TXT

Over the last six months, Textron’s shares have sunk to $79.25, producing a disappointing 19.6% loss - a stark contrast to the S&P 500’s 12% gain. This might have investors contemplating their next move. Is there a buying opportunity in Textron, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free. Despite the more favorable entry price, we’re sitting this one out for now. Here are three reasons we avoid TXT, plus one stock we’d rather own. A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Textron’s 4.2% annualized revenue growth over the last five years was sluggish. This was below our standard for the industrials sector. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Textron’s revenue to rise by 3.8%, close to its 4.2% annualized growth for the past five years. This projection is underwhelming and implies its newer products and services will not lead to better top-line performance yet. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Textron’s margin dropped by 3.6 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Textron’s free cash flow margin for the trailing 12 months was 4.9%. Textron’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 12× forward P/E (or $79.25 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re fairly confident there are better stocks to buy right now. Let us point you toward one of our top digital advertising picks. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

It has been about a month since the last earnings report for Textron (TXT). Shares have lost about 2.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Textron due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Textron Q2 Earnings Outpace Estimates, Revenues Increase Y/YTextron Inc. reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported GAAP earnings of $1.42 per share compared with $1.35 a year ago. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Textron Aviation: Revenues from this segment increased 1% year over year to $1.5 billion. This was primarily due to higher pricing, partially offset by lower volume and mix.The segment delivered 40 jets, down from 49 in the year-ago quarter. It also delivered 44 commercial turboprops, up from 34 in the second quarter of 2025.Order backlog at the end of the reported quarter totaled $8 billion.Bell: Revenues from this segment amounted to $1.1 billion, up 6% from the year-ago quarter’s registered number. This was driven by a $47 million increase in military revenues, primarily reflecting higher production volumes for the H-1 program and the MV-75 program.Bell delivered 36 commercial helicopters compared with 32 in the prior-year second quarter.Its order backlog at the end of the quarter totaled $7.5 billion.Textron Systems: This segment’s revenues amounted to $347 million, up $23 million from the prior-year level.Textron Systems’ backlog at the end of the quarter totaled $3.3 billion.Industrial: Revenues from this segment increased $9 million to $848 million.Finance: This segment’s revenues amounted to $14 million compared with $15 million in the year-ago quarter. During the quarter, the company initiated a sale process for the Industrial segment. As of July 4, 2026, cash and cash equivalents totaled $1.44 billion compared with $1.94 billion as of Jan. 3, 2026.Net cash used in operating activities during the first six months of 2026 amounted to $128 million compared with $281 million in the year-ago period.Capital expenditures amounted to $95 million in the second quarter compared with $78 million in the year-ago quarter.The long-term debt totaled $3.11 billion as of July 4, 2026, compared with $3.53 billion as of Jan. 3, 2026. The company expects 2026 adjusted earnings to be in the range of $6.40-$6.60 per share. The Zacks Consensus Estimate for earnings is pegged at $6.60 per share, which is the high end of the company’s guided range. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -9.25% due to these changes. At this time, Textron has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Textron has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Textron belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, GE Aerospace (GE), has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. GE reported revenues of $12.63 billion in the last reported quarter, representing a year-over-year change of +24.5%. EPS of $2.02 for the same period compares with $1.66 a year ago. GE is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of +19.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%. GE has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Textron Inc. (TXT) : Free Stock Analysis Report GE Aerospace (GE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Howmet Aerospace Inc. HWM reported better-than-expected second-quarter 2026 results on Aug. 6. Earnings per share surpassed the Zacks Consensus Estimate by 8.1% and surged 46% year over year.Total revenues of $2.55 billion surpassed the consensus estimate of $2.41 billion and increased 24% year over year. The second-quarter results benefited from persistent strength in its commercial and defense aerospace markets.HWM has been reporting strong earnings results courtesy of solid financial and operational performance from its segments. Backed by robust results and improving fundamentals, the company lifted its financial outlook. For 2026, Howmet Aerospace raised its revenue outlook to $10.00-$10.10 