Curtiss-Wright Corp’s Earnings Call Highlights Growth

Curtiss-Wright Corp ((CW)) has held its Q3 earnings call. Read on for the main highlights of the call.

Curtiss-Wright Corp’s recent earnings call revealed a strong and positive sentiment, driven by impressive growth in revenue, operating income, and backlog. Despite facing challenges in the Defense Electronics segment due to government delays and flat sales in the industrial market, the company remains optimistic. This optimism is underpinned by robust performance in aerospace, defense, and commercial nuclear markets, alongside increased guidance for the full year 2025.

Strong Revenue and Operating Income Growth

Curtiss-Wright reported a 9% year-over-year increase in third-quarter revenue, with organic growth contributing 6%. Operating income saw a 14% rise, resulting in a 90 basis points expansion in operating margin to 19.6%. This growth highlights the company’s effective strategies and operational efficiency.

Record Backlog and Order Book

The company’s backlog reached a record high of over $3.9 billion, marking a 14% increase year-to-date. New orders rose by 8%, maintaining a book-to-bill ratio of over 1.0. This indicates strong future growth potential and a healthy demand for Curtiss-Wright’s offerings.

Increased Full-Year Guidance

Curtiss-Wright has raised its full-year 2025 guidance for sales, operating income, and earnings per share. Sales are expected to grow by 10% to 11%, and operating income is projected to increase by 16% to 19%. This reflects the company’s confidence in its growth trajectory and market position.

Positive Outlook for Aerospace and Defense Segments

The company anticipates strong growth in aerospace and defense markets, driven by continued demand for commercial aerospace products and increased orders for nuclear propulsion equipment supporting U.S. Navy programs. This sector remains a key growth driver for Curtiss-Wright.

Growing Opportunities in Commercial Nuclear Market

Curtiss-Wright has secured new DOE-funded multiyear contracts for commercial nuclear projects. The order book in this segment shows significant growth, indicating long-term opportunities and reinforcing the company’s strategic focus on this market.

Challenges in Defense Electronics Segment

The Defense Electronics segment faced a delay of over $50 million in orders due to a government shutdown and continuing resolution. This has impacted the order book, highlighting the challenges posed by external factors.

Flat Sales in General Industrial Market

Sales in the general industrial market remained flat, affected by global industrial vehicle market conditions. Despite efforts to overcome macroeconomic challenges, this segment did not experience growth, reflecting broader market trends.

Potential Impact of Government Shutdown

The continuing resolution and potential government shutdown could pressure Q1 2026 results, particularly affecting the Defense Electronics segment. This underscores the importance of monitoring government actions and their impact on business operations.

Forward-Looking Guidance

Curtiss-Wright’s forward-looking guidance for 2025 is optimistic, with expectations of a 10% to 11% increase in sales, driven by robust growth in Aerospace & Defense markets, especially naval defense. Operating income is projected to grow between 16% and 19%, with operating margins expanding over 100 basis points to surpass 18.5%. Diluted EPS is anticipated to rise by 19% to 21%, reflecting benefits from share repurchase activities. The company also maintains strong free cash flow guidance, with conversion rates expected to exceed 105%.

In summary, Curtiss-Wright’s earnings call conveyed a strong and positive sentiment, with significant growth in key financial metrics and a promising outlook for the future. The company’s strategic focus on aerospace, defense, and commercial nuclear markets positions it well for continued success, despite challenges in the Defense Electronics segment and flat industrial sales. Investors and stakeholders can remain optimistic about Curtiss-Wright’s growth trajectory and market potential.