TXT

Textron Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

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.

USD · millions
Interest-bearing debt / assets
23.38%Within limit
Below 33.333% under FTSE Yasaar

4,242 / 18,141

Cash + interest-bearing securities / assets
8.87%Within limit
Below 33.333% under FTSE Yasaar

1,610 / 18,141

Receivables + cash / assets
16.95%Within limit
Below 50% under FTSE Yasaar

3,075 / 18,141

Non-compliant income / revenue
0.43%Within limit
No more than 5% under FTSE Yasaar

16 / 3,695

FTSE Yasaar
v4.6, February 2026
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.

MSCI Islamic (total-assets series)
October 2024 methodology
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.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
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.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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.

🧾
Own TXT? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track TXT and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →