Will Revenue Headwinds Weigh On Textron Stock In 2022?

Will Revenue Headwinds Weigh On Textron Stock In 2022?

The shares of Textron (NYSE: TXT) have observed a sell-off this year as rising benchmark oil prices and inflation are likely to make a dent in consumer discretionary spending. The company designs and manufactures civilian and military helicopters, business jets, off-road & light transportation vehicles, and a variety of defense products. With the WHO actively exploring the criteria to announce an end to the pandemic, easing of health & safety protocols has been paramount for governments to revive macroeconomic growth. However, Textron's Aviation segment's order backlog could observe a headwind from inflationary forces and a revival of suspended air travel routes by domestic carriers. Thus, many passengers opting for private jets during the pandemic are likely to switch back to traditional means. Trefis highlights the historical trends in Textron's revenues across key operating segments in an interactive dashboard analysis. How did Textron perform in 2021? In 2021, Textron reported a 6% (y-o-y) growth in total revenues largely propelled by the Aviation segment. The company's four operating segments, Aviation, Bell, Systems, and Industrial account for 37%, 27%, 10%, and 26% of the total revenues, respectively. Tepid travel demand and supply chain issues led to order cancellations in 2020. However, the resurgence