Curtiss-Wright Reports Second Quarter 2024 Financial Results and Raises Full-Year 2024 Guidance

Curtiss-Wright Corporation (NYSE: CW) reports financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights:

Reported sales of $785 million, up 11%;
Reported operating income of $129 million, operating margin of 16.4%, and diluted earnings per share (EPS) of $2.58;
Adjusted operating income of $133 million, up 16%;
Adjusted operating margin of 17.0%, up 60 basis points;
Adjusted diluted EPS of $2.67, up 24%;
New orders of $995 million, up 18%, reflected a book-to-bill of approximately 1.3x driven by strong demand within our Aerospace & Defense (A&D) markets;
Backlog of $3.2 billion, up 13% year-to-date; and
Free cash flow (FCF) of $100 million, generating 97% Adjusted FCF conversion.

Raised Full-Year 2024 Adjusted Financial Guidance:

Sales increased to new range of 6% to 8% growth (previously 5% to 7%), driven by strong growth in our A&D markets;
Operating income increased to new range of 6% to 9% growth (previously 5% to 8%);
Maintained operating margin range of 17.4% to 17.6%, flat to up 20 basis points compared with the prior year;
Diluted EPS increased to new range of $10.40 to $10.65, up 11% to 14% (previously $10.10 to $10.40, up 8% to 11%);
Reduced effective tax rate by 100 bps to 22.5% following consolidation of U.K. legal entity structure, and
Free cash flow increased to new range of $425 to $445 million, up 3% to 8% (previously $415 to $435 million, up 0% to 5%), and continues to reflect greater than 105% FCF conversion.

"Curtiss-Wright delivered strong second quarter results, highlighted by mid-teens revenue growth in our A&D end markets, continued operating margin expansion, and 24% growth in Adjusted diluted EPS," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. "We once again demonstrated robust order activity, as bookings increased 18% year over year, yielding a book-to-bill of 1.3x. Based on the strong first half results and our outlook for the remainder of 2024, we have increased our full-year Adjusted guidance for sales, operating income, diluted EPS and free cash flow."

"As we discussed at our Investor Day event in May, we continue to build momentum through the execution of our Pivot to Growth strategy. We remain focused on accelerating operational excellence to drive margin expansion and generate funding to reinvest into the business. As part of this strategy, we recently launched restructuring actions to support volume increases, improve efficiencies and further optimize our operations. These actions are expected to produce both recurring operational savings and increased free cash flow."

2024 Restructuring Program and Other Cost Savings Initiatives

During the second quarter of 2024, the Company initiated restructuring actions across all three segments, principally within the Aerospace & Industrial segment. These initiatives are expected to result in approximately $15 million in restructuring costs in 2024, and are expected to yield initial savings in 2024, as well as approximately $10 million in annualized savings in 2025; and
Curtiss-Wright launched a U.K. legal entity consolidation program anticipated to facilitate more efficient cash repatriation. This initiative is expected to generate approximately $5 million in annualized savings, based on a 100 basis point reduction in the effective tax rate, and approximately $5 million in annual recurring free cash flow.

Acquisition of Ultra Energy

On June 3, 2024, the Company announced the acquisition of Ultra Nuclear Limited and Weed Instrument Co., Inc. (“Ultra Energy”) for $200 million in cash.
Ultra Energy is a leading global provider of safety-critical monitoring systems, temperature and pressure sensors, and reactor protection and control systems principally to the commercial nuclear and A&D markets;
The business is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a free cash flow conversion rate in excess of 100%; and
The acquisition is expected to close in the third quarter of 2024, subject to U.K. regulatory approval, and the acquired business will operate within Curtiss-Wright's Naval & Power segment.

Second Quarter 2024 Operating Results

(In millions)

Q2-2024

Q2-2023

Change

Reported

Sales

785

704

Operating income

129

113

Operating margin

16.4

16.0

40 bps

Adjusted (1)

Sales

785

704

Operating income

133

115

Operating margin

17.0

16.4

60 bps

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

Sales of $785 million increased 11% compared with the prior year period;
Total A&D market sales increased 16%, while total Commercial market sales increased 2%;
In our A&D markets, we experienced strong growth in the defense markets principally driven by strong demand for our defense electronics products and the timing of production ramps 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 markets, principally driven by higher sales of our commercial nuclear products, while sales in the general industrial market declined modestly; and
Adjusted operating income of $133 million increased 16%, while Adjusted operating margin increased 60 basis points to 17.0%, principally driven by favorable overhead absorption on higher revenues in all three segments and favorable mix in the Defense Electronics segment, partially offset by unfavorable mix and timing of development programs in the Naval & Power segment.

