8-K
Curtiss Wright Corp (CW)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2025
CURTISS-WRIGHT CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 1-134 | 13-0612970 | ||||
|---|---|---|---|---|---|---|
| (State or Other<br>Jurisdiction of<br>Incorporation) | (Commission File<br>Number) | (IRS Employer<br>Identification No.) | 130 Harbour Place Drive, Suite 300 | |||
| --- | --- | --- | ||||
| Davidson, | North Carolina | 28036 | ||||
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (704) 869-4600
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | CW | New York Stock Exchange |
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). | ||
| --- | --- | --- |
| Emerging growth company | ☐ | |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition
On Wednesday, May 7, 2025, the Company issued a press release announcing financial results for the first quarter ended March 31, 2025. A conference call and webcast presentation will be held on Thursday, May 8, 2025 at 10:00 am ET for management to discuss the Company’s first quarter 2025 financial performance as well as expectations for 2025 financial performance. Lynn M. Bamford, Chair and Chief Executive Officer, and K. Christopher Farkas, Vice President and Chief Financial Officer, will host the call. A copy of the press release and the webcast slide presentation are attached hereto as Exhibits 99.1 and 99.2.
The financial press release, access to the webcast, and the accompanying financial presentation will be posted on Curtiss-Wright's website at www.curtisswright.com. In addition, the dial-in number for domestic callers is (800) 343-5172, while international callers can dial (203) 518-9856. The conference ID code is CWQ125. For those unable to join the live presentation, a webcast replay will be available within the Investor Relations section on the Company’s website beginning one hour after the call takes place.
The information contained in this Current Report, including Exhibits 99.1 and 99.2, are being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this report shall not be incorporated by reference into any filing of the registrant with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filings.
Item 9.01 Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99.1 Press Release dated May 7, 2025
99.2 Presentation shown during investor and securities analyst webcast on May 8, 2025
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CURTISS-WRIGHT CORPORATION | |
|---|---|
| By: /s/ K. Christopher Farkas | |
| K. Christopher Farkas | |
| Vice President and | |
| Chief Financial Officer | |
| Date: May 8, 2025 |
EXHIBIT INDEX
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release dated May 7, 2025 |
| 99.2 | Presentation shown during investor and securities analyst webcast on May 8, 2025 |
Document
Curtiss-Wright Corporation, Page 1
| Exhibit 99.1 |
|---|
CURTISS-WRIGHT REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS AND RAISES FULL-YEAR 2025 GUIDANCE FOR SALES, OPERATING MARGIN, EPS AND FREE CASH FLOW
DAVIDSON, N.C. – May 7, 2025 – Curtiss-Wright Corporation (NYSE: CW) reports financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights:
•Reported sales of $806 million, up 13%, operating income of $129 million, up 29%, operating margin of 16.0%, and diluted earnings per share (EPS) of $2.68;
•Adjusted operating income of $134 million, up 34%;
•Adjusted operating margin of 16.6%, up 260 basis points;
•Adjusted diluted EPS of $2.82, up 42%; and
•Record new orders of $1.0 billion, up 13%, reflecting a 1.26x book-to-bill.
Raised Full-Year 2025 Adjusted Financial Outlook:
•Sales guidance increased to new range of 8% to 9% growth (previously 7% to 8%), which continues to reflect growth in the majority of Curtiss-Wright's end markets;
•Operating income guidance increased to new range of 13% to 16% growth (previously 10% to 12%);
•Operating margin guidance range increased by 40 basis points to 18.3% to 18.5%, now up 80 to 100 basis points compared with the prior year;
•Diluted EPS guidance increased to new range of $12.45 to $12.80, now up 14% to 17% (previously $12.10 to $12.40, or 11% to 14%);
•Free cash flow (FCF) guidance range increased by $10 million to $495 million to $515 million, which continues to reflect greater than 105% FCF conversion; and
•Full-year 2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions.
"I’m proud of our team’s outstanding first quarter 2025 performance as we delivered significant increases in new orders, sales, operating income and diluted EPS, and continued to execute on our Pivot to Growth strategy," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.
"We achieved strong growth in the majority of our end markets, accentuated by the timing of naval defense revenues which drove a better than expected increase of 15% in our A&D markets. Additionally, we benefited from a stronger than anticipated operational performance in our Defense Electronics segment, which in combination, greatly contributed to 42% growth in diluted EPS. We were also pleased to start the year with strong momentum in orders, reaching a record quarterly high of more than $1 billion. This performance continues to reflect strong demand in our Aerospace & Defense and commercial nuclear markets."
"Overall, we are confident in our ability to achieve strong growth and profitability this year. Building on the strength of our first quarter results, we have raised our full-year outlook and now expect to generate total sales growth of 8% to 9%, operating margin expansion of 80 to 100 basis points, and diluted EPS growth of 14% to 17%. Furthermore, we continue to maintain an efficient balance sheet, with ample liquidity, to execute on our disciplined capital allocation
Curtiss-Wright Corporation, Page 2
strategy. Curtiss-Wright remains well positioned to deliver long-term profitable growth for our shareholders."
