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Are Segmental Sales Likely to Drive Textron's Q2 Earnings?

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Key Takeaways

  • TXT's Aviation and Bell units are expected to post year-over-year sales growth of 6% and 18%, respectively.
  • Textron Systems and Industrial segments likely saw revenue declines due to lower volumes and cancellations.
  • TXT's Q2 revenues are estimated at $3.63 billion, up 2.9%, but EPS may drop 5.8%.

Textron Inc. ((TXT - Free Report) ) is scheduled to release its second-quarter 2025 results on July 24, before market open.

The company has a four-quarter average earnings surprise of 3.96%. The improving revenue performance across two of its major business segments is likely to have boosted Textron’s overall top-line performance. However, higher costs of production are likely to have hurt earnings. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Textron Aviation Likely to Post Solid Sales

Higher aftermarket parts and services revenues are likely to have boosted the Aviation unit’s revenues in the second quarter.

The Zacks Consensus Estimate for this segment’s revenues is pegged at $1,564 million, which indicates an increase of 6% from the year-ago quarter.

Textron Inc. Price and EPS Surprise

Textron Inc. Price and EPS Surprise

Textron Inc. price-eps-surprise | Textron Inc. Quote

Factors Likely to Have Influenced Bell’s Performance

Higher military sales volumes, backed by the continued ramp-up of the FLRAA program and military sustainment programs, along with increased commercial helicopter deliveries, are projected to have bolstered the Bell unit’s revenue performance.

The Zacks Consensus Estimate for the Bell segment’s revenues is pegged at $936.8 million, which indicates growth of 18% from the year-ago quarter.

Textron Systems’ Revenues

Lower sales volumes and the impact of the cancellation of the Shadow program are likely to have impacted Textron Systems’ revenue performance.

The Zacks Consensus Estimate for Textron Systems’ revenues is pegged at $286.3 million, which implies a decline of 11.4% from the year-ago quarter.

Industrial Unit’s Performance

Lower sales volumes from the specialized vehicles and Kautex product lines are likely to have impacted TXT’s Industrial segment’s performance.

The Zacks Consensus Estimate for the Industrial segment’s revenues is pegged at $819.4 million, which indicates a decline of 10.3% from the year-ago quarter.

TXT’s Q2 Estimates

The robust revenue performance in two of its four major business segments is likely to have bolstered TXT’s overall top line.

The Zacks Consensus Estimate for TXT’s second-quarter revenues is pegged at $3.63 billion, which indicates growth of 2.9% from the year-ago quarter’s figure.

While solid sales growth expectations are likely to have contributed favorably to the company’s bottom line, higher research and development expenses as well as cost of production sold are projected to have hurt its overall earnings performance.

The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.45 per share. This indicates a decline of 5.8% from the prior-year figure.

TXT’s Backlog Projections

Our model indicates a 34.5% year-over-year increase in Textron’s second-quarter backlog to $18.05 billion.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Textron this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: Textron has an Earnings ESP of +0.23%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: TXT currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Below, we have mentioned a few other players from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases:

General Dynamics ((GD - Free Report) ) is set to report its second-quarter 2025 results on July 23, before market open. It has an Earnings ESP of +1.51% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for GD’s earnings is pegged at $3.59 per share, indicating year-over-year growth of 10.1%. The consensus estimate for its sales is pegged at $12.35 billion, indicating year-over-year growth of 3.1%.

L3Harris Technologies ((LHX - Free Report) ) is set to report its second-quarter 2025 results on July 24, before market open. It has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for LHX’s earnings is pegged at $2.48 per share. The consensus estimate for its sales is pegged at $5.30 billion, indicating year-over-year growth of 0.1%.

Transdigm Group ((TDG - Free Report) ) is expected to report fiscal third-quarter earnings soon. It has an Earnings ESP of +0.25% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for TDG’s earnings is pegged at $9.78 per share, indicating year-over-year growth of 8.7%. The consensus estimate for sales is pegged at $2.30 billion, indicating year-over-year growth of 12.2%.

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