Curtiss-Wright Reports Fourth Quarter and Full-year 2024 Financial Results; Issues Full-year 2025 Guidance Reflecting Higher Sales, Operating Margin Expansion and Double-digit EPS Growth

Company Delivers Record FY24 Sales, Profitability, EPS, Free Cash Flow and Orders

Curtiss-Wright Corporation (NYSE: CW) reports financial results for the fourth quarter and full-year ended December 31, 2024.

Fourth Quarter 2024 Highlights:

• Reported sales of $824 million, up 5%, operating income of $155 million, operating margin of 18.8%, and diluted earnings per share (EPS) of $3.09;
• Adjusted operating income of $163 million;
• Adjusted operating margin of 19.8%;
• Adjusted diluted EPS of $3.27, up 3%;
• Free cash flow (FCF) of $278 million, generating 223% Adjusted FCF conversion;
• Total share repurchases of $112 million; and
• New orders of $939 million, up 37%, generating a book-to-bill of 1.1x.

Full-Year 2024 Highlights:

• Reported sales of $3.1 billion, up 10%, operating income of $529 million, operating margin of 16.9%, and diluted EPS of $10.55;
• Adjusted operating income of $546 million, up 11%;
• Adjusted operating margin of 17.5%, up 10 basis points;
• Adjusted diluted EPS of $10.90, up 16%;
• FCF of $483 million, generating 116% Adjusted FCF conversion;
• Total share repurchases of $250 million;
• New orders of $3.7 billion, up 20%, reflecting strong demand in our Aerospace & Defense (A&D) markets, and book-to-bill of 1.2x; and
• Backlog of $3.4 billion, up 20%.

"Curtiss-Wright concluded the year with a strong, fourth quarter financial performance that reflected better-than-expected sales growth, record quarterly Adjusted diluted EPS of $3.27, strong free cash flow and robust order activity," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.

"We achieved numerous financial records in 2024, while maintaining our commitment to invest in innovative technologies, capacity expansion, talent and systems to support our future growth. Our performance was highlighted by double-digit growth in sales, operating income and diluted EPS, along with record free cash flow of $483 million, as we delivered profitable growth while reducing working capital. We also experienced strong demand across our Defense and Commercial Aerospace markets, driving record new orders of $3.7 billion. Our results this past year are a testament to our teams' strong execution and the momentum we are building in our Pivot to Growth strategy."

"Looking ahead, our strong backlog at the start of the year, combined with the alignment of our technologies to favorable secular growth trends in our end markets, reinforces our confidence in delivering another strong performance in 2025. We anticipate total sales growth of 7% to 8%, driven by strong organic growth in our A&D and Commercial Nuclear markets, and the contribution from our recently completed acquisition of Ultra Energy. We also expect to deliver operating margin expansion of 40 to 60 basis points while increasing our R&D investments, as well as double-digit EPS growth and strong free cash flow generation. As a result, we maintain line of sight to the three-year financial targets that we communicated at our 2024 Investor Day and remain well-positioned to drive long-term shareholder value."

Fourth Quarter 2024 Operating Results

(In millions)

Q4-2024

Q4-2023

Change

Reported

 

 

 

Sales

$

824

 

$

786

 

5

%

Operating income

$

155

 

$

161

 

(4

%)

Operating margin

 

18.8

%

 

20.4

%

(160 bps)

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

824

 

$

786

 

5

%

Operating income

$

163

 

$

163

 

0

%

Operating margin

 

19.8

%

 

20.8

%

(100 bps)

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

• Sales of $824 million increased 5% compared with the prior year period;
• Total A&D market sales increased 6%, while total Commercial market sales increased 3%;
• In our A&D markets, we experienced solid growth in the defense markets principally driven by increased submarine revenues in naval defense, as well as higher OEM sales in the commercial aerospace market;
• In our Commercial markets, we experienced solid growth in the power & process market, principally driven by higher sales of commercial nuclear products that were partially offset by lower industrial valve sales in the process market, in addition to lower sales in the general industrial market; and
• Adjusted operating income was $163 million, essentially flat compared with the prior year period, while Adjusted operating margin decreased 100 basis points to 19.8%, as favorable overhead absorption on overall higher revenues was partially offset by higher investments in research and development in all three segments, as well as unfavorable mix in both the Defense Electronics and Naval & Power segments.

