What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does Textron (TXT) spend its free cash flow?

For TTM through Q2 2026, Textron generated $1.16B of operating cash flow and $707M of free cash flow — a free cash flow margin of 61.1% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did Textron (TXT) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent Textron's shareholder returns for TTM through Q2 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

Textron (TXT) Cash Flow Waterfall

Operating CF

$1.16B

Capex

-$451M

Free Cash Flow

$707M

FCF Margin

+61.1%

Cash flow waterfall for Textron (TXT) — TTM through Q2 2026

Free cash flow: $707M

Cash flow breakdown for Textron (TXT) — TTM through Q2 2026

Line item	Amount	Running total
Operating Cash Flow	$1.16B	$1.16B
Capital Expenditure	-$451M	$707M
Free Cash Flow	$707M	$707M
Other Investing	$59M	$766M
Share Buybacks	-$928M	-$162M
Dividends Paid	-$18M	-$180M
Net Debt Change	$59M	-$121M
Other Financing & FX	$90M	-$31M
Net Cash Decrease	-$31M	-$31M

Operating Cash Flow$1.16B
Capital Expenditure-$451M
Free Cash Flow$707M
Other Investing$59M
Share Buybacks-$928M
Dividends Paid-$18M
Net Debt Change$59M
Other Financing & FX$90M
Net Cash Decrease-$31M

Want to see what drove the FCF change?Free Cash Flow Bridge

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