Textron Inc. announced plans to separate its Industrial segment, allowing the company to concentrate on its core aerospace and defense operations centered on Textron Aviation, Bell and Textron Systems.
The Industrial segment includes Kautex and Textron Specialized Vehicles. Textron is considering options such as a sale or a tax-free spin-off into a standalone public company, with the process targeted for completion in 12 to 18 months, pending regulatory approvals and board approval.
This move follows a 2023 restructuring of the Industrial unit and comes after December 2024 efforts to explore strategic alternatives for its powersports line, including Arctic Cat ATVs and snowmobiles, amid weak consumer demand. The segment posted $3.2 billion in 2025 revenue, down 9% from the prior year, and $786 million in the first quarter of 2026, a 1% decline year-over-year.
Post-separation, the remaining entity, with projected 2026 revenues over $12 billion and a $19 billion backlog entirely from aerospace and defense, will operate independently from the Industrial businesses distinct market dynamics.
In the first quarter of 2026, Textron reported overall revenues of $3.7 billion, up 12% from the previous year, and returned $168 million to shareholders via repurchases.