Summary
Curtiss-Wright Corporation (CW) reported a strong second quarter and first half of 2021, demonstrating significant revenue and operating income growth compared to the same periods in 2020. Total net sales increased by 13% in Q2 and 6% in the first half, driven by robust performance across its Aerospace & Industrial, Defense Electronics, and Naval & Power segments. Notably, operating income saw substantial improvements, up 71% in Q2 and 41% in the first half, indicating effective cost management and operational efficiencies, including benefits from prior restructuring initiatives and favorable overhead absorption. The company's diversification across aerospace, defense, and industrial markets appears to be a key strength. The Defense Electronics segment, in particular, showed strong growth in sales and operating income, boosted by the recent PacStar acquisition. While commercial aerospace experienced some softness, likely due to lingering pandemic effects, other commercial markets such as general industrial and power & process showed healthy increases. The company also highlighted its continued focus on strategic capital allocation, including share repurchases, and affirmed its ability to meet financial obligations, projecting sufficient liquidity for its short-term and long-term capital needs.
Financial Highlights
53 data points| Revenue | $621.50M |
| Cost of Revenue | $396.78M |
| Gross Profit | $224.72M |
| R&D Expenses | $23.19M |
| Operating Income | $94.58M |
| Interest Expense | $10.18M |
| Net Income | $61.41M |
| EPS (Basic) | $1.50 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 40.91M |
| Shares Outstanding (Diluted) | 41.09M |
Key Highlights
- 1Total net sales increased by 13% to $621.5 million in Q2 2021 and by 6% to $1.22 billion in the first half of 2021, compared to the prior year periods.
- 2Operating income surged by 71% to $94.6 million in Q2 2021 and by 41% to $179.6 million in the first half of 2021, demonstrating improved profitability and operational efficiency.
- 3The Aerospace & Industrial segment saw a significant increase in operating income (233% in Q2, 22% in H1) driven by higher sales in the general industrial market and benefits from restructuring initiatives.
- 4Defense Electronics segment sales grew 16% in Q2 and 23% in H1, with operating income up 18% in Q2 and 35% in H1, supported by the PacStar acquisition and operational excellence.
- 5Naval & Power segment reported an 11% sales increase in Q2 and 6% in H1, with operating income rising 48% in Q2 and 42% in H1, attributed to higher production and operational savings.
- 6The company repurchased approximately 0.2 million shares of common stock for $24 million during the first half of 2021, continuing its capital return strategy.
- 7Curtiss-Wright affirmed its financial stability, stating that its cash and cash equivalents, operating cash flow, and available credit facilities are sufficient to meet its short-term and long-term capital needs.