Textron (TXT) risk factors, FY2024 10-K

Textron's FY2024 10-K, filed Feb 06, 2025, lists 24 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
245 groups
Section length
7k wordsItem 1A

Textron's biggest risks in the FY2024 10-K

  • Textron's risk profile is heavily weighted toward aerospace demand cyclicality, strict U.S. government contracting regulations, and global supply chain dependencies.

The risks most specific to Textron

  • Demand for our aircraft products is cyclical and lower demand adversely affects our financial results

    Demand for business jets, turbo props, and commercial helicopters is cyclical and vulnerable to unexpected events.

  • U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions

    The U.S. Government can terminate or modify its contracts with us at any time for convenience or default.

  • As a U.S. Government contractor, our businesses and systems are subject to audit and review by the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA)

    We face routine audits and reviews by the DCAA and DCMA regarding our contract performance and cost structures.

  • Our profitability and cash flow varies depending on the mix of our government contracts and our ability to control costs

    Fixed-price defense contracts require us to absorb any costs incurred in excess of the agreed fixed price.

  • Business and Operational Risks

    We are subject to risks of doing business globally that could adversely impact our business

    We derived approximately 29% of our 2024 revenues from international business, exposing us to global operations risks.

  • Financial Risks

    If our Finance segment has difficulty collecting on its finance receivables, our financial performance could be adversely affected

    Our Finance segment performance depends on loan and lease portfolio quality, collateral values, and underwriting procedures.

  • Risks Related to Human Capital

    Our business could be adversely affected by strikes or work stoppages and other labor issues

    Approximately 7,400, or 28%, of our U.S. employees are represented by labor unions under collective bargaining agreements.

All 24 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Demand for our aircraft products is cyclical and lower demand adversely affects our financial results
  2. 02U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions
  3. 03As a U.S. Government contractor, we are subject to procurement rules and regulations; our failure to comply with these rules and regulations could adversely affect our business
  4. 04As a U.S. Government contractor, our businesses and systems are subject to audit and review by the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA)
  5. 05Our profitability and cash flow varies depending on the mix of our government contracts and our ability to control costs
  6. 06The market for U.S. Government defense business is highly competitive, and the competitive bidding process increases pricing pressure and cost which may affect our ability to win new contracts for major government programs

Strategic Risks

  1. 07Developing new products and technologies entails significant risks and uncertainties
  2. 08We have made and may continue to make acquisitions that increase the risks of our business

Business and Operational Risks

  1. 09Risks arising from uncertainty in global macroeconomic conditions may harm our business
  2. 10Our business could be negatively impacted by cybersecurity threats and other disruptions
  3. 11Challenges faced by our subcontractors or suppliers could materially and adversely affect our performance
  4. 12We are subject to risks of doing business globally that could adversely impact our business
  5. 13Natural disasters or other events outside of our control have disrupted and may in the future disrupt our operations, adversely affect our results of operations and financial condition, and may not be fully covered by insurance

Financial Risks

  1. 14If our Finance segment has difficulty collecting on its finance receivables, our financial performance could be adversely affected
  2. 15We periodically need to obtain financing and such financing may not be available to us on satisfactory terms, if at all
  3. 16Unanticipated changes in our tax rates or exposure to additional income tax liabilities could affect our profitability

Risks Related to Regulatory, Legal and Other Matters

  1. 17We are subject to increasing compliance risks that could adversely affect our operating results
  2. 18Certain of our products are subject to laws regulating consumer products and could be subject to repurchase or recall as a result of safety issues
  3. 19Increased regulation and stakeholder expectations related to global climate change could negatively affect our operating results
  4. 20We are subject to legal proceedings and other claims
  5. 21Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our business and our customers

Risks Related to Human Capital

  1. 22Our success is highly dependent on our ability to hire, train and retain a qualified workforce
  2. 23The increasing costs of certain employee and retiree benefits could adversely affect our results
  3. 24Our business could be adversely affected by strikes or work stoppages and other labor issues

Other Textron 10-Ks

  • FY2025 10-K risk factors
    24 risks1 new1 dropped

    Macroeconomic risk was updated to explicitly cite ongoing pressures from inflation and labor and supply chain challenges.

    Filed Feb 11, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.