Textron to Separate Industrial Businesses, Creating Pure‑Play Aerospace and Defense Company

Overview

• Textron, which announced the plan Thursday, will separate Kautex and Textron Specialized Vehicles to leave a parent focused on Textron Aviation, Bell and Textron Systems.
• The company is weighing a sale or a tax‑free spin‑off for the Industrial segment with a 12 to 18 month target window subject to board and regulatory approvals.
• After the split, New Textron projects more than $12 billion in 2026 revenue and reports a $19 billion backlog across its aircraft and rotorcraft franchises.
• Q1 results showed $3.7 billion in revenue, a 10% rise in segment profit to $320 million, and adjusted EPS of $1.45, which management said supports the separation.
• Management will shift some R&D to factory and supply‑chain gains and speed the MV‑75 Cheyenne program, while Industrial continues normal operations with over $3 billion in expected 2026 revenue and brands like E‑Z‑GO and Jacobsen.