, and net income by $33 million and $31 million, respectively ($0.18 and $0.16 per diluted share, respectively).

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Note 2. Accounts Receivable and Finance Receivables**

**Accounts Receivable**

Accounts receivable is composed of the following:

---

| | | |
|:---|:---|:---|
| *(In millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| Commercial | $764 | $738 |
| U.S. Government contracts | 310 | 230 |
|  | 1074 | 968 |
| Allowance for credit losses | (17) | (19) |
| Total accounts receivable, net | $1057 | $949 |

---

**Finance Receivables**

Finance receivables are presented in the following table:

---

| | | |
|:---|:---|:---|
| *(In millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| Finance receivables | $616 | $622 |
| Allowance for credit losses | (20) | (19) |
| Total finance receivables, net | $596 | $603 |

---

*Finance Receivable Portfolio Quality*

We internally assess the quality of our finance receivables based on a number of key credit quality indicators and statistics such as delinquency, loan balance to estimated collateral value and the financial strength of individual borrowers and guarantors. Because many of these indicators are difficult to apply across an entire class of receivables, we evaluate individual loans on a quarterly basis and classify these loans into three categories based on the key credit quality indicators for the individual loan. These three categories are performing, watchlist and nonaccrual.

We classify finance receivables as nonaccrual if credit quality indicators suggest full collection of principal and interest is doubtful. In addition, we automatically classify accounts as nonaccrual once they are contractually delinquent by more than three months unless collection of principal and interest is not doubtful. Accounts are classified as watchlist when credit quality indicators have deteriorated as compared with typical underwriting criteria, and we believe collection of full principal and interest is probable but not certain. All other finance receivables that do not meet the watchlist or nonaccrual categories are classified as performing.

We measure delinquency based on the contractual payment terms of our finance receivables. In determining the delinquency aging category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance with the most past-due delinquency aging category.

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:

---

| | | |
|:---|:---|:---|
| *(Dollars in millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| Performing | $581 | $612 |
| Watchlist | 33 |  |
| Nonaccrual | 2 | 10 |
| Nonaccrual as a percentage of finance receivables | 0.32% | 1.61% |
| Current and less than 31 days past due | $608 | $609 |
| 31-60 days past due | 8 | 13 |
| 60+ days contractual delinquency as a percentage of finance receivables | —% | —% |

---

At September 27, 2025, 54% of our performing finance receivables were originated since the beginning of 2023 and 24% were originated from 2020 to 2022 with the remainder prior to 2020. For finance receivables categorized as watchlist, 100% were originated from 2023 to 2024, and for nonaccrual, 100% were originated prior to 2020.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

On a quarterly basis, we evaluate individual larger balance accounts for impairment. A finance receivable is considered impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality indicators described above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of principal and interest remains probable, but the account's original terms have been, or are expected to be, significantly modified. If the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the account is not considered impaired in years subsequent to the modification. Our impaired finance receivables were insignificant at September 27, 2025 and December 28, 2024.

**Note 3. Inventories**

Inventories are composed of the following:

---

| | | |
|:---|:---|:---|
| *(In millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| Finished goods | $1194 | $1138 |
| Work in process | 2172 | 1769 |
| Raw materials and components | 1098 | 1164 |
| Total inventories | $4464 | $4071 |

---

**Note 4. Accounts Payable and Warranty Liability**

**Accounts Payable**

*Supplier Financing Arrangement*

We have a financing arrangement with one of our suppliers for a maximum amount of $200 million that extends payment terms for up to 190 days from the receipt of goods and provides for the supplier to be paid by a financial institution earlier than maturity. This financing arrangement expires in April 2027. At September 27, 2025 and December 28, 2024, the amount due under the supplier financing arrangement was $111 million and $50 million, respectively.

**Warranty Liability**

Changes in our current and non-current warranty liability are as follows:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** |
| Beginning of period | $173 | $172 |
| Provision | 56 | 57 |
| Changes to estimates | 33 | (2) |
| Settlements | (69) | (55) |
| Other\* | (12) | (2) |
| End of period | $181 | $170 |

---

*\* Other includes business dispositions and currency translation adjustments.*

**Note 5. Leases**

We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised.

Operating lease cost totaled $18 million and $19 million in the third quarter of 2025 and 2024, respectively, and $54 million and $55 million in the first nine months of 2025 and 2024, respectively. Cash paid for operating leases approximated the lease cost and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $77 million and $36 million in the first nine months of 2025 and 2024, respectively, reflecting new or modified leases and changes from the reassessment of lease options. In the first nine months of 2024, non-cash transactions also included the recognition of a $72 million asset and liability related to a new finance lease. Finance lease, variable and short-term lease costs were not significant.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

Balance sheet and other information related to our leases is as follows:

---

| | | |
|:---|:---|:---|
| *(Dollars in millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| **Operating leases:** |  |  |
| Other assets | $400 | $360 |
| Other current liabilities | 57 | 55 |
| Other liabilities | 355 | 316 |
| Weighted-average remaining lease term (in years) | 9.7 | 10.0 |
| Weighted-average discount rate | 4.97% | 4.84% |
| **Finance leases:** |  |  |
| Property, plant and equipment, less accumulated amortization<br>&nbsp;&nbsp;&nbsp;&nbsp;of $13 million and $9 million, respectively | $95 | $95 |
| Long-term debt, including current portion | 100 | 97 |
| Weighted-average remaining lease term (in years) | 6.2 | 5.9 |
| Weighted-average discount rate | 6.63% | 6.72% |

---

At September 27, 2025, maturities of our operating lease liabilities on an undiscounted basis totaled $19 million for the remainder of 2025, $73 million for 2026, $63 million for 2027, $58 million for 2028, $54 million for 2029 and $261 million thereafter.

**Note 6. Debt**

Under our shelf registration statement, on February 13, 2025, we issued $500 million of SEC-registered fixed-rate notes due in May 2035 with an annual interest rate of 5.50%. The net proceeds of the issuance totaled $495 million, after deducting underwriting discounts, commissions and offering expenses.

**Note 7. Derivative Instruments and Fair Value Measurements**

We measure fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the assumptions that market participants would use in pricing the asset or liability into a three-tier fair value hierarchy. This fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs in which little or no market data exist, requiring companies to develop their own assumptions. Observable inputs that do not meet the criteria of Level 1, which include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets and liabilities in markets that are not active, are categorized as Level 2. Level 3 inputs are those that reflect our estimates about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Valuation techniques for assets and liabilities measured using Level 3 inputs may include methodologies such as the market approach, the income approach or the cost approach and may use unobservable inputs such as projections, estimates and management's interpretation of current market data. These unobservable inputs are utilized only to the extent that observable inputs are not available or cost effective to obtain.

**Assets and Liabilities Recorded at Fair Value on a Recurring Basis**

We manufacture and sell our products in a number of countries throughout the world, and, therefore, we are exposed to movements in foreign currency exchange rates. We primarily utilize foreign currency exchange contracts with maturities of no more than three years to manage this volatility. These contracts qualify as cash flow hedges and are intended to offset the effect of exchange rate fluctuations on forecasted sales, inventory purchases and overhead expenses. Net gains and losses recognized in earnings and Accumulated other comprehensive loss on cash flow hedges, including gains and losses related to hedge ineffectiveness, were not significant in the periods presented.

Our foreign currency exchange contracts are measured at fair value using the market method valuation technique. The inputs to this technique utilize current foreign currency exchange forward market rates published by third-party leading financial news and data providers. These are observable data that represent the rates that the financial institution uses for contracts entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. At September 27, 2025 and December 28, 2024, we had foreign currency exchange contracts with notional amounts upon which the contracts were based of $542 million and $464 million, respectively. At September 27, 2025, the fair value amounts of our foreign currency exchange contracts were a $8 million asset and a $15 million liability. At December 28, 2024, the fair value amount of our foreign currency exchange contracts were a $5 million asset and a $19 million liability.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

Our Finance group enters into interest rate swap agreements to mitigate certain exposures to fluctuations in interest rates. By using these contracts, we are able to convert floating-rate cash flows to fixed-rate cash flows. These agreements are designated as cash flow hedges. The fair value of our interest rate swap agreements is determined using values published by third-party leading financial news and data providers. These values are observable data that represent the value that financial institutions use for contracts entered into at that date, but are not based on actual transactions, so they are classified as Level 2. The fair value of our outstanding interest rate swap agreements was a $2 million and an $8 million asset at September 27, 2025 and December 28, 2024, respectively.

At September 27, 2025 and December 28, 2024, our Finance group had interest rate swap agreements related to our Floating Rate Junior Subordinated Notes for an aggregate notional amount of $264 million that effectively converts the variable-rate interest for these Notes to a weighted-average fixed rate of 5.16% and 5.20%, respectively. At September 27, 2025, these agreements have maturities ranging from August 2026 to August 2030. At December 28, 2024, we also had an interest rate swap agreement with a notional amount of $25 million that effectively converted variable-rate interest on a term loan to a fixed rate of 4.13% that matured in June 2025.