Fourth Quarter 2024 Segment Performance

Aerospace & Industrial

(In millions)

Q4-2024

Q4-2023

Change

Reported

 

 

 

Sales

$

251

 

$

238

 

5

%

Operating income

$

48

 

$

44

 

9

%

Operating margin

 

19.1

%

 

18.5

%

60 bps

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

251

 

$

238

 

5

%

Operating income

$

54

 

$

44

 

22

%

Operating margin

 

21.3

%

 

18.5

%

280 bps

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

• Sales of $251 million, up $13 million, or 5%;
• Higher revenue in the aerospace defense market reflected higher sales for our actuation equipment principally on the F-35 and other fighter jet programs;
• Commercial aerospace market revenue increases reflected increased demand and higher OEM sales of sensors products and surface treatment services on narrowbody and widebody platforms;
• Lower general industrial market revenue was principally driven by reduced sales of industrial vehicle products serving off-highway and specialty vehicle platforms; and
• Adjusted operating income was $54 million, up 22%, reflecting a strong Adjusted operating margin up 280 basis points to 21.3%, as favorable absorption on higher revenues and the benefits of our restructuring and cost containment initiatives were partially offset by higher investment in research and development.

Defense Electronics

(In millions)

Q4-2024

Q4-2023

Change

Reported

 

 

 

Sales

$

227

 

$

240

 

(5

%)

Operating income

$

55

 

$

69

 

(21

%)

Operating margin

 

24.1

%

 

28.8

%

(470 bps)

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

227

 

$

240

 

(5

%)

Operating income

$

55

 

$

69

 

(20

%)

Operating margin

 

24.3

%

 

28.8

%

(450 bps)

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

• Sales of $227 million, down $12 million, or 5%;
• Higher revenue in the aerospace defense market was principally driven by increased sales of flight test instrumentation equipment;
• Ground defense market revenue declines principally reflected the timing of sales of embedded computing equipment on the Stryker ground combat vehicle;
• Lower revenue in the naval defense market reflected the timing of sales of embedded computing equipment supporting various domestic and international programs; and
• Adjusted operating income was $55 million, down 20% from the prior year period, while Adjusted operating margin decreased 450 basis points to 24.3%, primarily due to unfavorable absorption on lower defense revenues, unfavorable mix of products, and higher investment in research and development.

Naval & Power

(In millions)

Q4-2024

Q4-2023

Change

Reported

 

 

 

Sales

$

346

 

$

308

 

12

%

Operating income

$

65

 

$

57

 

15

%

Operating margin

 

18.8

%

 

18.5

%

30 bps

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

346

 

$

308

 

12

%

Operating income

$

66

 

$

59

 

11

%

Operating margin

 

19.1

%

 

19.3

%

(20 bps)

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

• Sales of $346 million, up $38 million, or 12%;
• Revenue growth in the naval defense market was stronger than anticipated principally driven by higher demand and timing of revenues on the Virginia-class and Columbia-class submarine programs, in addition to higher growth for aircraft handling systems to international customers;
• Lower revenue in the aerospace defense market principally reflected the timing of sales of arresting systems equipment supporting various international customers;
• Higher power & process market revenues mainly reflected increased commercial nuclear aftermarket sales supporting the maintenance of U.S. operating reactors. Those increases were partially offset by lower industrial valve sales in the process market; and
• Adjusted operating income was $66 million, up 11% from the prior year period, while Adjusted operating margin decreased 20 basis points to 19.1%, as favorable absorption on higher revenues was partially offset by unfavorable mix of products and higher investment in research and development.

Free Cash Flow

(In millions)

Q4-2024

Q4-2023

Change

Net cash provided by operating activities

$

301

 

$

282

 

7

%

Capital expenditures

 

(23

)

 

(13

)

84

%

Reported free cash flow

$

278

 

$

270

 

3

%

Adjusted free cash flow (1)

$

278

 

$

270

 

3

%

(1) A reconciliation of Reported to Adjusted free cash flow is available in the Appendix.

• Reported free cash flow of $278 million increased $8 million, primarily due to the timing of customer advances driving improved working capital partially offset by higher capital investments;
• Adjusted free cash flow of $278 million increased $8 million; and
• Capital expenditures increased approximately $11 million compared with the prior year period, primarily due to higher growth investments within the Naval & Power segment.