billion from $9.575-$9.725 billion. Adjusted EBITDA is now anticipated between $3.21 billion and $3.25 billion, higher than $3.025-$3.095 billion expected earlier. It also raised its adjusted earnings to $5.23-$5.31 per share from $4.88-$5.00. The strongest driver of Howmet Aerospace’s business at the moment is the commercial aerospace market. The strength in air travel continues, with both narrow and wide-body aircraft demand picking up, supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.In the second quarter of 2026, revenues from the commercial aerospace market surged 28% year over year, constituting 53% of the company’s business. Also, in the first quarter, revenues from the market increased 20% year over year. The sustained strength was attributed to increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Also, healthy build rates at Airbus for A320 and A350 aircraft, along with a production recovery in the Boeing 737 MAX aircraft, hold promise for HWM’s spare engine demand.Expanding the defense budget remains another growth catalyst for Howmet Aerospace. The defense aerospace industry has also been witnessing positive momentum, cushioned by steady government support. HWM has been witnessing robust orders for engine spares for the F-35 program and spares for other legacy fighters. In the second quarter, revenues from the defense aerospace market increased 11% year over year, constituting 15% of the company’s revenues.It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for GE Aerospace, which remains focused on its defense business.HWM also remains open to strengthening its business through acquisitions. In April 2026, it completed the acquisition of Stanley Black’s business unit, Consolidated Aerospace Manufacturing LLC (“CAM”), for $1.8 billion. CAM’s well-known brands, engineering expertise and strong customer relationships have strengthened its aerospace fastening solutions portfolio.The company also remains committed to increasing shareholder value through dividend payouts and share repurchases. For instance, in the first six months of the year, it paid dividends worth $97 million. In July 2026, the company hiked its dividend by 17% to 14 cents per share (annually: 56 cents). Also, year to date through July, it repurchased shares worth $800 million. Shares of the company have gained 57.3% in the past year compared with the industry’s and the S&P 500 composite’s growth of 4.7% and 22.8%, respectively. It has also outperformed other industry players like RTX Corporation RTX and Textron Inc. TXT, which have returned 44.7% and 12.9%, respectively, over the said time frame. Image Source: Zacks Investment Research Earnings estimates for HWM have moved north over the past 60 days, reflecting analysts’ optimism.The Zacks Consensus Estimate for 2026 earnings increased 5.5% to $5.18 per share, suggesting year-over-year growth of 37.4%. The consensus mark for 2027 earnings moved up 3.4% to $6.05 per share, indicating a year-over-year increase of 16.8%. As earnings estimates increase, the stock is likely to follow suit. Image Source: Zacks Investment Research The stock trades at a forward 12-month price-to-earnings (P/E) ratio of 50.98X, higher than the industry average of 34.49X. Also, it is overvalued compared with its peers, RTX Corp. and Textron. Notably, RTX Corp. and Textron are trading at 29.69X and 12.74X, respectively. Image Source: Zacks Investment Research Solid momentum across the commercial and defense aerospace markets, supported by impressive build rates, spare demand for engines and a robust defense budget, positions Howmet Aerospace favorably for strong growth in the quarters ahead. Built on a sound liquidity position, HWM’s shareholder-friendly policies also add to its appeal. Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Embraer S.A. EMBJ reported second-quarter 2026 earnings of $1.19 per American Depository Share (“ADS”), beating the Zacks Consensus Estimate of 61 cents by 95.1%. The bottom line surged 177.4% from 43 cents per ADS a year ago.The company reported GAAP earnings of 30 cents per ADS compared with 11 cents in the second quarter of 2025. Revenues of $2.24 billion increased 22.9% year over year and topped the Zacks Consensus Estimate of $2.05 billion by 8.9%. The revenue increase reflected higher activity across Executive Aviation, Defense & Security, Commercial Aviation and Services & Support. Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote Embraer delivered 65 aircraft in the quarter, up 6.6% from 61 a year ago. Commercial Aviation deliveries rose to 20 aircraft from 19, while Executive Aviation deliveries increased to 45 from 38.The company-wide firm order backlog reached a record $34.5 billion, up 16% year over year. Commercial Aviation backlog rose 15% to $15.1 billion, Executive Aviation increased 5% to $7.8 billion, Defense & Security climbed 42% to $6.1 billion, and Services & Support advanced 12% to $5.5 billion. Executive Aviation: This segment’s revenues climbed 32% to $725 million, supported by higher volumes and product mix. Its adjusted EBIT margin expanded to 23.4% from 14.5%.Defense & Security: This segment’s revenues rose 38% to $304 million on stronger KC-390 revenue recognition tied to customer mix and product stage. Its adjusted EBIT margin improved to 11.9% from 9.2%. Commercial Aviation: Revenues increased 8% year over year to $625 million, mainly on higher volumes. Its adjusted EBIT margin declined to 2.9% from 4.3%.Services & Support: This segment’s revenues advanced 24% to $565 million, while its adjusted EBIT margin increased to 18.7% from 15.5%.Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest, the landing gear division and other businesses. Revenues for this segment declined 6% to $15 million, primarily reflecting lower deliveries in agricultural aviation during the quarter. Embraer’s operating income amounted to $285.8 million compared with $179.5 million in the second quarter of 2025.The company posted adjusted EBITDA of $355.6 million compared with $245.5 million a year ago. As of June 30, 2026, EMBJ’s cash and cash equivalents amounted to $1.39 billion compared with $1.95 billion as of Dec. 31, 2025.Its adjusted free cash flow (without Eve) for the second quarter of 2026 totaled $401 million against the adjusted free cash outflow of $161.6 million in the prior-year period.The net cash provided by operating activities during the first six months of 2026 amounted to $204.4 million against the net cash outflow from operating activities of $134.1 million during the first six months of 2025. Embraer continues to expect 80-85 Commercial Aviation deliveries and 160-170 Executive Aviation deliveries in 2026. The company also maintained its revenue outlook of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.52 billion, which is higher than the company’s guided range.EMBJ raised its adjusted EBIT margin guidance to 10-10.6% from 8.7-9.3%. It also lifted its adjusted free cash flow outlook excluding Eve to at least $400 million from at least $200 million. Embraer currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Embraer-Empresa Brasileira de Aeronautica (EMBJ) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Honeywell Aerospace Inc. HONA reported second-quarter 2026 adjusted earnings of $1.87 per share, which missed the Zacks Consensus Estimate of $2.07 by 9.7%. The bottom line declined 32% from $2.75 in the year-ago quarter. Sales rose 5% year over year to $4.52 billion but missed the consensus estimate of $4.67 billion by 3.1%. Supply constraints limited deliveries across end markets, while backlog increased 9% to $18.15 billion.Commercial Aftermarket sales increased 8% to $2.03 billion, supported by broad-based demand across the installed base and higher business aviation flight hours. Commercial Original Equipment sales rose 6% to $679 million as commercial air transport shipments recoupled with higher customer build schedules. Defense and Space revenues advanced 3% to $1.82 billion, as stronger domestic volumes were partly offset by supply-constrained international deliveries and the wind-down of a restricted government program. Honeywell Aerospace inc. price-consensus-eps-surprise-chart | Honeywell Aerospace inc. Quote Electronic Solutions sales grew 8% to $1.77 billion, led by Defense and Space and Commercial Aftermarket demand. Segment adjusted EBIT declined 3% to $459 million as higher volume and pricing were more than offset by unfavorable mix and higher costs.Engines & Power Systems sales increased 1% to $1.41 billion, but segment adjusted EBIT dropped 32% to $174 million. Control Systems sales rose 7% to $1.34 billion, while segment adjusted EBIT improved 8% to $389 million as pricing more than offset higher costs. Adjusted EBIT declined 7% to $995 million from $1.07 billion. The adjusted EBIT margin contracted to 22% from 24.9%, reflecting unfavorable sales mix, higher costs and roughly $50 million of inventory obsolescence charges.The company allocated more output to domestic defense customers and Engines & Power Systems original equipment programs, which carry lower profitability. Reported net income fell 70% to $256 million, while GAAP earnings decreased to 78 cents per share from $2.66. Cash and cash equivalents amounted to $1.06 billion as of June 27, 2026, up from $213 million as of 2025-end. Long-term debt increased to $15.85 billion from $4 million, reflecting financing transactions related to the separation from Honeywell Technologies.Net cash provided by operating activities totaled $571 million in the quarter, down from $748 million a year earlier. Management lowered its 2026 organic sales growth outlook to 4-5% from 7-9%. Pro forma standalone adjusted EBIT is now projected to be between $4.35 billion and $4.45 billion, down from the prior guidance of $4.65 billion to $4.75 billion. The company initiated pro forma standalone adjusted earnings guidance of $7.60-$7.90 per share and maintained second-half free cash flow guidance of $1-$1.5 billion. The Zacks Consensus Estimate is pinned at $8.44 per share, which is higher than the company’s newly guided range. The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.TDY’s total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.The company’s net sales were $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell Aerospace inc. (HONA) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Hexcel Corporation (HXL) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Howmet Aerospace Inc. HWM is scheduled to release second-quarter 2026 results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.23 per share on revenues of $2.41 billion.The company’s second-quarter earnings estimates have decreased a penny over the past 30 days. However, the bottom-line projection indicates an increase of 35.2% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates year-over-year growth of 17.5%. Image Source: Zacks Investment Research The company has surpassed the Zacks Consensus Estimate thrice and missed once in the preceding four quarters, the average surprise being -1.3%. In the last reported quarter, it reported earnings of 86 cents per share, which missed the consensus estimate by 22.5%. Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. Quote Our proven model does not conclusively predict an earnings beat for HWM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below. Earnings ESP: HWM has an Earnings ESP of -0.83% as the Zacks Consensus Estimate is pegged at $1.23 per share, which is higher than the Most Accurate Estimate of $1.22. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: HWM currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here. Howmet Aerospace’s second-quarter results are expected to gain from persistent strength in its commercial aerospace market. Solid demand in the air transport market has been driving demand for wide-body aircraft, thereby supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.Increasing popularity for new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines are expected to have proven promising for HWM in the second quarter. The Zacks Consensus Estimate for revenues from the commercial aerospace market is pegged at $1.29 billion, indicating a 21.7% rise from the year-ago quarter number.Also, the company's defense aerospace market remains a key growth driver, backed by stable government funding. HWM is continuing to experience robust orders for engine spares for legacy fighters like the F-15 and the F-16. This is expected to have augmented its revenues in the to-be-reported quarter. The consensus estimate for revenues from the defense aerospace market is pegged at $388 million, indicating 10.2% growth from the year-ago quarter’s number.However, Howmet Aerospace has been facing weakness in the commercial transportation market served by the Forged Wheels segment, due to lower OEM builds and tariff-related impacts in North America. This is likely to have affected its second-quarter performance.Howmet Aerospace is dependent on a global supply chain, and in recent years, it has experienced supply-chain disruptions in the aerospace sector that resulted in delays and increased costs. Despite moderation, the persistence of supply-chain issues in the aerospace sector is likely to have affected its operations and performance. HWM shares have gained 29.1% in the past six months compared with the Zacks Aerospace - Defense industry and the S&P 500’s decline of 2.3% and growth of 11.8%, respectively. In comparison, the company’s peers, Textron Inc. TXT and RTX Corporation RTX have decreased 6.6% and gained 9.7%, respectively, in the same period. Image Source: Zacks Investment Research HWM is trading at a forward 12-month price-to-earnings (P/E) ratio of 51.67X, much higher than the industry average of 34.53X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. Notably, Textron and RTX Corp. are currently trading at 12.76X and 28.9X, respectively. Image Source: Zacks Investment Research Howmet Aerospace is well-positioned for long-term growth, supported by its diversified portfolio and strong demand across the commercial aerospace and defense markets. The House of Representatives passed the fiscal year 2026 Defense Appropriations Act in July 2025, providing a total discretionary allocation of $831.5 billion. The expanded defense budget is expected to create additional contract opportunities for Howmet Aerospace, supporting growth in its defense aerospace business and boosting its top line.However, persistent weakness in the commercial transportation market is likely to remain a near-term headwind. Additionally, Howmet Aerospace's premium valuation may limit further upside and warrants a cautious stance from investors. Strength across the commercial and defense aerospace markets, supported by solid aircraft build rates, strong engine spares demand and elevated defense spending, is expected to drive Howmet Aerospace's growth. Despite its premium valuation, strong growth prospects make the stock worth considering. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kratos Defense & Security Solutions, Inc. KTOS reported second-quarter 2026 adjusted earnings of 21 cents per share, which beat the Zacks Consensus Estimate of 13 cents by 61.5%. The bottom line also increased 90.9% from the year-ago quarter’s 11 cents. Kratos Defense reported GAAP earnings of 2 cents per share, which came in line with the year-ago quarter. Revenues of $458.8 million beat the consensus estimate of $412 million by 11.4% and increased 30.5% year over year. Kratos Government Solutions led the growth, while total organic revenues advanced 19.1%. Product sales climbed 33.5% year over year to $289.1 million. Service revenues increased 25.8% to $169.7 million. Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. Quote Selling, general and administrative expenses jumped 35.5% to $73.3 million. Research and development expenses rose 33.3% to $13.6 million.Amortization of intangible assets increased to $10.1 million from $2.8 million, while depreciation rose to $3.9 million from $3 million. Kratos recorded an operating loss of $1.6 million against the operating income of $3.7 million a year earlier. Unmanned Systems: Revenues from this segment totaled $79.1 million compared with $73.2 million in the year-ago quarter. The increase was primarily driven by Valkyrie-related activity.Kratos Government Solutions: Revenues from this segment amounted to $379.7 million compared with $278.3 million in the year-ago quarter. This rise was due to organic revenue growth across its Defense and Rocket Support business, Turbine Technologies and Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2%, 43.3%, 29.5% and 8.7%, respectively, year over year. As of June 28, 2026, cash and cash equivalents totaled $1.44 billion, up from $0.56 billion as of Dec. 28, 2025.The company reported other current liabilities of $19.9 million as of June 28, 2026 compared with $9 million recorded as of Dec. 28, 2025.The net cash used in operating activities amounted to $38.4 million during the first six months of 2026 compared with $40.9 million in the same period of 2025. Consolidated bookings totaled $492.2 million in the second quarter, resulting in a book-to-bill ratio of 1.1. The last-12-month book-to-bill ratio was 1.3, with bookings of $1.99 billion.Backlog increased to $2.08 billion as of June 28, 2026 from $2.05 billion at the end of the first quarter. Funded backlog was $1.57 billion, while unfunded backlog totaled $512.7 million. The bid and proposal pipeline expanded to $15 billion from $14.3 billion. KTOS projects second-quarter 2026 revenues to be in the range of $460-$480 million. The Zacks Consensus Estimate for revenues is pegged at $460.3 million, which is at the lower end of the company’s guided range.Kratos raised its full-year 2026 revenue guidance to $1.75-$1.81 billion compared with the previous range of $1.7-$1.76 billion. The Zacks Consensus Estimate for revenues is pegged at $1.75 billion, which is at the lower end of the company’s guided range.Kratos Defense now expects operating cash flows to be in the range of $30-$50 million and free cash flow to be in the band of $85-$105 million for 2026. Kratos Defense currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TransDigm Group Incorporated TDG reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.The company reported GAAP earnings of $9.39 per share compared with $8.47 in the year-ago quarter. Sales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%. Organic sales growth was 13%, supported by double-digit gains across all three major aerospace market channels. Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote Gross profit increased 22.2% year over year to $1.63 billion. The gross margin was 59.4%, slightly below 59.5% in the prior-year quarter.Selling and administrative expenses rose to $332 million from $242 million. These expenses represented 12.1% of sales compared with 10.8% a year earlier. Net interest expense increased 29.5% to $514 million, reflecting interest on debt raised by the company.EBITDA As Defined rose 18.9% to $1.45 billion. However, the related margin contracted to 52.8% from 54.4%, partly reflecting acquisition dilution. Management noted that the base businesses expanded margins year over year after excluding that dilution. GAAP net income increased 9.5% to $540 million, while reported earnings rose to $9.39 per share from $8.47. TransDigm completed the acquisitions of Jet Parts Engineering and Victor Sierra in April 2026 for approximately $2.2 billion in cash. The businesses expand the company’s exposure to proprietary aerospace aftermarket parts and repair solutions.After the quarter ended, TDG agreed to acquire Prince & Izant for approximately $1.07 billion in cash, including certain tax benefits. The company expects the business to strengthen its position in aerospace and defense, aeroderivative turbine and transportation markets.TDG also repurchased 809,101 shares during the quarter at an average price of $1,208 per share, returning $1 billion to shareholders. Fiscal year-to-date repurchases totaled $1.8 billion for nearly 1.5 million shares. Cash and cash equivalents as of June 27, 2026, amounted to $2.77 billion, down from $2.81 billion recorded as of Sept. 30, 2025.Total debt was $33.71 billion, while net debt was $30.93 billion. The company reported a total net leverage ratio of 5.8 times. About 75% of gross debt was hedged or fixed through fiscal 2029 using interest-rate caps, swaps and collars, limiting near-term exposure to variable-rate increases.Net cash provided by operating activities for the first 39 weeks of fiscal 2026 increased to $1.69 billion from $1.53 billion. Management raised fiscal 2026 guidance after bookings exceeded expectations and operating momentum remained strong. The updated outlook excludes contributions from the pending Prince & Izant acquisition.Net sales are now projected to be between $10.47 billion and $10.55 billion, up $150 million at the midpoint from the prior forecast. EBITDA As Defined is expected to be in the range of $5.49 billion to $5.55 billion, representing a $100 million midpoint increase. The Zacks Consensus Estimate is pegged at $10.36 billion, which is lower than the company’s newly guided range.Adjusted earnings are forecasted to be between $40.62 and $41.46 per share compared with the previous range of $38.83-$40.21. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $39.96 per share, lower than the company’s revised guidance. TransDigm currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Teledyne Technologies Inc. TDY reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.TDY’s total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter. Hexcel Corporation HXL reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.The company’s net sales were $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transdigm Group Incorporated (TDG) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report Hexcel Corporation (HXL) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