**Assets and Liabilities Not Recorded at Fair Value**

The carrying value and estimated fair value of our financial instruments that are not reflected in the financial statements at fair value are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 27, 2025** | **September 27, 2025** | **December 28, 2024** | **December 28, 2024** |
| | **Carrying** | **Estimated** | **Carrying** | **Estimated** |
| *(In millions)* | **Value** | **Fair Value** | **Value** | **Fair Value** |
| **Manufacturing group** |  |  |  |  |
| Debt, excluding leases | $(3310) | $(3249) | $(3164) | $(2989) |
| **Finance group** |  |  |  |  |
| Finance receivables, excluding leases | 497 | 533 | 439 | 454 |
| Debt | (340) | (314) | (341) | (311) |

---

Fair value for the Manufacturing group debt is determined using market observable data for similar transactions (Level 2). The fair value for the Finance group debt was determined primarily based on discounted cash flow analyses using observable market inputs from debt with similar duration, subordination and credit default expectations (Level 2). Fair value estimates for finance receivables were determined based on internally developed discounted cash flow models primarily utilizing significant unobservable inputs (Level 3), which include estimates of the rate of return, financing cost, capital structure and/or discount rate expectations of current market participants combined with estimated loan cash flows based on credit losses, payment rates and expectations of borrowers' ability to make payments on a timely basis.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Note 8. Shareholders' Equity**

A reconciliation of Shareholders' equity is presented below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(In millions)* | **Common<br>Stock** | **Capital<br>Surplus** | **Treasury<br>Stock** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Shareholders'<br>Equity** |
| **Three months ended September 27, 2025** |  |  |  |  |  |  |
| Beginning of period | $23 | $2041 | $(514) | $6052 | $(169) | $7433 |
| Net income |  |  |  | 234 |  | 234 |
| Other comprehensive loss |  |  |  |  | (4) | (4) |
| Share-based compensation activity |  | 42 |  |  |  | 42 |
| Dividends declared |  |  |  | (4) |  | (4) |
| Purchases of common stock, including excise tax\* |  |  | (208) |  |  | (208) |
| End of period | $23 | $2083 | $(722) | $6282 | $(173) | $7493 |
| **Three months ended September 28, 2024** |  |  |  |  |  |  |
| Beginning of period | $25 | $2050 | $(844) | $6314 | $(693) | $6852 |
| Net income |  |  |  | 223 |  | 223 |
| Other comprehensive income |  |  |  |  | 61 | 61 |
| Share-based compensation activity |  | 36 |  |  |  | 36 |
| Dividends declared |  |  |  | (4) |  | (4) |
| Purchases of common stock, including excise tax\* |  |  | (217) |  |  | (217) |
| End of period | $25 | $2086 | $(1061) | $6533 | $(632) | $6951 |
| **Nine months ended September 27, 2025** |  |  |  |  |  |  |
| Beginning of period | $23 | $1960 | $(82) | $5607 | $(304) | $7204 |
| Net income |  |  |  | 686 |  | 686 |
| Other comprehensive income |  |  |  |  | 131 | 131 |
| Share-based compensation activity |  | 123 |  |  |  | 123 |
| Dividends declared |  |  |  | (11) |  | (11) |
| Purchases of common stock, including excise tax\* |  |  | (640) |  |  | (640) |
| End of period | $23 | $2083 | $(722) | $6282 | $(173) | $7493 |
| **Nine months ended September 28, 2024** |  |  |  |  |  |  |
| Beginning of period | $24 | $1910 | $(165) | $5862 | $(644) | $6987 |
| Net income |  |  |  | 683 |  | 683 |
| Other comprehensive income |  |  |  |  | 12 | 12 |
| Share-based compensation activity | 1 | 176 |  |  |  | 177 |
| Dividends declared |  |  |  | (12) |  | (12) |
| Purchases of common stock, including excise tax\* |  |  | (896) |  |  | (896) |
| End of period | $25 | $2086 | $(1061) | $6533 | $(632) | $6951 |

---

*\*Includes amounts accrued for excise tax imposed on common share repurchases that totaled $2 million and $5 million for the third quarter and first nine months of 2025, respectively, and $2 million and $6 million for the third quarter and first nine months of 2024, respectively.*

Dividends per share of common stock were $0.02 for both the third quarter of 2025 and 2024 and $0.06 for both the first nine months of 2025 and 2024.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Earnings Per Share**

We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options.

The weighted-average shares outstanding for basic and diluted EPS are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In thousands)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| Basic weighted-average shares outstanding | 177677 | 186958 | 180005 | 189834 |
| Dilutive effect of stock options | 1473 | 1986 | 1298 | 2052 |
| Diluted weighted-average shares outstanding | 179150 | 188944 | 181303 | 191886 |

---

In the third quarter and first nine months of 2025, stock options to purchase 2.0 million and 2.3 million shares of common stock, respectively, were excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive. Stock options to purchase 1.0 million shares of common stock were excluded from the calculation of diluted weighted-average shares outstanding for both the third quarter and first nine months of 2024 as their effect would have been anti-dilutive.

**Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss)**

The components of Accumulated other comprehensive loss are presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions)* | **Pension and<br>Postretirement<br>Benefits<br>Adjustments** | **Foreign<br>Currency<br>Translation<br>Adjustments** | **Deferred<br>Gains (Losses)<br>on Hedge<br>Contracts** | **Accumulated<br>Other<br>Comprehensive<br>Loss** |
| Balance at December 28, 2024 | $(179) | $(120) | $(5) | $(304) |
| Other comprehensive income before reclassifications |  | 132 | (2) | 130 |
| Reclassified from Accumulated other comprehensive loss |  | (2) | 3 | 1 |
| Balance at September 27, 2025 | $(179) | $10 | $(4) | $(173) |
| Balance at December 30, 2023 | $(598) | $(49) | $3 | $(644) |
| Other comprehensive income before reclassifications |  | 12 | (3) | 9 |
| Reclassified from Accumulated other comprehensive loss | 2 |  | 1 | 3 |
| Balance at September 28, 2024 | $(596) | $(37) | $1 | $(632) |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

The before and after-tax components of Other comprehensive income (loss) are presented below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **September 27, 2025** | **September 27, 2025** | **September 27, 2025** | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** |
| *(In millions)* | **Pre-Tax<br>Amount** | **Tax<br>(Expense)<br>Benefit** | **After-tax<br>Amount** | **Pre-Tax<br>Amount** | **Tax<br>(Expense)<br>Benefit** | **After-tax<br>Amount** |
| **Three Months Ended** |  |  |  |  |  |  |
| Pension and postretirement benefits adjustments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Amortization of net actuarial gain\* | $(2) | $— | $(2) | $(1) | $1 | $— |
| &nbsp;&nbsp;Amortization of prior service cost\* | 2 |  | 2 | 1 | (1) |  |
| Pension and postretirement benefits adjustments, net |  |  |  |  |  |  |
| Foreign currency translation adjustments | (1) |  | (1) | 59 |  | 59 |
| Deferred gains (losses) on hedge contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;Current deferrals | (7) | 2 | (5) | 3 | (2) | 1 |
| &nbsp;&nbsp;Reclassification adjustments | 2 |  | 2 | 4 | (3) | 1 |
| Deferred gains (losses) on hedge contracts, net | (5) | 2 | (3) | 7 | (5) | 2 |
| Total | $(6) | $2 | $(4) | $66 | $(5) | $61 |
| **Nine Months Ended** |  |  |  |  |  |  |
| Pension and postretirement benefits adjustments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Amortization of net actuarial gain\* | $(6) | $1 | $(5) | $(3) | $1 | $(2) |
| &nbsp;&nbsp;Amortization of prior service cost\* | 6 | (1) | 5 | 5 | (1) | 4 |
| Pension and postretirement benefits adjustments, net |  |  |  | 2 |  | 2 |
| Foreign currency translation adjustments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustments | 132 |  | 132 | 12 |  | 12 |
| &nbsp;&nbsp;Business disposition | (2) |  | (2) |  |  |  |
| Foreign currency translation adjustments, net | 130 |  | 130 | 12 |  | 12 |
| Deferred gains (losses) on hedge contracts: |  |  |  |  |  |  |
| &nbsp;&nbsp;Current deferrals | (2) |  | (2) | (3) |  | (3) |
| &nbsp;&nbsp;Reclassification adjustments | 4 | (1) | 3 | 2 | (1) | 1 |
| Deferred gains (losses) on hedge contracts, net | 2 | (1) | 1 | (1) | (1) | (2) |
| Total | $132 | $(1) | $131 | $13 | $(1) | $12 |

---

*\*These components of other comprehensive income (loss) are included in the computation of net periodic pension cost (income). See Note 14 of our 2024 Annual Report on Form 10-K for additional information.*

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Note 9. Segment Financial Information**

We operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.