New Orders and Backlog

• New orders of $939 million increased 37% in the fourth quarter, principally reflecting strong demand across our A&D markets;
• Full-year 2024 new orders of $3.7 billion increased 20% and generated an overall book-to-bill of approximately 1.2x, reflecting strong growth within our A&D markets as well as solid demand for commercial nuclear products within our Commercial markets; and
• Backlog of $3.4 billion, up 20% from December 31, 2023.

Share Repurchase and Dividends

• During the fourth quarter, the Company repurchased approximately 311,000 shares of its common stock for approximately $112 million;
• During full-year 2024, the Company repurchased approximately 766,000 shares for $250 million; and
• The Company also declared a quarterly dividend of $0.21 a share.

Full-Year 2025 Guidance

The Company's full-year 2025 financial guidance(1) is as follows:

($ in millions, except EPS)

2025 Guidance

% Chg vs 2024 Adjusted

Total Sales

$3,335 - $3,385

7 - 8%

Operating Income

$598 - $613

10 - 12%

Operating Margin

17.9% - 18.1%

40 - 60 bps

Diluted EPS

$12.10 - $12.40

11 - 14%

Free Cash Flow(2)

$485 - $505

0 - 4%

(1) Reconciliations of Reported to Adjusted 2024 operating results and 2025 financial guidance are available in the Appendix and exclude first-year purchase accounting costs associated with prior-year acquisitions.

(2) 2025 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency (reflecting a $14 to $24 million year-over-year increase compared with 2024 results) and the timing of prior year record customer advances.

**********

A more detailed breakdown of the Company’s 2025 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.

Conference Call & Webcast Information

The Company will host a conference call to discuss fourth quarter and full-year 2024 financial results and expectations for 2025 guidance at 11:00 a.m. ET on Thursday, February 13, 2025. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.

(Tables to Follow)

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

($'s in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Product sales

$

698,626

 

 

$

667,879

 

 

$

2,639,953

 

 

$

2,389,711

 

Service sales

 

125,687

 

 

 

117,912

 

 

 

481,236

 

 

 

455,662

 

Total net sales

 

824,313

 

 

 

785,791

 

 

 

3,121,189

 

 

 

2,845,373

 

 

 

 

 

 

 

 

 

Cost of product sales

 

437,801

 

 

 

414,010

 

 

 

1,690,574

 

 

 

1,507,480

 

Cost of service sales

 

69,082

 

 

 

67,051

 

 

 

277,066

 

 

 

270,715

 

Total cost of sales

 

506,883

 

 

 

481,061

 

 

 

1,967,640

 

 

 

1,778,195

 

 

 

 

 

 

 

 

 

Gross profit

 

317,430

 

 

 

304,730

 

 

 

1,153,549

 

 

 

1,067,178

 

 

 

 

 

 

 

 

 

Research and development expenses

 

25,781

 

 

 

20,066

 

 

 

91,647

 

 

 

85,764

 

Selling expenses

 

36,158

 

 

 

36,306

 

 

 

145,360

 

 

 

137,088

 

General and administrative expenses

 

92,405

 

 

 

87,664

 

 

 

373,497

 

 

 

359,724

 

Restructuring expenses

 

8,250

 

 

 

—

 

 

 

14,448

 

 

 

—

 

 

 

 

 

 

 

 

 

Operating income

 

154,836

 

 

 

160,694

 

 

 

528,597

 

 

 

484,602

 

 

 

 

 

 

 

 

 

Interest expense

 

11,675

 

 

 

10,961

 

 

 

44,869

 

 

 

51,393

 

Other income, net

 

10,034

 

 

 

7,117

 

 

 

38,328

 

 

 

29,861

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

153,195

 

 

 

156,850

 

 

 

522,056

 

 

 

463,070

 

Provision for income taxes

 

(35,343

)

 

 

(36,963

)

 

 

(117,078

)

 

 

(108,561

)

Net earnings

$

117,852

 

 

$

119,887

 

 

$

404,978

 

 

$

354,509

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

3.11

 

 

$

3.14

 

 

$

10.61

 

 

$

9.26

 

Diluted earnings per share

$

3.09

 

 

$

3.11

 

 

$

10.55

 

 

$

9.20

 

 

 

 

 

 

 

 

 

Dividends per share

$

0.21

 

 

$

0.20

 

 

$

0.83

 

 

$

0.79

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

37,874

 

 

 

38,232

 

 

 

38,153

 

 

 

