Curtiss-Wright Reports Second Quarter 2025 Financial Results and Raises Full-Year 2025 Guidance

Curtiss-Wright Corporation (NYSE:CW) reports financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights:

• Reported sales of $877 million, up 12%, operating income of $156 million, operating margin of 17.8%, and diluted earnings per share (EPS) of $3.19;
• Adjusted operating income of $160 million, up 20%;
• Adjusted operating margin of 18.3%, up 130 basis points;
• Adjusted diluted EPS of $3.23, up 21%;
• New orders of $1.0 billion, reflecting a 1.14x book-to-bill; and
• Free cash flow (FCF) of $117 million.

Raised Full-Year 2025 Adjusted Financial Outlook:

• Sales guidance increased to new range of 9% to 10% growth (previously 8% to 9%), which continues to reflect growth in the majority of Curtiss-Wright's end markets;
• Operating income guidance increased to new range of 15% to 18% growth (previously 13% to 16%);
• Operating margin guidance range increased by 20 basis points to 18.5% to 18.7%, now up 100 to 120 basis points compared with the prior year;
• Diluted EPS guidance increased to new range of $12.70 to $13.00, now up 16% to 19% (previously $12.45 to $12.80, up 14% to 17%);
• FCF guidance range increased to $520 to $535 million, which continues to reflect greater than 105% FCF conversion; and
• Full-year 2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions.

"Curtiss-Wright delivered a strong second quarter, highlighted by double-digit revenue growth in both our total A&D and Commercial markets, significant operating margin expansion, greater than 20% growth in Adjusted diluted EPS, and better-than-expected free cash flow generation," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. "Our results also reflected the benefits of the Company's ongoing restructuring and operational excellence initiatives, and our dedication to making continued investments that drive profitable growth."

"Based on the strong first-half results and our outlook for the remainder of 2025, we have increased our full-year Adjusted guidance for sales, operating income, diluted EPS and free cash flow. We are successfully executing our Pivot to Growth strategy and building strong momentum to compound sustained profitable growth. In addition, we remain extremely well aligned to many favorable secular growth trends across our markets, today and well into the future."

Second Quarter 2025 Operating Results

• Sales of $877 million increased 12% compared with the prior year period;
• Total A&D market sales increased 12%, while total Commercial market sales increased 10%;
• In our A&D markets, stronger than expected growth in the defense markets was driven by higher submarine revenues in naval defense and increased sales of defense electronics products, as well as higher OEM sales in the commercial aerospace market;
• In our Commercial markets, strong growth in the power & process market was principally driven by the contribution from our Ultra Energy acquisition and higher organic sales of commercial nuclear products, while sales in the general industrial market were flat; and
• Adjusted operating income of $160 million increased 20%, while Adjusted operating margin increased 130 basis points to 18.3%, driven by favorable overhead absorption on higher revenues in all three segments, the benefits of the Company's restructuring and operational excellence initiatives, favorable mix in the Naval & Power segment, and favorable foreign currency translation, partially offset by higher investment in research and development.

Second Quarter 2025 Segment Performance

Aerospace & Industrial

• Sales of $239 million, up $6 million, or 3%;
• Commercial aerospace market revenue growth reflected increased demand and higher OEM sales of sensors products and surface treatment services on narrowbody and widebody platforms;
• General industrial market revenue was essentially flat, as the benefit of higher sales of industrial vehicle products serving on-highway vehicle platforms and increased surface treatment services were offset by lower global off-highway and specialty industrial vehicle sales; and
• Adjusted operating income was $40 million, up 5% from the prior year, while adjusted operating margin increased 40 basis points to 16.6%, driven by favorable absorption on higher revenues, the benefits of the Company's restructuring initiatives and favorable foreign currency translation.

Defense Electronics

• Sales of $253 million, up $25 million, or 11%;
• Higher revenue in the aerospace defense market was principally driven by increased sales of our embedded computing equipment to various international customers while also supporting several domestic unmanned aerial vehicle programs;
• Ground defense market revenue growth reflected higher sales of tactical battlefield communications equipment as well as increased support for U.S. ground vehicle modernization;
• Higher revenue in the commercial aerospace market reflected increased sales of our flight data recorder technology to OEM customers; and
• Adjusted operating income was $68 million, up 15% from the prior year, while adjusted operating margin increased 110 basis points to 26.8%, reflecting favorable absorption on higher defense revenues and the benefits of our operational excellence initiatives.

Naval & Power

• Sales of $384 million, up $61 million, or 19%;
• Revenue growth in the naval defense market was principally driven by our strong order book and the timing of revenues on the Columbia-class submarine program, in addition to increased revenues supporting next-generation submarine development and higher sales of aircraft handling systems equipment to international customers;
• Higher power & process market revenues mainly reflected the contribution from our prior year acquisition to our commercial nuclear and process markets, as well as higher organic sales of commercial nuclear products supporting the maintenance of existing operating reactors and the development of next-generation advanced reactors; and
• Adjusted operating income was $64 million, up 36% from the prior year, while adjusted operating margin increased 210 basis points to 16.5%, due to favorable absorption on higher revenues and favorable mix of products, partially offset by higher investment in research and development.

Free Cash Flow

• Free cash flow of $117 million increased $17 million, as higher cash earnings and improved working capital were partially offset by higher capital investments in all three segments.

New Orders and Backlog

• New orders of $1.0 billion increased slightly compared with the prior year principally reflecting strong demand in our commercial nuclear and commercial aerospace end markets, mainly offset by the timing of orders in naval defense; and
• Backlog of $3.9 billion, up 12% from December 31, 2024, reflecting strong demand across the A&D and Commercial markets.

Share Repurchase and Dividends

• During the second quarter, the Company repurchased 59,501 shares of its common stock for approximately $21 million; and
• The Company declared a quarterly dividend of $0.24 a share, representing a $0.03 or 14% increase from the previous quarter.

Full-Year 2025 Guidance

The Company is updating its full-year 2025 Adjusted financial guidance⁽¹⁾ as follows:

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A more detailed breakdown of the Company's 2025 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright's website.

Conference Call & Webcast Information

The Company will host a conference call to discuss its second quarter 2025 financial results and updates to 2025 guidance at 10:00 a.m. ET on Thursday, August 7, 2025. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company's website at www.curtisswright.com.

(Tables to Follow)

Use and Definitions of Non-GAAP Financial Information (Unaudited)

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright's ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliations of "Reported" GAAP amounts to "Adjusted" non-GAAP amounts are furnished within this release.

The following definitions are provided:

Adjusted Sales, Operating Income, Operating Margin, Net Earnings and Diluted EPS

These Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments, transaction costs, and gains/losses on equity securities held for investment purposes; and (ii) costs associated with the Company's 2024 Restructuring Program, as applicable.

Organic Sales and Organic Operating Income

The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company's ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions and results of operations from divested businesses or product lines during the last twelve months, costs associated with the Company's 2024 Restructuring Program, and foreign currency fluctuations.

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. The Corporation discloses free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as free cash flow divided by adjusted net earnings.