Our revenues and expenses by segment are provided below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions)* | **Textron Aviation** | **Bell** | **Textron Systems** | **Industrial** | **Textron eAviation** | **Finance** | **Total** |
| **Three months ended September 27, 2025** |  |  |  |  |  |  |  |
| Revenues | $1477 | $1026 | $307 | $761 | $5 | $26 | $3602 |
| Costs and expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cost of sales | 1149 | 846 | 235 | 655 | 7 |  | 2892 |
| &nbsp;&nbsp;Research and development costs | 52 | 33 | 10 | 15 | 8 |  | 118 |
| &nbsp;&nbsp;Selling and administrative expense | 97 | 55 | 10 | 60 | 5 | 4 | 231 |
| &nbsp;&nbsp;Interest expense, net |  |  |  |  |  | 4 | 4 |
| Segment profit (loss) | $179 | $92 | $52 | $31 | $(15) | $18 | $357 |
| **Three months ended September 28, 2024** |  |  |  |  |  |  |  |
| Revenues | $1339 | $929 | $301 | $840 | $6 | $12 | $3427 |
| Costs and expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cost of sales | 1050 | 747 | 226 | 723 | 5 |  | 2751 |
| &nbsp;&nbsp;Research and development costs | 54 | 32 | 10 | 16 | 14 |  | 126 |
| &nbsp;&nbsp;Selling and administrative expense | 107 | 52 | 26 | 69 | 5 | 3 | 262 |
| &nbsp;&nbsp;Interest expense, net |  |  |  |  |  | 4 | 4 |
| Segment profit (loss) | $128 | $98 | $39 | $32 | $(18) | $5 | $284 |
| **Nine months ended September 27, 2025** |  |  |  |  |  |  |  |
| Revenues | $4206 | $3025 | $924 | $2392 | $20 | $57 | $10624 |
| Costs and expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cost of sales | 3249 | 2490 | 698 | 2031 | 20 |  | 8488 |
| &nbsp;&nbsp;Research and development costs | 162 | 110 | 33 | 49 | 33 |  | 387 |
| &nbsp;&nbsp;Selling and administrative expense | 309 | 163 | 61 | 197 | 15 | 8 | 753 |
| &nbsp;&nbsp;Interest expense, net |  |  |  |  |  | 13 | 13 |
| Segment profit (loss) | $486 | $262 | $132 | $115 | $(48) | $36 | $983 |
| **Nine months ended September 28, 2024** |  |  |  |  |  |  |  |
| Revenues | $4002 | $2450 | $930 | $2646 | $22 | $39 | $10089 |
| Costs and expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Cost of sales | 3060 | 1961 | 694 | 2256 | 20 |  | 7991 |
| &nbsp;&nbsp;Research and development costs | 157 | 78 | 43 | 54 | 43 |  | 375 |
| &nbsp;&nbsp;Selling and administrative expense | 319 | 151 | 81 | 233 | 13 | (5) | 792 |
| &nbsp;&nbsp;Interest expense, net |  |  |  |  |  | 14 | 14 |
| Segment profit (loss) | $466 | $260 | $112 | $103 | $(54) | $30 | $917 |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

A reconciliation of segment profit to income from continuing operations before income taxes is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| Segment profit | $357 | $284 | $983 | $917 |
| Unallocated amounts: |  |  |  |  |
| &nbsp;&nbsp;Corporate expenses and other, net | (26) | (20) | (105) | (99) |
| &nbsp;&nbsp;Interest expense, net for Manufacturing group | (26) | (22) | (77) | (57) |
| &nbsp;&nbsp;LIFO inventory provision | (48) | (49) | (115) | (96) |
| &nbsp;&nbsp;Intangible asset amortization | (8) | (9) | (24) | (26) |
| &nbsp;&nbsp;Special charges |  | 2 | (4) | (25) |
| &nbsp;&nbsp;Non-service components of pension and postretirement income, net | 67 | 66 | 200 | 198 |
| Income from continuing operations before income taxes | $316 | $252 | $858 | $812 |

---

Other information by segment is provided below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Capital Expenditures** | **Capital Expenditures** | **Capital Expenditures** | **Capital Expenditures** | **Depreciation and Amortization** | **Depreciation and Amortization** | **Depreciation and Amortization** | **Depreciation and Amortization** |
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| Textron Aviation | $30 | $30 | $92 | $91 | $41 | $47 | $118 | $120 |
| Bell | 26 | 18 | 59 | 55 | 23 | 22 | 73 | 61 |
| Textron Systems | 7 | 7 | 20 | 22 | 12 | 12 | 36 | 35 |
| Industrial | 12 | 15 | 37 | 40 | 17 | 17 | 51 | 52 |
| Textron eAviation |  | 1 | 1 | 3 | 2 | 2 | 6 | 6 |
| Corporate | 1 |  | 1 |  | 2 | 1 | 5 | 5 |
| Total | $76 | $71 | $210 | $211 | $97 | $101 | $289 | $279 |

---

Our assets by segment are summarized below:

---

| | | |
|:---|:---|:---|
| *(In millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| Textron Aviation | $4973 | $4624 |
| Bell | 3216 | 2992 |
| Textron Systems | 2088 | 2036 |
| Industrial | 2383 | 2378 |
| Textron eAviation | 316 | 286 |
| Finance | 688 | 680 |
| Corporate | 3717 | 3842 |
| Total assets | $17381 | $16838 |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Note 10. Revenues** 

**Disaggregation of Revenues**

Our revenues disaggregated by major product type are presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| Aircraft | $985 | $869 | $2724 | $2576 |
| Aftermarket parts and services | 492 | 470 | 1482 | 1426 |
| **Textron Aviation** | $1477 | $1339 | $4206 | $4002 |
| Military aircraft and support programs | 681 | 553 | 1963 | 1532 |
| Commercial helicopters, parts and services | 345 | 376 | 1062 | 918 |
| **Bell** | $1026 | $929 | $3025 | $2450 |
| **Textron Systems** | $307 | $301 | $924 | $930 |
| Fuel systems and functional components | 470 | 452 | 1403 | 1432 |
| Specialized vehicles | 291 | 388 | 989 | 1214 |
| **Industrial** | $761 | $840 | $2392 | $2646 |
| **Textron eAviation** | $5 | $6 | $20 | $22 |
| **Finance** | $26 | $12 | $57 | $39 |
| Total revenues | $3602 | $3427 | $10624 | $10089 |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

Our revenues for our segments by customer type and geographic location are presented below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(In millions)* | **Textron<br>Aviation** | **Bell** | **Textron<br>Systems** | **Industrial** | **Textron eAviation** | **Finance** | **Total** |
| **Three months ended September 27, 2025** | **Three months ended September 27, 2025** |  |  |  |  |  |  |
| **Customer type:** |  |  |  |  |  |  |  |
| Commercial | $1375 | $338 | $77 | $756 | $5 | $26 | $2577 |
| U.S. Government | 102 | 688 | 230 | 5 |  |  | 1025 |
| Total revenues | $1477 | $1026 | $307 | $761 | $5 | $26 | $3602 |
| **Geographic location:** |  |  |  |  |  |  |  |
| United States | $1037 | $822 | $283 | $387 | $3 | $8 | $2540 |
| Europe | 115 | 16 | 9 | 149 | 1 |  | 290 |
| Other international | 325 | 188 | 15 | 225 | 1 | 18 | 772 |
| Total revenues | $1477 | $1026 | $307 | $761 | $5 | $26 | $3602 |
| **Three months ended September 28, 2024** | **Three months ended September 28, 2024** |  |  |  |  |  |  |
| **Customer type:** |  |  |  |  |  |  |  |
| Commercial | $1259 | $356 | $67 | $834 | $6 | $12 | $2534 |
| U.S. Government | 80 | 573 | 234 | 6 |  |  | 893 |
| Total revenues | $1339 | $929 | $301 | $840 | $6 | $12 | $3427 |
| **Geographic location:** |  |  |  |  |  |  |  |
| United States | $1002 | $693 | $273 | $452 | $5 | $5 | $2430 |
| Europe | 99 | 23 | 10 | 144 | 1 |  | 277 |
| Other international | 238 | 213 | 18 | 244 |  | 7 | 720 |
| Total revenues | $1339 | $929 | $301 | $840 | $6 | $12 | $3427 |
| **Nine months ended September 27, 2025** | **Nine months ended September 27, 2025** |  |  |  |  |  |  |
| **Customer type:** |  |  |  |  |  |  |  |
| Commercial | $3949 | $1060 | $223 | $2370 | $20 | $57 | $7679 |
| U.S. Government | 257 | 1965 | 701 | 22 |  |  | 2945 |
| Total revenues | $4206 | $3025 | $924 | $2392 | $20 | $57 | $10624 |
| **Geographic location:** |  |  |  |  |  |  |  |
| United States | $3028 | $2324 | $845 | $1249 | $10 | $17 | $7473 |
| Europe | 354 | 84 | 31 | 479 | 6 | 1 | 955 |
| Other international | 824 | 617 | 48 | 664 | 4 | 39 | 2196 |
| Total revenues | $4206 | $3025 | $924 | $2392 | $20 | $57 | $10624 |
| **Nine months ended September 28, 2024** | **Nine months ended September 28, 2024** |  |  |  |  |  |  |
| **Customer type:** |  |  |  |  |  |  |  |
| Commercial | $3757 | $883 | $218 | $2626 | $22 | $39 | $7545 |
| U.S. Government | 245 | 1567 | 712 | 20 |  |  | 2544 |
| Total revenues | $4002 | $2450 | $930 | $2646 | $22 | $39 | $10089 |
| **Geographic location:** |  |  |  |  |  |  |  |
| United States | $3099 | $1891 | $830 | $1409 | $14 | $13 | $7256 |
| Europe | 252 | 60 | 35 | 525 | 6 | 5 | 883 |
| Other international | 651 | 499 | 65 | 712 | 2 | 21 | 1950 |
| Total revenues | $4002 | $2450 | $930 | $2646 | $22 | $39 | $10089 |

