Textron Inc. (TXT) shares plummeted 7.52% during intraday trading on Tuesday, erasing early gains despite the aerospace and defense manufacturer posting second-quarter results that narrowly beat analyst expectations.

The decline was driven by a combination of concerns that overshadowed the headline beat. While adjusted earnings of $1.62 per share and revenue of $3.83 billion slightly exceeded consensus, the company’s aviation segment continued to grapple with lower jet delivery volumes and manufacturing inefficiencies. More significantly, Textron warned that a lack of additional funding for the U.S. Army’s MV-75 Cheyenne program could reduce full-year adjusted earnings by $0.20 to $0.30 per share, introducing a tangible risk to its financial outlook.

Adding to the cautious sentiment, Textron merely reiterated its full-year adjusted profit guidance of $6.40 to $6.60 per share, which at the midpoint fell modestly short of the $6.52 analyst consensus. The company also announced it had initiated a sale process for its Industrial segment, signaling a strategic shift that may have contributed to investor unease. The combination of mixed operational performance, a potential headwind from a key military program, and an unchanged conservative outlook weighed heavily on the stock.