38,283

 

Diluted

 

38,137

 

 

 

38,505

 

 

 

38,373

 

 

 

38,529

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($'s in thousands, except par value)

 

 

 

 

 

December 31,

 

December 31,

 

 

2024

 

 

 

2023

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

385,042

 

 

$

406,867

 

Receivables, net

 

835,037

 

 

 

732,678

 

Inventories, net

 

541,442

 

 

 

510,033

 

Other current assets

 

88,073

 

 

 

67,502

 

Total current assets

 

1,849,594

 

 

 

1,717,080

 

Property, plant, and equipment, net

 

339,118

 

 

 

332,796

 

Goodwill

 

1,675,718

 

 

 

1,558,826

 

Other intangible assets, net

 

596,831

 

 

 

557,612

 

Operating lease right-of-use assets, net

 

169,350

 

 

 

141,435

 

Prepaid pension asset

 

299,130

 

 

 

261,869

 

Other assets

 

55,963

 

 

 

51,351

 

Total assets

$

4,985,704

 

 

$

4,620,969

 

 

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Current portion of long-term and short-term debt

$

90,000

 

 

$

—

 

Accounts payable

 

247,185

 

 

 

243,833

 

Accrued expenses

 

219,054

 

 

 

188,039

 

Deferred revenue

 

459,421

 

 

 

303,872

 

Other current liabilities

 

80,288

 

 

 

70,800

 

Total current liabilities

 

1,095,948

 

 

 

806,544

 

Long-term debt

 

958,949

 

 

 

1,050,362

 

Deferred tax liabilities

 

140,659

 

 

 

132,319

 

Accrued pension and other postretirement benefit costs

 

67,413

 

 

 

66,875

 

Long-term operating lease liability

 

148,175

 

 

 

118,611

 

Other liabilities

 

124,761

 

 

 

117,845

 

Total liabilities

$

2,535,905

 

 

$

2,292,556

 

 

 

 

 

Stockholders' equity

 

 

 

Common stock, $1 par value

$

49,187

 

 

$

49,187

 

Additional paid in capital

 

147,940

 

 

 

140,182

 

Retained earnings

 

3,861,073

 

 

 

3,487,751

 

Accumulated other comprehensive loss

 

(243,225

)

 

 

(213,223

)

Less: cost of treasury stock

 

(1,365,176

)

 

 

(1,135,484

)

Total stockholders' equity

 

2,449,799

 

 

 

2,328,413

 

 

 

 

 

Total liabilities and stockholders' equity

$

4,985,704

 

 

$

4,620,969

 

Use and Definitions of Non-GAAP Financial Information (Unaudited)

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright’s ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliations of “Reported” GAAP amounts to “Adjusted” non-GAAP amounts are furnished within this release.

The following definitions are provided:

Adjusted Operating Income, Operating Margin, Net Earnings and Diluted EPS

These Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) costs associated with the Company's 2024 Restructuring Program; and (iii) the sale or divestiture of a business or product line, as applicable.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

 

 

December 31, 2024

 

December 31, 2023

 

% Change

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

250,917

 

 

$

—

 

$

250,917

 

 

$

238,224

 

 

$

—

 

$

238,224

 

 

5%

 

5%

Defense Electronics

 

227,475

 

 

 

—

 

 

227,475

 

 

 

239,751

 

 

 

—

 

 

239,751

 

 

(5)%

 

(5)%

Naval & Power

 

345,921

 

 

 

—

 

 

345,921

 

 

 

307,816

 

 

 

—

 

 

307,816

 

 

12%

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

$

824,313

 

 

$

—

 

$

824,313

 

 

$

785,791

 

 

$

—

 

$

785,791

 

 

5%

 

5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial(3)

$

47,876

 

 

$

5,694

 

$

53,570

 

 

$

44,054

 

 

$

—

 

$

44,054

 

 

9%

 

22%

Defense Electronics(3)

 

54,775

 

 

 

587

 

 

55,362

 

 

 

69,015

 

 

 

—

 

 

69,015

 

 

(21)%

 

(20)%

Naval & Power(1)(2)(3)

 

65,150

 

 

 

962

 

 

66,112

 

 

 

56,845

 

 

 

2,529

 

 

59,374

 

 

15%

 

11%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segments

$

167,801

 

 

$

7,243

 

$

175,044

 

 

$

169,914

 

 

$

2,529

 