---

**Remaining Performance Obligations** 

Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenues in future periods when we perform under the contracts. These remaining obligations exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At September 27, 2025, we had $19.1 billion in remaining performance obligations of which we expect to recognize revenues of approximately 61% through 2026, an additional 34% through 2028, and the balance thereafter.

**Contract Assets and Liabilities** 

Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At September 27, 2025 and December 28, 2024, contract assets totaled $376 million and $345 million, respectively, and contract liabilities totaled $2.0 billion and $1.9 billion, respectively, reflecting timing differences between revenues recognized, billings and payments from customers. We recognized revenues of $968 million and $912 million in the first nine months of 2025 and 2024, respectively, that were included in the contract liability balance at the beginning of each year.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Note 11. Retirement Plans**

We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| **Pension Benefits** |  |  |  |  |
| Service cost | $16 | $18 | $47 | $52 |
| Interest cost | 94 | 91 | 282 | 272 |
| Expected return on plan assets | (162) | (159) | (486) | (477) |
| Amortization of net actuarial loss |  | 1 |  | 3 |
| Amortization of prior service cost | 2 | 1 | 7 | 6 |
| Net periodic benefit income\* | $(50) | $(48) | $(150) | $(144) |
| **Postretirement Benefits Other Than Pensions** |  |  |  |  |
| Service cost | $— | $— | $1 | $1 |
| Interest cost | 1 | 2 | 4 | 5 |
| Amortization of net actuarial gain | (2) | (2) | (6) | (6) |
| Amortization of prior service credit |  |  | (1) | (1) |
| Net periodic benefit income | $(1) | $— | $(2) | $(1) |

---

*\* Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $2 million and $7 million for the third quarter and first nine months of 2025, respectively, and $2 million and $8 million for the third quarter and first nine months of 2024, respectively.* 

**Note 12. Special Charges**

In connection with the termination of certain U.S. Government development programs, we initiated restructuring actions in the second quarter of 2025 to reduce operating expenses through headcount reductions and other actions at the Textron Systems segment. As a result, we recorded special charges of $8 million in the second quarter of 2025, which included severance costs of $5 million and contract termination costs of $3 million. Headcount reductions totaled approximately 85 positions, representing less than 1% of our global workforce. The restructuring actions were substantially completed in the third quarter of 2025.

In the second quarter of 2025, we completed the previously announced strategic review of the Powersports product line and on April 23, 2025, we closed on the sale of the Powersports business, including the Arctic Cat brand and its operations. Net cash proceeds from the sale were $16 million and we recorded a pre-tax gain of $4 million, which is included in special charges.

In the third quarter and first nine months of 2024, special charges included a reversal of $2 million and charges of $25 million, respectively, related to a 2023 restructuring plan.

Our restructuring reserve activity, which includes the restructuring actions discussed above and the 2023 plan, is summarized below:

---

| | | | |
|:---|:---|:---|:---|
| *(In millions)* | **Severance<br>Costs** | **Contract<br>Terminations<br>and Other** | **Total** |
| Balance at December 28, 2024 | $37 | $34 | $71 |
| Provision | 5 | 3 | 8 |
| Cash paid | (18) | (17) | (35) |
| Business disposition | (7) | (15) | (22) |
| Foreign currency translation | 3 |  | 3 |
| Balance at September 27, 2025 | $20 | $5 | $25 |

---

The majority of the remaining cash outlays of $25 million are expected to be paid in the fourth quarter of 2025.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Note 13. Income Taxes**

Our effective tax rate was 25.6% and 11.5% for the third quarter of 2025 and 2024, respectively, and 19.9% and 15.8% for the first nine months of 2025 and 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted and changed certain sections of U.S. income tax law. Among other things, the Act makes permanent: 1) the option to deduct domestic research and development expenditures immediately in the year incurred, 2) the deduction of the full cost of eligible assets in the year placed in service, and 3) the EBITDA-based business interest expense limitation as well as modifications to the international tax framework.

In the third quarter of 2025, our effective tax rate was higher than the U.S. federal statutory rate of 21%, largely reflecting the impact of certain provisions of the Act, primarily those that affected tax deductions for foreign-derived intangible income and research and development credits. In the first nine months of 2025, our effective tax rate was lower than the U.S. federal statutory rate, primarily due to the favorable impact of research and development credits.

In the third quarter of 2024, the effective tax rate was lower than the U.S. federal statutory rate, largely due to the favorable impact of research and development credits and foreign tax credits. Our effective tax rate for the first nine months of 2024 was lower than the U.S. federal statutory rate largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

**Note 14. Commitments and Contingencies**

We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

**<u>Business Environment</u>**

Changes to the United States trade policy have resulted in new or higher tariffs on goods imported from numerous countries, and some countries have imposed retaliatory tariffs on imports from the United States. We are principally a North American manufacturer and 71% of our 2024 revenues were generated in the U.S. Our aircraft products, subassemblies, parts and components manufactured in Canada and Mexico are largely qualified under the rules of the United States-Mexico-Canada Agreement (USMCA) for preferential treatment on tariffs imposed by the U.S. on Canada and Mexico imports. In addition, our operations outside of North America primarily source materials and components from outside of North America and manufacture products for non-U.S. customers. Many of our businesses also source materials and components from outside of North America. These businesses have been and will continue to be impacted by these imposed U.S. tariffs. In order to mitigate these impacts our businesses have been managing, and will continue to manage, pricing and supply chain optimization strategies. In addition, our aircraft businesses have begun the tariff reconciliation and refund process with the U.S. Government to recover tariff costs that were previously paid related to materials and components that were subsequently determined to be USMCA compliant. To date, we have not experienced a material adverse impact from these tariffs. We will continue to evaluate the ongoing impact of these tariffs and any further developments or changes in global tariff policies on our business and financial position.

Appropriations for FY 2026 were not enacted by September 30, 2025, and on October 1, 2025, the U.S. Government entered a shutdown, which is ongoing. Consistent with federal guidelines, we are continuing to perform work on existing contracts funded with appropriations from prior fiscal years. If a prolonged government shutdown occurs, it could result in program disruptions, limit the U.S. Government's ability to progress programs and make timely payments, and impact new program starts. A prolonged shutdown could have significant consequences for our company, our employees, our suppliers and our industry and could result in delayed cash collections and/or have a material adverse effect on our financial position, results of operations and/or cash flows.

**<u>Consolidated Results of Operations</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | | **Nine Months Ended** | **Nine Months Ended** | |
| *(Dollars in millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **% Change** | **September 27,<br>2025** | **September 28,<br>2024** | **% Change** |
| Revenues | $3602 | $3427 | 5% | $10624 | $10089 | 5% |
| Cost of sales | 2948 | 2809 | 5% | 8627 | 8113 | 6% |
| Gross margin as a % of Manufacturing revenues | 17.6% | 17.7% |  | 18.4% | 19.3% |  |
| Research and development costs | $118 | $126 | (6)% | $387 | $375 | 3% |
| Selling and administrative expense | 257 | 282 | (9)% | 858 | 891 | (4)% |
| Interest expense, net | 30 | 26 | 15% | 90 | 71 | 27% |
| Special charges |  | (2) | (100)% | 4 | 25 | (84)% |
| Non-service components of pension and postretirement income, net | 67 | 66 | 2% | 200 | 198 | 1% |

---

An analysis of our consolidated operating results is set forth below. A more detailed analysis of our segments' operating results is provided in the Segment Analysis section on pages 24 to 28.