Second Quarter 2024 Segment Performance

Aerospace & Industrial

(In millions)

Q2-2024

Q2-2023

Change

Reported

Sales

233

226

Operating income

Operating margin

15.1

15.8

(70 bps)

Adjusted (1)

Sales

233

226

Operating income

Operating margin

16.2

15.8

40 bps

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

Sales of $233 million, up $7 million, or 3%;
Commercial aerospace market revenue increases reflected strong demand and higher OEM sales of sensors and actuation products, as well as surface treatment services, on narrowbody and widebody platforms;
General industrial market revenues declined modestly, as the benefit of higher sales of surface treatment services was more than offset by reduced sales of industrial vehicle products to off-highway vehicle platforms; and
Adjusted operating income was $38 million, up 6% from the prior year, while adjusted operating margin increased 40 basis points to 16.2%, mainly due to solid absorption on higher sales and the initial benefits of our restructuring initiatives.

Defense Electronics

(In millions)

Q2-2024

Q2-2023

Change

Reported

Sales

228

198

Operating income

Operating margin

25.5

21.8

370 bps

Adjusted (1)

Sales

228

198

Operating income

Operating margin

25.7

21.8

390 bps

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

Sales of $228 million, up $31 million, or 16%;
Higher revenue in the aerospace defense market was principally driven by increased sales of our embedded computing equipment on various domestic and international helicopter programs;
Strong revenue growth in the ground defense market primarily reflected higher sales of tactical battlefield communications equipment; and
Adjusted operating income was $59 million, up 36% from the prior year, while adjusted operating margin increased 390 basis points to 25.7%, reflecting favorable absorption and mix on higher revenues, and the benefits of our cost containment initiatives.

Naval & Power

(In millions)

Q2-2024

Q2-2023

Change

Reported

Sales

323

280

Operating income

Operating margin

14.3

16.7

(240 bps)

Adjusted (1)

Sales

323

280

Operating income

Operating margin

14.4

17.6

(320 bps)

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

Sales of $323 million, up $43 million, or 15%;
Strong revenue growth in the naval defense market principally reflected higher demand on various submarine programs and the CVN-81 aircraft carrier program;
Higher revenue in the aerospace defense market was primarily driven by increased sales of our arresting systems equipment supporting various domestic and international customers;
Higher power & process market revenues mainly reflected increased commercial nuclear aftermarket sales supporting the maintenance of U.S. operating reactors; and
Adjusted operating income was $47 million, down 6% from the prior year, while adjusted operating margin decreased 320 basis points to 14.4%, as favorable absorption on higher revenues was more than offset by unfavorable mix of products and timing of development programs.

Free Cash Flow

(In millions)

Q2-2024

Q2-2023

Change

Net cash provided by operating activities

111

—

Capital expenditures

(11

)

(12

)

Reported free cash flow

100

Adjusted free cash flow (1)

100

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

Reported free cash flow of $100 million increased slightly as higher cash earnings were essentially offset by the timing of tax payments and working capital;
Adjusted free cash flow of $100 million; and
Capital expenditures decreased $1 million compared with the prior year.

New Orders and Backlog

New orders of $995 million increased 18% compared with the prior year and generated an overall book-to-bill of approximately 1.3x, principally driven by strong demand for naval defense and commercial aerospace products within our A&D markets; and
Backlog of $3.2 billion, up 13% from December 31, 2023, reflects strong demand in both our A&D and Commercial markets.

Share Repurchase and Dividends

During the second quarter, the Company repurchased 47,174 shares of its common stock for approximately $13 million; and
The Company also declared a quarterly dividend of $0.21 a share, an increase of 5% from the previous quarter.

