CW · Curtiss-Wright Corporation

Curtiss-Wright delivered strong first-quarter 2026 results, with reported sales of $914 million (+13% YoY), operating income of $160 million (+23%), and diluted EPS of $3.46 (+23%), all exceeding internal expectations and prior guidance. The performance was broad-based: Aerospace & Defense grew 14%, led by higher submarine revenues, actuation equipment sales, and international defense electronics; Commercial markets rose 12%, anchored by commercial nuclear solutions and industrial vehicle products. Segment-level margin expansion occurred across all three businesses—Aerospace & Industrial (15.4%, +150 bps), Defense Electronics (28.1%, +60 bps), and Naval & Power (14.9%, +140 bps)—driven primarily by favorable overhead absorption on higher volumes and benefits from restructuring initiatives, partially offset by foreign currency headwinds and increased R&D investment. Management attributed the outperformance to execution against its 'Pivot to Growth' strategy and heightened demand across naval defense, commercial nuclear, and industrial end markets. Critically, new orders surged 16% to $1.2 billion, lifting the book-to-bill to 1.3x and backlog to $4.3 billion (+5% sequentially), providing strong visibility into future revenue. In response, the Company raised full-year 2026 adjusted guidance across all key metrics: sales growth to 7–8%, operating margin to 19.0–19.2% (a 40–60 bps increase), EPS to $14.90–$15.30 (+13–16%), and free cash flow to $580–$600 million, reaffirming >105% FCF conversion. The earnings release underscores continued alignment with secular growth vectors—including global defense modernization, commercial nuclear energy security, and aerospace OEM production ramps—while maintaining an efficient balance sheet and disciplined capital allocation.