First Quarter 2025 Operating Results
| (In millions) | Q1-2025 | Q1-2024 | Change | |||||
|---|---|---|---|---|---|---|---|---|
| Reported | ||||||||
| Sales | $ | 806 | $ | 713 | 13 | % | ||
| Operating income | $ | 129 | $ | 100 | 29 | % | ||
| Operating margin | 16.0 | % | 14.0 | % | 200 bps | |||
| Adjusted (1) | ||||||||
| Sales | $ | 806 | $ | 713 | 13 | % | ||
| Operating income | $ | 134 | $ | 100 | 34 | % | ||
| Operating margin | 16.6 | % | 14.0 | % | 260 bps |
(1)Reconciliations of Reported to Adjusted operating results are available in the Appendix.
•Sales of $806 million, up $92 million, or 13% compared with the prior year;
•Total Aerospace & Defense (A&D) market sales increased 15%, while total Commercial market sales increased 9%;
•In our A&D markets, strong growth in the defense markets was driven by higher than expected submarine revenues in naval defense and increased sales of defense electronics products supporting all defense markets, as well as higher OEM sales in the commercial aerospace market;
•In our Commercial markets, strong growth in the power & process market was principally driven by the contributions from acquisitions and higher organic sales of commercial nuclear products, while sales in the general industrial market increased slightly; and
•Adjusted operating income of $134 million increased 34%, while Adjusted operating margin increased 260 basis points to 16.6%, principally driven by favorable overhead absorption on higher revenues in all three segments, the benefits of the Company's restructuring and operational excellence initiatives, and favorable foreign currency translation, as well as an unfavorable naval contract adjustment in the prior year that did not recur in 2025.
Curtiss-Wright Corporation, Page 3
First Quarter 2025 Segment Performance
Aerospace & Industrial
| (In millions) | Q1-2025 | Q1-2024 | Change | |||||
|---|---|---|---|---|---|---|---|---|
| Reported | ||||||||
| Sales | $ | 227 | $ | 219 | 4 | % | ||
| Operating income | $ | 30 | $ | 27 | 9 | % | ||
| Operating margin | 13.2 | % | 12.5 | % | 70 bps | |||
| Adjusted (1) | ||||||||
| Sales | $ | 227 | $ | 219 | 4 | % | ||
| Operating income | $ | 32 | $ | 27 | 15 | % | ||
| Operating margin | 13.9 | % | 12.5 | % | 140 bps |
(1)Note: Reconciliations of Reported to Adjusted operating results are available in the Appendix.
•Sales of $227 million, up $8 million, or 4%;
•Aerospace defense market revenue increases 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;
•General industrial market revenue reflected higher sales of industrial automation equipment offset by reduced sales of industrial vehicle products serving on- and off-highway vehicle platforms; and
•Adjusted operating income was $32 million, up 15% from the prior year, reflecting a strong Adjusted operating margin that increased 140 basis points to 13.9%, driven by favorable absorption on higher revenues, the benefits of the Company's restructuring initiatives and favorable foreign currency translation.
Curtiss-Wright Corporation, Page 4
Defense Electronics
| (In millions) | Q1-2025 | Q1-2024 | Change | |||||
|---|---|---|---|---|---|---|---|---|
| Reported | ||||||||
| Sales | $ | 245 | $ | 212 | 16 | % | ||
| Operating income | $ | 67 | $ | 48 | 40 | % | ||
| Operating margin | 27.5 | % | 22.7 | % | 480 bps | |||
| Adjusted (1) | ||||||||
| Sales | $ | 245 | $ | 212 | 16 | % | ||
| Operating income | $ | 67 | $ | 48 | 40 | % | ||
| Operating margin | 27.5 | % | 22.7 | % | 480 bps |
(1)Note: There were no adjustments to segment operating results.
•Sales of $245 million, up $33 million, or 16%;
•Strong revenue growth in the aerospace defense market was principally driven by increased sales of our embedded computing equipment on various helicopter programs;
•Ground defense market revenue increases principally reflected higher sales supporting U.S. ground vehicle modernization;
•Higher revenue in the naval defense market reflected increased sales of our embedded computing equipment supporting various domestic and international programs; and
•Adjusted operating income was $67 million, up 40% from the prior year, while Adjusted operating margin increased 480 basis points to 27.5%, primarily due to favorable absorption on higher defense revenues, the benefits of our operational excellence initiatives, and favorable mix of products.
Curtiss-Wright Corporation, Page 5
Naval & Power
| (In millions) | Q1-2025 | Q1-2024 | Change | |||||
|---|---|---|---|---|---|---|---|---|
| Reported | ||||||||
| Sales | $ | 333 | $ | 282 | 18 | % | ||
| Operating income | $ | 42 | $ | 35 | 19 | % | ||
| Operating margin | 12.6 | % | 12.5 | % | 10 bps | |||
| Adjusted (1) | ||||||||
| Sales | $ | 333 | $ | 282 | 18 | % | ||
| Operating income | $ | 45 | $ | 35 | 28 | % | ||
| Operating margin | 13.5 | % | 12.5 | % | 100 bps |
(1)Reconciliations of Reported to Adjusted operating results are available in the Appendix.
•Sales of $333 million, up $51 million, or 18%;
•Revenue growth in the naval defense market was stronger than anticipated principally due to higher demand and the timing of revenues on the Virginia-class and Columbia-class submarine programs, in addition to higher growth on various next-generation submarine development programs and increased sales of aircraft handling systems equipment to international customers;
•Lower revenue in the aerospace defense market reflected the timing of sales of arresting systems equipment supporting various international customers;
•Higher power & process market revenues mainly reflected the contribution from acquisitions to our commercial nuclear and process markets, as well as higher organic sales of commercial nuclear products supporting the maintenance of existing operating reactors and the development of next-generation advanced reactors; and
•Adjusted operating income was $45 million, up 28% from the prior year, while Adjusted operating margin increased 100 basis points to 13.5%, due to favorable absorption on higher revenues partially offset by unfavorable mix of products and higher investment in development programs. Our results also reflected an unfavorable naval contract adjustment in the prior year that did not recur in 2025.