**Revenues**

Revenues increased $175 million, 5%, in the third quarter of 2025, compared with the third quarter of 2024. The revenue increase primarily included the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Higher Textron Aviation revenues of $138 million, reflecting higher aircraft revenues of $116 million and higher aftermarket parts and services revenues of $22 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Higher Bell revenues of $97 million due to higher military aircraft and support programs revenues of $128 million, primarily for the Future Long Range Assault Aircraft (FLRAA) program, now designated as MV-75 by the U.S. Army, partially offset by lower commercial revenues of $31 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower Industrial revenues of $79 million, due to lower revenues of $97 million at Textron Specialized Vehicles, largely reflecting the impact from the disposition of the Powersports business in April 2025 as discussed in Note 12 to the Consolidated Financial Statements, partially offset by higher revenues of $18 million at Kautex.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Higher Textron Systems revenues of $6 million, largely due to higher volume.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

Revenues increased $535 million, 5%, in the first nine months of 2025, compared with the first nine months of 2024. The revenue increase primarily included the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Higher Bell revenues of $575 million, due to higher military aircraft and support programs revenues of $431 million, primarily for the MV-75 program and for military sustainment programs, as well as higher commercial revenues of $144 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Higher Textron Aviation revenues of $204 million, reflecting higher aircraft revenues of $148 million and higher aftermarket parts and services revenues of $56 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lower Industrial revenues of $254 million, with $225 million at Textron Specialized Vehicles, largely reflecting the impact from the disposition and lower volume and mix, primarily in golf products. Kautex revenues decreased $29 million, largely due to lower volume.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Lower Textron Systems revenues of $6 million, largely due to lower volume.

Manufacturing group revenues increased $161 million and $517 million in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, largely reflecting an increase of $159 million and $853 million, respectively, in product revenues. The increase in product revenues in the first nine months of 2025 was partially offset by a decrease of $336 million in service revenues, largely related to the classification of revenues for the MV-75 program, which was service-related prior to the transition of the program to the Engineering and Manufacturing Development phase in the third quarter of 2024 when it became product-related.

**Cost of Sales**

Cost of sales includes cost of products and services sold for the Manufacturing group. Cost of sales increased $139 million, 5%, in the third quarter of 2025, compared with the third quarter of 2024, largely due to higher net volume and mix of $143 million and a $61 million impact from inflation, partially offset by the impact from the disposition of the Powersports business.

Cost of sales increased $514 million, 6%, in the first nine months of 2025, compared with the first nine months of 2024, largely due to higher net volume and mix of $401 million and a $193 million impact from inflation and higher LIFO inventory provision, partially offset by the impact from the disposition. Gross margin as a percentage of Manufacturing revenues decreased 90 basis points in the first nine months of 2025, primarily due to lower margin at the Bell segment.

**Research and Development Costs**

Research and development costs decreased $8 million, 6%, in the third quarter of 2025, and increased $12 million, 3%, in the first nine months of 2025, compared with the corresponding periods of 2024. The higher research and development costs in the first nine months of 2025 included an increase of $32 million at Bell, reflecting lower costs in 2024 due to the wind down of the Future Attack Reconnaissance Aircraft program, partially offset by a decrease of $10 million at each of the Textron Systems and Textron eAviation segments.

**Selling and Administrative Expense**

Selling and administrative expense decreased $25 million, 9%, and $33 million, 4%, in the third quarter and first nine months of 2025, compared with the corresponding periods of 2024, primarily due to a $16 million gain resulting from the early termination of a vendor contract in the third quarter of 2025 at the Textron Systems segment. The decrease in expense in the first nine months of 2025 also included lower share-based compensation expense, partially offset by a 2024 recovery of amounts that were previously written off related to one customer relationship in the Finance segment.

**Interest Expense, Net**

Interest expense, net includes interest expense for both the Finance and Manufacturing borrowing groups, with interest on intercompany borrowings eliminated, and interest income earned on cash and equivalents for the Manufacturing borrowing group. In the third quarter and first nine months of 2025, interest expense, net increased $4 million, 15%, and $19 million, 27%, respectively, compared with the corresponding periods of 2024. The increase in expense in the first nine months of 2025 primarily reflected lower interest income. Gross interest expense totaled $39 million and $36 million in the third quarter of 2025 and 2024, respectively, and $116 million and $110 million in the first nine months of 2025 and 2024, respectively.

**Special Charges**

Special charges largely include restructuring activities as discussed in Note 12 to the Consolidated Financial Statements on page <u>[20](#ic006bc7e740d4a32a9511b6fbdcb63c3_70)</u>.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Income Taxes**

Our effective tax rate was 25.6% and 11.5% in the third quarter of 2025 and 2024, respectively, and 19.9% and 15.8% for the first nine months of 2025 and 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted and changed certain sections of U.S. income tax law. Among other things, the Act makes permanent: 1) the option to deduct domestic research and development expenditures immediately in the year incurred, 2) the deduction of the full cost of eligible assets in the year placed in service, and 3) the EBITDA-based business interest expense limitation as well as modifications to the international tax framework.

In the third quarter of 2025, our effective tax rate was higher than the U.S. federal statutory rate of 21%, largely reflecting the impact of certain provisions of the Act, primarily those that affected tax deductions for foreign-derived intangible income and research and development credits. In the first nine months of 2025, our effective tax rate was lower than the U.S. federal statutory rate, primarily due to the favorable impact of research and development credits.

In the third quarter of 2024, the effective tax rate was lower than the U.S. federal statutory rate, largely due to the favorable impact of research and development credits and foreign tax credits. Our effective tax rate for the first nine months of 2024 was lower than the U.S. federal statutory rate largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

**Backlog**

Our backlog is summarized below:

---

| | | |
|:---|:---|:---|
| *(In millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| Textron Aviation | $7739 | $7845 |
| Bell | 8231 | 7469 |
| Textron Systems | 3172 | 2594 |
| Total backlog | $19142 | $17908 |

---

Bell's backlog increased $762 million, 10%, due to orders in excess of revenues recognized and deliveries. New orders included a $1.3 billion award for the prototype testing and evaluation phase of the MV-75 program.

Backlog at Textron Systems' increased $578 million, 22%, reflecting orders in excess of revenues recognized and deliveries, which included new contract awards for several programs.

**<u>Segment Analysis</u>**

We operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. Segment profit is an important measure used for evaluating performance and for decision-making purposes. Segment profit for the manufacturing segments excludes the non-service components of pension and postretirement income, net; LIFO inventory provision; intangible asset amortization; interest expense, net for Manufacturing group; certain corporate expenses; gains/losses on major business dispositions; and special charges. The operating costs used to derive segment profit for our manufacturing segments includes cost of sales, research and development costs and selling and administrative expense. The cost of sales discussed in this Segment Analysis section excludes the LIFO inventory provision and intangible asset amortization discussed above that are reported within Cost of products sold or Cost of services sold on the Consolidated Statements of Operations. The measurement for the Finance segment includes interest income and expense along with intercompany interest income and expense.

In our discussion of comparative results for the Manufacturing group, material changes in revenues and segment profit for our commercial businesses typically are expressed in terms of product line revenues, including volume and mix and pricing; foreign exchange; acquisitions and dispositions; inflation; manufacturing efficiency; and changes in research and development costs and selling and administrative expense. For revenues, volume and mix represents changes in revenues from increases or decreases in the number of units delivered or services provided and the composition of products and/or services sold. For segment profit, volume and mix represents a change due to the number of units delivered or services provided and the composition of products and/or services sold at different profit margins. Pricing represents changes in unit pricing. Foreign exchange is the change resulting from translating foreign-denominated amounts into U.S. dollars at exchange rates that are different from the prior period. Revenues generated by acquired businesses are reflected in Acquisitions for a twelve-month period, while reductions in revenues and segment profit from the sale of businesses are reflected as Dispositions. Inflation represents higher material, wages, benefits, pension service cost or other costs. Manufacturing efficiency includes changes in material, labor and overhead variances to standards, typically due to scrap rates, labor efficiency or inefficiencies, facility usage and other manufacturing productivity inputs.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

Approximately 25% of our 2024 revenues were derived from contracts with the U.S. Government, including those under the U.S. Government-sponsored foreign military sales program. For our segments that contract with the U.S. Government, material changes in revenues related to these contracts are expressed in terms of volume. Changes in segment profit for these contracts are typically expressed in terms of volume and mix and contract performance, which includes cumulative catch-up adjustments associated with a) revisions to the transaction price that may reflect contract modifications or changes in assumptions related to award fees and other variable consideration or b) changes in the total estimated costs at completion due to improved or deteriorated operating performance.

