TEXTRON INCTXT

TEXTRON INC Debt Disclosure

10-KFiled Feb 11, 20263 min read
Debt and Credit Facilities
Our debt is summarized in the table below:
(In millions)January 3,
2026		December 28,
2024
Manufacturing group
3.875% due 2025
$— $350 
4.00% due 2026*
— 350 
3.65% due 2027
350 350 
3.375% due 2028
300 300 
3.90% due 2029
300 300 
3.00% due 2030
650 650 
2.45% due 2031
500 500 
6.10% due 2033
350 350 
5.50% due 2035
500 — 
4.95% due 2036
500 — 
Other (weighted-average rate of 6.08% and 5.87%, respectively)
89 97 
Total Manufacturing group debt$3,539 $3,247 
Less: Current portion of long-term debt(5)(357)
Total Long-term debt$3,534 $2,890 
Finance group
Variable-rate note due 2028 (weighted-average rate of 5.04% and 5.70%, respectively)
$25 $25 
Fixed-rate note due 2027 (4.40%)
50 50 
Floating Rate Junior Subordinated Notes due 2067 (5.85% and 6.52%, respectively)
264 264 
Other— 2 
Total Finance group debt$339 $341 
* On December 31, 2025, we repaid our $350 million 4.00% notes due in March 2026.
The following table shows required principal payments during the next five years on debt outstanding at January 3, 2026:
(In millions)20262027202820292030
Manufacturing group$5 $355 $375 $301 $651 
Finance group— 50 25 — — 
Total$5 $405 $400 $301 $651 
On October 16, 2025, Textron entered into a senior unsecured revolving credit facility for an aggregate principal amount of $1.0 billion, of which $100 million is available for the issuance of letters of credit. We may elect to increase the aggregate amount of commitments under the facility to up to $1.3 billion by designating an additional lender or by an existing lender agreeing to increase its commitment. The facility expires in October 2030 and provides for two one-year extensions at our option with the consent of lenders representing a majority of the commitments under the facility. The new facility replaces the prior 5-year facility which was scheduled to expire in October 2027. At January 3, 2026 and December 28, 2024, there were no amounts borrowed against either facility. At January 3, 2026, there were no letters of credit issued and outstanding under the new facility, and at December 28, 2024, there was a $9 million letter of credit issued and outstanding under the prior facility.
Floating Rate Junior Subordinated Notes
The Finance group’s $264 million of Floating Rate Junior Subordinated Notes are unsecured and rank junior to all of its existing and future senior debt. The notes mature on February 15, 2067; however, we have the right to redeem the notes at par at any time and we are obligated to redeem the notes beginning on February 15, 2042. Interest is variable at the three-month CME Term Secured Overnight Financing Rate + 1.99661%.
Support Agreement
Under a Support Agreement between Textron and TFC, Textron is required to maintain a controlling interest in TFC. The agreement, as amended in December 2015, also requires Textron to ensure that TFC maintains fixed charge coverage of no less than 125% and consolidated shareholders' equity of no less than $125 million. There were no cash contributions required to be paid to TFC in 2025, 2024 and 2023 to maintain compliance with the support agreement.

Historical Timeline

Fiscal YearFiled
2026Feb 11, 2026Showing above
2024Feb 6, 2025
2023Feb 12, 2024
2022Feb 17, 2022
2021Feb 19, 2021
2020Feb 25, 2020
2018Feb 14, 2019
2017Feb 15, 2018
2016Feb 22, 2017

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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