Curtiss-Wright Corporation, Page 6
Free Cash Flow
| (In millions) | Q1-2025 | Q1-2024 | Change | |||
|---|---|---|---|---|---|---|
| Net cash used for operating activities | $ | (39) | $ | (46) | 15 | % |
| Capital expenditures | (16) | (12) | (31 | %) | ||
| Free cash flow | $ | (55) | $ | (58) | 5 | % |
•Free cash flow of ($55) million increased $3 million, as higher cash earnings were partially offset by the timing of collections as well as higher capital investments driven by growth investments in all three segments.
New Orders and Backlog
•New orders of $1.0 billion increased 13% compared with the prior year principally reflecting strong demand across our naval defense, commercial aerospace and commercial nuclear end markets; and
•Backlog of $3.7 billion, up 7% from December 31, 2024, reflects higher demand across the A&D and Commercial markets.
Share Repurchase and Dividends
•During the first quarter, the Company repurchased 42,383 shares of its common stock for approximately $14 million; and
•The Company declared a quarterly dividend of $0.21 a share.
Curtiss-Wright Corporation, Page 7
Full-Year 2025 Guidance
The Company is updating its full-year 2025 Adjusted financial guidance(1) as follows:
| ($ In millions, except EPS) | 2025 Adjusted Non-GAAP Guidance (Prior) | 2025 Adjusted Non-GAAP Guidance<br><br>(Current) | Change vs 2024 Adjusted<br><br>(Current) |
|---|---|---|---|
| Total Sales | $3,335 - $3,385 | $3,365 - $3,415 | 8 - 9% |
| Operating Income | $598 - $613 | $614 - $632 | 13 - 16% |
| Operating Margin | 17.9% - 18.1% | 18.3% - 18.5% | 80 - 100 bps |
| Diluted EPS | $12.10 - $12.40 | $12.45 - $12.80 | 14 - 17% |
| Free Cash Flow(2) | $485 - $505 | $495 - $515 | 2 - 7% |
(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 its first quarter 2025 financial results and business outlook at 10:00 a.m. ET on Thursday, May 8, 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, Page 8
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||
|---|---|---|---|
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | |||
| ('s in thousands, except per share data) | |||
| 2024 | |||
| Product sales | 678,977 | $ | 595,704 |
| Service sales | 117,463 | ||
| Total net sales | 713,167 | ||
| Cost of product sales | 389,477 | ||
| Cost of service sales | 69,935 | ||
| Total cost of sales | 459,412 | ||
| Gross profit | 253,755 | ||
| Research and development expenses | 22,980 | ||
| Selling expenses | 36,765 | ||
| General and administrative expenses | 94,049 | ||
| Restructuring expenses | — | ||
| Operating income | 99,961 | ||
| Interest expense | 10,570 | ||
| Other income, net | 9,608 | ||
| Earnings before income taxes | 98,999 | ||
| Provision for income taxes | (22,504) | ||
| Net earnings | 101,337 | $ | 76,495 |
| Basic earnings per share | 2.69 | $ | 2.00 |
| Diluted earnings per share | 2.68 | $ | 1.99 |
| Dividends per share | 0.21 | $ | 0.20 |
| Weighted average shares outstanding: | |||
| Basic | 38,254 | ||
| Diluted | 38,431 |
All values are in US Dollars.
Curtiss-Wright Corporation, Page 9
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | ||||
|---|---|---|---|---|
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||
| ('s in thousands, except par value) | ||||
| March 31, | December 31, | |||
| 2025 | 2024 | |||
| Assets | ||||
| Current assets: | ||||
| $ | 226,459 | $ | 385,042 | |
| 911,313 | 835,037 | |||
| 578,103 | 541,442 | |||
| 84,137 | 88,073 | |||
| 1,800,012 | 1,849,594 | |||
| Property, plant, and equipment, net | 349,837 | 339,118 | ||
| Goodwill | 1,673,608 | 1,675,718 | ||
| Other intangible assets, net | 583,115 | 596,831 | ||
| Operating lease right-of-use assets, net | 183,784 | 169,350 | ||
| Prepaid pension asset | 306,343 | 299,130 | ||
| Other assets | 55,092 | 55,963 | ||
| $ | 4,951,791 | $ | 4,985,704 | |
| Liabilities | ||||
| Current liabilities: | ||||
| $ | — | $ | 90,000 | |
| 237,706 | 247,185 | |||
| 180,795 | 219,054 | |||
| 448,012 | 459,421 | |||
| 87,403 | 80,288 | |||
| 953,916 | 1,095,948 | |||
| Long-term debt | 958,629 | 958,949 | ||
| Deferred tax liabilities | 139,439 | 140,659 | ||
| Accrued pension and other postretirement benefit costs | 68,173 | 67,413 | ||
| Long-term operating lease liability | 161,768 | 148,175 | ||
| Other liabilities | 110,719 | 124,761 | ||
| $ | 2,392,644 | $ | 2,535,905 | |
| Stockholders' equity | ||||
| Common stock, 1 par value | $ | 49,187 | $ | 49,187 |
| Additional paid in capital | 145,217 | 147,940 | ||
| Retained earnings | 3,954,481 | 3,861,073 | ||
| Accumulated other comprehensive loss | (224,287) | (243,225) | ||
| Less: cost of treasury stock | (1,365,451) | (1,365,176) | ||
| $ | 2,559,147 | $ | 2,449,799 | |
| $ | 4,951,791 | $ | 4,985,704 |
All values are in US Dollars.