$

172,443

 

 

(1)%

 

2%

Corporate and other(3)

 

(12,965

)

 

 

1,414

 

 

(11,551

)

 

 

(9,221

)

 

 

—

 

 

(9,221

)

 

(41)%

 

(25)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating income

$

154,836

 

 

$

8,657

 

$

163,493

 

 

$

160,693

 

 

$

2,529

 

$

163,222

 

 

(4)%

 

—%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

As Reported

 

 

 

Adjusted

 

As Reported

 

 

 

Adjusted

 

As Reported

 

Adjusted

Aerospace & Industrial

 

19.1

%

 

 

 

 

21.3

%

 

 

18.5

%

 

 

 

 

18.5

%

 

60 bps

 

280 bps

Defense Electronics

 

24.1

%

 

 

 

 

24.3

%

 

 

28.8

%

 

 

 

 

28.8

%

 

(470 bps)

 

(450 bps)

Naval & Power

 

18.8

%

 

 

 

 

19.1

%

 

 

18.5

%

 

 

 

 

19.3

%

 

30 bps

 

(20 bps)

Total Curtiss-Wright

 

18.8

%

 

 

 

 

19.8

%

 

 

20.4

%

 

 

 

 

20.8

%

 

(160 bps)

 

(100 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment margins

 

20.4

%

 

 

 

 

21.2

%

 

 

21.6

%

 

 

 

 

21.9

%

 

(120 bps)

 

(70 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes first year purchase accounting adjustments in both the current and prior year periods.

(2) Excludes trailing costs in the prior year period associated with the divestiture of our German valves business.

(3) Excludes costs associated with the Company's 2024 Restructuring Program in the current period.

 

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

 

 

December 31, 2024

 

December 31, 2023

 

% Change

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

932,133

 

 

$

—

 

$

932,133

 

 

$

887,228

 

 

$

—

 

$

887,228

 

 

5%

 

5%

Defense Electronics

 

910,706

 

 

 

—

 

 

910,706

 

 

 

815,912

 

 

 

—

 

 

815,912

 

 

12%

 

12%

Naval & Power

 

1,278,350

 

 

 

—

 

 

1,278,350

 

 

 

1,142,233

 

 

 

—

 

 

1,142,233

 

 

12%

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

$

3,121,189

 

 

$

—

 

$

3,121,189

 

 

$

2,845,373

 

 

$

—

 

$

2,845,373

 

 

10%

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial(3)

$

148,023

 

 

$

10,239

 

$

158,262

 

 

$

145,278

 

 

$

—

 

$

145,278

 

 

2%

 

9%

Defense Electronics(3)

 

224,739

 

 

 

1,929

 

 

226,668

 

 

 

191,775

 

 

 

—

 

 

191,775

 

 

17%

 

18%

Naval & Power (1)(2)(3)

 

199,663

 

 

 

2,063

 

 

201,726

 

 

 

189,227

 

 

 

9,198

 

 

198,425

 

 

6%

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segments

$

572,425

 

 

$

14,231

 

$

586,656

 

 

$

526,280

 

 

$

9,198

 

$

535,478

 

 

9%

 

10%

Corporate and other(3)

 

(43,828

)

 

 

3,038

 

 

(40,790

)

 

 

(41,678

)

 

 

—

 

 

(41,678

)

 

(5)%

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating income

$

528,597

 

 

$

17,269

 

$

545,866

 

 

$

484,602

 

 

$

9,198

 

$

493,800

 

 

9%

 

11%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

As Reported

 

 

 

Adjusted

 

As Reported

 

 

 

Adjusted

 

As Reported

 

Adjusted

Aerospace & Industrial

 

15.9

%

 

 

 

 

17.0

%

 

 

16.4

%

 

 

 

 

16.4

%

 

(50 bps)

 

60 bps

Defense Electronics

 

24.7

%

 

 

 

 

24.9

%

 

 

23.5

%

 

 

 

 

23.5

%

 

120 bps

 

140 bps

Naval & Power

 

15.6

%

 

 

 

 

15.8

%

 

 

16.6

%

 

 

 

 

17.4

%

 

(100 bps)

 

(160 bps)

Total Curtiss-Wright

 

16.9

%

 

 

 

 

17.5

%

 

 

17.0

%

 

 

 

 

17.4

%

 

(10 bps)

 

10 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment margins

 

18.3

%

 

 

 

 

18.8

%

 

 

18.5

%

 

 

 

 

18.8

%

 

(20 bps)

 

— bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes first year purchase accounting adjustments in both the current and prior year periods.

