Financial Analysis

Commitments and Contingencies We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations. In the ordinary course of business, we enter into standby letter of credit agreements and surety bonds with financial institutions to meet various performance and other obligations. These outstanding letter of credit arrangements and surety bonds aggregated to approximatel …

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Debt and Credit Facilities Our debt is summarized in the table below: (In millions) January 3, 2026 December 28, 2024 Manufacturing group 3.875% due 2025 $ $ 350 4.00% due 2026* 350 3.65% due 2027 350 350 3.375% due 2028 300 300 3.90% due 2029 300 300 3.00% due 2030 650 650 2.45% due 2031 500 500 6.10% due 2033 350 350 5.50% due 2035 500 4.95% due 2036 500 Other (weighted-average rate of 6.08% and 5.87%, respectively) 89 97 Total Manufacturing group debt $ 3,539 $ 3,247 Less: Current portion of long-term debt (5) (357) Total Long-term debt $ 3,534 $ 2,890 Finance group Variable-rate note due 2028 (weighted-average rate of 5.04% and 5.70%, respectively) $ 25 $ 25 Fixed-rate note due 2027 (4.40%) 50 50 Floating Rate Junior Subordinated Notes due 2067 (5.85% and 6.52%, respectively) 264 264 Other 2 Total Finance group debt $ 339 $ 341 * On December 31, 2025, we repaid our $350 million 4.00% notes due in March 2026. The following table shows required principal payments during the next five years on debt outstanding at January 3, 2026: (In millions) 2026 2027 2028 2029 2030 Manufacturing group $ 5 $ 355 $ 375 $ 301 $ 651 Finance group 50 25 Total $ 5 $ 405 $ 400 $ 301 $ 651 On October 16, 2025, Textron entered into a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billio …

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Our revenues disaggregated by major product type are presented below: (In millions) 2025 2024 2023 Aircraft $ 3,922 $ 3,374 $ 3,577 Aftermarket parts and services 2,033 1,910 1,796 Textron Aviation $ 5,955 $ 5,284 $ 5,373 Military aircraft and support programs 2,618 2,048 1,701 Commercial helicopters, parts and services 1,664 1,531 1,446 Bell $ 4,282 $ 3,579 $ 3,147 Textron Systems $ 1,247 $ 1,241 $ 1,235 Fuel systems and functional components 1,883 1,891 1,954 Specialized vehicles 1,330 1,624 1,887 Industrial $ 3,213 $ 3,515 $ 3,841 Textron eAviation $ 27 $ 33 $ 32 Finance $ 75 $ 50 $ 55 Total revenues $ 14,799 $ 13,702 $ 13,683 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Aviation Bell Textron Systems Industrial Textron eAviation Finance Total 2025 Customer type: Commercial $ 5,579 $ 1,634 $ 306 $ 3,185 $ 27 $ 75 $ 10,806 U.S. Government 376 2,648 941 28 3,993 Total revenues $ 5,955 $ 4,282 $ 1,247 $ 3,213 $ 27 $ 75 $ 14,799 Geographic location: United States $ 4,281 $ 3,156 $ 1,129 $ 1,668 $ 14 $ 35 $ 10,283 Europe 467 122 43 649 7 1 1,289 South and Latin America 628 281 7 336 2 26 1,280 Other international 579 723 68 560 4 13 1,947 Total revenues $ 5,955 $ 4,282 $ 1,247 $ 3,213 $ 27 $ 75 $ 14,799 2024 Customer type: Commercial $ 4,985 $ 1,490 $ 292 $ 3,482 $ 33 $ 50 $ 10,332 U.S. Government 299 2,089 949 33 3,370 Total revenues $ 5,284 $ 3,579 $ 1,241 $ 3,515 $ 33 $ 50 $ 13,702 Geographic location: Unite …

