TEXTRON 2026 PROXY STATEMENT / 25 COMPENSATION DISCUSSION AND ANALYSIS EXECUTIVE SUMMARY Key 2025 Performance Highlights In 2025, Textron’s revenues were $14.8 billion, up 8% compared to the previous year. Segment profit was $1.4 billion, up 14% from 2024. Backlog at the end of 2025 increased 5% to $18.8 billion compared to $17.9 billion at the end of 2024. Net cash provided by operating activities of the manufacturing group totaled $1.3 billion, up 32% compared to the previous year. In addition, in 2025 we invested $521 million in research and development projects and $383 million in capital expenditures. Backlog at Year-End $17,908 FY2024 $18,823 FY2025 Segment Profit $1,200 FY2024 $1,363 FY2025 Revenues $13,702 FY2024 $0 $15,000 ($ in millions) $0 $19,000 ($ in millions) $0 $1,400 ($ in millions) FY2025 $14,799 Net Cash from Operating Activities $1,008 FY2024 $1,327 FY2025 $0 $1,400 ($ in millions) Business highlights for 2025 include: • 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. Our teams ramped up engineering and manufacturing activities, progressing toward the first prototype tests planned for late 2026. • At Textron 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. • Textron Systems had strong growth in its backlog, primarily driven by our Ship-to-Shore Connector program and multiple programs at Airborne Tactical Advantage Company (ATAC). Systems delivered the 15th Ship-to-Shore Connector craft to the U.S. Navy and received a contract award for four additional craft. 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, and other services to our military customers. • Pipistrel achieved certifications for its products across multiple countries, including Canada, Columbia 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. • In our Industrial segment, Kautex’s innovative Pentatonic battery system was selected by a major automotive manufacturer for its battery electric vehicle platform. Textron Specialized Vehicles continued to expand its product line by debuting a new Cushman Hauler XL utility vehicle with a larger payload capacity and longer flat bed, available as a fully electric ELiTE series model powered by lithium-battery technology and as a gas-powered model.
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