Curtiss-Wright Corporation, Page 10
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 Sales, 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, transaction costs, and gains/losses on equity securities held for investment purposes; and (ii) costs associated with the Company's 2024 Restructuring Program, as applicable.
Curtiss-Wright Corporation, Page 11
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) | |||||||||||||||||||
| ('s in thousands) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2024 | % Change | ||||||||||||||||||
| Adjustments | Adjusted | As Reported | Adjustments | Adjusted | Reported | Adjusted | |||||||||||||
| Sales: | |||||||||||||||||||
| Aerospace & Industrial | 227,246 | $ | — | $ | 227,246 | $ | 219,325 | $ | — | $ | 219,325 | 4 | % | 4 | % | ||||
| Defense Electronics | — | 245,164 | 211,741 | — | 211,741 | 16 | % | 16 | % | ||||||||||
| Naval & Power | — | 333,235 | 282,101 | — | 282,101 | 18 | % | 18 | % | ||||||||||
| Total sales | 805,645 | $ | — | $ | 805,645 | $ | 713,167 | $ | — | $ | 713,167 | 13 | % | 13 | % | ||||
| Operating income (expense): | |||||||||||||||||||
| Aerospace & Industrial(2) | 29,922 | $ | 1,764 | $ | 31,686 | $ | 27,466 | $ | — | $ | 27,466 | 9 | % | 15 | % | ||||
| Defense Electronics(2) | — | 67,449 | 48,081 | — | 48,081 | 40 | % | 40 | % | ||||||||||
| Naval & Power (1)(2) | 3,069 | 44,932 | 35,191 | — | 35,191 | 19 | % | 28 | % | ||||||||||
| Total segments | 139,234 | $ | 4,833 | $ | 144,067 | $ | 110,738 | $ | — | $ | 110,738 | 26 | % | 30 | % | ||||
| Corporate and other(2) | (28) | (10,057) | (10,777) | — | (10,777) | 7 | % | 7 | % | ||||||||||
| Total operating income | 129,205 | $ | 4,805 | $ | 134,010 | $ | 99,961 | $ | — | $ | 99,961 | 29 | % | 34 | % | ||||
| Operating margins: | Adjusted | As Reported | Adjusted | Reported | Adjusted | ||||||||||||||
| Aerospace & Industrial | % | 13.9 | % | 12.5 | % | 12.5 | % | 70 bps | 140 bps | ||||||||||
| Defense Electronics | % | 27.5 | % | 22.7 | % | 22.7 | % | 480 bps | 480 bps | ||||||||||
| Naval & Power | % | 13.5 | % | 12.5 | % | 12.5 | % | 10 bps | 100 bps | ||||||||||
| Total Curtiss-Wright | % | 16.6 | % | 14.0 | % | 14.0 | % | 200 bps | 260 bps | ||||||||||
| Segment margins | % | 17.9 | % | 15.5 | % | 15.5 | % | 180 bps | 240 bps | ||||||||||
| (1) Excludes first year purchase accounting adjustments. | |||||||||||||||||||
| (2) Excludes costs associated with the Company's 2024 Restructuring Program in the current period. |
All values are in US Dollars.
Curtiss-Wright Corporation, Page 12
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED) | |||||||||||||
| ('s in thousands) | |||||||||||||
| Three Months Ended | |||||||||||||
| March 31, 2024 | 2025 vs. 2024 | ||||||||||||
| Adjustments | Adjusted Sales | Reported Sales | Adjustments | Adjusted Sales | Change in Reported Sales | Change in Adjusted Sales | |||||||
| Aerospace & Defense markets: | |||||||||||||
| Aerospace Defense | 151,722 | $ | — | $ | 151,722 | $ | 132,074 | $ | — | $ | 132,074 | 15% | 15% |
| Ground Defense | — | 97,237 | 90,760 | — | 90,760 | 7% | 7% | ||||||
| Naval Defense | — | 221,086 | 177,647 | — | 177,647 | 24% | 24% | ||||||
| Commercial Aerospace | — | 92,877 | 89,775 | — | 89,775 | 3% | 3% | ||||||
| Total Aerospace & Defense | 562,922 | $ | — | $ | 562,922 | $ | 490,256 | $ | — | $ | 490,256 | 15% | 15% |
| Commercial markets: | |||||||||||||
| Power & Process | — | 142,934 | 124,039 | — | 124,039 | 15% | 15% | ||||||
| General Industrial | — | 99,789 | 98,872 | — | 98,872 | 1% | 1% | ||||||
| Total Commercial | 242,723 | $ | — | $ | 242,723 | $ | 222,911 | $ | — | $ | 222,911 | 9% | 9% |
| Total Curtiss-Wright | 805,645 | $ | — | $ | 805,645 | $ | 713,167 | $ | — | $ | 713,167 | 13% | 13% |
All values are in US Dollars.