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Share-Based Compensation Under our 2024 Long-Term Incentive Plan (the 2024 Plan), which replaced our 2015 Long-Term Incentive Plan (the 2015 Plan) in April 2024, we have authorization to provide awards to selected employees and non-employee directors in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance share units and other awards. A maximum of 10 million shares is authorized for issuance for all purposes under the 2024 Plan plus any shares that become available upon cancellation, forfeiture or expiration of awards granted under the 2015 Plan. Under the 2024 Plan, the maximum number of shares that may be issued pursuant to awards payable in shares, such as restricted stock, restricted stock units, performance stock, performance share units, or other awards is 3.127 million, plus any shares that become available upon cancellation, forfeiture or expiration of such awards which were granted under the 2015 Plan. For 2025, 2024 and 2023, the awards granted under these plans primarily included stock options, restricted stock units and performance share units. Share-based compensation costs are reflected primarily in selling and administrative expense. Compensation expense included in net income for our share-based compensation plans is as follows: (In millions) 2025 2024 2023 Compensation expense $ 81 $ 66 $ 94 Income tax benefit (20) (16) (23) Total compensation expense included in net income $ 61 $ 50 $ …

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Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In millions) Textron Aviation Bell Textron Systems Industrial Textron eAviation Total Balance at December 30, 2023 $ 633 $ 37 $ 1,010 $ 470 $ 145 $ 2,295 Acquisitions 10 10 Foreign currency translation (1) (7) (9) (17) Balance at December 28, 2024 632 37 1,010 463 146 2,288 Foreign currency translation 1 13 19 33 Balance at January 3, 2026 $ 633 $ 37 $ 1,010 $ 476 $ 165 $ 2,321 Intangible Assets Our intangible assets are summarized below: January 3, 2026 December 28, 2024 (Dollars in millions) Weighted-Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trade names and trademarks 18 $ 201 $ (12) $ 189 $ 199 $ (11) $ 188 Patents and technology 15 515 (387) 128 509 (360) 149 Customer relationships and contractual agreements 15 358 (337) 21 356 (331) 25 Total $ 1,074 $ (736) $ 338 $ 1,064 $ (702) $ 362 Trade names and trademarks in the table above include $169 million of indefinite-lived intangible assets at both January 3, 2026 and December 28, 2024. Amortization expense totaled $32 million, $34 million and $39 million, in 2025, 2024 and 2023, respectively. Amortization expense is estimated to be approximately $29 million, $28 million, $27 million, $26 million and $9 million in 2026, 2027, 2028, 2029 and 2030, respectively. …

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Income Taxes We conduct business globally and, as a result, file numerous consolidated and separate income tax returns within and outside the U.S. For all of our U.S. subsidiaries, we file a consolidated federal income tax return. Income from continuing operations before income taxes is as follows: (In millions) 2025 2024 2023 U.S. $ 903 $ 739 $ 905 Non-U.S. 234 204 182 Income from continuing operations before income taxes $ 1,137 $ 943 $ 1,087 Income tax expense is summarized as follows: (In millions) 2025 2024 2023 Current: Federal $ (7) $ 84 $ 267 State 8 21 18 Non-U.S. 58 61 72 Total current 59 166 357 Deferred: Federal 165 (34) (181) State (6) (24) 1 Non-U.S. (4) 10 (12) Total deferred 155 (48) (192) Total income tax expense (benefit): Federal 158 50 86 State 2 (3) 19 Non-U.S. 54 71 60 Total income tax expense $ 214 $ 118 $ 165 In 2025, we adopted Accounting Standards Update 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure of disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. This standard has been adopted on a prospective basis and the new presentation of the U.S. Federal statutory income tax rate to our effective tax rate for 2025 is provided below. 2025 (Dollars in millions) Amount Percentage U.S. Federal statutory income tax rate $ 239 21.0 % State and local income taxes, net of Federal income tax effects* 2 0.2 % Foreign tax effects 6 0 …

