Curtiss-Wright Corporation

Curtiss-Wright Corporation supplies engineered equipment, components and services for aerospace, defense, commercial nuclear power, process and industrial markets. Its three reporting segments are Aerospace & Industrial, Defense Electronics, and Naval & Power. Products include actuation and sensing equipment, embedded computing, pumps, valves, instrumentation and control systems. Its shares trade on the New York Stock Exchange as CW, and its financial year ends December 31.

Latest quarterly results

Current adjusted earnings exclude restructuring costs and losses on investment securities, after tax. The prior-year comparison also excludes first-year purchase-accounting costs. Current adjusted EPS adds $0.14 for investment losses and $0.03 for restructuring to GAAP EPS.

Orders and operating trends

Quarterly orders increased 15% to approximately $1.1 billion, with orders exceeding sales. Backlog was approximately $4.6 billion at September 30, up 12% from December 31. The company reported 10% organic quarterly sales growth, with no acquisition contribution in its reconciliation.

Naval & Power sales rose to $411.9 million from $368.0 million, and its adjusted operating margin increased to 18.6% from 16.6%. Submarine programs, aircraft-carrier overhaul work, advanced reactors and government nuclear projects supported growth. Defense Electronics sales rose to $259.0 million from $253.2 million, but its adjusted margin fell to 27.0% from 29.2%.

Aerospace & Industrial sales increased to $281.8 million from $248.0 million, supported by defense actuation, commercial-aircraft sensors and industrial vehicles. Its adjusted operating margin rose to 19.4% from 18.6%.

Forecast history

The annual diluted-share assumption declined to 36.9 million from 37.1 million. Current GAAP earnings guidance is $15.48 to $15.68 a share, with adjusted guidance excluding specified restructuring and investment-security effects. The capital-spending forecast does not specify whether expected grant receipts are included in that range.

The latest presentation keeps an AP1000 order outside its targets. Nuclear growth in the current outlook includes aftermarket work, government nuclear projects and next-generation reactors.

Cash flow and funding

Curtiss-Wright defines free cash flow as operating cash less net capital expenditures. Third-quarter gross capital spending was $40.0 million, with $17.0 million of capital grants reducing net spending to $23.0 million. In the comparable quarter, gross and net spending were both $16.9 million.

Nine-month operating cash flow rose to $355.9 million from $290.7 million. Gross capital spending was $81.3 million, grants were $25.5 million and net capital spending was $55.8 million. Free cash flow was $300.1 million, versus $238.6 million a year earlier.

At September 30, cash was $281.1 million and debt principal was $957.5 million. The debt carrying value was $957.1 million after issuance costs and unamortized swap proceeds. This includes $200 million of 4.24% notes due in December 2026. The revolving credit agreement, renewed in May 2026, provides $1 billion through May 2031. Letters of credit reduced available capacity to $975 million. The company reported compliance with its covenants.

Shareholder returns

Cash share-repurchase payments were $381.7 million in the first nine months, compared with $325.1 million a year earlier. The current release reports approximately $352 million of quarterly program purchases and expects about $460 million of repurchases for 2026.

On September 10, the board added $510 million to its repurchase authorization, bringing available authority at that time to $700 million. A separate $100 million trading plan adopted that month was completed by the end of October. The latest release expects $600 million of authority entering 2027.

The quarterly dividend is $0.26 a share, the rate introduced in the second quarter. Cash dividends totaled $18.5 million in the first nine months, versus $17.0 million a year earlier.

Contracts, investment and leadership

On November 4, Curtiss-Wright announced contracts worth more than $225 million from Bechtel Plant Machinery for Virginia-class and Columbia-class submarines and Ford-class aircraft carriers. Engineering, manufacturing and testing were already underway at New York and Pennsylvania facilities in Defense Electronics and Naval & Power, with work continuing through 2030.

The October 29 announcement of a $30 million Round Rock, Texas, expansion covers pressure and temperature sensors, space for future instrumentation and control products, engineering and testing capacity. It did not provide an annual spending schedule.

Lynn M. Bamford remains chair and chief executive. Kevin M. Rayment is due to become president and chief executive on January 1, 2027, when Bamford becomes executive chair. Gary A. Ogilby became interim chief financial officer on October 6 while the company searches for a permanent successor.