Curtiss-Wright Corporation, Page 13
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | ||||
|---|---|---|---|---|
| RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED) | ||||
| Three Months Ended | ||||
| March 31, | ||||
| 2025 | 2024 | |||
| Diluted earnings per share - As Reported | $ | 2.68 | $ | 1.99 |
| First year purchase accounting adjustments | 0.11 | — | ||
| Restructuring expenses | 0.03 | — | ||
| Diluted earnings per share - Adjusted (1) | $ | 2.82 | $ | 1.99 |
| (1) All adjustments are presented net of income taxes. |
Curtiss-Wright Corporation, Page 14
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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 31, | ||||||||
| 2025 vs. 2024 | ||||||||
| Aerospace & Industrial | Defense Electronics | Naval & Power | Total Curtiss-Wright | |||||
| Sales | Operating income | Sales | Operating income | Sales | Operating income | Sales | Operating income | |
| As Reported | 4% | 9% | 16% | 40% | 18% | 19% | 13% | 29% |
| Less: Acquisitions | 0% | 0% | 0% | 0% | (7%) | 7% | (3%) | 3% |
| Restructuring | 0% | 5% | 0% | 0% | 0% | 0% | 0% | 1% |
| Foreign Currency | 0% | (6%) | 0% | (2%) | 1% | 0% | 1% | (3%) |
| Organic | 4% | 8% | 16% | 38% | 12% | 26% | 11% | 30% |
Curtiss-Wright Corporation, Page 15
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. The Corporation discloses free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as free cash flow divided by adjusted net earnings.
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||
|---|---|---|---|---|---|
| NON-GAAP FINANCIAL DATA (UNAUDITED) | |||||
| ('s in thousands) | |||||
| 2024 | |||||
| Net cash used for operating activities | (38,765) | $ | (45,633) | ||
| Capital expenditures | (12,055) | ||||
| Free cash flow | (54,538) | $ | (57,688) | ||
| Free cash flow conversion | %) | (75 | %) |
All values are in US Dollars.
Curtiss-Wright Corporation, Page 16
| CURTISS-WRIGHT CORPORATION | |||||||
|---|---|---|---|---|---|---|---|
| 2025 Guidance | |||||||
| As of May 7, 2025 | |||||||
| ('s in millions, except per share data) | |||||||
| 2024<br><br>Adjustments<br><br>(Non-GAAP)(1) | 2024<br><br>Adjusted<br><br>(Non-GAAP)(1) | 2025 <br>Reported Guidance <br>(GAAP) | 2025<br><br>Adjustments<br><br>(Non-GAAP)(2) | 2025<br><br>Adjusted Guidance<br><br>(Non-GAAP)(2) | |||
| Low | High | Low | High | ||||
| Sales: | |||||||
| Aerospace & Industrial | $— | $932 | $960 | $975 | $— | $960 | 975 |
| Defense Electronics | — | 911 | 995 | 1,010 | — | 995 | 1,010 |
| Naval & Power | — | 1,278 | 1,410 | 1,430 | — | 1,410 | 1,430 |
| Total sales | $— | $3,121 | $3,365 | $3,415 | $— | $3,365 | 3,415 |
| Operating income: | |||||||
| Aerospace & Industrial | $10 | $158 | $161 | $170 | $2 | $163 | 172 |
| Defense Electronics | 2 | 227 | 261 | 267 | — | 261 | 267 |
| Naval & Power | 2 | 202 | 217 | 224 | 12 | 229 | 236 |
| Total segments | $15 | $587 | $640 | $660 | 14 | $654 | 674 |
| Corporate and other | 3 | (41) | (40) | (42) | — | (40) | (42) |
| Total operating income | $17 | $546 | $600 | $618 | $14 | $614 | 632 |
| Interest expense | $— | $(45) | $(42) | $(43) | $— | $(42) | (43) |
| Other income, net | — | 38 | 31 | 32 | 2 | 33 | 34 |
| Earnings before income taxes | 17 | 539 | 590 | 607 | 16 | 606 | 623 |
| Provision for income taxes | (4) | (121) | (129) | (133) | (4) | (133) | (137) |
| Net earnings | $13 | $418 | $460 | $474 | $12 | $472 | 486 |
| Diluted earnings per share | $0.35 | $10.90 | $12.15 | $12.50 | $0.30 | $12.45 | 12.80 |
| Diluted shares outstanding | 38.4 | 37.9 | 37.9 | 37.9 | 37.9 | ||
| Effective tax rate | 22.4% | 22.0% | 22.0% | 22.0% | 22.0% | ||
| Operating margins: | |||||||
| Aerospace & Industrial | 17.0% | 16.8% | 17.4% | 17.0% | 17.6% | ||
| Defense Electronics | 24.9% | 26.3% | 26.5% | 26.3% | 26.5% | ||
| Naval & Power | 15.8% | 15.5% | 15.7% | 16.3% | 16.5% | ||
| Total operating margin | 17.5% | 17.9% | 18.1% | 18.3% | 18.5% | ||
| Free cash flow(3) | $— | $483 | $495 | $515 | $— | $495 | 515 |
| 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. |
All values are in US Dollars.
