Textron Inc. Prepares for Q1 2025 Earnings Release Amid Mixed Results

Textron Inc. (TXT), a multi-industry corporation with a market capitalization of $12.1 billion, operates globally through its diverse segments, including aircraft, defense, industrial, and finance. Based in Providence, Rhode Island, the company encompasses six divisions: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance.

Upcoming Earnings Release and Analyst Expectations

The company is set to announce its fiscal Q1 2025 earnings results on Thursday, April 24, prior to the market opening. Analysts predict Textron will report adjusted earnings of $1.23 per share, reflecting a 2.5% increase from $1.20 per share in the same quarter last year. In the previous four quarters, Textron exceeded Wall Street’s profit expectations twice and fell short on two occasions. Notably, in Q4 2024, the company surpassed the consensus earnings per share (EPS) estimate by 7.2%.

Fiscal Year Projections

For fiscal 2025, analysts forecast Textron’s adjusted EPS to reach $6.11, an increase of 11.5% from the $5.48 reported in fiscal 2024. Furthermore, earnings are anticipated to rise by over 9.9% year-over-year, reaching approximately $6.72 in fiscal 2026.

Stock Performance and Recent Trends

Over the last year, TXT’s stock has declined by 30.7%, significantly underperforming in comparison to the S&P 500 Index, which saw a 4.7% gain, and the Industrial Select Sector SPDR Fund (XLI), which returned 1.3% in the same timeframe.

Following its mixed Q4 2024 results released on January 22, Textron’s shares fell by 3.4%. The company reported adjusted EPS of $1.34, exceeding Wall Street’s forecast of $1.25. However, revenue of $3.6 billion represented a 7.2% year-over-year decline, falling short of market expectations. This reduction in revenue was mainly due to a 15.9% decrease in the Textron Aviation segment, which faced production challenges linked to labor strike disruptions.

Guidance and Analyst Sentiment

Looking ahead to fiscal 2025, Textron has guided for total revenue of approximately $14.7 billion, with adjusted EPS projected between $6.00 and $6.20.

Market analysts maintain a moderately optimistic outlook for TXT stock, issuing a “Moderate Buy” rating. Among the 14 analysts covering the stock, there are seven “Strong Buys,” six “Holds,” and one “Strong Sell.” The average price target is $90.36, indicating a potential upside of 35.3% from current levels.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.

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