Why did Curtiss-Wright raise its full-year 2025 guidance?

Management cited strong year-to-date execution, healthy order growth and a 1.1x book-to-bill, and growth in most end markets. It raised sales growth to 10-11%, operating income growth to 16-19%, and adjusted diluted EPS to $12.95-$13.20, while maintaining the 18.5-18.7% operating margin target and the $520-$535M FCF range.

How strong is the company's cash generation, and is it a concern?

Q3 FCF of $176M was strong (137% conversion), and the company reaffirmed full-year FCF of $520-$535M, roughly 108% conversion of adjusted earnings. Nine-month FCF of $239M (67% conversion) is well behind the full-year pace, so the business depends on a strong fourth quarter. Higher capital expenditures, which are guided to about $85M in 2025, also weigh on near-term cash flow.

Are the headline results GAAP or non-GAAP, and what is the difference?

The headline figures (adjusted operating income, margin and EPS) are non-GAAP. They exclude first-year purchase accounting costs from acquisitions and costs of the 2024 restructuring program. GAAP results are shown in the filing: Q3 operating income was $166M and GAAP diluted EPS was $3.31, versus adjusted $170M and $3.40.

What drove growth across the business segments?

Growth was broad. Naval & Power sales rose 12%, driven by submarine program timing and commercial nuclear. Aerospace & Industrial sales rose 8% on commercial aerospace OEM demand and defense sensors. Defense Electronics sales rose 4%, with adjusted operating margin up 270 bps to 29.2%. Overall, adjusted operating margin expanded 90 bps to 19.6%.

What are the main risks or watch items from this report?

Key watch items include timing-driven revenue (such as submarine and tactical communications shipments), tariff exposure (mainly China, partly mitigated through pricing), higher R&D spending, and the general industrial market, which was flat. The forward-looking statements also cite geopolitical risk, economic downturn and changes in government spending as risks to the outlook.

CW 8-K SEC Disclosure — Nov 6, 2025

01—Abstract

Summary

Summary of the 8-K filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.

Curtiss-Wright (NYSE: CW) reported third-quarter 2025 results that beat on growth and profitability and led management to raise full-year 2025 guidance for sales, operating income and diluted EPS.

Reported sales rose 9% to $869 million^a, adjusted operating income rose 14% to $170 million, and adjusted operating margin expanded 90 basis points to 19.6%. Adjusted diluted EPS grew 14% to $3.40. Organic sales growth was about 6%, with growth across both Aerospace & Defense (up 9%) and Commercial markets (up 8%), led by naval submarine programs, commercial aerospace OEM demand and commercial nuclear.

Orders of $927 million^b (up 8%) produced a 1.1x book-to-bill, and backlog reached $3.9 billion, up 14% year-to-date. Free cash flow was $176 million, equal to 137% conversion for the quarter, though nine-month FCF conversion of 67% is well below the full-year target. Full-year guidance now calls for 10-11% sales growth, 16-19% operating income growth, 18.5-18.7% operating margin, $12.95-$13.20 adjusted diluted EPS (up 19-21%) and $520-$535 million FCF.

Management also expanded the 2025 share repurchase target to a record of more than $450 million^c. The filing is a furnished (not filed) Item 2.02 8-K.

Investors should note that the headline figures are non-GAAP adjusted measures that exclude first-year acquisition accounting costs and 2024 restructuring costs. GAAP diluted EPS was $3.31^d for the quarter and $9.19 year-to-date, and the company's Q4 cash generation and capital deployment will determine whether the raised guidance is fully achieved.

02—Key points

Key Highlights

Q3 2025 reported sales of $869M (+9%); adjusted operating income of $170M (+14%) with adjusted operating margin of 19.6% (+90 bps).
Adjusted diluted EPS of $3.40 (+14%); GAAP diluted EPS of $3.31 versus $2.89 a year earlier.
Full-year 2025 guidance raised: sales growth to 10-11% (from 9-10%), operating income growth to 16-19% (from 15-18%), and adjusted diluted EPS to $12.95-$13.20 (up 19-21%).
Orders of $927M (+8%) produced a 1.1x book-to-bill; backlog of $3.9B is up 14% year-to-date, supporting visibility into 2026.
Free cash flow of $176M in Q3 (137% conversion), but nine-month FCF conversion was only 67%; full-year FCF guidance of $520-$535M is unchanged.
Management expects record share repurchases of more than $450M in 2025, reflecting confidence in the outlook and a strong balance sheet, with acquisitions still the top capital priority.
Organic sales grew about 6% in Q3, with strength in naval defense (+13%), commercial aerospace (+18%) and power & process (+14%), while general industrial was flat.

03—Questions

Frequently Asked Questions

Why did Curtiss-Wright raise its full-year 2025 guidance?
Management cited strong year-to-date execution, healthy order growth and a 1.1x book-to-bill, and growth in most end markets. It raised sales growth to 10-11%, operating income growth to 16-19%, and adjusted diluted EPS to $12.95-$13.20, while maintaining the 18.5-18.7% operating margin target and the $520-$535M FCF range.
How strong is the company's cash generation, and is it a concern?
Q3 FCF of $176M was strong (137% conversion), and the company reaffirmed full-year FCF of $520-$535M, roughly 108% conversion of adjusted earnings. Nine-month FCF of $239M (67% conversion) is well behind the full-year pace, so the business depends on a strong fourth quarter. Higher capital expenditures, which are guided to about $85M in 2025, also weigh on near-term cash flow.
Are the headline results GAAP or non-GAAP, and what is the difference?
The headline figures (adjusted operating income, margin and EPS) are non-GAAP. They exclude first-year purchase accounting costs from acquisitions and costs of the 2024 restructuring program. GAAP results are shown in the filing: Q3 operating income was $166M and GAAP diluted EPS was $3.31, versus adjusted $170M and $3.40.
What drove growth across the business segments?
Growth was broad. Naval & Power sales rose 12%, driven by submarine program timing and commercial nuclear. Aerospace & Industrial sales rose 8% on commercial aerospace OEM demand and defense sensors. Defense Electronics sales rose 4%, with adjusted operating margin up 270 bps to 29.2%. Overall, adjusted operating margin expanded 90 bps to 19.6%.
What are the main risks or watch items from this report?
Key watch items include timing-driven revenue (such as submarine and tactical communications shipments), tariff exposure (mainly China, partly mitigated through pricing), higher R&D spending, and the general industrial market, which was flat. The forward-looking statements also cite geopolitical risk, economic downturn and changes in government spending as risks to the outlook.

04—Continue

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