01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
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 milliona 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 millionb 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.
02—Key points
Key Highlights
- Total 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.
- Operating 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.
- Net earnings increased by 22% to $121.1 million for Q2 and 26% to $222.4 million for the six months, demonstrating robust profitability.
- The 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.
- Defense Electronics segment sales increased by 11% for the quarter and 13% year-to-date, reflecting strong demand in defense markets.
- The company maintained a strong financial position, with total backlog of $3.9 billion and $723 million in unused credit facility availability.
- The effective tax rate for the six months was 21.1%, a slight decrease from the prior year, reflecting favorable tax adjustments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Curtiss Wright Corp kept $0.14.
- Revenue$876.6M100.0%
- Cost of revenue−$550.4M62.8%
- Gross profit$326.2M37.2%
- Operating costs−$169.8M19.4%
- Operating income$156.3M17.8%
- Interest, other & tax−$35.2M4.0%
- Net income$121.1M13.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $876.58M$784.79M | +11.7% |
| Cost of Revenue | $550.42M$500.69M | +9.9% |
| Gross Profit | $326.16M$284.10M | +14.8% |
| R&D Expenses | $23.31M$22.15M | +5.2% |
| Operating Income | $156.31M$128.90M | +21.3% |
| Net Income | $121.06M$99.47M | +21.7% |
| EPS (Basic) | $3.21$2.60 | +23.5% |
| EPS (Diluted) | $3.19$2.58 | +23.6% |
| Shares Outstanding (Basic) | 37.69M38.30M | −1.6% |
| Shares Outstanding (Diluted) | 37.90M38.50M | −1.6% |
05—Questions
Frequently Asked Questions
What is the overall financial performance trend for Curtiss-Wright in the reported quarter and year-to-date?
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.
Which segments contributed most significantly to the company's revenue growth?
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.
How is the company managing its debt and liquidity?
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.
Are there any significant factors impacting the company's tax rate?
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.
06—Continue