**Textron Aviation**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | |
| *(Dollars in millions)* | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** |
| Revenues: |  |  |  |  |  |  |  |  |  |  |
| Aircraft | $| 985 | $| 869 | 13% | $| 2724 | $| 2576 | 6% |
| Aftermarket parts and services | 492 | 492 | 470 | 470 | 5% | 1482 | 1482 | 1426 | 1426 | 4% |
| Total revenues | 1477 | 1477 | 1339 | 1339 | 10% | 4206 | 4206 | 4002 | 4002 | 5% |
| Cost of sales | 1149 | 1149 | 1050 | 1050 | 9% | 3249 | 3249 | 3060 | 3060 | 6% |
| Research and development costs | 52 | 52 | 54 | 54 | (4)% | 162 | 162 | 157 | 157 | 3% |
| Selling and administrative expense | 97 | 97 | 107 | 107 | (9)% | 309 | 309 | 319 | 319 | (3)% |
| Segment profit | $| 179 | $| 128 | 40% | $| 486 | $| 466 | 4% |
| Profit margin | 12.1% | 12.1% | 9.6% | 9.6% |  | 11.6% | 11.6% | 11.6% | 11.6% |  |

---

Textron Aviation's revenues increased $138 million, 10%, in the third quarter of 2025, compared with the third quarter of 2024, reflecting higher aircraft revenues of $116 million and higher aftermarket parts and services revenues of $22 million. The increase in aircraft revenues was largely due to higher volume and mix, which included higher commercial turboprop and Citation jet volume, partially offset by lower defense volume. The higher volume and mix also reflects the impact of the strike in the third quarter of 2024. We delivered 42 Citation jets and 39 commercial turboprops in the third quarter of 2025, compared with 41 Citation jets and 25 commercial turboprops in the third quarter of 2024.

Textron Aviation's revenues increased $204 million, 5%, in the first nine months of 2025, compared with the first nine months of 2024, reflecting higher aircraft revenues of $148 million and higher aftermarket parts and services revenues of $56 million. The increase in aircraft revenues was primarily due to higher pricing and higher volume and mix. The increase in volume and mix largely reflects higher piston engine aircraft and commercial turboprop volume, partially offset by the mix of Citation jets sold. The higher volume and mix also reflects the impact of the strike in the third quarter of 2024. We delivered 122 Citation jets and 103 commercial turboprops in the first nine months of 2025, compared with 119 Citation jets and 89 commercial turboprops in the first nine months of 2024.

Textron Aviation's cost of sales increased $99 million, 9%, in the third quarter of 2025, compared with the third quarter of 2024, largely reflecting higher aircraft volume and inflation of $38 million. Cost of sales increased $189 million, 6%, in the first nine months of 2025, compared with the first nine months of 2024, largely reflecting inflation of $116 million, higher aircraft volume and higher warranty costs.

Textron Aviation's segment profit increased $51 million, 40%, in the third quarter of 2025, compared with the third quarter of 2024, primarily due to higher volume and mix described above.

Textron Aviation's segment profit increased $20 million, 4%, in the first nine months of 2025, compared with the first nine months of 2024, primarily due to higher pricing, net of inflation, lower selling and administrative costs and higher aircraft volume and mix, partially offset by higher warranty costs.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Bell**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | |
| *(Dollars in millions)* | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** |
| Revenues: |  |  |  |  |  |  |  |  |  |  |
| Military aircraft and support programs | $| 681 | $| 553 | 23% | $| 1963 | $| 1532 | 28% |
| Commercial helicopters, parts and services | 345 | 345 | 376 | 376 | (8)% | 1062 | 1062 | 918 | 918 | 16% |
| Total revenues | 1026 | 1026 | 929 | 929 | 10% | 3025 | 3025 | 2450 | 2450 | 23% |
| Cost of sales | 846 | 846 | 747 | 747 | 13% | 2490 | 2490 | 1961 | 1961 | 27% |
| Research and development costs | 33 | 33 | 32 | 32 | 3% | 110 | 110 | 78 | 78 | 41% |
| Selling and administrative expense | 55 | 55 | 52 | 52 | 6% | 163 | 163 | 151 | 151 | 8% |
| Segment profit | $| 92 | $| 98 | (6)% | $| 262 | $| 260 | 1% |
| Profit margin | 9.0% | 9.0% | 10.5% | 10.5% |  | 8.7% | 8.7% | 10.6% | 10.6% |  |

---

Bell's military aircraft and support programs revenues increased $128 million, 23%, in the third quarter of 2025, compared with the third quarter of 2024, largely due to higher volume on the FLRAA program, now designated as MV-75 by the U.S. Army. Commercial helicopters, parts and services revenues decreased $31 million, 8%, in the third quarter of 2025, compared with the third quarter of 2024, as we delivered 30 commercial helicopters in the third quarter of 2025, compared with 44 commercial helicopters in the third quarter of 2024.

Bell's military aircraft and support programs revenues increased $431 million, 28%, in the first nine months of 2025, compared with the first nine months of 2024, largely due to higher volume on the MV-75 program and on military sustainment programs. Commercial helicopters, parts and services revenues increased $144 million, 16%, in the first nine months of 2025, compared with the first nine months of 2024, primarily due to the mix of aircraft sold. We delivered 91 commercial helicopters in the first nine months of 2025, compared with 94 commercial helicopters in the first nine months of 2024.

Bell's cost of sales increased $99 million, 13%, and $529 million, 27%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, primarily due to higher net volume and mix described above.

Bell's research and development costs increased $1 million and $32 million, 41%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024. The increase in costs in the first nine months of 2025 largely reflected lower costs in 2024 due to the wind down of the Future Attack Reconnaissance Aircraft program.

Bell's segment profit decreased $6 million, 6%, in the third quarter of 2025, compared with the third quarter of 2024, and its profit margin decreased 150 basis points, primarily reflecting higher volume on lower margin MV-75 development activities.

Bell's segment profit increased $2 million, 1%, in the first nine months of 2025, compared with the first nine months of 2024, primarily due to higher net volume and mix, partially offset by higher research and development costs and manufacturing inefficiencies. Bell's profit margin decreased 190 basis points, largely reflecting higher research and development costs and higher volume on lower margin MV-75 development activities.

**Textron Systems**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | |
| *(Dollars in millions)* | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** |
| Revenues | $| 307 | $| 301 | 2% | $| 924 | $| 930 | (1)% |
| Cost of sales | 235 | 235 | 226 | 226 | 4% | 698 | 698 | 694 | 694 | 1% |
| Research and development costs | 10 | 10 | 10 | 10 | —% | 33 | 33 | 43 | 43 | (23)% |
| Selling and administrative expense | 10 | 10 | 26 | 26 | (62)% | 61 | 61 | 81 | 81 | (25)% |
| Segment profit | $| 52 | $| 39 | 33% | $| 132 | $| 112 | 18% |
| Profit margin | 16.9% | 16.9% | 13.0% | 13.0% |  | 14.3% | 14.3% | 12.0% | 12.0% |  |

---

Textron Systems' revenues increased $6 million, 2%, in the third quarter of 2025, compared with the third quarter of 2024, largely due to higher volume. The increase in volume included higher volume on the Ship-to-Shore Connector program, partially offset by the impact of the termination of certain U.S. Government development programs.

Textron Systems' revenues decreased $6 million, 1%, in the first nine months of 2025, compared with the first nine months of 2024, largely due to lower volume. The decrease in volume included the impact of the cancellation of the Shadow program and termination of certain U.S. Government development programs, offset by higher volume on the Ship-to-Shore Connector program.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

Textron Systems' research and development costs was unchanged in the third quarter of 2025, and decreased $10 million, 23%, in the first nine months of 2025, compared with the corresponding periods of 2024. The decrease in costs in the first nine months of 2025 was primarily due to a reduction in costs on certain U.S. Government development programs.

Textron Systems' selling and administrative expense decreased $16 million, 62%, and $20 million, 25%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024. The decrease in expense in both periods included a $16 million gain resulting from the early termination of a vendor contract in the third quarter of 2025.

Textron Systems' segment profit increased $13 million, 33%, and $20 million, 18%, in the third quarter and first nine months of 2025, compared with the corresponding periods of 2024, largely due to lower selling and administrative expense as discussed above.

**Industrial**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | |
| *(Dollars in millions)* | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** | **September 27,<br>2025** | **September 27,<br>2025** | **September 28,<br>2024** | **September 28,<br>2024** | **% Change** |
| Revenues: |  |  |  |  |  |  |  |  |  |  |
| Kautex | $| 470 | $| 452 | 4% | $| 1403 | $| 1432 | (2)% |
| Textron Specialized Vehicles | 291 | 291 | 388 | 388 | (25)% | 989 | 989 | 1214 | 1214 | (19)% |
| Total revenues | 761 | 761 | 840 | 840 | (9)% | 2392 | 2392 | 2646 | 2646 | (10)% |
| Cost of sales | 655 | 655 | 723 | 723 | (9)% | 2031 | 2031 | 2256 | 2256 | (10)% |
| Research and development costs | 15 | 15 | 16 | 16 | (6)% | 49 | 49 | 54 | 54 | (9)% |
| Selling and administrative expense | 60 | 60 | 69 | 69 | (13)% | 197 | 197 | 233 | 233 | (15)% |
| Segment profit | $| 31 | $| 32 | (3)% | $| 115 | $| 103 | 12% |
| Profit margin | 4.1% | 4.1% | 3.8% | 3.8% |  | 4.8% | 4.8% | 3.9% | 3.9% |  |

---

Industrial segment revenues decreased $79 million, 9%, in the third quarter of 2025, compared with the third quarter of 2024. Revenues decreased $97 million, 25%, at Textron Specialized Vehicles, largely reflecting an $88 million impact from the disposition of the Powersports business in April 2025, as discussed in Note 12 to the Consolidated Financial Statements. Kautex revenues increased $18 million, 4%, primarily due to higher volume.

