01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Total sales grew by 10% to $3.12 billion in fiscal year 2024, driven by broad-based segment strength.
- Defense Electronics and Naval & Power segments both experienced 12% sales growth, highlighting strong demand in key markets.
- Operating income increased by 9% to $529 million, demonstrating operational efficiency and improved profitability.
- New orders saw a significant 20% increase, reaching $3.7 billion, indicating robust future revenue potential.
- The company's backlog grew by 20% to $3.45 billion, providing strong visibility for future sales.
- Acquisitions contributed to growth, with two businesses acquired in 2024 for $226 million, expanding the company's capabilities.
- Shareholder returns were supported through continued dividend payments and significant share repurchases totaling $250 million in 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Curtiss Wright Corp kept $0.13.
- Revenue$3.12B100.0%
- Cost of revenue−$1.97B63.0%
- Gross profit$1.15B37.0%
- Operating costs−$625.0M20.0%
- Operating income$528.6M16.9%
- Interest, other & tax−$123.6M4.0%
- Net income$405.0M13.0%
Where FY2024 revenue went
$3.12B- Cost of revenue: $1.97B, 63% of revenue
- Other operating costs: $533.3M, 17% of revenue
- Net income: $405.0M, 13% of revenue
- R&D: $91.6M, 2.9% of revenue
- Interest, other & tax: $123.6M, 4.0% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $3.12B$2.85B | +9.7% |
| Cost of Revenue | $1.97B$1.78B | +10.7% |
| Gross Profit | $1.15B$1.07B | +8.1% |
| R&D Expenses | $91.65M$85.76M | +6.9% |
| Operating Income | $528.60M$484.60M | +9.1% |
| Net Income | $404.98M$354.51M | +14.2% |
| EPS (Basic) | $10.61$9.26 | +14.6% |
| EPS (Diluted) | $10.55$9.20 | +14.7% |
| Shares Outstanding (Basic) | 38.15M38.28M | −0.3% |
| Shares Outstanding (Diluted) | 38.37M38.53M | −0.4% |
05—Questions
Frequently Asked Questions
What were the main drivers of Curtiss-Wright's revenue growth in 2024?
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.
How did Curtiss-Wright manage its costs and margins in 2024?
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.
What is the outlook for Curtiss-Wright's key end markets in the near future?
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.
How is Curtiss-Wright balancing growth strategies with capital allocation?
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.
06—Continue