Textron: Likely A Stock To Hold For A Decade


  • Bell, a subsidiary of Textron, won the V280 helicopter contract estimated to be worth $70 to $80 billion. Bell expects lower profits this year.
  • The aviation business sales were $300 hundred million lower than guidance because of supply chain and labor issues. The aviation backlog increased by $3.5 billion.
  • Earnings per share were up 21% in 2022 compared to the projected growth of 12% in 2023. Textron is a strong buy.
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Investment Thesis:

Textron (NYSE:TXT) has long-term solid growth from the V280 and electric-powered aircraft that will generate significant profits over the next decade.

Textron Segments

Textron generated $12.9 billion in revenue in 2022. Of this, only $3.5 billion were in industrial products, largely golf carts

(in $Millions) Revenue Revenue Profit Growth
2023 Est. % MAR 2,022 % Mar $ 2023
Aviation 5,700 12.3% 5,100 11.0% 140
Bell 3,300 8.8% 3,100 9.1% -7
Systems 1,250 11.3% 1,200 11.3% 5
Industrial 3,600 5.5% 3,500 4.5% 40
eAviation MIL 45 16 -24 -41
Finance MIL 52 45 16 16
TOTAL 13,800 12,900 153

Table by Author

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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