Industrial segment revenues decreased $254 million, 10%, in the first nine months of 2025, compared with the first nine months of 2024. Textron Specialized Vehicles' revenues decreased $225 million, 19%, largely reflecting a $123 million impact from the disposition and lower volume and mix, primarily in golf products. Kautex revenues decreased $29 million, 2%, largely due to lower volume.

Industrial's cost of sales decreased $68 million, 9%, and $225 million, 10%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, principally reflecting the impact from the disposition. The decrease in cost of sales in the first nine months of 2025 also included the impact from lower volume.

Industrial's selling and administrative expense decreased $9 million, 13%, and $36 million, 15%, in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, primarily reflecting the impact from the disposition. The decrease in expense in the first nine months of 2025 also reflected lower compensation costs, which included the impact of headcount reductions from restructuring activities.

Industrial's segment profit decreased $1 million, 3%, in the third quarter of 2025, and increased $12 million, 12%, in the first nine months of 2025, compared with the corresponding periods of 2024. The increase in segment profit for the first nine months of 2025 primarily reflected the impact from the disposition and cost reductions resulting from restructuring activities, partially offset by lower volume and mix described above and inflation, net of pricing.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Textron eAviation**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | | **Nine Months Ended** | **Nine Months Ended** | |
| *(Dollars in millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **%<br>Change** | **September 27,<br>2025** | **September 28,<br>2024** | **%<br>Change** |
| Revenues | $5 | $6 | (17)% | $20 | $22 | (9)% |
| Cost of sales | 7 | 5 | 40% | 20 | 20 | —% |
| Research and development costs | 8 | 14 | (43)% | 33 | 43 | (23)% |
| Selling and administrative expense | 5 | 5 | —% | 15 | 13 | 15% |
| Segment loss | $(15) | $(18) | (17)% | $(48) | $(54) | (11)% |

---

Textron eAviation segment revenues decreased $1 million and $2 million in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, and segment loss decreased $3 million and $6 million, respectively. Research and development costs decreased $6 million and $10 million in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024, due to a reduction in costs on certain development projects.

**Finance**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| Revenues | $26 | $12 | $57 | $39 |
| Selling and administrative expense | 4 | 3 | 8 | (5) |
| Interest expense, net | 4 | 4 | 13 | 14 |
| Segment profit | $18 | $5 | $36 | $30 |

---

Finance segment revenues increased $14 million and $18 million and segment profit increased $13 million and $6 million in the third quarter and first nine months of 2025, respectively, compared with the corresponding periods of 2024. The increase in revenues and segment profit for both periods included $11 million of gains on the disposition of non-captive assets in the third quarter of 2025. Selling and administrative expense in the first nine months of 2024 included an $8 million recovery of amounts that were previously written off related to one customer relationship.

**<u>Liquidity and Capital Resources</u>**

Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing group's activities, investors, rating agencies and analysts use different measures to evaluate each group's performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements.

Key information that is utilized in assessing our liquidity is summarized below:

---

| | | |
|:---|:---|:---|
| *(Dollars in millions)* | **September 27,<br>2025** | **December 28,<br>2024** |
| **Manufacturing group** |  |  |
| Cash and equivalents | $1446 | $1386 |
| Debt | 3394 | 3247 |
| Shareholders' equity | 7493 | 7204 |
| Capital (debt plus shareholders' equity) | 10887 | 10451 |
| Net debt (net of cash and equivalents) to capital | 21% | 21% |
| Debt to capital | 31% | 31% |
| **Finance group** |  |  |
| Cash and equivalents | $76 | $55 |
| Debt | 340 | 341 |

---

We believe that our calculations of debt to capital and net debt to capital are useful measures as they provide a summary indication of the level of debt financing (i.e., leverage) that is in place to support our capital structure, as well as to provide an indication of

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

the capacity to add further leverage. We expect to have sufficient cash to meet our needs based on our existing cash balances, the cash we expect to generate from our manufacturing operations and the availability of our existing credit facility.

**Credit Facilities and Other Sources of Capital**

On October 16, 2025, Textron entered into a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2030 and provides for two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. The new facility replaces the existing 5-year facility which was scheduled to expire in October 2027. There were no amounts borrowed against either facility and at September 27, 2025 and December 28, 2024, there was a $9 million letter of credit issued and outstanding under the prior facility that remains outstanding under the new facility.

We also maintain an effective shelf registration statement filed with the Securities and Exchange Commission that allows us to issue an unlimited amount of public debt and other securities. On February 13, 2025, we issued $500 million of SEC-registered fixed-rate notes due in May 2035 with an annual interest rate of 5.50%. On March 3, 2025, we repaid our $350 million 3.875% Notes due in 2025.

**Manufacturing Group Cash Flows**

Cash flows for the Manufacturing group as presented in our Consolidated Statements of Cash Flows are summarized below:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** |
| Operating activities | $629 | $561 |
| Investing activities | (94) | (194) |
| Financing activities | (495) | (1199) |

---

In the first nine months of 2025, cash flows from operating activities increased $68 million to $629 million, compared with $561 million in the first nine months of 2024, primarily due to $60 million in lower net tax payments.

Cash flows used in investing activities included $210 million and $211 million of capital expenditures in the first nine months of 2025 and 2024, respectively, partially offset by $77 million and $27 million of net proceeds from corporate-owned life insurance policies, respectively. In the first nine months of 2025, cash flows used in investing activities also included $16 million of net proceeds from the disposition of the Powersports business as discussed in Note 12 to the Consolidated Financial Statements.

Cash flows used in financing activities in the first nine months of 2025 included $635 million of cash paid to repurchase an aggregate of 8.4 million shares of our common stock and $355 million of payments on long-term debt, partially offset by $495 million of net proceeds from the issuance of long-term debt. In the first nine months of 2024, cash flows used in financing activities included $890 million of cash paid to repurchase an aggregate of 10.1 million shares of our common stock and $360 million of payments on long-term debt.

**Finance Group Cash Flows**

Cash flows for the Finance group as presented in our Consolidated Statements of Cash Flows are summarized below:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** |
| Operating activities | $14 | $4 |
| Investing activities | 19 | 9 |
| Financing activities | (12) | (15) |

---

The Finance group's cash flows from investing activities included finance receivable originations of $167 million and $90 million in the first nine months of 2025 and 2024, respectively, and collections on finance receivables totaling $119 million and $99 million, respectively. In the first nine months of 2025, investing cash flows also included $66 million of proceeds from the disposition of non-captive assets. In the first nine months of 2025 and 2024, financing activities included payments on long-term and nonrecourse debt of $12 million and $15 million, respectively.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Consolidated Cash Flows**

The consolidated cash flows after elimination of activity between the borrowing groups, are summarized below:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** |
| Operating activities | $613 | $569 |
| Investing activities | (45) | (189) |
| Financing activities | (507) | (1214) |

---

In the first nine months of 2025, cash flows from operating activities increased $44 million to $613 million, compared with $569 million in the first nine months of 2024, primarily due to $55 million in lower net tax payments, partially offset by a net cash outflow of $34 million from captive financing activities.

Cash flows used in investing activities included $210 million and $211 million of capital expenditures in the first nine months of 2025 and 2024, respectively, partially offset by $77 million and $27 million of net proceeds from corporate-owned life insurance policies, respectively. In the first nine months of 2025, cash flows used in investing activities also included $66 million of proceeds from the disposition of non-captive assets and $16 million of net proceeds from the disposition of the Powersports business.

Cash flows used in financing activities in the first nine months of 2025 included $635 million of cash paid to repurchase shares of our outstanding common stock and $367 million of payments on long-term and non-recourse debt, partially offset by $495 million of net proceeds from the issuance of long-term debt. In the first nine months of 2024, cash flows used in financing activities included $890 million of cash paid to repurchase shares of our outstanding common stock and $375 million of payments on long-term and non-recourse debt.

**Captive Financing and Other Intercompany Transactions**

The Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of Cash Flows, cash received from customers is reflected as operating activities when received from third parties. However, in the cash flow information provided for the separate borrowing groups, cash flows related to captive financing activities are reflected based on the operations of each group. For example, when product is sold by our Manufacturing group to a customer and is financed by the Finance group, the origination of the finance receivable is recorded within investing activities as a cash outflow in the Finance group's statement of cash flows. Meanwhile, in the Manufacturing group's statement of cash flows, the cash received from the Finance group on the customer's behalf is recorded within operating cash flows as a cash inflow. Although cash is transferred between the two borrowing groups, there is no cash transaction reported in the consolidated cash flows at the time of the original financing. These captive financing activities, along with all significant intercompany transactions, are reclassified or eliminated from the Consolidated Statements of Cash Flows.

