What Curtiss-Wright (CW) Said on Its Q3 Earnings Call

Key Points

• Strong Q3 results and record backlog: Sales rose 10% to $953 million, adjusted EPS increased 16% to $3.94, and backlog reached about $4.6 billion as new orders climbed 15%.
• Full-year outlook raised: Curtiss-Wright now expects 8%–10% sales growth and adjusted EPS of $15.40–$15.50, with free cash flow forecast at $595 million–$615 million.
• Defense and nuclear demand support growth: Defense Electronics orders rose 27%, while the company cited nuclear opportunities including a potential 2026 reactor-pump order and expanded facility investment.

Curtiss-Wright NYSE: CW raised its full-year financial outlook after reporting third-quarter sales growth of 10% and a record backlog, as demand strengthened across its defense and industrial businesses.

The company reported quarterly sales of $953 million and diluted earnings per share of $3.94, up 16% from a year earlier. Operating margin expanded 30 basis points to 19.9%, while free cash flow was nearly $160 million.

New orders rose 15%, producing a book-to-bill ratio of 1.1. Backlog increased 12% year to date to approximately $4.6 billion, Chair and Chief Executive Officer Lynn Bamford said on the earnings call.

“Momentum continues to accelerate at Curtiss-Wright as strong execution drove third quarter results that exceeded our expectations,” Bamford said.

Higher outlook for sales and earnings

Curtiss-Wright now expects full-year sales growth of 8% to 10% and adjusted diluted earnings per share of $15.40 to $15.50, an increase of 16% to 18%. It projects operating margin of 19.2% to 19.4%, up 60 to 80 basis points from the prior year.

The company also raised its free cash flow forecast by $10 million, to a range of $595 million to $615 million, while maintaining its expectation for cash conversion above 105%. Bamford said Curtiss-Wright is on pace to repurchase approximately $460 million of shares during 2026.

Management increased its outlook for aerospace defense sales growth to 14% to 16% and naval defense growth to 9% to 11%. It also raised its general industrial sales growth forecast to 3% to 5%, citing improving market conditions and growth in industrial vehicle orders.

For 2027, Bamford pointed to favorable conditions across the company’s businesses but declined to provide specific financial guidance. Incoming CEO Kevin Rayment said he plans to discuss his priorities in more detail on the fourth-quarter call and at an investor day in May 2027.

Defense orders support fourth-quarter expectations

Defense Electronics orders increased 27% in the third quarter following record bookings in the second quarter. Bamford cited demand for equipment supporting fighter jets, helicopters, modernization programs and next-generation aircraft, as well as tactical communications equipment and mission computers.

Sales in the segment rose 2%, helped by the timing of tactical communications revenue, some of which moved into the third quarter from the fourth. The segment’s operating margin was 27%, down from a year earlier as an unfavorable product mix more than offset benefits from higher revenue.

Interim Chief Financial Officer Gary Ogilby said the company expects sequential growth in both aerospace and ground defense within the segment in the fourth quarter. He said Curtiss-Wright acted after detecting early signs of component shortages and does not expect supply-chain challenges to affect fourth-quarter revenue or margins.

Rayment said the company had been buying components in advance and pursuing additional sources of supply. He acknowledged pressure from rising memory prices but said Curtiss-Wright was managing it with suppliers and customers.

Elsewhere, Aerospace and Industrial sales rose 14%, with growth in commercial aerospace and general industrial products. Naval & Power sales increased 12%, supported by submarine production, aircraft carrier aftermarket work and commercial nuclear revenue. The latter segment’s operating margin expanded 200 basis points.

Nuclear investments and leadership transition

Bamford said Curtiss-Wright still expects to receive an order in 2026 for reactor coolant pumps supporting Westinghouse AP1000 nuclear plants. She identified Poland as the expected leader for the order, while noting that the remaining time in the year is shortening.

If the order arrives in the fourth quarter, Ogilby said the company expects associated revenue in 2027, although the amount would depend partly on timing. Bamford said Westinghouse is seeking supply-chain readiness for a potential global pipeline of 91 reactors.

The company recently announced a $30 million expansion of its Round Rock, Texas, facility to support demand for nuclear sensors, following an $80 million expansion announcement for its Cheswick, Pennsylvania, facility in July.

Curtiss-Wright also announced a contract and design services framework agreement with Rolls-Royce SMR covering specialized nuclear valves. Bamford said the company estimates its current content on a Rolls-Royce small modular reactor plant at more than $100 million in revenue.

Rayment, currently executive vice president and chief operating officer, will become CEO on Jan. 1, while Bamford will move to executive chair. Ogilby is serving as interim CFO after Chris Farkas stepped down from the role and announced plans to retire at year-end.

Rayment said acquisitions remain the company’s top capital deployment priority, though Curtiss-Wright will continue to be disciplined about potential deals. He said management is willing to decline opportunities that do not fit strategically or financially.

About Curtiss-Wright (NYSE:CW)

Curtiss-Wright Corporation NYSE: CW is a diversified industrial company that provides highly engineered products and services to the aerospace, defense, commercial nuclear power, and general industrial markets. The company designs and manufactures equipment used in applications that require reliable performance in demanding operating environments.

Its products and technologies include motion-control systems, valves, pumps, actuation equipment, sensors, data-acquisition systems, embedded computing products, and aircraft structural components.

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