Curtiss-Wright Corporation, Page 17
| CURTISS-WRIGHT CORPORATION | |||
|---|---|---|---|
| 2025 Sales Growth Guidance by End Market | |||
| As of May 7, 2025 | |||
| 2025 % Change vs. 2024 Adjusted | |||
| Prior | Current | % Total Sales | |
| Aerospace & Defense Markets | |||
| Aerospace Defense | 6 - 8% | 6 - 8% | 19% |
| Ground Defense | 3 - 5% | 6 - 8% | 11% |
| Naval Defense | 3 - 5% | 5 - 7% | 26% |
| Commercial Aerospace | 10 - 12% | 13 - 15% | 13% |
| Total Aerospace & Defense | 5 - 7% | 7 - 9% | 69% |
| Commercial Markets | |||
| Power & Process | 16 -18% | 16 - 18% | 19% |
| General Industrial | Flat | Flat | 12% |
| Total Commercial | 9 - 11% | 9 - 11% | 31% |
| Total Curtiss-Wright Sales | 7 - 8% | 8 - 9% | 100% |
| Note: Sales percentages may not add due to rounding. |
Curtiss-Wright Corporation, Page 18
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 8,900 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.
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; geopolitical risks; evolving impacts from tariffs between the U.S. and other countries (including implementation of new tariffs and retaliatory measures); 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.
Contact: Jim Ryan
(704) 869-4621
Jim.Ryan@curtisswright.com
ex992_cwxq125
Investor Day 2024 Q1 2025 EARNINGS CONFERENCE CALL May 8, 2025 Conference Call Dial-in numbers: (800) 343-5172 (domestic) (203) 518-9856 (international) Conference code: CWQ125 1
Q1 2025 Earnings Presentation SAFE HARBOR STATEMENT Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this website from one to twelve months following the initial presentation, but content will not be updated to reflect new information that may become available after the original presentation posting. The presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and Curtiss-Wright Corporation assumes no obligation to update the information included in this report. 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; geopolitical risks; evolving impacts from tariffs between the U.S. and other countries (including implementation of new tariffs and retaliatory measures); 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. This presentation also includes certain non-GAAP financial measures with reconciliations to GAAP financial measures being made available in the earnings release and this presentation that are posted to our website and furnished with the SEC. We undertake no duty to update this information. More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is on file with the SEC and available at the SEC's website at www.sec.gov. 2
Q1 2025 Earnings Presentation ▪ Sales of $806M, up 13% overall (11% organic) – Driven by 15% growth in A&D markets and 9% growth in Commercial markets ▪ Operating Income of $134M, up 34%; 260 bps in YOY margin expansion – Exceeded expectations due to strong operational performance in Defense Electronics and timing of naval revenues ▪ Diluted EPS of $2.82, up 42% ▪ Free Cash Flow of ($55M) up 5%; Tracking to improved Full-year Outlook ▪ Record New Orders of $1.0B, up 13%; 1.26x Book-to-Bill STRONG Q1 EXECUTION DRIVES HIGHER FULL-YEAR 2025 OUTLOOK ▪ Continued strength in A&D markets driving improved outlook, Total Sales growth of 8% - 9% ▪ Operating Income growing well in excess of Sales; Targeting 18.3% - 18.5% operating margin, up 80 - 100 bps YOY ▪ Agile business model paired with ongoing operational and commercial excellence initiatives – FY2025 guidance includes the potential direct impacts from tariffs on our operations ▪ Expect to deliver mid-teens EPS growth and strong FCF generation (>105% conversion) 3 First Quarter 2025 Highlights Note: First quarter 2025 results and Full-year 2025 guidance, and comparisons to 2024, presented on an Adjusted (Non-GAAP) basis, unless noted Full-Year 2025 Guidance Increased
Q1 2025 Earnings Presentation FIRST QUARTER 2025 FINANCIAL REVIEW ($ in millions) Q1’25 Adjusted Q1’24 Adjusted Change Key Drivers Aerospace & Industrial $227 $219 4% ▪ Higher YOY sales in Defense markets (actuation equipment) ▪ Solid growth in Commercial Aerospace (sensors and surface treatment services on OEM platforms) ▪ Flat General Industrial sales Defense Electronics $245 $212 16% ▪ Strong growth in embedded computing equipment sales in all Defense markets, supporting various domestic and international programs Naval & Power $333 $282 18% ▪ Stronger than anticipated growth in Naval Defense (higher demand and timing of submarine revenues) ▪ Power & Process reflects HSD organic growth in Commercial Nuclear plus contribution from acquisitions ▪ Timing in Aerospace Defense (lower international arresting systems equipment sales) Total Sales $806 $713 13% Strong sales growth driven by Defense and Commercial Nuclear markets Aerospace & Industrial Margin $32 13.9% $27 12.5% 15% 140 bps ▪ Favorable absorption on higher sales growth and benefit of restructuring initiatives; Favorable FX ▪ Profitability partially offset by higher investment in R&D Defense Electronics Margin $67 27.5% $48 22.7% 40% 480 bps ▪ Favorable absorption on strong growth in defense revenues and benefit of operational excellence initiatives Naval & Power Margin $45 13.5% $35 12.5% 28% 100 bps ▪ Favorable absorption on higher revenues; PY unfavorable naval contract adjustment ▪ Partially offset by first-year margin dilution from acquisition, unfavorable mix and higher investment in R&D Corporate and Other ($10) ($11) 7% ▪ Lower medical expenses Total Op. Income CW Margin $134 16.6% $100 14.0% 34% 260 bps Delivered solid margin expansion on better-than-expected Sales growth 4Notes: Amounts may not add due to rounding.
