Why Textron Stock Slumped Today
Investment
The Motley Fool

Why Textron Stock Slumped Today

July 24, 2025
04:27 PM
3 min read
AI Enhanced
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Key Takeaways

Textron stock is priced for some strong growth -- and that isn't happening.

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Quick insights and key information

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3 min read

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Category

investment

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Published

July 24, 2025

04:27 PM

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The Motley Fool

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Key Topics
stocksfinancialindustrialsaerospacemarket cyclesseasonal analysismarket

Textron stock is priced for some strong growth -- and that isn't happening

Textron (TXT -7. 10%) stock tumbled to close down 7, given current economic conditions

Additionally, 1% Thursday, despite beating analyst forecasts this morning

Heading into the quarter, Wall Street had Textron pegged for a $1, in this volatile climate

However, 45 per- fit on $3 (something worth watching). 65 billion in quarterly sales, in this volatile climate

However, In fact, Textron earned $1

Additionally, 55 per on sales of $3, given the current landscape

Image source: Getty Images

Textron Q2 earnings That sounds pretty good, except for a couple of things (remarkable data)

At the same time, For one, earnings as calculated according to generally accepted accounting principles (GAAP) were only $1

On the other hand, Conversely, 35 per, with $1 (which is quite significant), amid market uncertainty

Furthermore, 55 being only a non-GAAP result

Additionally, For another, even the non-GAAP number was up only $0. 01 over what Textron reported a year ago -- and this despite Textron growing sales 5. 4% year over year

However, In other words, sales were up modestly, boosted by commercial aircraft and helicopter sales, as well as new revenue from the company's MV-75 tiltrotor aircraft

But fit margins on those sales were down

Free cash flow for the quarter was $317 million, up from $309 million earned one year ago, in light of current trends

Furthermore, Is Textron stock a sell, in today's market environment

With $816 million in trailing-12-month net income and a $14

Additionally, 6 billion market capitalization, Textron stock sells for a P/E ratio of just under 18, in today's financial world

Meanwhile, That wouldn't be a bad price for a company growing earnings double-digits, and paying a nice dividend yield

Unfortunately, Textron's earnings are struggling to grow even low single digits, and its dividend yield is a measly 0

Even worse, based on the data, Textron is generating only $0

At the same time, 69 in real free cash flow for every $1 in net fit it reports, considering recent developments

Nevertheless, Thus, Textron's price-to-free cash flow ratio works out to closer to 26 -- far too expensive for the slow growth rate

Furthermore, I fear that makes Textron stock a sell

The Author Rich Smith is a contributing Defense Analyst at The Motley Fool, covering publicly traded and emerging in defense, space, and aerospace (quite telling), in today's financial world

Additionally, Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D (remarkable data)

On the other hand, In International Relations from the College of William & Mary in Virginia, a J

From the University of Baltimore, and language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation

However, Fun fact: Canada's The Globe and Mail him in an article titled, "Ex-lawyer one of the best stock pickers since 2009 (something worth watching)

At the same time, " TMFDitty X @RichSmithFool Rich Smith has no position in any of the stocks mentioned (something worth watching), considering recent developments

The Motley Fool recommends Textron

The Motley Fool has a disclosure policy (this bears monitoring).