10-QPeriod: Q1 FY2025

CURTISS WRIGHT CORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 8, 2025For Securities:CW

Summary

Curtiss-Wright Corporation (CW) reported a strong first quarter for 2025, demonstrating significant year-over-year growth in both sales and profitability. Total net sales increased by 13% to $805.6 million, driven by robust performance across all three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. This top-line growth translated into a substantial 32% increase in net earnings, which rose to $101.3 million from $76.5 million in the prior year period. Diluted earnings per share saw a corresponding rise to $2.68 from $1.99. The company's strategic focus on its core Aerospace & Defense markets continues to yield positive results, with these markets contributing 70% of total revenue. The company also highlighted the benefits of its operational excellence initiatives and favorable foreign currency translation in improving operating margins, which expanded by 200 basis points to 16.0%. Despite a planned repayment of $90 million in debt during the quarter, the company maintains a strong liquidity position, with significant availability under its credit facility.

Financial Highlights

52 data points
Beta

Revenue

$805.64M

36.3% Gross Margin

Net Income

$101.34M

12.6% Net Margin

EPS (Diluted)

$2.68

Total Assets

$4.95B

Cash & Equivalents

$226.46M

Free Cash Flow

-$54.54M

Financial Statements
Beta
Revenue$805.64M
Cost of Revenue$513.18M
Gross Profit$292.46M
R&D Expenses$23.02M
Operating Income$129.21M
Interest Expense$10.14M
Net Income$101.34M
EPS (Basic)$2.69
EPS (Diluted)$2.68
Shares Outstanding (Basic)37.68M
Shares Outstanding (Diluted)37.85M

Key Highlights

  • 1Total net sales grew 13% year-over-year to $805.6 million, driven by broad-based strength across all operating segments.
  • 2Net earnings increased significantly by 32% to $101.3 million, leading to a 35% rise in diluted EPS to $2.68.
  • 3Operating income surged 29% to $129.2 million, with operating margins expanding by 200 basis points to 16.0%.
  • 4Aerospace & Defense markets remain a key revenue driver, accounting for approximately 70% of total sales.
  • 5The Naval & Power segment experienced strong sales growth of 18%, bolstered by demand in naval defense and commercial nuclear aftermarket.
  • 6The company repaid $90 million of debt during the quarter, while maintaining a healthy $728 million in unused credit availability.
  • 7New orders increased by 13% to $1.02 billion, indicating continued demand for the company's products and services.

Frequently Asked Questions

The primary driver of the revenue increase was broad-based organic growth across all three operating segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. Strong demand in Aerospace & Defense markets, particularly in naval defense programs and commercial aerospace, significantly contributed to the 13% overall sales growth.

Profitability saw substantial improvement. Net earnings increased by 32% to $101.3 million, and diluted earnings per share rose by 35% to $2.68. This was driven by higher sales, favorable absorption on increased volume, operational excellence initiatives, and beneficial foreign currency translation, which together expanded operating margins by 200 basis points.

Curtiss-Wright maintains a strong liquidity position. While the company repaid $90 million of debt during the quarter, it still has $728 million in unused credit availability under its credit facility. The company also continues to evaluate cash utilization alternatives, including share repurchases and dividends, and believes its current resources are sufficient to meet its capital needs.

During the three months ended March 31, 2025, the Corporation did not complete any new acquisitions. However, the results for the period include the incremental impact from acquisitions completed in 2024, such as WSC and Ultra Energy, particularly within the Naval & Power segment.