(2) Excludes trailing costs in the prior year period associated with the divestiture of our German valves business.

(3) Excludes costs associated with the Company's 2024 Restructuring Program in the current period.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

 

 

December 31, 2024

 

December 31, 2023

 

% Change

 

 

As Reported

 

Adjustments

 

Adjusted Sales

 

As Reported

 

Adjustments

 

Adjusted Sales

 

Change in As Reported Sales

Change in Adjusted Sales

Aerospace & Defense markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace Defense

 

$

171,432

 

$

—

 

$

171,432

 

$

171,527

 

$

—

 

$

171,527

 

0

%

0

%

Ground Defense

 

 

84,654

 

 

—

 

 

84,654

 

 

87,691

 

 

—

 

 

87,691

 

(3

%)

(3

%)

Naval Defense

 

 

216,894

 

 

—

 

 

216,894

 

 

187,240

 

 

—

 

 

187,240

 

16

%

16

%

Commercial Aerospace

 

 

98,318

 

 

—

 

 

98,318

 

 

92,723

 

 

—

 

 

92,723

 

6

%

6

%

Total Aerospace & Defense

 

$

571,298

 

$

—

 

$

571,298

 

$

539,181

 

$

—

 

$

539,181

 

6

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power & Process

 

 $

146,772

 

$

—

 

 $

146,772

 

 $

136,541

 

$

—

 

$

136,541

 

7

%

7

%

General Industrial

 

 

106,243

 

 

—

 

 

106,243

 

 

110,069

 

 

—

 

 

110,069

 

(3

%)

(3

%)

Total Commercial

 

$

253,015

 

$

—

 

$

253,015

 

$

246,610

 

$

—

 

$

246,610

 

3

%

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Curtiss-Wright

 

$

824,313

 

$

—

 

$

824,313

 

$

785,791

 

$

—

 

$

785,791

 

5

%

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

 

 

December 31, 2024

 

December 31, 2023

 

% Change

 

 

As Reported

 

Adjustments

 

Adjusted Sales

 

As Reported

 

Adjustments

 

Adjusted Sales

 

Change in As Reported Sales

Change in Adjusted Sales

Aerospace & Defense markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace Defense

 

$

616,590

 

$

—

 

$

616,590

 

$

551,622

 

$

—

 

$

551,622

 

12

%

12

%

Ground Defense

 

 

353,326

 

 

—

 

 

353,326

 

 

308,008

 

 

—

 

 

308,008

 

15

%

15

%

Naval Defense

 

 

821,898

 

 

—

 

 

821,898

 

 

720,013

 

 

—

 

 

720,013

 

14

%

14

%

Commercial Aerospace

 

 

378,086

 

 

—

 

 

378,086

 

 

324,949

 

 

—

 

 

324,949

 

16

%

16

%

Total Aerospace & Defense

 

$

2,169,900

 

$

—

 

$

2,169,900

 

$

1,904,592

 

$

—

 

$

1,904,592

 

14

%

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power & Process

 

$

540,788

 

$

—

 

$

540,788

 

$

509,998

 

$

—

 

$

509,998

 

6

%

6

%

General Industrial

 

 

410,501

 

 

—

 

 

410,501

 

 

430,783

 

 

—

 

 

430,783

 

(5

%)

(5

%)

Total Commercial

 

$

951,289

 

$

—

 

$

951,289

 

$

940,781

 

$

—

 

$

940,781

 

1

%

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Curtiss-Wright

$

3,121,189

$

—

$

3,121,189

$

2,845,373

$

—

$

2,845,373

10

%

10

%

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Diluted earnings per share - As Reported

$

3.09

 

$

3.11

 

$

10.55

 

$

9.20

First year purchase accounting adjustments

 

0.01

 

 

0.02

 

 

0.04

 

 

0.15

Divested German valves business

 

—

 

 

0.03

 

 

—

 

 

0.03

Restructuring expenses

 

0.17

 

 

—

 

 

0.31

 

 

—

Diluted earnings per share - Adjusted (1)

$

3.27

 

$

3.16

 

$

10.90

 

$

9.38

 

 

 

 

 

 

 

 

(1) All adjustments are presented net of income taxes.

