Summary
Curtiss-Wright Corporation reported its financial results for the second quarter and first six months of 2022. For the second quarter, total net sales were $609.4 million, a slight decrease of 2% year-over-year, while operating income increased by 4% to $98.1 million, resulting in a 15% increase in net earnings to $70.9 million ($1.83 diluted EPS). For the first six months, total net sales decreased by 4% to $1,168.8 million, and net earnings decreased by 8% to $111.6 million ($2.89 diluted EPS). The company completed a significant acquisition of Safran Aerosystems Arresting Company for $247 million, which will bolster its Naval & Power segment. While overall sales saw a slight decline, driven by a reduction in the Defense Electronics segment, the Aerospace & Industrial segment showed growth, and the Naval & Power segment demonstrated improved operating income due to favorable mix and operational efficiencies. Key financial events include a significant increase in cash provided by financing activities due to higher net borrowings under their newly established $750 million revolving credit facility. The company also continues its share repurchase program, having spent $32 million in the first half of the year. Management noted that despite supply chain headwinds and the delayed signing of the FY22 defense budget impacting certain segments, the company's diversified business model, strong backlog, and improved credit facility position it to manage through current challenges.
Financial Highlights
54 data points| Revenue | $609.36M |
| Cost of Revenue | $380.84M |
| Gross Profit | $228.51M |
| R&D Expenses | $23.87M |
| Operating Income | $98.11M |
| Interest Expense | $9.79M |
| Net Income | $70.87M |
| EPS (Basic) | $1.84 |
| EPS (Diluted) | $1.83 |
| Shares Outstanding (Basic) | 38.43M |
| Shares Outstanding (Diluted) | 38.65M |
Key Highlights
- 1Total net sales for Q2 2022 were $609.4 million, a 2% decrease year-over-year, while net earnings increased 15% to $70.9 million ($1.83 diluted EPS).
- 2For the six months ended June 30, 2022, net sales decreased 4% to $1,168.8 million, with net earnings down 8% to $111.6 million ($2.89 diluted EPS).
- 3Acquired Safran Aerosystems Arresting Company for $247 million on June 30, 2022, to be integrated into the Naval & Power segment.
- 4New revolving credit facility of $750 million established in May 2022, with $480 million available as of June 30, 2022, enhancing liquidity.
- 5Operating income for Q2 2022 increased 4% to $98.1 million, driven by improvements in Naval & Power and Aerospace & Industrial segments, partially offset by declines in Defense Electronics.
- 6Company repurchased $32 million of common stock during the first six months of 2022.
- 7Total backlog stood at approximately $2.4 billion as of June 30, 2022, with 88% expected to be recognized as net sales over the next 36 months.