Letter from Our President and CEO

We enter 2026 with momentum fueled by key contract wins, program advancements, and new product milestones. We have a clear plan to build on our success: execute with rigor across our products, programs and operations, deploy capital with discipline, and manage the portfolio for durable growth and shareholder returns.

Execution is our first priority. At Textron Aviation, we saw sustained demand across both jets and turboprops, reflecting the confidence that our customers have in our products and support. Textron Aviation continued to execute its strategy of customer-driven innovation, achieving FAA certifications for three new aircraft models in 2025 and looking forward to the expected certification of the Beechcraft Denali in 2026.

Bell has worked with the U.S. Army to accelerate the timeline for the MV-75 program, progressing through critical system reviews in parallel with the build and assembly of test aircraft. The team’s momentum on execution of this program is proving our ability to move quickly, apply cutting-edge technology, and translate innovation into mission-critical capabilities for our military customers. Bell’s SPRINT X-Plane Phase 2 selection validates our technical edge and keeps us at the forefront of high-speed vertical lift.

At Textron Systems, our Ship-to-Shore Connector program continues to demonstrate our ability to deliver reliably at scale. Additionally, new wins in unmanned systems, advanced ground vehicles, and mission & training systems expanded the backlog, positioning us for future growth.

Our Industrial businesses are focusing on new products aligned with customer needs—from Kautex’s innovative Pentatonic battery system for electric and hybrid vehicles, to electric platform progress at Textron Specialized Vehicles.

We will deploy capital with discipline. Our capital deployment priorities reflect where we see the strongest opportunity for long-term value creation. In 2026, we will continue to invest in product development activities across the Company and pursue opportunities that strengthen our capabilities, ensure supplier resilience, and expand our technology base in key markets. In addition, we expect to significantly increase capital investment at Bell to meet the Department of War production demand on the MV-75 program. In addition to capital expenditures to support infrastructure for this program, this increase also will include substantial funding of long-lead materials for the MV-75, ensuring we are aligned with customer timelines and prepared to execute.

We will manage the portfolio for durable growth and shareholder returns. Our approach to the Textron portfolio of businesses remains disciplined. While we actively consider opportunities to add to the Textron enterprise, we will pursue acquisitions only where the strategic fit is clear and the returns are compelling. Our lens is simple: focus the portfolio where we have cost, capability, and customer advantage, and recycle capital from lower-return areas to higher-return opportunities.

I am both humbled and thrilled at the opportunity entrusted to me as the CEO of this amazing team. Working together, we deliver the performance and innovation our customers and shareholders expect. As we look ahead, I am committed to building on our momentum and advancing our strategy with discipline. We appreciate your continued support, and I look forward to what we will accomplish.