Organic Sales and Organic Operating Income

The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions and results of operations from divested businesses or product lines during the last twelve months, costs associated with the Company's 2024 Restructuring Program, and foreign currency fluctuations.

 

Three Months Ended

 

December 31,

 

2024 vs. 2023

 

Aerospace & Industrial

 

Defense Electronics

 

Naval & Power

 

Total Curtiss-Wright

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

As Reported

5%

 

9%

 

(5%)

 

(21%)

 

12%

 

15%

 

5%

 

(4%)

Less: Acquisitions

0%

 

0%

 

0%

 

0%

 

0%

 

1%

 

0%

 

0%

Restructuring

0%

 

13%

 

0%

 

1%

 

0%

 

(1%)

 

0%

 

5%

Foreign currency

0%

 

(2%)

 

0%

 

0%

 

0%

 

(2%)

 

0%

 

(1%)

Organic

5%

 

20%

 

(5%)

 

(20%)

 

12%

 

13%

 

5%

 

0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

December 31,

 

2024 vs. 2023

 

Aerospace & Industrial

 

Defense Electronics

 

Naval & Power

 

Total Curtiss-Wright

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

As Reported

5%

 

2%

 

12%

 

17%

 

12%

 

6%

 

10%

 

9%

Less: Acquisitions

0%

 

0%

 

0%

 

0%

 

(1%)

 

0%

 

0%

 

0%

Restructuring

0%

 

7%

 

0%

 

1%

 

0%

 

0%

 

0%

 

3%

Foreign currency

0%

 

(1%)

 

0%

 

0%

 

0%

 

(1%)

 

(1%)

 

0%

Organic

5%

 

8%

 

12%

 

18%

 

11%

 

5%

 

9%

 

12%

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Adjusted free cash flow excludes payments associated with the Westinghouse legal settlement in the prior year period. The Corporation discloses adjusted free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as adjusted free cash flow divided by adjusted net earnings.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NON-GAAP FINANCIAL DATA (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net cash provided by operating activities

$

301,299

 

 

$

282,372

 

 

$

544,275

 

 

$

448,089

 

Capital expenditures

 

(23,271

)

 

 

(12,629

)

 

 

(60,974

)

 

 

(44,666

)

Free cash flow

$

278,028

 

 

$

269,743

 

 

$

483,301

 

 

$

403,423

 

Westinghouse legal settlement

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

Adjusted free cash flow

$

278,028

 

 

$

269,743

 

 

$

483,301

 

 

$

413,423

 

Adjusted free cash flow conversion

 

223

%

 

 

221

%

 

 

116

%

 

 

114

%

CURTISS-WRIGHT CORPORATION

2025 Guidance

As of February 12, 2025

($'s in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Reported (GAAP)

 

2024 Adjustments

(Non- GAAP)(1)

 

2024 Adjusted

(Non- GAAP)(1)

 

2025 Reported Guidance (GAAP)

 

2025 Adjustments

(Non- GAAP)(2)

 

2025 Adjusted Guidance (Non-GAAP)(2)

 

 

 

 

 

 

 

Low

High

 

 

 

Low

High

 

2025 Chg vs 2024 Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

932

 

 

$

—

 

 

$

932

 

 

$

960

 

$

975

 

 

$

—

 

 

$

960

 

$

975

 

 

3 - 5%

Defense Electronics

 

911

 

 

 

—

 

 

 

911

 

 

975

 

990

 

 

—

 

 

 

975

 

 

990

 

 

7 - 9%

Naval & Power

 

1,278

 

 

 

—

 

 

 

1,278

 

 

1,400

 

1,420

 

 

—

 

 

 

1,400

 

 

1,420

 

 

10 - 11%

Total sales

$

3,121

 

 

$

—

 

 

$

3,121

 

 

$

3,335

 

$

3,385

 

 

$

—

 

 

$

3,335

 

$

3,385

 

 

7 - 8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

148

 

 

$

10

 

 

$

158

 

 

$

164

 

$

169

 

 

$

3

 

 

$

167

 

$

172

 

 

5 - 8%

Defense Electronics

 

225

 

 

 

2

 

 

 

227

 

 

 

244

 

 

250

 

 

 

—

 

 

 

244

 

 

250

 

 

8 - 10%

Naval & Power

 

200

 

 

 

2

 

 

 

202

 

 

