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CURTISS WRIGHT CORP 8-K Report, Financial Results (Oct 31, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 31, 2024
Period End
October 30, 2024
Security
CW
In the record · 2016–202610-K1110-Q338-K95

CW filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 95 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’20May ’20
  2. Material agreement8-K · May ’22May ’22
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed October 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Curtiss-Wright (NYSE: CW) reported third quarter 2024 results on October 30, 2024 and raised its full-year 2024 guidance for sales, operating income, diluted EPS and free cash flow.

Q3 sales rose 10% to $799 milliona, with Total A&D market sales up 15% led by Defense Electronics (+12%) and Naval & Power (+14%). Adjusted operating income grew 11% to $149 million, and adjusted operating margin expanded 20 basis points to 18.7%. Adjusted diluted EPS was $2.97, up 17% year over year, and reported diluted EPS was $2.89.

Orders of $860 millionb (up 2%) produced a book-to-bill of roughly 1.1x, and backlog reached $3.3 billion, up 16% year to date, with a record quarter for orders in Defense Electronics. The guidance raise reflects the strong year-to-date performance and A&D momentum. Full-year sales growth was raised to 7% to 9% (from 6% to 8%), operating income growth to 7% to 10%, adjusted diluted EPS to $10.55 to $10.75 (up 12% to 15%), and free cash flow to $430 to $450 million (up 4% to 9%), with FCF conversion expected above 105%.

Operating margin guidance was held at 17.4% to 17.6%. Management also completed a $100 millionc expansion of its 2024 share repurchase program, with total 2024 buybacks now expected to reach $150 million, and reiterated that acquisitions remain a top capital allocation priority. Investors should note the quality of the quarter's cash generation, with Q3 free cash flow of $163 million equal to 142% adjusted FCF conversion, and the continued strength of defense demand.

Watch-points include flat total Commercial market sales, a 9%d decline in General Industrial sales, and reported (GAAP) operating margin that trailed the prior year by 20 basis points because of restructuring costs and purchase accounting adjustments. Quarterly figures are non-GAAP where labeled adjusted.

02—Key points

Key Highlights

  1. Q3 2024 sales of $799 million, up 10% year over year, with Total A&D market sales up 15%.
  2. Adjusted operating income of $149 million (up 11%) and adjusted operating margin of 18.7% (up 20 bps); Defense Electronics margin reached 26.5%.
  3. Adjusted diluted EPS of $2.97, up 17%; reported diluted EPS of $2.89.
  4. Orders of $860 million (up 2%) with ~1.1x book-to-bill; backlog of $3.3 billion, up 16% year to date, including a record quarter for Defense Electronics orders.
  5. Full-year 2024 guidance raised: sales growth 7%-9%, operating income growth 7%-10%, adjusted diluted EPS $10.55-$10.75, and FCF $430-$450 million.
  6. Q3 free cash flow of $163 million (142% adjusted FCF conversion); 2024 FCF conversion expected above 105%.
  7. Completed a $100 million expansion of the 2024 share repurchase program; total 2024 buybacks now expected at $150 million.

03—Questions

Frequently Asked Questions

  1. How did Curtiss-Wright perform in Q3 2024 relative to the prior year?

    Sales grew 10% to $799 million, adjusted operating income grew 11% to $149 million, and adjusted diluted EPS rose 17% to $2.97. Adjusted operating margin expanded 20 basis points to 18.7%, driven by favorable overhead absorption on higher revenue. Reported diluted EPS was $2.89.

  2. What changed in the full-year 2024 guidance?

    Management raised sales growth to 7%-9% (from 6%-8%), operating income growth to 7%-10% (from 6%-9%), adjusted diluted EPS to $10.55-$10.75 (from $10.40-$10.65), and free cash flow to $430-$450 million (from $425-$445 million). Operating margin guidance was unchanged at 17.4%-17.6%.

  3. What drove growth in the quarter, and where was there weakness?

    Growth was led by Naval & Power (sales up 14%, driven by submarine and aircraft carrier programs and commercial nuclear aftermarket) and Defense Electronics (sales up 12%, driven by embedded computing and tactical communications). Aerospace & Industrial sales rose 4%, but its adjusted operating margin fell 50 bps. General Industrial sales declined 9%, and total Commercial sales were flat.

  4. How strong is the order book and demand outlook?

    Q3 orders of $860 million produced a book-to-bill of about 1.1x, and backlog reached $3.3 billion, up 16% year to date. Management highlighted record quarterly orders in Defense Electronics, supporting continued A&D-driven growth into 2025.

  5. What is the company doing with its capital?

    Curtiss-Wright completed a $100 million expansion of its 2024 share repurchase program during Q3, repurchasing 355,578 shares for about $113 million, and now expects $150 million in total 2024 buybacks. It also declared a $0.21 quarterly dividend and continues to prioritize acquisitions that meet its financial criteria.

04—Continue

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