01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 billionb, with 90% expected to be recognized as net sales over the next three years.
02—Key points
Key Highlights
- Total net sales increased by 13% to $913.7 million for the first quarter of 2026 compared to the prior year.
- Operating income grew by 23% to $159.5 million, with operating margin expanding to 17.5% from 16.0% in the prior year.
- Net earnings increased by 26% to $128.2 million, and diluted EPS rose to $3.46 from $2.68.
- The Naval & Power segment was a significant growth driver, with sales up 21% and operating income up 43%.
- The company's total backlog stands at approximately $4.3 billion, with 90% expected to convert to revenue within the next 36 months.
- New orders increased by 16% to $1.2 billion, indicating sustained future demand.
- Shareholders received increased dividends, with dividends per share rising to $0.24 from $0.21 in the prior year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Curtiss Wright Corp kept $0.14.
- Revenue$913.7M100.0%
- Cost of revenue−$582.2M63.7%
- Gross profit$331.5M36.3%
- Operating costs−$172.0M18.8%
- Operating income$159.5M17.5%
- Interest, other & tax−$31.3M3.4%
- Net income$128.2M14.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $913.69M$805.64M | +13.4% |
| Cost of Revenue | $582.20M$513.18M | +13.5% |
| Gross Profit | $331.48M$292.46M | +13.3% |
| R&D Expenses | $24.18M$23.02M | +5.1% |
| Operating Income | $159.51M$129.21M | +23.5% |
| Interest Expense | $9.94M$10.14M | −2.0% |
| Net Income | $128.19M$101.34M | +26.5% |
| EPS (Basic) | $3.47$2.69 | +29.0% |
| EPS (Diluted) | $3.46$2.68 | +29.1% |
| Shares Outstanding (Basic) | 36.90M37.68M | −2.1% |
| Shares Outstanding (Diluted) | 37.06M37.85M | −2.1% |
05—Questions
Frequently Asked Questions
What were the primary drivers of the revenue growth in the first quarter of 2026?
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.
How did the company manage its operating expenses and margins?
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.
What is the company's outlook regarding its financial performance and cash position?
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.
Are there any significant risks or uncertainties mentioned in the filing?
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.
06—Continue