 

217

 

 

223

 

 

 

11

 

 

 

228

 

 

234

 

 

13 - 16%

Total segments

 

572

 

 

 

15

 

 

 

587

 

 

 

624

 

 

641

 

 

 

14

 

 

 

638

 

 

655

 

 

 

Corporate and other

 

(44

)

 

 

3

 

 

 

(41

)

 

 

(40

)

 

(42

)

 

 

—

 

 

 

(40

)

 

(42

)

 

 

Total operating income

$

529

 

 

$

17

 

 

$

546

 

 

$

584

 

$

599

 

 

$

14

 

 

$

598

 

$

613

 

 

10 - 12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

$

(45

)

 

$

—

 

 

$

(45

)

 

$

(42

)

$

(43

)

 

$

—

 

 

$

(42

)

$

(43

)

 

 

Other income, net

 

38

 

 

 

—

 

 

 

38

 

 

33

 

34

 

 

—

 

 

 

33

 

 

34

 

 

 

Earnings before income taxes

 

522

 

 

 

17

 

 

 

539

 

 

$

575

 

$

590

 

 

$

14

 

 

 

589

 

 

603

 

 

 

Provision for income taxes

 

(117

)

 

 

(4

)

 

 

(121

)

 

 

(127

)

 

(130

)

 

 

(3

)

 

 

(130

)

 

(133

)

 

 

Net earnings

$

405

 

 

$

13

 

 

$

418

 

 

$

448

 

$

460

 

 

$

11

 

 

$

459

 

$

470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

10.55

 

 

$

0.35

 

 

$

10.90

 

 

$

11.80

 

$

12.10

 

 

$

0.30

 

 

$

12.10

 

$

12.40

 

 

11 - 14%

Diluted shares outstanding

 

38.4

 

 

 

 

 

38.4

 

 

 

37.9

 

 

37.9

 

 

 

 

 

37.9

 

 

37.9

 

 

 

Effective tax rate

 

22.4

%

 

 

 

 

22.4

%

 

 

22.0

%

 

22.0

%

 

 

 

 

22.0

%

 

22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

 

15.9

%

 

 

 

 

17.0

%

 

 

17.1

%

 

17.3

%

 

 

 

 

17.4

%

 

17.6

%

 

40 - 60 bps

Defense Electronics

 

24.7

%

 

 

 

 

24.9

%

 

 

25.0

%

 

25.2

%

 

 

 

 

25.0

%

 

25.2

%

 

10 - 30 bps

Naval & Power

 

15.6

%

 

 

 

 

15.8

%

 

 

15.5

%

 

15.7

%

 

 

 

 

16.3

%

 

16.5

%

 

50 - 70 bps

Total operating margin

 

16.9

%

 

 

 

 

17.5

%

 

 

17.5

%

 

17.7

%

 

 

 

 

17.9

%

 

18.1

%

 

40 - 60 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow(3)

$

483

 

 

$

—

 

 

$

483

 

 

$

485

 

$

505

 

 

$

—

 

 

$

485

 

$

505

 

 

0 - 4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes: Amounts may not add due to rounding.

(1) 2024 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2024 Restructuring Program and the impact of first year purchase accounting adjustments.

(2) 2025 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2024 Restructuring Program and the impact of first year purchase accounting adjustments.

(3) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2025 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency (reflecting a $14 to $24 million year-over-year increase compared with 2024 results) and the timing of prior year record customer advances.

CURTISS-WRIGHT CORPORATION

2025 Sales Growth Guidance by End Market

As of February 12, 2025

 

 

 

 

2025 % Change vs. 2024 Adjusted

 

% Total Sales

 

 

 

 

Aerospace & Defense Markets

 

 

 

Aerospace Defense

6 - 8%

 

20%

Ground Defense

3 - 5%

 

11%

Naval Defense

3 - 5%

 

25%

Commercial Aerospace

10 - 12%

 

13%

Total Aerospace & Defense

5 - 7%

 

69%

 

 

 

 

Commercial Markets

 

 

 

Power & Process

16 - 18%

 

19%

General Industrial

Flat

 

12%

Total Commercial

9 - 11%

 

31%

 

 

 

 

Total Curtiss-Wright Sales

7 - 8%

 

100%

 

 

 

 

 

 

 

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE:CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,800 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.

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Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212441247/en/

Jim Ryan [phone] [e-mail]