Reclassification adjustments included in the Consolidated Statements of Cash Flows on page <u>[6](#ic006bc7e740d4a32a9511b6fbdcb63c3_25)</u> are summarized below:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** |
| Reclassification adjustments from investing activities to operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Finance receivable originations for Manufacturing group inventory sales | $(127) | $(72) |
| &nbsp;&nbsp;&nbsp;Cash received from customers | 97 | 76 |
| Total reclassification adjustments from investing activities to operating activities | $(30) | $4 |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**<u>Critical Accounting Estimates Update</u>**

Our Consolidated Financial Statements are prepared in conformity with U.S. generally accepted accounting principles, which require us to make estimates and assumptions that affect the amounts reported in the financial statements. The accounting estimates that we believe are most critical to the portrayal of our financial condition and results of operations are reported in Item 7 of our 2024 Annual Report on Form 10-K. The following section provides an update of the year-end disclosure.

**Revenue Recognition**

A substantial portion of our revenues is related to long-term contracts with the U.S. Government, including those under the U.S. Government-sponsored foreign military sales program, for the design, development, manufacture or modification of aerospace and defense products as well as related services. We generally use the cost-to-cost method to measure progress for these contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. Under this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred.

Changes in our estimate of the total expected cost or in the transaction price for a contract typically impact our profit booking rate. We utilize the cumulative catch-up method of accounting to recognize the impact of these changes on our profit booking rate for a contract. Under this method, the inception-to-date impact of a profit adjustment on a contract is recognized in the period the adjustment is identified. The impact of our cumulative catch-up adjustments on segment profit recognized in prior periods is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| *(In millions)* | **September 27,<br>2025** | **September 28,<br>2024** | **September 27,<br>2025** | **September 28,<br>2024** |
| Gross favorable | $28 | $23 | $89 | $95 |
| Gross unfavorable | (10) | (13) | (46) | (54) |
| Net adjustments | $18 | $10 | $43 | $41 |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Forward-Looking Information**

Certain statements in this Quarterly Report on Form 10-Q and other oral and written statements made by us from time to time are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which may describe strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures, often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "guidance," "project," "target," "potential," "will," "should," "could," "likely" or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. In addition to those factors described in our 2024 Annual Report on Form 10-K under "Risk Factors," among the factors that could cause actual results to differ materially from past and projected future results are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interruptions in the U.S. Government's ability to fund its activities, pay its obligations, and/or conduct government functions necessary for the certification of aircraft and aircraft parts and other activities of our businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changing priorities or reductions in the U.S. Government defense budget, including those related to military operations in foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to perform as anticipated and to control costs under contracts with the U.S. Government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The U.S. Government's ability to unilaterally modify or terminate its contracts with us for the U.S. Government's convenience or for our failure to perform, to change applicable procurement and accounting policies, or, under certain circumstances, to withhold payment or suspend or debar us as a contractor eligible to receive future contract awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in foreign military funding priorities or budget constraints and determinations, or changes in government regulations or policies on the export and import of military and commercial products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in the global economy or changes in worldwide political conditions that adversely impact demand for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in interest rates or foreign exchange rates and inflationary pressures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to our international business, including establishing and maintaining facilities in locations around the world and relying on joint venture partners, subcontractors, suppliers, representatives, consultants and other business partners in connection with international business, including in emerging market countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Finance segment's ability to maintain portfolio credit quality or to realize full value of receivables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance issues with key suppliers or subcontractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legislative or regulatory actions, both domestic and foreign, impacting our operations or demand for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to control costs and successfully implement various cost-reduction activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The efficacy of research and development investments to develop new products or unanticipated expenses in connection with the launching of significant new products or programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The timing of our new product launches or certifications of our new aircraft products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to keep pace with our competitors in the introduction of new products and upgrades with features and technologies desired by our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pension plan assumptions and future contributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Demand softness or volatility in the markets in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Difficulty or unanticipated expenses in connection with integrating acquired businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The risk that acquisitions do not perform as planned, including, for example, the risk that acquired businesses will not achieve revenue and profit projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The impact of changes in tax legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The risk of disruptions to our business and the business of our suppliers, customers and other business partners due to unexpected events, such as pandemics, natural disasters, acts of war, strikes, terrorism, social unrest or other societal, geopolitical or macroeconomic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ability of our businesses to hire, train and retain the highly skilled personnel necessary for our businesses to succeed.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

There has been no significant change in our exposure to market risk during the fiscal quarter ended September 27, 2025. For discussion of our exposure to market risk, refer to Item 7A. Quantitative and Qualitative Disclosures about Market Risk contained in Textron's 2024 Annual Report on Form 10-K.

**Item 4. Controls and Procedures**

We performed an evaluation of the effectiveness of our disclosure controls and procedures as of September 27, 2025. The evaluation was performed with the participation of senior management of each business segment and key Corporate functions, under the supervision of our Chairman, President and Chief Executive Officer (CEO) and our Executive Vice President and Chief Financial Officer (CFO). Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were operating and effective as of September 27, 2025.

There were no changes in our internal control over financial reporting during the fiscal quarter ended September 27, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II. OTHER INFORMATION**

**Item 1A. Risk Factors**

Our business, financial condition and results of operations are subject to various risks. Investors should review and consider the risk factors previously disclosed in the 2024 Annual Report on Form 10-K for the year ended December 28, 2024, along with the risk factor included in Part II. Item 1A. Risk Factors in Textron's Quarterly Reports on Form 10-Q for the quarters ended March 29, 2025 and June 28, 2025, which are incorporated herein by reference. We may disclose changes to these risk factors or additional risk factors in our future filings with the SEC as the business environment and conditions change. Additional risks and uncertainties not presently known to us or that we currently believe are not material also may adversely impact our business, financial condition, results of operations and cash flows.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

The following provides information about our third quarter of 2025 repurchases of equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** *(shares in thousands)* | **Total<br>Number of<br>Shares<br>Purchased \*** | **Average Price<br>Paid per Share<br>(excluding<br>commissions)** | **Total Number of<br>Shares Purchased as<br>part of Publicly<br>Announced Plan \*** | **Maximum<br>Number of Shares<br>that may yet be<br>Purchased under<br>the Plan** |
| June 29, 2025 – August 2, 2025 | 600 | $78.59 | 600 | 9211 |
| August 3, 2025 – August 30, 2025 | 1240 | 78.95 | 1240 | 7971 |
| August 31, 2025 – September 27, 2025 | 740 | 81.78 | 740 | 7231 |
| Total | 2580 | $79.68 | 2580 |  |

---

*\* These shares were purchased pursuant to a plan authorizing the repurchase of up to 35 million shares of Textron common stock that was approved on July 24, 2023 by our Board of Directors. This share repurchase plan has no expiration date.*

**Item 5. Other Information**

(c) None of our directors or executive officers adopted or terminated a "Rule 10b5-1 trading arrangement" or adopted or terminated a "non-Rule 10b5-1 trading arrangement" (as such terms are defined in Item 408 of Regulation S-K) during the quarter ended September 27, 2025.

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Item 6. Exhibits**

---

| | |
|:---|:---|
| 31.1 | <u>[Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q3202510qex-311.htm)</u> |
| 31.2 | <u>[Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q3202510qex-312.htm)</u> |
| 32.1 | <u>[Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q3202510qex-321.htm)</u> |
| 32.2 | <u>[Certification of Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q3202510qex-322.htm)</u> |
| 101 | The following materials from Textron Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended September 27, 2025, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

------

<u>[**Table of Contents**](#ic006bc7e740d4a32a9511b6fbdcb63c3_7)</u>

**Signatures**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. &nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| | | TEXTRON INC. |
| Date: | October 23, 2025 | /s/ Mark S. Bamford |
| | | Mark S. Bamford<br>Vice President and Corporate Controller<br>(principal accounting officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Scott C. Donnelly, Chairman, President and Chief Executive Officer of Textron Inc. certify that:

1. I have reviewed this quarterly report on Form 10-Q of Textron Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | October 23, 2025 | /s/ Scott C. Donnelly |
| | | Scott C. Donnelly<br>Chairman, President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, David Rosenberg, Executive Vice President and Chief Financial Officer of Textron Inc. certify that:

1. I have reviewed this quarterly report on Form 10-Q of Textron Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | October 23, 2025 | /s/ David Rosenberg |
| | | David Rosenberg<br>Executive Vice President and Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**TEXTRON INC.**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Textron Inc. (the "Company") on Form 10-Q for the period ended September 27, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Scott C. Donnelly, Chairman, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: | October 23, 2025 | /s/ Scott C. Donnelly |
| | | Scott C. Donnelly<br>Chairman, President and Chief Executive Officer |

---

## Exhibit 32.2

**Exhibit 32.2**

**TEXTRON INC.**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Textron Inc. (the "Company") on Form 10-Q for the period ended September 27, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David Rosenberg, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: | October 23, 2025 | /s/ David Rosenberg |
| | | David Rosenberg<br>Executive Vice President and Chief Financial Officer |

---

<br>