L3Harris Technologies, Inc. LHX reported second-quarter 2026 earnings (from continuing operations) of $3.13 per share, which outpaced the Zacks Consensus Estimate of $2.80 by 11.8%. The bottom line also increased 12.6% from the year-ago quarter’s $2.78. L3Harris’ revenues totaled $5.88 billion, which topped the Zacks Consensus Estimate of $5.79 billion by 1.5%. The top line also improved 8.4% from the year-ago quarter’s $5.43 billion.The year-over-year increase in the top line was driven by growth across all segments, reflecting new program ramp-up and strong execution against a record backlog. L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote Space & Mission Systems revenues increased 7% to $2.97 billion. The segment’s operating income edged up to $290 million from $289 million.The operating margin declined 60 basis points to 9.8%. Improved program execution and a $23 million net gain from segment investments were outweighed by the absence of a $75 million asset-sale gain recognized in the prior-year quarter.Communications & Spectrum Dominance revenues advanced 4% to $1.94 billion. Segment operating income climbed 14% to $522 million.The operating margin expanded 230 basis points to 26.9%. Higher international volumes and a $16 million net segment investment gain supported profitability. Missile Solutions revenues rose 14% to $1.05 billion. Operating income increased to $130 million from $116 million. However, the operating margin contracted 20 basis points to 12.3% because the year-ago quarter included a favorable contract resolution. As of July 3, 2026, L3Harris had $1.52 billion in cash and cash equivalents compared with $1.07 billion as of Jan. 2, 2026.The long-term debt as of the same date was $9.18 billion compared with $10.44 billion as of Jan. 2, 2026.The net cash provided by operating activities was $784 million during the first six months of 2026 compared with $598 million in the prior-year period. L3Harris raised its 2026 revenue outlook to $23.2-$23.7 billion from $23-$23.5 billion. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.55 billion, which is higher than the midpoint of the company’s guided range.LHX now expects earnings of $11.80-$12 per share, up from its previous projection of $11.40-$11.60. The Zacks Consensus for 2026 earnings is pegged at $11.54 per share, which is lower than the company’s guided range.It continues to anticipate adjusted free cash flow of $3 billion and $3.6 billion in operating cash flow.Space & Mission Systems revenues are projected at nearly $11.7 billion, above the prior estimate of $11.5 billion. Communications & Spectrum Dominance revenues are expected to be about $8 billion, while Missile Solutions revenues are forecast at roughly $4.1 billion. L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

General Dynamics Corporation GD reported second-quarter 2026 earnings of $4.24 per share, beating the Zacks Consensus Estimate of $3.95 by 7.3%. The bottom line increased 13.4% from $3.74 in the year-ago quarter, reflecting higher operating earnings and lower net interest expense. Total Revenues of GD Revenues of $14.09 billion surpassed the consensus mark of $13.49 billion by 4.5% and rose 8.1% year over year. Growth across all four segments, led by Aerospace and Marine Systems, supported the top line. General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote Aerospace revenues increased 15.1% year over year to $3.53 billion. Operating earnings surged 26.6% to $510 million. The operating margin expanded 130 basis points to 14.5%.Marine Systems revenues advanced 10.4% to $4.66 billion. Operating earnings increased 17.5% to $342 million. The segment’s operating margin improved 40 basis points to 7.3%.Combat Systems revenues were $2.29 billion, up 0.3% from the prior-year quarter. However, operating earnings declined 1.9% to $318 million, while the operating margin contracted 30 basis points to 13.9%.Technologies revenues increased 4.1% year over year to $3.62 billion. Operating earnings improved 2.1% to $339 million. The operating margin declined 20 basis points to 9.4%. Operating earnings totaled $1.46 billion, up 11.9% from the year-ago quarter’s $1.31 billion.Operating costs and expenses increased 7.7% year over year to $12.63 billion.Interest expenses decreased 44.3% year over year to $49 million. General Dynamics recorded a total backlog of $186.9 billion. This includes a backlog of $136.5 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options of $50.4 billion. As of July 5, 2026, cash and cash equivalents totaled $4.33 billion compared with $2.33 billion as of Dec. 31, 2025.The long-term debt as of the same date was $6.26 billion compared with the 2025-end debt level of $7.01 billion.During the first six months of 2026, cash generated by operating activities totaled $4.04 billion compared with $1.45 billion in the year-ago period. GD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research