Curtiss-Wright (CWT) Q3 2026 Earnings Report

The call was strongly optimistic, with third-quarter sales, orders, backlog, margins, EPS, and free cash flow all showing solid performance and full-year guidance raised across major metrics. Growth opportunities in defense, commercial nuclear, SMRs, and aerospace were emphasized, alongside record backlog and continued strategic investment. Offsetting concerns included temporary Defense Electronics margin pressure, rising memory prices, budget and continuing-resolution uncertainty, and the still-pending AP1000 order, but management expressed confidence in execution and the fourth-quarter outlook.

For full year 2026, Curtiss-Wright projects total sales to increase 8% to 10%, total operating income to grow 12% to 14%, operating margin expansion of 60 to 80 basis points to a record range of 19.2% to 19.4%, and adjusted diluted EPS of $15.40 to $15.50, up 16% to 18%; Aerospace Defense sales growth is expected at 14% to 16%, total aerospace and defense sales at 8% to 10%, naval defense sales at 9% to 11%, Power and Process sales at 13% to 15%, general industrial sales at 3% to 5%, and total commercial markets sales at 8% to 10%. By segment, Aerospace and Industrial revenue is projected to grow 10% to 11%, operating income 17% to 19%, and operating margin expansion of 110 to 130 basis ranging from 18.5% to 18.7%; Defense Electronics sales are expected to grow 4% to 6%, operating income 5% to 7%, and operating margin expansion of 20 to 40 basis reflecting a range of 27.5% to 27.7%; and Naval and Power sales are expected to grow 11% to 12%, operating income 16% to 18%, and operating margin expansion of 70 to 90 basis points. Free cash flow guidance was raised by $10 million to a new range of $595 million to $615 million, with free cash flow conversion in excess of 105%, and the company is on pace to complete a near record $460 million in share buyback.