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Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $73 million, $74 million and $69 million in 2025, 2024 and 2023, respectively. Cash paid for operating lease liabilities approximated the lease expense and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $82 million, $49 million and $54 million in 2025, 2024 and 2023, respectively, reflecting the recognition of operating lease assets and liabilities for new or modified leases and changes from the reassessment of lease options. In 2024, non-cash transactions included the recognition of a $72 million asset and liability related to a new finance lease that matures in 2028. Finance lease, variable and short-term lease costs were not significant. Balance sheet and other information related to our leases is as follows: (Dollars in millions) January 3, 2026 December 28, 2024 Operating leases: Other assets $ 390 $ 360 Other current liabilities 58 55 Other liabilities 346 316 Weighted-average remaining lease term (in years) 9.5 10.0 Weighted-average discount rate 4.97% 4.84% Finance leases: Property, plant and equipm …

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Retirement Plans We provide defined-contribution benefits to eligible employees, as well as some remaining defined-benefit pension and other post-retirement benefits covering certain of our U.S. and Non-U.S. employees. Substantially all of our employees are covered by defined contribution plans. The largest of these plans, the Textron Savings Plan, is a qualified 401(k) plan subject to the Employee Retirement Income Security Act of 1974 (ERISA). Our defined contribution plans cost $178 million, $164 million and $154 million in 2025, 2024 and 2023, respectively. We also provide post-retirement benefits other than pensions for certain retired employees in the U.S. that include healthcare, dental care, Medicare Part B reimbursement and life insurance. A portion of our U.S. employees participate in the legacy defined benefit pension plans which were closed to new participants beginning on January 1, 2010. These legacy plans include the Textron Master Retirement Plan (TMRP), the Bell Helicopter Textron Master Retirement Plan, and the CWC Castings Division of Textron Inc. Hourly-Rated Employees' Pension Plan, which are each subject to the provisions of ERISA and provide a minimum guaranteed benefit to participants. The primary factors affecting the benefits earned by participants in our pension plans are employees years of service and compensation levels. Employees hired subsequent to the closure of these plans receive an additional annual cash contribution to their Textron Savings …

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Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: (In millions) 2025 2024 2023 Aircraft $ 3,922 $ 3,374 $ 3,577 Aftermarket parts and services 2,033 1,910 1,796 Textron Aviation $ 5,955 $ 5,284 $ 5,373 Military aircraft and support programs 2,618 2,048 1,701 Commercial helicopters, parts and services 1,664 1,531 1,446 Bell $ 4,282 $ 3,579 $ 3,147 Textron Systems $ 1,247 $ 1,241 $ 1,235 Fuel systems and functional components 1,883 1,891 1,954 Specialized vehicles 1,330 1,624 1,887 Industrial $ 3,213 $ 3,515 $ 3,841 Textron eAviation $ 27 $ 33 $ 32 Finance $ 75 $ 50 $ 55 Total revenues $ 14,799 $ 13,702 $ 13,683 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Aviation Bell Textron Systems Industrial Textron eAviation Finance Total 2025 Customer type: Commercial $ 5,579 $ 1,634 $ 306 $ 3,185 $ 27 $ 75 $ 10,806 U.S. Government 376 2,648 941 28 3,993 Total revenues $ 5,955 $ 4,282 $ 1,247 $ 3,213 $ 27 $ 75 $ 14,799 Geographic location: United States $ 4,281 $ 3,156 $ 1,129 $ 1,668 $ 14 $ 35 $ 10,283 Europe 467 122 43 649 7 1 1,289 South and Latin America 628 281 7 336 2 26 1,280 Other international 579 723 68 560 4 13 1,947 Total revenues $ 5,955 $ 4,282 $ 1,247 $ 3,213 $ 27 $ 75 $ 14,799 2024 Customer type: Commercial $ 4,985 $ 1,490 $ 292 $ 3,482 $ 33 $ 50 $ 10,332 U.S. Government 299 2,089 949 33 3,370 Total revenues $ 5,284 $ 3,579 $ 1,241 $ 3,515 $ 33 $ 50 …

