Is TXT (Textron Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TXT is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (27.39% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (12.95% vs ≤33% threshold).

Textron Inc. is a major industrial conglomerate operating primarily in the aerospace and defense sectors. The company is best known for its Textron Aviation segment, which manufactures business jets and turboprops, alongside its Bell segment that produces military and commercial helicopters. It also develops unmanned aircraft systems and advanced marine crafts through Textron Systems. For Muslim investors, Textron represents a solid opportunity in the industrials sector, having passed all four AAOIFI shariah screens. Its core business of manufacturing aircraft and defense equipment is entirely permissible, and the stock is classified as Halal. This means everyday investors can confidently add TXT to their portfolios without compromising their Islamic values. From an Islamic finance perspective, Textron's balance sheet is well-managed and compliant. The company's debt-to-market capitalization stands at 27.4%, which is safely below the strict 33% maximum threshold allowed by AAOIFI standards. Additionally, it generates 0.00% in non-compliant interest income, ensuring revenue purity for halal investors. While Textron's current operations are fully compliant, the company does operate a finance division to support its commercial aircraft sales. Muslim investors should periodically monitor the company's financial reports to ensure any interest-based financing activities do not grow to exceed the 5% revenue tolerance limit in the future. Textron Inc. operates in the Industrials sector under the Aerospace & Defense industry and is headquartered in Providence, RI, US. The company is led by CEO Lisa Atherton and employs approximately 34,000 people.

TXT was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. TXT passed 4 of these 4 screens.

TXT has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

TXT was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.