Summary
Curtiss-Wright Corporation's 2020 10-K filing reveals a diversified global manufacturing and service company operating across defense, commercial/industrial, and power generation markets. The company experienced a revenue decline of 4% in 2020, primarily driven by the impact of the COVID-19 pandemic on its Commercial/Industrial segment, particularly in commercial aerospace and general industrial sectors. Despite this, the Defense segment showed robust growth of 17%, bolstered by strong performance in naval and aerospace defense, partly due to strategic acquisitions. The company is actively managing its operations through restructuring efforts and focusing on its core strengths in highly engineered products and services for critical applications. Financially, Curtiss-Wright demonstrated resilience, with a significant portion of its sales driven by government contracts (53% in 2020). The company also focused on capital allocation, completing strategic acquisitions and repurchasing shares. While facing headwinds from the pandemic in certain segments, the company's diversified portfolio, particularly its strong defense business, positions it to navigate market fluctuations. Investors should monitor the company's ability to leverage its defense segment strength and manage the recovery in its commercial markets.
Financial Highlights
54 data points| Revenue | $2.39B |
| Cost of Revenue | $1.55B |
| Gross Profit | $841.23M |
| R&D Expenses | $74.82M |
| Operating Income | $288.85M |
| Interest Expense | $35.55M |
| Net Income | $201.39M |
| EPS (Basic) | $4.83 |
| EPS (Diluted) | $4.80 |
| Shares Outstanding (Basic) | 41.74M |
| Shares Outstanding (Diluted) | 42.00M |
Key Highlights
- 1Revenue decreased by 4% to $2.39 billion in 2020, primarily due to the COVID-19 pandemic's impact on the Commercial/Industrial segment (-17%).
- 2The Defense segment showed significant growth of 17% to $734 million, driven by naval and aerospace defense markets and acquisitions.
- 3Operating income decreased by 28% to $289 million, impacted by lower sales, unfavorable overhead absorption, impairment losses, and restructuring costs.
- 4The company completed three acquisitions in 2020 for a total of $496 million, enhancing its capabilities, particularly in the Defense segment.
- 5Government sales represented 53% of total net sales in 2020, highlighting the company's strong ties to the defense sector.
- 6The company repurchased approximately $200 million of its common stock in 2020, demonstrating a commitment to returning capital to shareholders.
- 7Curtiss-Wright managed its debt effectively, with a debt-to-capitalization ratio below its 60% limit and significant unused credit availability.