Q1 2025 Earnings Presentation 2025 END MARKET SALES GROWTH GUIDANCE (As of May 7, 2025) ($ in Millions) 2025E Growth vs 2024 (Prior) 2025E Growth vs 2024 (Current) 2025E % Sales Key Drivers Aerospace Defense 6 - 8% 6 - 8% 19% ▪ Strong defense electronics growth on various C5/ISR programs (U.S. DoD and dFMS) ▪ Higher sales of arresting systems equipment Ground Defense 3 - 5% 6 - 8% 11% ▪ Strong revenue growth in tactical communications equipment ▪ Increased demand supporting ground missile launcher programs Naval Defense 3 - 5% 5 - 7% 26% ▪ Higher growth on submarines and increased naval aftermarket revenue ▪ Defense electronics growth on domestic & international programs; Higher aircraft handling systems Commercial Aerospace 10 - 12% 13 - 15% 13% ▪ Higher OEM growth driven by ramp-up in production (narrowbody and widebody) ▪ Defense electronics growth tied to retrofitting flight data recorders and aftermarket spares Total Aerospace & Defense 5 - 7% 7 - 9% 69% Increased demand across A&D markets driven by U.S. and International growth Power & Process 16 - 18% 16 - 18% 19% ▪ HSD organic growth in Commercial Nuclear driven by strong U.S. aftermarket demand and SMRs ▪ LSD+ organic growth in Process (Higher subsea pump development revenues) ▪ Contribution from Ultra Energy acquisition General Industrial Flat Flat 12% ▪ Modest growth in industrial automation and services, offset by lower industrial vehicles Total Commercial 9 - 11% 9 - 11% 31% Solid growth in Power & Process markets, led by Commercial Nuclear Total Curtiss-Wright 7 - 8% 8 - 9% 100% MSD+ organic sales growth reflects building momentum across our end markets 5 Notes: Amounts may not add due to rounding. dFMS = direct Foreign Military Sales; FY2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions. Updated (in blue)
Q1 2025 Earnings Presentation ($ in millions) 2025E (Prior) 2025E (Current) Change vs 2024 Adjusted Key Drivers Aerospace & Industrial $960 - $975 $960 - $975 3 - 5% ▪ Strong growth in Commercial Aerospace and higher EM actuation sales in Defense markets ▪ Flat General Industrial sales Defense Electronics $975 - $990 $995 - $1,010 9 - 11% ▪ Defense market growth (U.S. DoD and dFMS) driven by increased embedded computing and tactical communications revenues ▪ Commercial Aerospace growth reflects increased sales of avionics and instrumentation Naval & Power $1,400 - $1,420 $1,410 - $1,430 10 - 12% ▪ Strong growth in Power & Process; HSD organic growth in Commercial Nuclear, solid growth in Process and Ultra Energy acquisition ▪ Solid Naval Defense growth; Higher dFMS (aircraft handling & arresting systems) Total Sales $3,335 - $3,385 $3,365 - $3,415 8 - 9% Benefiting from continued growth in order book and strong backlog Aerospace & Industrial Margin $167 - $172 17.4% - 17.6% $163 - $172 17.0% - 17.6% 3 - 8% 0 - 60 bps ▪ Favorable absorption on strong growth in A&D revenues and restructuring savings ▪ Mitigating tariff exposure (mainly China) through pricing and operational excellence Defense Electronics Margin $244 - $250 25.0% - 25.2% $261 - $267 26.3% - 26.5% 15 - 18% 140 - 160 bps ▪ Favorable absorption on strong growth in A&D revenues ▪ Benefit of operational and commercial excellence initiatives; Additional restructuring savings ▪ Profitability partially offset by higher investments in R&D Naval & Power Margin $228 - $234 16.3% - 16.5% $229 - $236 16.3% - 16.5% 14 - 17% 50 - 70 bps ▪ Favorable absorption on higher A&D and Power & Process revenues; PY naval contract adjustment ▪ Profitability partially offset by first-year acquisition dilution and investment in development programs ▪ Effectively mitigating tariff exposure (mainly China) through pricing and operational excellence Corporate and Other ($40) - ($42) ($40) - ($42) (3%) - 3% Total Op. Income CW Margin $598 - $613 17.9% - 18.1% $614 - $632 18.3% - 18.5% 13 - 16% 80 - 100 bps Operational and Commercial Excellence Initiatives Driving Accelerated Operating Margin Expansion In 2025 2025 FINANCIAL GUIDANCE (As of May 7, 2025) 6 Updated (in blue) Notes: Amounts may not add due to rounding. dFMS = direct Foreign Military Sales; FY2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions.
Q1 2025 Earnings Presentation 2025 FINANCIAL GUIDANCE (As of May 7, 2025) ($ in millions, except EPS) 2025E (Prior) 2025E (Current) Change vs 2024 Adjusted Key Drivers Total Sales $3,335 - $3,385 $3,365 - $3,415 8 - 9% Strategically focused on delivering profitable growth Total Operating Income $598 - $613 $614 - $632 13 - 16% Other Income $33 - $34 $33 - $34 ▪ Lower YOY interest income offset by higher pension income Interest Expense ($42) - ($43) ($42) - ($43) ▪ Reduced YOY expense driven by Feb’25 repayment of $90M 3.85% Sr. Notes Diluted EPS $12.10 - $12.40 $12.45 - $12.80 14 - 17% Mid-teens EPS growth exceeding 2024 Investor Day Targets Diluted Shares Outstanding ~37.9 ~37.9 ▪ Benefit of $250M in total repurchases in 2024 ▪ Min. $60M share repurchase in 2025, plus opportunistic purchases early in Q2 Free Cash Flow $485 - $505 $495 - $515 2 - 7% Continued Strong Free Cash Flow generation, incl. Higher Growth CapEx FCF Conversion >105% >105% ▪ Continued solid FCF conversion in-line with Investor Day target Capital Expenditures $75 - $85 $75 - $85 ▪ Exceeding ~2% of Sales (LT target) to fuel growth investments in 2025 Depreciation & Amortization $115 - $120 $115 - $120 ▪ Primarily Ultra acquisition impact, excludes first year intangible amortization 7 Updated (in blue) Note: FY2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions.