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Segment Financial Information For the periods presented, we operate in, and report financial information for, the following six operating segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation and Finance. The accounting policies of these segments are the same as those described in Note 1. Effective January 4, 2026, the beginning of our 2026 fiscal year, the business activities of the Textron eAviation segment were realigned within Textron's other operating segments resulting in the elimination of the Textron eAviation segment as a separate reporting segment. Additional information regarding this segment change is provided below. Textron Aviation products and services include Cessna Citation jets, Beechcraft and Cessna turboprop aircraft, military trainer and defense aircraft, piston engine aircraft, advanced flight training devices, aftermarket parts and maintenance, inspection and repair services. Textron Aviation has a diverse customer base including fractional aircraft businesses, charter and fleet operators, corporate aviation, individual buyers, training schools, airlines, and special mission, military and government operators. Bell products and services include development of the MV-75 tiltrotor aircraft, the V-22 tiltrotor aircraft, advanced military helicopters, and aftermarket parts and support services to the U.S. and non-U.S. governments. Bell also supplies commercial helicopters and aftermarket parts and services to corporate, private, l …

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Summary of Significant Accounting Policies Principles of Consolidation and Financial Statement Presentation Our Consolidated Financial Statements include the accounts of Textron Inc. and its majority-owned subsidiaries. Our financings are conducted through two separate borrowing groups. The Manufacturing group consists of Textron Inc. consolidated with its majority-owned subsidiaries that operate in the Textron Aviation, Bell, Textron Systems, Industrial and Textron eAviation segments. The Finance group, which also is the Finance segment, consists of Textron Financial Corporation (TFC) and its consolidated subsidiaries. We designed this framework to enhance our borrowing power by separating the Finance group. Our Manufacturing group operations include the development, production and delivery of tangible goods and services, while our Finance group provides financial services. Due to the fundamental differences between each borrowing groups activities, investors, rating agencies and analysts use different measures to evaluate each groups performance. To support those evaluations, we present balance sheet and cash flow information for each borrowing group within the Consolidated Financial Statements. Our Finance group provides financing primarily to purchasers of new and pre-owned Textron Aviation aircraft and Bell helicopters manufactured by our Manufacturing group, otherwise known as captive financing. In the Consolidated Statements of Cash Flows, cash received from customers …

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Shareholders Equity Capital Stock We have authorization for 15 million shares of preferred stock with a par value of $0.01 and 500 million shares of common stock with a par value of $0.125. Outstanding common stock activity is presented below: (In thousands) 2025 2024 2023 Balance at beginning of year 182,964 192,898 206,161 Share repurchases (10,650) (12,890) (16,169) Share-based compensation activity 1,996 2,956 2,906 Balance at end of year 174,310 182,964 192,898 Earnings Per Share We calculate basic and diluted earnings per share (EPS) based on net income, which approximates income available to common shareholders for each period. Basic EPS is calculated using the two-class method, which includes the weighted-average number of common shares outstanding during the period and restricted stock units to be paid in stock that are deemed participating securities as they provide nonforfeitable rights to dividends. Diluted EPS considers the dilutive effect of all potential future common stock, including stock options. The weighted-average shares outstanding for basic and diluted EPS are as follows: (In thousands) 2025 2024 2023 Basic weighted-average shares outstanding 178,895 188,318 199,719 Dilutive effect of stock options 1,363 1,989 2,055 Diluted weighted-average shares outstanding 180,258 190,307 201,774 In 2025, 2024 and 2023, stock options to purchase 2.0 million, 0.9 million and 1.5 million shares, respectively, of common stock were excluded from the calculation of dilute …

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Commitments and Contingencies We are subject to actual and threatened legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; disputes with suppliers, production partners or other third parties; product liability; patent and trademark infringement; employment disputes; and environmental, health and safety matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations. MV-75 Program Funding As previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended April 4, 2026, on April 28, 2026, Bell received a letter from the U.S. Army Contracting Command (the Contracting Command) stating that the U.S. Government is pursuing a …

