-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
TXT reported Q1 revenue of $3.7B (+12% Y/Y, 5.4% above consensus) with adjusted EPS of $1.45 (+13%, $0.15 beat). Aviation led performance with revenue up 22% to $1.5B and segment profit expanding 26% to $154M, supported by higher jet deliveries (37 vs. 31) and commercial turboprops (35 vs. 30). We view the margin expansion as validation that Aviation is tracking toward the 12%-13% segment profit range as volumes normalize and operational efficiencies take hold. Management maintains full-year Aviation guidance for 9% revenue growth to $6.5B, supported by the $8.0B backlog providing 2026 visibility. The planned Industrial segment separation within 12-18 months will create a pure-play aerospace and defense structure, addressing long-standing investor feedback on the conglomerate valuation discount. The key catalyst remains MV-75's transition from EMD deliveries in 2027 to LRIP in 2028, which should drive Bell margin expansion as production scales toward 40-60 annual aircraft deliveries later this decade.