Textron Inc. has announced plans to separate its Industrial segment from its core aerospace and defense operations, positioning the company as a pure-play entity centered on Textron Aviation, Bell and Textron Systems.
The Industrial segment, comprising Kautex and Textron Specialized Vehicles—including brands like Cushman and E-Z-GO—generated $3.2 billion in revenue in 2025, a nearly 9% decline from $3.5 billion the prior year. In the first quarter of 2026, it reported $786 million, down 1% year-over-year.
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 within 12 to 18 months, subject to regulatory approvals and board decisions. The move follows a 2023 restructuring and a December 2024 review of strategic alternatives for its powersports line, which includes Arctic Cat ATVs and snowmobiles, amid weak consumer demand that led to paused production and layoffs.
Post-separation, the restructured Textron expects over $12 billion in 2026 revenues and a $19 billion backlog, all tied to aerospace and defense. The company reported first-quarter 2026 revenues of $3.7 billion, up 12% from the prior year, and returned $168 million to shareholders via repurchases.
Textron Aviation encompasses the Cessna, Beechcraft and Hawker brands, while Bell focuses on helicopters and Textron Systems on defense technologies.