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Our revenues disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Aircraft $ 1,032 $ 1,015 $ 1,986 $ 1,748 Aftermarket parts and services 512 507 1,043 990 Textron Aviation $ 1,544 $ 1,522 $ 3,029 $ 2,738 Military aircraft and support programs 695 648 1,490 1,282 Commercial helicopters, parts and services 379 368 654 717 Bell $ 1,074 $ 1,016 $ 2,144 $ 1,999 Textron Systems $ 347 $ 324 $ 685 $ 623 Fuel systems and functional components 500 483 986 933 Specialized vehicles 348 356 648 698 Industrial $ 848 $ 839 $ 1,634 $ 1,631 Finance $ 14 $ 15 $ 30 $ 31 Total revenues $ 3,827 $ 3,716 $ 7,522 $ 7,022 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Aviation Bell Textron Systems Industrial Finance Total Three months ended July 4, 2026 Customer type: Commercial $ 1,461 $ 372 $ 81 $ 848 $ 14 $ 2,776 U.S. Government 83 702 266 1,051 Total revenues $ 1,544 $ 1,074 $ 347 $ 848 $ 14 $ 3,827 Geographic location: United States $ 1,136 $ 815 $ 306 $ 427 $ 3 $ 2,687 Europe 105 29 19 180 1 334 Other international 303 230 22 241 10 806 Total revenues $ 1,544 $ 1,074 $ 347 $ 848 $ 14 $ 3,827 Three months ended June 28, 2025 Customer type: Commercial $ 1,436 $ 361 $ 79 $ 829 $ 15 $ 2,720 U.S. Government 86 655 245 10 996 Total revenues $ 1,522 $ 1,016 $ 324 $ 839 $ 15 $ 3,716 Geographic location: United States $ 1,083 $ 82 …

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Income Taxes Our effective tax rate was 18.4% and 18.0% for the second quarter and first half of 2026, respectively. The effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to the favorable impact of research and development credits and tax deductions for foreign-derived deduction eligible income, which replaced foreign-derived intangible income beginning in 2026. Our effective tax rate for the second quarter and first half of 2025 was 18.6% and 16.6%, respectively. The effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income.

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Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $20 million and $18 million in the second quarter of 2026 and 2025, respectively, and $39 million and $36 million in the first half of 2026 and 2025, respectively. Cash paid for operating leases approximated the lease cost and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $35 million and $3 million in the first half of 2026 and 2025, respectively, reflecting new or modified leases and changes from the reassessment of lease options. Finance lease, variable and short-term lease costs were not significant. Balance sheet and other information related to our leases is as follows: (Dollars in millions) July 4, 2026 January 3, 2026 Operating leases: Other assets $ 394 $ 390 Other current liabilities 56 58 Other liabilities 350 346 Weighted-average remaining lease term (in years) 9.6 9.5 Weighted-average discount rate 5.02% 4.97% Finance leases: Property, plant and equipment, less accumulated amortization of $10 million and $14 million, respectively $ 24 $ 95 Long-term debt, including current portion 27 100 Weight …

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Retirement Plans We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit income for these plans are as follows: Three Months Ended Six Months Ended (In millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Pension Benefits Service cost $ 16 $ 15 $ 32 $ 31 Interest cost 94 94 188 188 Expected return on plan assets (166) (162) (332) (324) Amortization of net actuarial gain (1) Amortization of prior service cost 3 3 6 5 Net periodic benefit income* $ (53) $ (50) $ (107) $ (100) Postretirement Benefits Other Than Pensions Service cost $ $ 1 $ $ 1 Interest cost 1 1 3 3 Amortization of net actuarial gain (2) (2) (4) (4) Amortization of prior service credit (1) (1) Net periodic benefit income $ (1) $ (1) $ (1) $ (1) * Excludes the cost associated with the defined contribution component, included in certain of our U.S.-based defined benefit pension plans, that totaled $1 million and $5 million for the second quarter and first half of 2026, respectively, and $2 million and $5 million for the second quarter and first half of 2025, respectively. …

