Textron Aviation Logs Record Revenues, Strong Q4 Recovery

Textron Aviation delivered 49 business jets in the fourth quarter of 2025, up significantly from 32 in the same period last year, capping a record-breaking year revenue-wise for the Wichita-based manufacturer. This marks a full recovery from production disruptions caused by a 2024 labor strike.

The division posted revenues of $1.7 billion in the quarter, up $467 million from fourth-quarter 2024. This increase reflected higher aircraft revenues of $400 million and aftermarket parts and services revenues of $67 million, according to parent company Textron Inc. Quarterly segment profit for Textron Aviation reached $208 million, up $108 million compared with the prior-year period.

“Aviation had a strong year with revenue up 36% for the fourth quarter and 13% for the full year, reflecting higher aircraft deliveries and increased aftermarket volume as we recovered from the strike in late 2024,” said executive chairman Scott Donnelly during the company’s earnings call Wednesday morning. “In the quarter, we continue to see solid order flow and customer demand across our portfolio, ending the year with $7.7 billion of backlog.”

For the full year, Textron Aviation generated revenues of approximately $6 billion, up 13% from 2024, and segment profit of $694 million, up 23% year over year. The company delivered 171 jets for the year, up from 151 in 2024, and 146 commercial turboprops, compared with 127 the previous year.

Fourth-quarter Deliveries Show Strong Rebound

The fourth quarter’s 49 jet deliveries included four Citation M2 Gen2s, nine CJ3+s, nine CJ4 Gen2s, three Citation Ascends, 13 Latitudes, and 11 Longitudes. No XLS Gen2 or Sovereign+ jets were delivered. This compares with five M2 Gen2s, four CJ3+s, five CJ4 Gen2s, four XLS Gen2s, eight Latitudes, five Longitudes, and one Sovereign+ in fourth-quarter 2024.

As for commercial turboprop deliveries, 23 Caravans were delivered in the quarter versus 26 a year ago, and five SkyCouriers versus eight. Fifteen King Airs (eight King Air 260s and seven King Air 360s) were handed over in the fourth quarter of 2025—up significantly from the four King Airs (two King Air 260s and two King Air 360s) delivered in fourth-quarter 2024.

“In 2025, we delivered 171 jets, up from 151 last year [2024], and 146 commercial turboprops, up from 127 in 2024,” Donnelly said. “Also in the quarter, we continued to upgrade the product portfolio. Citation Ascend, CJ3 Gen2, and the M2 Gen2 with autothrottles all received FAA certification and beginning deliveries.”

Lisa Atherton, who took over the roles of president and CEO from Donnelly on January 4, emphasized the strength of the business going forward. “2025 was a very strong year for Aviation, and the business is well-positioned for the future,” she said during her first earnings call as chief executive. “The business has nearly an $8 billion backlog, and we continue to experience strong order flow.”

Certification Milestones and Product Development

The fourth quarter saw significant certification achievements with the FAA approving the Citation Ascend, CJ3 Gen2, and M2 Gen2 with autothrottles. Additionally, the Beechcraft Denali development program continued to advance, finishing the year with more than 3,200 hours of flight testing.

CFO David Rosenberg noted that aftermarket performance remained robust throughout the year. “During 2025, strong aircraft utilization within the Textron Aviation product portfolio resulted in 6% growth in aftermarket revenues,” he said.

On the defense side, Textron Aviation secured a contract to deliver the first two Beechcraft T-6 trainers to Japan’s Air Self-Defense Force, with deliveries scheduled for 2029 and additional contracts anticipated.

Looking Ahead to 2026

For 2026, Textron is projecting Textron Aviation revenues of approximately $6.5 billion, reflecting growth of about 9% over 2025. The division’s segment margin is expected to range between 11% and 12%, compared with a recasted 2025 margin of 11.1%.

“Our overall guide is $6.5 billion, up from $6 billion last year,” Rosenberg said. “Obviously implied in that guide, we expect higher deliveries in 2026, and I would expect similar aftermarket growth profile of around 6%, just like we had in 2025.”

Atherton outlined her priorities for the company, emphasizing execution, portfolio focus, and building resilience. “Each business has to deliver on their commitments, with that operational rigor and cash discipline and have the accountability to do so,” she said. “I have a phrase: ‘We have to do what we say we’re going to do,’ and so we’re going to hold each business to that.”

When asked about supply chain and productivity challenges, Atherton acknowledged ongoing work in both areas. “Productivity at Aviation is certainly a key focus for us as we go into 2026,” she said, noting that while most supply-chain recovery has occurred, engines remain “a laggard for us, and we have to keep working with our partners there to get the engines to our aircraft.”

She also highlighted workforce development as a priority, noting that the company created an in-house training program to upskill talent and improve retention, particularly among newer employees.

Textron’s overall 2025 revenue of $14.8 billion represented the highest in company history. For 2026, the company is projecting revenues of approximately $15.5 billion, up about 4.5% from 2025, with adjusted earnings per share expected to range from $6.40 to $6.60.