Q1 2025 Earnings Presentation BUILDING ON OUR STRONG FOUNDATION TO ENABLE LONG-TERM SUSTAINABLE GROWTH ▪ Raised FY2025 Outlook after Strong Q1 Execution – Accelerating Pace of Operating Margin expansion, up 80 - 100 bps YOY; Ongoing operational and commercial excellence initiatives – Mitigation plans in place to broadly offset exposure to global tariffs – Planned restructuring actions now expected to yield $12M in annualized savings in 2025 (prev. $10M) – Increasing R&D investments to drive long-term organic growth ▪ Strong Balance Sheet & Record FCF Generation Enables Disciplined Capital Allocation Strategy – Maintain significant financial flexibility for acquisitions and continued share repurchase ▪ Well-positioned to Capture Medium-term and Long-term Secular Growth Trends Across End Markets – Aerospace & Defense: • Growing U.S. and allied funding to support defense modernization and next-generation requirements • Strong DoD support for shipbuilding; Global security concerns driving increased demand for MOSA electronics • Developed critical technology supporting new 25-hour safety mandate for longer recording capability in Commercial Aerospace – Commercial Nuclear: • Supporting energy independence and decarbonization efforts globally; Nuclear power capacity to grow 2-3x by 2050 • CW well aligned globally to support entire lifecycle from new build to aftermarket; Continues to offer upside optionality 8
Investor Day 2024 APPENDIX 9
Q1 2025 Earnings Presentation NON-GAAP FINANCIAL INFORMATION 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 the Company’s earnings press release. The following definitions are provided: Adjusted Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share (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, transaction costs, and gains/losses on equity securities held for investment purposes; (ii) costs associated with the Company's 2024 Restructuring Program; and (iii) the sale or divestiture of a business or product line, as applicable. 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. Free Cash Flow (FCF) 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. 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. 10
Q1 2025 Earnings Presentation FIRST QUARTER 2025: END MARKET SALES GROWTH ($ in millions) Q1’25 Q1’24 Change Key Drivers Aerospace Defense $152 $132 15% ▪ Strong growth in embedded computing equipment sales on various helicopter programs ▪ Higher sales of actuation equipment on fighter jet programs ▪ Partially offset by timing of international sales of arresting systems equipment Ground Defense $97 $91 7% ▪ Higher sales supporting U.S. ground vehicle modernization Naval Defense $221 $178 24% ▪ Higher demand and timing of revenues on across submarine and aircraft carrier programs Commercial Aerospace $93 $90 3% ▪ Higher OEM sales of sensors products and surface treatment services on narrowbody and widebody platforms Total A&D Markets $563 $490 15% Power & Process $143 $124 15% ▪ Higher organic sales of commercial nuclear products supporting the maintenance of existing operating reactors and the development of next-generation advanced reactors ▪ Contribution from acquisitions to our commercial nuclear and process markets General Industrial $100 $99 1% ▪ Higher sales of industrial automation equipment mainly offset by reduced sales of industrial vehicle products serving on- and off-highway vehicle platforms Total Commercial Markets $243 $223 9% Total Curtiss-Wright $806 $713 13% 11 Note: Amounts may not add down due to rounding.
Q1 2025 Earnings Presentation 69% $2.34B 31% $1.05B Industrial Vehicles Tactical battlefield communications Principally Repair and Overhaul Aerospace & Defense Markets Commercial Markets 26% 13% 19% 11% ~90% ~10% Embedded computing, sensors, actuation, arresting systems 60% Narrowbody / 40% Widebody Linked to Boeing/Airbus production Aerospace OEM Total 2025 CW End Markets $3.365 - 3.415B General IndustrialNaval Commercial Aerospace Power & Process Pumps / Valves / Steam Turbines (Nuclear naval propulsion) Ground AM ~35% 19% 12% ~60% Severe-service valves and subsea pump applications ~65% Electromechanical actuation and Surface Treatment Services Aftermarket (Operating Reactors) & New Build (AP1000, SMRs) On/Off-Highway Commercial and Specialty Vehicles Commercial Nuclear Process Industrial Automation and Services ~40% 2025E END MARKET SALES WATERFALL (as of May 7, 2025) FY’25 Guidance: Overall UP 8 - 9% (5 - 7% Org.) A&D Markets UP 7 - 9% Comm’l Markets UP 9 - 11% Note: Amounts shown for % of Total Sales may not add due to rounding. § Power & Process market sales concentrated in Naval & Power segment § General Industrial sales concentrated in Aerospace & Industrial segment 12 Commercial Nuclear 90% Domestic & Int’l Aftermarket 10% New Build Gen III / Gen IV (Advanced SMRs)