Textron said it intends to separate its Industrial segment from the its core aerospace and defense businesses.
The company explore multiple paths 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 Textron CEO Lisa M. Atherton in a statement. “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.”
Following the planned separation, New Textron, with more than $12 billion in expected 2026 revenues and $19 billion in backlog, will be a pure-play aerospace and defense company. 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.
Industrial, with more than $3 billion in expected 2026 revenues, is composed of Kautex – a provider of 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.
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.
