Textron Inc

Equity Research 29 July 2026 | 12:34AM EDT

Textron Inc. (TXT) Mixed 2Q26; Neutral

TXT 12m Price Target: $93.00 Price: $89.96 Upside: 3.4% NEUTRAL Noah Poponak, CFA | Our view on the stock post 2Q26 earnings Goldman Sachs & Co. LLC

TXT 2Q26 revenue and manufacturing EBIT were slightly ahead of Connor Dessert | FactSet consensus. However, that included a tariff refund, and the Goldman Sachs & Co. LLC

closely watched Aviation margin was soft as Cessna continues to Nizar Mesani | battle supply chain and productivity challenges. TXT reiterated the Goldman Sachs India SPL

full-year outlook for now, but also highlighted potential downside risks to its earnings and cash flow guidance if additional U.S. Army Key Data _____________________________________ funding for the MV-75 program is not secured in the year. We are Market cap: $15.7bn Enterprise value: $16.1bn Neutral rated on TXT. 3m ADTV: $143.1mn United States Americas Aerospace & Defense M&A Rank: 3 Key elements of the quarter GS Forecast __________________________________ 2Q26 EPS of $1.62 was above FactSet consensus of $1.55, with 12/25 12/26E 12/27E 12/28E

revenue 1% ahead of consensus, and manufacturing segment EBIT Revenue ($ mn) New 14,799.0 15,666.9 16,482.5 17,507.3 Revenue ($ mn) Old 14,799.0 15,628.0 16,649.0 17,641.6 in-line. Revenue was above consensus at Aviation, Systems, EBITDA ($ mn) 1,764.0 1,875.3 1,999.1 2,166.9

Industrial, while Bell was slightly below consensus. Margins were EBIT ($ mn) EPS ($) New 1,363.0 6.10 1,460.3 6.47 1,557.1 7.12 1,716.9 8.19 ahead at Systems and Industrial, but below at Bell and Aviation. EPS ($) Old P/E (X) Aviation implied book-to-bill was 1.02X in the quarter (TTM is Dividend yield (%) X). TXT reiterated 2026 guidance including manufacturing cash Net debt/EBITDA (X) 1.1 1.0 0.9 0.8

flow of $700-800mn (unchanged), and EPS of $6.40-6.60 6/26 9/26E 12/26E 3/27E (unchanged, consensus at $6.51). The company noted that if EPS ($)

additional FY26 funding for the MV-75 program is not received, GS Factor Profile ______________________________ Growth adjusted EPS could be impacted by $0.20 to $0.30 and cash flow by $150mn to $250mn. Financial Returns

Percentile 20th 40th 60th 80th 100th

TXT relative to Americas Coverage TXT relative to Americas Aerospace & Defense

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Textron Inc. (TXT)

Textron Inc. (TXT) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Jul 1, 2025 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 2,025.0 1,983.7 1,980.7 2,069.9 Accounts receivable 823.0 1,262.0 1,352.6 1,247.1 Inventory 4,278.0 5,216.4 5,555.7 4,952.1 Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 7,998.0 9,371.0 9,798.0 9,178.1 P/E (X) Net PP&E 2,590.0 2,765.0 2,963.0 2,993.0 EV/EBITDA (X) 8.1 8.4 7.7 6.8 Net intangibles 2,321.0 2,312.0 2,312.0 2,312.0 EV/sales (X) 1.0 1.0 0.9 0.8 Total investments FCF yield (%) 6.7 4.6 5.4 7.3 Other long-term assets 4,646.0 4,577.0 4,577.0 4,577.0 EV/DACF (X) Total assets 18,129.0 19,549.0 20,174.0 19,584.1 CROCI (%) ROE (%) Accounts payable 1,185.0 1,350.5 1,438.4 1,329.6 Net debt/EBITDA (X) 1.1 1.0 0.9 0.8 Short-term debt Net debt/equity (%) Current lease liabilities -- -- -- -- Interest cover (X) Other current liabilities 3,163.0 3,092.0 3,092.0 3,092.0 Inventory days Total current liabilities 4,353.0 4,797.5 4,885.4 4,776.6 Receivable days Long-term debt 3,873.0 3,450.0 3,450.0 3,450.0 Days payable outstanding Non-current lease liabilities -- -- -- -- Growth & Margins (%)…