01—Abstract
Summary
Summary of the 10-Q filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 millionb in debt during the quarter, the company maintains a strong liquidity position, with significant availability under its credit facility.
02—Key points
Key Highlights
- Total net sales grew 13% year-over-year to $805.6 million, driven by broad-based strength across all operating segments.
- Net earnings increased significantly by 32% to $101.3 million, leading to a 35% rise in diluted EPS to $2.68.
- Operating income surged 29% to $129.2 million, with operating margins expanding by 200 basis points to 16.0%.
- Aerospace & Defense markets remain a key revenue driver, accounting for approximately 70% of total sales.
- The Naval & Power segment experienced strong sales growth of 18%, bolstered by demand in naval defense and commercial nuclear aftermarket.
- The company repaid $90 million of debt during the quarter, while maintaining a healthy $728 million in unused credit availability.
- New orders increased by 13% to $1.02 billion, indicating continued demand for the company's products and services.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Curtiss Wright Corp kept $0.13.
- Revenue$805.6M100.0%
- Cost of revenue−$513.2M63.7%
- Gross profit$292.5M36.3%
- Operating costs−$163.3M20.3%
- Operating income$129.2M16.0%
- Interest, other & tax−$27.9M3.5%
- Net income$101.3M12.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 8, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $805.64M$713.17M | +13.0% |
| Cost of Revenue | $513.18M$459.41M | +11.7% |
| Gross Profit | $292.46M$253.75M | +15.3% |
| R&D Expenses | $23.02M$22.98M | +0.2% |
| Operating Income | $129.21M$99.96M | +29.3% |
| Interest Expense | $10.14M$10.57M | −4.0% |
| Net Income | $101.34M$76.50M | +32.5% |
| EPS (Basic) | $2.69$2.00 | +34.5% |
| EPS (Diluted) | $2.68$1.99 | +34.7% |
| Shares Outstanding (Basic) | 37.68M38.25M | −1.5% |
| Shares Outstanding (Diluted) | 37.85M38.43M | −1.5% |
05—Questions
Frequently Asked Questions
What was the primary driver of the revenue increase in the first quarter of 2025?
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.
How did the company's profitability change in the first quarter?
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.
What is the company's liquidity position and debt management strategy?
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.
Are there any significant acquisitions or divestitures impacting the current results?
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.
06—Continue