10-KPeriod: FY2024

CURTISS WRIGHT CORP Annual Report, Year Ended Dec 31, 2024

Filed February 13, 2025For Securities:CW

Summary

Curtiss-Wright Corporation (CW) reported a strong fiscal year 2024, demonstrating robust growth across its diverse segments. Total sales increased by 10% to $3.12 billion, driven by significant expansion in the Defense Electronics and Naval & Power segments, which both saw 12% sales growth. The Aerospace & Industrial segment also contributed positively with a 5% sales increase. This top-line growth translated into a 9% increase in operating income, reaching $529 million, indicating effective cost management and favorable overhead absorption. The company's strategic focus on its 'Pivot to Growth' strategy, which emphasizes organic and inorganic growth, operational excellence, and disciplined capital allocation, appears to be yielding positive results. Management's outlook remains optimistic, supported by strong new orders and a growing backlog, particularly in defense-related areas, reflecting continued demand for CW's highly engineered products and services in critical aerospace, defense, and industrial markets.

Financial Highlights

52 data points
Beta

Revenue

$3.12B

37.0% Gross Margin

Net Income

$404.98M

13.0% Net Margin

EPS (Diluted)

$10.55

Total Assets

$4.99B

Cash & Equivalents

$385.04M

Free Cash Flow

$483.30M

Financial Statements
Beta
Revenue$3.12B
Cost of Revenue$1.97B
Gross Profit$1.15B
R&D Expenses$91.65M
Operating Income$528.60M
Net Income$404.98M
EPS (Basic)$10.61
EPS (Diluted)$10.55
Shares Outstanding (Basic)38.15M
Shares Outstanding (Diluted)38.37M

Key Highlights

  • 1Total sales grew by 10% to $3.12 billion in fiscal year 2024, driven by broad-based segment strength.
  • 2Defense Electronics and Naval & Power segments both experienced 12% sales growth, highlighting strong demand in key markets.
  • 3Operating income increased by 9% to $529 million, demonstrating operational efficiency and improved profitability.
  • 4New orders saw a significant 20% increase, reaching $3.7 billion, indicating robust future revenue potential.
  • 5The company's backlog grew by 20% to $3.45 billion, providing strong visibility for future sales.
  • 6Acquisitions contributed to growth, with two businesses acquired in 2024 for $226 million, expanding the company's capabilities.
  • 7Shareholder returns were supported through continued dividend payments and significant share repurchases totaling $250 million in 2024.

Frequently Asked Questions

Curtiss-Wright's revenue growth in 2024 was primarily driven by strong performance in its Defense Electronics and Naval & Power segments, which benefited from increased demand in aerospace defense, ground defense, and naval shipbuilding programs. The Aerospace & Industrial segment also contributed positively, particularly from commercial aerospace and aerospace defense markets. Key factors included higher OEM sales for sensors and actuation products, increased demand for tactical battlefield communications equipment, and strong order flow for submarine programs.

Curtiss-Wright managed its costs and margins effectively in 2024. While the company experienced some inflationary pressures on materials and labor, it was largely able to offset these through pricing initiatives and operational excellence. Favorable overhead absorption on higher sales, particularly in the Defense Electronics segment, contributed to margin expansion. However, some segments saw margin pressure due to factors like restructuring costs, higher R&D investments, unfavorable naval contract adjustments, and product mix.

The outlook for Curtiss-Wright's key end markets appears positive. The defense sector, particularly naval shipbuilding and aerospace defense, is expected to see continued strong demand, supported by government spending and geopolitical factors. The commercial aerospace market is recovering and expected to benefit from secular trends like electrification and decarbonization, alongside a substantial existing aircraft order backlog. The power and process markets, especially nuclear power and emerging small modular reactors (SMRs), are also poised for growth, driven by energy demand and decarbonization efforts.

Curtiss-Wright is pursuing a balanced approach to growth and capital allocation. The company actively seeks strategic acquisitions to supplement organic growth, as evidenced by the two acquisitions in 2024. Simultaneously, it is returning value to shareholders through consistent dividend payments and share repurchases. The company's strong cash flow generation and access to credit facilities provide financial flexibility to support these initiatives and meet its ongoing capital needs.