10-QPeriod: Q1 FY2026

CURTISS WRIGHT CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:CW

Summary

Curtiss-Wright Corporation (CW) reported strong financial performance for the first quarter of 2026, demonstrating significant year-over-year growth across key metrics. Total net sales increased by 13% to $913.7 million, driven by robust demand across all three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. This top-line growth translated into a substantial 23% increase in operating income, reaching $159.5 million, with a corresponding improvement in operating margin to 17.5%. The company's net earnings surged by 26% to $128.2 million, resulting in diluted earnings per share of $3.46, up from $2.68 in the prior year period. This quarter's performance highlights the company's ability to capitalize on favorable market conditions, particularly within the Aerospace & Defense sectors, which represent approximately 70% of its expected 2026 revenues. The Naval & Power segment showed exceptional growth with a 21% sales increase and a 43% surge in operating income, boosted by contributions from submarine programs and commercial nuclear products. Investors can look forward to continued strength, supported by a healthy backlog of approximately $4.3 billion, with 90% expected to be recognized as net sales over the next three years.

Financial Highlights

52 data points
Beta

Revenue

$913.69M

36.3% Gross Margin

Net Income

$128.19M

14.0% Net Margin

EPS (Diluted)

$3.46

Total Assets

$5.27B

Cash & Equivalents

$343.45M

Free Cash Flow

-$17.49M

Financial Statements
Beta
Revenue$913.69M
Cost of Revenue$582.20M
Gross Profit$331.48M
R&D Expenses$24.18M
Operating Income$159.51M
Interest Expense$9.94M
Net Income$128.19M
EPS (Basic)$3.47
EPS (Diluted)$3.46
Shares Outstanding (Basic)36.90M
Shares Outstanding (Diluted)37.06M

Key Highlights

  • 1Total net sales increased by 13% to $913.7 million for the first quarter of 2026 compared to the prior year.
  • 2Operating income grew by 23% to $159.5 million, with operating margin expanding to 17.5% from 16.0% in the prior year.
  • 3Net earnings increased by 26% to $128.2 million, and diluted EPS rose to $3.46 from $2.68.
  • 4The Naval & Power segment was a significant growth driver, with sales up 21% and operating income up 43%.
  • 5The company's total backlog stands at approximately $4.3 billion, with 90% expected to convert to revenue within the next 36 months.
  • 6New orders increased by 16% to $1.2 billion, indicating sustained future demand.
  • 7Shareholders received increased dividends, with dividends per share rising to $0.24 from $0.21 in the prior year.

Frequently Asked Questions

Revenue growth was primarily driven by increased demand across all three business segments. The Naval & Power segment saw substantial increases due to higher production on submarine programs and commercial nuclear products. The Aerospace & Industrial segment benefited from increased sales of actuation equipment and sensors, while the Defense Electronics segment saw higher demand for embedded computing and avionics equipment.

Operating income increased significantly due to favorable overhead absorption on higher sales across all segments. The Defense Electronics and Naval & Power segments also benefited from a favorable product mix. Operating margins improved across all segments, reflecting efficient cost management and operational leverage.

The company reported strong earnings and a healthy backlog, suggesting continued positive momentum. Management believes its cash and cash equivalents, cash flow from operations, and available credit facilities are sufficient to meet both short-term and long-term capital needs. They are actively evaluating cash utilization alternatives, including share repurchases, acquisitions, and increased dividends.

The filing mentions general risks such as government shutdowns, supply chain disruptions, inflation, interest rate changes, labor shortages, trade policies, and ongoing geopolitical conflicts. These are discussed in Item 1A. Risk Factors and are subject to the forward-looking statements disclaimer, indicating that actual results could differ materially from projections.