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Revenues Disaggregation of Revenues Our revenues disaggregated by major product type are presented below: Three Months Ended Six Months Ended (In millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Aircraft $ 1,032 $ 1,015 $ 1,986 $ 1,748 Aftermarket parts and services 512 507 1,043 990 Textron Aviation $ 1,544 $ 1,522 $ 3,029 $ 2,738 Military aircraft and support programs 695 648 1,490 1,282 Commercial helicopters, parts and services 379 368 654 717 Bell $ 1,074 $ 1,016 $ 2,144 $ 1,999 Textron Systems $ 347 $ 324 $ 685 $ 623 Fuel systems and functional components 500 483 986 933 Specialized vehicles 348 356 648 698 Industrial $ 848 $ 839 $ 1,634 $ 1,631 Finance $ 14 $ 15 $ 30 $ 31 Total revenues $ 3,827 $ 3,716 $ 7,522 $ 7,022 Our revenues for our segments by customer type and geographic location are presented below: (In millions) Textron Aviation Bell Textron Systems Industrial Finance Total Three months ended July 4, 2026 Customer type: Commercial $ 1,461 $ 372 $ 81 $ 848 $ 14 $ 2,776 U.S. Government 83 702 266 1,051 Total revenues $ 1,544 $ 1,074 $ 347 $ 848 $ 14 $ 3,827 Geographic location: United States $ 1,136 $ 815 $ 306 $ 427 $ 3 $ 2,687 Europe 105 29 19 180 1 334 Other international 303 230 22 241 10 806 Total revenues $ 1,544 $ 1,074 $ 347 $ 848 $ 14 $ 3,827 Three months ended June 28, 2025 Customer type: Commercial $ 1,436 $ 361 $ 79 $ 829 $ 15 $ 2,720 U.S. Government 86 655 245 10 996 Total revenues $ 1,522 $ 1,016 $ 324 $ 839 $ 15 $ 3,716 Geographic …

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Segment Financial Information We operate in, and report financial information for, the following five operating segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. Effective January 4, 2026, the beginning of our 2026 fiscal year, the business activities of the Textron eAviation segment were realigned within Textron's other operating segments resulting in the elimination of the Textron eAviation segment as a separate reporting segment. Under the segment realignment, a significant part of Textron eAviation, including Pipistrel, became part of the Textron Aviation segment to enable the business to more effectively leverage the development, manufacturing and sales expertise at Textron Aviation. In addition, Textron eAviations manned and unmanned products for military applications and related research and development activities are included in the results of the Textron Systems segment, which is best suited to provide more direct access to the targeted customer base for these products. Lastly, certain Textron eAviation research and development activities encompassing digital flight control and air vehicle management systems, which we expect will benefit several of our segments, are reported within corporate expenses. The prior period has been recast to reflect the segment realignment. On April 30, 2026, Textron announced its intent to separate its Industrial segment from the Company. The Company intends to explore multiple paths to effect the planned separat …

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Shareholders Equity A reconciliation of Shareholders equity is presented below: (In millions) Common Stock Capital Surplus Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity Three months ended July 4, 2026 Beginning of period $ 22 $ 2,091 $ (223) $ 6,001 $ 111 $ 8,002 Net income 248 248 Other comprehensive loss (16) (16) Share-based compensation activity 35 35 Dividends declared (4) (4) Purchases of common stock, including excise tax* (211) (211) End of period $ 22 $ 2,126 $ (434) $ 6,245 $ 95 $ 8,054 Three months ended June 28, 2025 Beginning of period $ 23 $ 2,005 $ (299) $ 5,811 $ (265) $ 7,275 Net income 245 245 Other comprehensive income 96 96 Share-based compensation activity 36 36 Dividends declared (4) (4) Purchases of common stock, including excise tax* (215) (215) End of period $ 23 $ 2,041 $ (514) $ 6,052 $ (169) $ 7,433 Six months ended July 4, 2026 Beginning of period $ 22 $ 1,995 $ (55) $ 5,784 $ 129 $ 7,875 Net income 468 468 Other comprehensive loss (34) (34) Share-based compensation activity 131 131 Dividends declared (7) (7) Purchases of common stock, including excise tax* (379) (379) End of period $ 22 $ 2,126 $ (434) $ 6,245 $ 95 $ 8,054 Six months ended June 28, 2025 Beginning of period $ 23 $ 1,960 $ (82) $ 5,607 $ (304) $ 7,204 Net income 452 452 Other comprehensive income 135 135 Share-based compensation activity 81 81 Dividends declared (7) (7) Purchases of common stock, including excise tax* (432 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing