Letter from Our Executive Chairman

Delivering for Our Military Customers

Our defense businesses had a particularly strong year, with significant milestones achieved at Bell, Textron Systems, and Textron Aviation Defense.

During the year, Bell worked with the U.S. Army to accelerate the timeline for the MV-75 program. Bell delivered two MV-75 virtual prototypes to the Army, which is a key element of the Army’s accelerated acquisition approach. The prototypes are advanced simulators based on a “digital twin” of the MV-75 weapon system that enable user familiarization and development of tactics, techniques, and procedures (TTPs). They also allow soldiers to access elements of the weapon system and provide feedback for shaping the design. Our teams ramped up engineering and manufacturing activities, progressing toward the first prototype tests planned for late 2026, and remained highly engaged with Army senior leadership. Throughout the year, Bell showcased the capabilities of the MV-75 to military leaders, soldiers, and industry partners, underscoring that this aircraft will provide the next generation of Army aviation with unmatched capability.

Bell was selected for Phase 2 of the Defense Advanced Research Projects Agency (DARPA) Speed and Runway Independent Technologies (SPRINT) X-Plane program with the objective of completing design, construction, ground testing, and certification of an X-plane demonstrator. This accomplishment is the result of years of innovative teamwork and builds on the Company’s history of X-planes and high-speed vertical lift technology development.

The Bell 412EPX continued to gain momentum as an international military platform, with the Tunisian Air Force signing a purchase agreement for 12 aircraft, its first order in the Middle East and Africa region. This model has received orders from public safety and para-military customers around the world.

Bell completed the successful delivery of 40 Bell 505 helicopters to the Republic of Korea (ROK) Army and ROK Navy. With its Bell 505 fleet, the ROK Armed Forces have joined other government agencies and law enforcement units worldwide that use this aircraft as a rotary wing trainer.

Separately, Bell’s advancement in the U.S. Army’s Flight School Next competition underscores its longstanding leadership in military flight training. Drawing on decades of experience supporting pilot training programs, Bell is offering a comprehensive training solution that combines aircraft, modern digital learning tools, and instructional expertise to meet the evolving needs of the Army.

Textron Systems had a strong year of bookings with backlog growth of more than $700 million over the prior year. This was primarily driven by our Ship-to-Shore Connector program, multiple programs at Airborne Tactical Advantage Company (ATAC) and the Mobile Strike Force Vehicle (MSFV) contract with the Ukraine Security Assistance Initiative.

At Textron Systems’ New Orleans Shipyard, we delivered the 15th Ship-to-Shore Connector craft to the U.S. Navy and received contract awards for four additional craft to support the U.S. Navy and U.S. Marine Corps.

ATAC won several multi-year contracts with the U.S. Navy, U.S. Marine Corps and U.S. Air Force to provide training support services, adversary air services and Stand-Off Jamming Jets Services to our military customers. These awards, representing up to nearly $1 billion in total maximum value, recognized the capabilities of the ATAC team and their expertise in supporting the military’s missions.

Textron Systems announced a three-year, $163 million Foreign Military Sales contract to build and deliver 65 MSFV COMMANDO^TM Select Vehicles to Ukraine to support the Ukraine Security Assistance Initiative. We also continued our work on the Advanced Reconnaissance Vehicle (ARV) program with the delivery of an upgraded Systems Integration Lab and a Cottonmouth® 30mm prototype vehicle variant to the U.S Marine Corps.

Building on its reputation as a global leader in uncrewed vehicles, Textron Systems sold the rugged and reliable RIPSAW^® M3 robotic ground vehicle to the government of Sweden, which is the product’s first sale in Europe.

Textron Aviation Defense expanded the Company’s global footprint by selling our Beechcraft T-6 Texan II Integrated Training System to Japan’s Air Self-Defense Force. The initial contract includes two aircraft and instructor pilot and aircraft maintenance training materials. Japan will be the 15th nation to use the T-6 Texan II as its integrated training system. Textron Aviation Defense also announced the first international sale of seven Beechcraft King Air 260 military multi-engine training aircraft, which will be used to train pilots for the Royal Canadian Air Force in support of its Future Aircrew Training program.

Success With Textron’s Commercial Products

Our commercial products also proved successful in 2025 across our Textron Aviation, Bell, and Industrial Segments.

Textron Aviation saw strong customer demand across its product line, ending the year with $7.7 billion of backlog and delivering 171 jets and 146 commercial turboprops, up from 151 and 127, respectively, in 2024.

We continue to invest in our product portfolio and achieved key certifications with three new aircraft models. Our mix of clean-sheet designs and enhancements to proven platforms continues to be a successful strategy, attracting new customers and reinforcing Textron Aviation’s leadership in general aviation.

The Citation Ascend, the Citation CJ3 Gen 2 and the Citation M2 Gen2 equipped with Garmin autothrottles all received type certification in 2025. Our pace of bringing new products to market demonstrates our commitment to making aircraft and product enhancements for our customers, providing them with improved aircraft performance and new cabin technology that supports their missions. Since 2013, Textron Aviation has achieved Federal Aviation Administration (FAA) certification of nine business jets, leading the industry in product development and innovation.

At Bell, notable orders included Air Methods’ purchase agreement for up to 27 407GXi helicopters, including 15 IFR-configured Bell 407GXis with an option to purchase an additional 12 aircraft, to advance their emergency care operations. The Bell 407GXi remains a top platform for air medical agencies around the world. During the year, Bell delivered the first of an anticipated 24 Bell 407 GXi IFR-configured aircraft to Global Medical Response.

We expanded our flight training portfolio by achieving FAA qualification for our TRU Simulation Cessna Skyhawk Veris Virtual Reality (VR) Simulator, which is designed to meet FAA Flight Training Device level 7 standards and has a fully configured cockpit replicating the Cessna Skyhawk instrumentation and controls. The US Aviation Academy signed a purchase agreement for five of these simulators and an option to purchase 10 more, marking the first fleet order for VR training devices.

Pipistrel achieved certifications for its products across multiple countries, including Canada, Colombia, and South Korea, furthering our leadership in sustainable aviation. Transport Canada awarded type service validation to the Pipistrel Explorer, Velis Club, and Velis Electro models, strengthening Pipistrel’s position in the Canadian market. The Pipistrel Velis Electro is the first and currently only commercially available, type-certified fully electric aircraft.

Kautex’s innovative Pentatonic battery system was selected by a major automotive manufacturer for its battery electric vehicle platform. The Kautex team continues to engage with automotive customers to demonstrate the benefits of this technology. The Pentatonic battery system features a lightweight, fully composite and highly integrated enclosure design that supports cell protection, enables efficient packaging, and meets OEM requirements through validated testing and serial-production readiness.

Textron Specialized Vehicles (TSV) continued to expand its product line by debuting a new Cushman Hauler XL utility vehicle. In addition to a larger payload capacity and longer flat bed, the vehicle is available as a fully electric ELiTE series model powered by lithium-battery technology and as a gas-powered model.

E-Z-GO’s Pace Technology enhanced its solutions for golfers and golf course operators with Walk and Enhanced Speed Control capabilities, designed to improve consistency, precision, and efficiency across operating conditions. Together, these product and technology launches reflect a focus on delivering practical, customer-driven innovations that support sustainability, productivity, and long-term value for our customers.

Looking Ahead

In 2025, our Board conducted a thorough succession process resulting in the announcement of Lisa Atherton as our new President and Chief Executive Officer. Lisa’s appointment is a clear demonstration of our commitment to talent development in our Company. I am honored to continue serving Textron as Executive Chairman, supporting Lisa and the leadership team as they guide the Company forward.

Textron enters 2026 with momentum. Our backlog is strong, we are focused on execution and our teams are energized. We remain focused on delivering for our customers, creating value for our shareholders, and building a sustainable future.

I want to thank our employees for their extraordinary contributions, our customers for their trust, and our shareholders for their continued support. Together, we are shaping the future of aerospace, defense, and industrial innovation.