Textron Inc. is planning to separate its underperforming Industrial segment as part of a broader strategic restructuring. The move addresses ongoing challenges in the unit, which saw profits drop 38% to $30 million in the fourth quarter of 2025 amid supply chain disruptions and workforce retention issues.
The Industrial segment, including Textron Specialized Vehicles, has faced weakening demand, particularly in powersports products. Earlier actions included halting powersports production indefinitely in the first half of 2025, incurring additional restructuring charges of $25 million to $35 million and an inventory write-down of $30 million to $40 million. These steps raised total pretax special charges under the 2023 restructuring plan to $190 million to $205 million.
Textron’s overall 2025 performance reached record revenue of $14.8 billion, up 8% year-over-year, with adjusted earnings per share at $6.10, fueled by aviation recovery and defense contracts. Textron Aviation reported a 36% revenue surge, while Bell’s military segment grew 20% on programs like the MV-75, though it faces potential $60-110 million cost overruns.
For 2026, Textron targets $15.5 billion in revenue and adjusted EPS of $6.40 to $6.60, below analyst expectations. The Industrial split aims to sharpen focus on core aviation and defense operations amid these execution risks.