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Textron to become a pure-play Aerospace & Defense company aligned to its core franchises of Textron Aviation, Bell, and Textron Systems ("New Textron")
Separation of Textron's Industrial segment – composed of Kautex and Textron Specialized Vehicles ("Industrial")
Separation designed to enhance strategic focus and unlock shareholder value
Textron Inc. (the “Company” or “Textron”) today announced its intent to separate its Industrial segment from the Company's core aerospace and defense businesses to enhance its strategic and operational focus and drive long-term value for stakeholders.
Textron intends to explore multiple paths to effect the planned separation of its Industrial segment, including but not limited to a sale of the Industrial businesses or a tax-free separation into a standalone, publicly traded company. The separation results in New Textron becoming a pure-play aerospace and defense company aligned to its core franchises of Textron Aviation, Bell, and Textron Systems.
"This planned separation creates greater clarity and focus for both businesses," said Lisa M. Atherton, Chief Executive Officer of Textron. "New Textron will move forward as a pure-play aerospace and defense company positioned for higher growth, while Industrial gains the independence to pursue strategies aligned with its distinct strengths—unlocking long term value for all stakeholders."
New Textron and Industrial operate in distinct markets with unique business opportunities and investment requirements. As separate companies, each is expected to benefit from:
"Through the Board of Directors' strategic planning process and our ongoing portfolio review, the Board and the management team concluded that pursuing a separation of our Industrial segment is the right approach to sharpen the strategic focus of Textron and support long-term value creation for shareholders," said Scott C. Donnelly, Textron's Executive Chairman.
Following the planned separation, New Textron, with over $12 billion in expected 2026 revenues and $19 billion in backlog, will be a premier pure-play aerospace and defense company with world-class engineering capabilities, a long track record of innovation, and proven manufacturing and support operations. The Company will be anchored by its core franchises: in general aviation under the Cessna and Beechcraft brands and in military and commercial rotorcraft under the Bell brand, in addition to Textron Systems' differentiated suite of aerospace and defense products and services.
New Textron expects a successful separation to increase its revenue growth profile and operating margins. The Company remains committed to maintaining a strong balance sheet and consistent capital allocation priorities, including investments in research and development and capital expenditures.
Industrial, with over $3 billion in expected 2026 revenues, is composed of Kautex – a leader in plastic fuel systems, battery enclosures, and clear-vision systems for the automotive industry – and Textron Specialized Vehicles, a manufacturer of specialized vehicles and equipment with globally recognized brands such as E-Z-GO, PACE Technologies, Jacobsen, and TUG Technologies.
"We are confident this next chapter will enable Industrial to build on its strong foundation and deliver enhanced value for employees, customers, and shareholders," said Atherton. She continued, "Throughout the separation process, we will remain focused on positioning our talented teams for long-term success."
The Company is targeting completion of the separation within 12 to 18 months, subject to the satisfaction of certain conditions customary for such a proposed separation, including receipt of any required regulatory approvals and final approval of the Company's Board of Directors. There can be no assurance regarding the ultimate timing or structure of the proposed separation or that a transaction will be completed.
As the Company pursues this separation, Textron will continue to operate its Industrial businesses in alignment with its current strategy, including continued investments in growth, margin improvement, and innovation.
