TXT
Textron Inc.
Is TXT Halal?
Diversified aerospace-and-industrial manufacturer with substantial defense-and-military revenue (Bell military rotorcraft, Textron Systems) and a captive finance arm — defense revenue and interest income raise Sharia concerns.
What You Should Know
Textron combines commercial aviation and industrial manufacturing with Bell military rotorcraft, Textron Systems defense programs and a captive Finance group. Its April 4, 2026 Form 10-Q reports assets of $18,141 million, conservative debt/leases of $4,242 million, cash of $1,610 million, receivables of $1,465 million and quarterly revenue of $3,695 million. Debt/assets is 23.38%, liquidity/assets is 8.87% and receivables plus cash/assets is 16.95%. Disclosed Bell military-aircraft/support revenue of $795 million plus conservative Textron Systems revenue of $338 million equals a 30.69% defense-related proxy; Finance-segment revenue of $16 million is a disclosed finance-income proxy. The core defense and captive-finance activities fail qualitatively even though known asset ratios pass.
⚠️ Concerns
- •Bell military aircraft/support revenue is $795 million and Textron Systems revenue is $338 million; the conservative defense-related proxy is 30.69% of quarterly revenue
- •Captive aircraft and helicopter finance is a core activity concern; Finance-segment revenue is $16 million
- •Known debt/assets is 23.38%, below examined limits
- •The filing separates Manufacturing and Finance borrowing groups
- •Commercial aviation and Industrial segments remain the permissible qualitative activities
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-04; calculated 2026-07-15.
4,242 / 18,141
1,610 / 18,141
3,075 / 18,141
16 / 3,695
- Financial
- Pass
- Overall
- Fails
Debt/assets is 23.38%, liquidity/assets is 8.87%, receivables-plus-cash/assets is 16.95% and the disclosed Finance-segment proxy is 0.43%, below the examined limits; the core defense and captive-finance activity fails independently.
- Financial
- Pass
- Overall
- Fails
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI limits; the core defense and captive-finance activity fails independently.
- Financial
- Pass
- Overall
- Fails
Debt/assets is 23.38% and liquidity/assets is 8.87%, below the examined Malaysia limits; the core defense and captive-finance activity fails independently.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the core defense and captive-finance activity already establishes failure.
Business-activity disclosure
Textron combines commercial aviation and industrial manufacturing with Bell military rotorcraft, Textron Systems defense programs and a captive Finance group. Defense and interest-bearing finance are material qualitative failure concerns even though a universal prohibited-revenue numerator is not disclosed.
Limitation: The filing reports segment revenue but does not classify every defense contract or finance income stream by a universal school-specific prohibited-revenue definition.
Purification
Textron fails the core defense and captive-finance activity screen; the $16 million Finance-segment revenue proxy is not treated as a small purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Textron's April 4, 2026 Form 10-Q for the first quarter of 2026.
- Debt combines $355 million manufacturing current debt, $3,111 million manufacturing long-term debt, $339 million Finance-group debt, $27 million finance-lease liability and $410 million operating-lease liabilities.
- Cash combines $1,509 million manufacturing cash and $101 million Finance-group cash; receivables combine $885 million manufacturing accounts receivable and $580 million net Finance-group receivables.
- Quarterly revenue is $3,695 million. The filing reports $43 million gross interest expense and a $16 million Finance-segment revenue line that includes interest income and expense; the latter is used as a conservative disclosed finance-income proxy, not as a gross interest-income claim.
- The $1,133 million prohibited-revenue proxy combines disclosed Bell military-aircraft/support revenue of $795 million and Textron Systems revenue of $338 million; Textron Systems is treated conservatively as defense-related, while contract-level school-specific treatment remains qualitative.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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