PROVIDENCE - Textron has announced plans to separate its industrial operations from its aerospace and defense businesses, a move that would transform the company into a standalone aerospace and defense manufacturer centered on aviation, rotorcraft, and military systems.
The proposed separation would divide Textron’s Industrial segment, which includes Kautex and Textron Specialized Vehicles, from the company’s aviation and defense operations under brands such as Cessna, Beechcraft, Bell, and Textron Systems.
The company said it is evaluating several options for the transaction, including a sale of the industrial businesses or a tax-free spinoff into an independent publicly traded company. Textron expects the process could take between 12 and 18 months, subject to regulatory approvals and board authorization.
Following the separation, the aerospace and defense business, referred to by the company as "New Textron," would generate more than $12 billion in projected 2026 revenue with an estimated backlog of $19 billion. The remaining company would focus on business aviation, military and commercial helicopters, and defense technologies.
The Industrial segment is expected to generate more than $3 billion in projected 2026 revenue. Kautex manufactures automotive fuel systems, battery enclosures, and visibility systems, while Textron Specialized Vehicles produces golf carts, utility vehicles, turf maintenance equipment, and aviation ground support vehicles under brands including E-Z-GO, Jacobsen, and TUG Technologies.
The restructuring reflects a broader trend among large industrial conglomerates seeking to simplify operations and improve investor alignment through narrower business focus. The move also positions Textron more directly within the growing global aerospace and defense sector, where rising military spending, defense modernization programs, and sustained demand for business aviation have driven stronger market valuations for pure-play defense companies.
