Textron Inc TXT

No-Moat Textron Manufactures More Fun for Customers Than for Shareholders

Textron is not a household name, but many of its products are: from Cessna airplanes to Bell helicopters and E-Z-Go golf carts, the company designs, produces, and services a wide array of specialized vehicles, overwhelmingly aircraft, for commercial and military customers. In some of its key markets, Textron products are far and away the most common version in use today, and part of the company's strategy is to provide ongoing service and parts for its back catalog of vehicles. Aircraft are generally fairly long-lived, often in use for decades, and this provides Textron with many years of recurring revenue streams, though its heavy exposure to business and private aviation makes those revenue streams quite cyclical.