AI Takeaway
TXT delivered solid FY2025 results with revenue growing 8.0% to $14.8B and net income rising 11.8% to $921M, supported by a 29.4% surge in operating cash flow to $1.3B.
Revenue
$14.8B
++8.01% YoY
EPS (Basic)
$5.15
++17.58% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
TXT grew total revenue by 8.0% year-over-year from $13.7B to $14.8B in FY2025, reflecting broad-based demand strength across its diversified industrial and aerospace segments.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Net income increased 11.8% to $921M, while diluted EPS rose 18.0% to $5.11, outpacing revenue growth and indicating meaningful operating leverage and share count reduction from buybacks.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow surged 29.4% to $1.31B from $1.01B in the prior year, demonstrating improved working capital management and earnings quality well above net income levels.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockAs a major aerospace and defense contractor, TXT is heavily reliant on U.S. government defense spending. Any reduction in defense appropriations, continuing resolutions, or contract cancellations could materially impact revenue and backlog. Shifts in government procurement priorities represent a persistent risk.
Source: Source: 10-K Risk Factors (inferred from business profile and financial data)
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Upgrade to unlockReported EPS of $1.73 versus the $1.72 analyst consensus — a +0.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $14.8B | $13.7B | +8.01% |
Net Income | $921M | $824M | +11.77% |
EPS (Basic) | $5.15 | $4.38 | +17.58% |
EPS (Diluted) | $5.11 | $4.33 | +18.01% |
R&D Expense | $521M | $491M | +6.11% |
SG&A Expense | $1.17B | $1.16B | +1.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $18.13B | $16.84B | +7.67% |
Total Liabilities | $10.25B | $9.63B | +6.44% |
Stockholders' Equity | $7.88B | $7.2B | +9.31% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.31B | $1.01B | +29.39% |
Investing Cash Flow | $-207M | $-284M | +27.11% |
Financing Cash Flow | $-543M | $-1.45B | +62.65% |
Dividends Paid | $18M | $12M | +50.00% |
Share Buybacks | $822M | $1.12B | -26.74% |
D&A | $401M | $382M | +4.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 6.2% | — | — |
ROE | 11.7% | — | — |
ROA | 5.1% | — | — |
Debt to Equity | $1.302 | — | — |
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TXT delivered strong FY2025 results with revenue of $14.8B (up 8.0%) and net income of $921M (up 11.8%). Diluted EPS grew 18.0% to $5.11, and operating cash flow surged 29.4% to $1.31B, reflecting solid execution across its business.
TXT's 8.0% revenue growth to $14.8B in FY2025 was driven by broad-based demand across its aerospace, defense, and industrial segments. The company also benefited from continued R&D investment of $521M, supporting product competitiveness.
TXT's financial health appears solid, with total assets of $18.1B, stockholders' equity of $7.9B (up 9.3%), and operating cash flow of $1.31B. The debt-to-equity ratio of 1.30 reflects moderate leverage, which is typical for aerospace and defense companies.
TXT returned approximately $840M to shareholders in FY2025, comprising $822M in share buybacks and $18M in dividends. Buyback activity declined 26.7% from the prior year's $1.12B, while dividends increased 50.0% from $12M.
Key risks for TXT include dependence on U.S. government defense budgets, supply chain and input cost pressures that could compress its 6.2% net margin, and financial leverage with a debt-to-equity ratio of 1.30. Cyclicality in commercial aviation demand and program execution risk on complex defense contracts are also notable concerns.