10-QPeriod: Q2 FY2025

CURTISS WRIGHT CORP Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:CW

Summary

Curtiss-Wright Corporation (CW) reported a strong second quarter and a robust first half of 2025, demonstrating significant year-over-year growth across key financial metrics. Total net sales increased by 12% to $876.6 million for the quarter and by 12% to $1.68 billion for the six months ended June 30, 2025. This growth was primarily driven by strong performance in the Naval & Power segment, which saw a 19% increase in sales for both the quarter and the year-to-date period, fueled by demand in naval defense and the power & process markets, including contributions from recent acquisitions. The Defense Electronics segment also showed healthy growth with a 11% increase in quarterly sales and a 13% increase year-to-date. Profitability saw a substantial improvement, with operating income growing 21% to $156.3 million for the quarter and 25% to $285.5 million for the six months. This expansion in operating income outpaced sales growth, leading to improved operating margins across all segments, with an overall increase of 170 basis points for the year-to-date period. Net earnings also saw significant gains, rising 22% to $121.1 million for the quarter and 26% to $222.4 million for the six months. The company's financial position remains solid, with a strong backlog and ample liquidity, supported by a substantial unused credit facility. Investors can look forward to continued growth driven by defense spending and strategic market positions.

Financial Highlights

54 data points
Beta

Revenue

$876.58M

37.2% Gross Margin

Net Income

$121.06M

13.8% Net Margin

EPS (Diluted)

$3.19

Total Assets

$5.19B

Cash & Equivalents

$331.66M

Free Cash Flow

$117.20M

Financial Statements
Beta
Revenue$876.58M
Cost of Revenue$550.42M
Gross Profit$326.16M
R&D Expenses$23.31M
Operating Income$156.31M
Net Income$121.06M
EPS (Basic)$3.21
EPS (Diluted)$3.19
Shares Outstanding (Basic)37.69M
Shares Outstanding (Diluted)37.90M

Key Highlights

  • 1Total net sales for Q2 2025 reached $876.6 million, a 12% increase year-over-year, with six-month sales up 12% to $1.68 billion.
  • 2Operating income grew significantly, up 21% to $156.3 million for Q2 and 25% to $285.5 million for the six months, indicating strong margin expansion.
  • 3Net earnings increased by 22% to $121.1 million for Q2 and 26% to $222.4 million for the six months, demonstrating robust profitability.
  • 4The Naval & Power segment was a key growth driver, with sales up 19% in both the quarter and year-to-date, supported by defense programs and the power & process market.
  • 5Defense Electronics segment sales increased by 11% for the quarter and 13% year-to-date, reflecting strong demand in defense markets.
  • 6The company maintained a strong financial position, with total backlog of $3.9 billion and $723 million in unused credit facility availability.
  • 7The effective tax rate for the six months was 21.1%, a slight decrease from the prior year, reflecting favorable tax adjustments.

Frequently Asked Questions

Curtiss-Wright demonstrated strong financial performance in the second quarter and first half of 2025. Total net sales and net earnings saw significant year-over-year growth, driven by robust demand across its key segments, particularly Naval & Power and Defense Electronics. Operating income also increased substantially, leading to improved operating margins.

The Naval & Power segment was the primary driver of revenue growth, with sales increasing by 19% for both the quarter and the year-to-date period. The Defense Electronics segment also showed strong performance with an 11% increase in quarterly sales and a 13% increase year-to-date. The Aerospace & Industrial segment also contributed positively to growth.

Curtiss-Wright maintains a healthy liquidity position, highlighted by $723 million in unused credit facility availability as of June 30, 2025. The company was in compliance with all debt agreements and covenants, and had the capacity to borrow an additional $3.0 billion without violating its most restrictive covenant. Debt repayment and share repurchases are ongoing capital allocation activities.

The effective tax rate for the six months ended June 30, 2025, was 21.1%, a slight decrease from the prior year. This was primarily due to the full year estimated benefit of prior year's legal entity restructuring, partially offset by higher provisional tax expense associated with foreign withholding taxes. Additionally, the subsequent enactment of H.R.1 (OBBBA) is expected to reduce total 2025 estimated tax payments by approximately $15 million.