TXT · 10-Q · 2026Q4 · Full report

MV-75 Program Cost Adjustment

TEXTRON INC · 2026-10-29 · Importance 46 · Surprise 42

Textron expects to be awarded the MV-75 program’s long-lead Low-Rate Initial Production phase, subject to U.S. Government fiscal 2027 budget approval, funding, and an agreed program schedule. If awarded during 2027, the largely fixed-price LRIP option is expected to trigger an unfavorable cumulative catch-up adjustment of $110 million to $150 million. The revised range depends on the timing of the award, the program schedule, and available funding, and is higher than the previously disclosed $60 million to $110 million range for an award in late 2026 or early 2027. Textron expects the overall MV-75 program to remain profitable after the adjustment.

Key facts

• TEXTRON INC expects an unfavorable cumulative catch-up adjustment upon award of the largely fixed-price MV-75 LRIP option, reflecting higher costs than originally anticipated. source
• TEXTRON INC expects an MV-75 unfavorable cumulative catch-up adjustment of $110 million to $150 million if the LRIP option is awarded during 2027, depending on award timing, program schedule and available funding. source
• TEXTRON INC’s previously disclosed MV-75 adjustment range was $60 million to $110 million, based on an award in late 2026 or early 2027. source
• TEXTRON INC expects the overall MV-75 program to continue generating a positive profit margin after the adjustment. source