Full-Year 2024 Guidance

The Company is updating its full-year 2024 Adjusted financial guidance(1) as follows:

($ in millions, except EPS)

2024 Adjusted

Non-GAAP Guidance

(Prior)

2024 Adjusted

Non-GAAP Guidance

(Current)

Change vs 2023 Adjusted

(Current)

Total Sales

$2,985 - $3,035

$3,010 - $3,060

Up 6% - 8%

Operating Income

$518 - $533

$525 - $539

Up 6% - 9%

Operating Margin

17.4% - 17.6%

Up 0 - 20 bps

Diluted EPS

$10.10 - $10.40

$10.40 - $10.65

Up 11% - 14%

Free Cash Flow

$415 - $435

$425 - $445

Up 3% - 8%

(1) Reconciliations of Reported to Adjusted 2023 operating results and 2024 financial guidance are available in the Appendix.

**********

A more detailed breakdown of the Company’s 2024 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 second quarter 2024 financial results and updates to 2024 guidance at 10:00 a.m. ET on Thursday, August 8, 2024. 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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

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

Three Months Ended

Six Months Ended

June 30,

2024

2023

2024

2023

Product sales

661,407

583,036

1,257,111

1,107,917

Service sales

123,384

121,360

240,847

227,339

Total net sales

784,791

704,396

1,497,958

1,335,256

Cost of product sales

428,926

369,549

818,403

713,306

Cost of service sales

71,764

75,274

141,699

140,969

Total cost of sales

500,690

444,823

960,102

854,275

Gross profit

284,101

259,573

537,856

480,981

Research and development expenses

22,152

20,210

45,132

42,234

Selling expenses

35,126

34,273

71,891

66,698

General and administrative expenses

95,008

92,315

189,057

180,659

Restructuring expenses

2,918

—

2,918

—

Operating income

128,897

112,775

228,858

191,390

Interest expense

11,216

14,992

21,786

27,936

Other income, net

8,560

7,954

18,168

15,721

Earnings before income taxes

126,241

105,737

225,240

179,175

Provision for income taxes

(26,770

)

(24,738

)

(49,274

)

(41,330

)

Net earnings

99,471

80,999

175,966

137,845

Net earnings per share:

Basic earnings per share

2.60

2.11

4.60

3.60

Diluted earnings per share

2.58

2.10

4.58

3.58

Dividends per share

0.21

0.20

0.41

0.39

Weighted-average shares outstanding:

Basic

38,302

38,329

38,273

38,309

Diluted

38,501

38,555

38,460

38,528

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($'s in thousands, except par value)

June 30,

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

382,564

406,867

Receivables, net

817,135

732,678

Inventories, net

559,142

510,033

Other current assets

77,039

67,502

Total current assets

1,835,880

1,717,080

Property, plant, and equipment, net

326,969

332,796

Goodwill

1,571,004

1,558,826

Other intangible assets, net

545,448

557,612

Operating lease right-of-use assets, net

146,956

141,435

Prepaid pension asset

272,857

261,869

Other assets

49,080

51,351

Total assets

4,748,194

4,620,969

Liabilities

Current liabilities:

Current portion of long-term debt

90,000

—

Accounts payable

224,778

243,833

Accrued expenses

158,505

188,039

Deferred revenue

341,601

303,872

Other current liabilities

81,632

70,800

Total current liabilities

896,516

806,544

Long-term debt

959,655

1,050,362

Deferred tax liabilities, net

128,277

132,319

Accrued pension and other postretirement benefit costs

67,650

66,875

Long-term operating lease liability

123,586

118,611

Long-term portion of environmental reserves

14,157

12,784

Other liabilities

99,933

105,061

Total liabilities

2,289,774

2,292,556

Stockholders' equity

Common stock, $1 par value

49,187

Additional paid in capital

135,574

140,182

Retained earnings

3,648,005

3,487,751

Accumulated other comprehensive loss

(233,488

)

(213,223

)

Less: cost of treasury stock

(1,140,858

)

(1,135,484

)

Total stockholders' equity

2,458,420

2,328,413

Total liabilities and stockholders' equity

4,748,194

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

These Adjusted financials are defined as Reported Sales, 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

June 30, 2024

June 30, 2023

% Change

As Reported

Adjustments

Adjusted

As Reported

Adjustments

Adjusted

As Reported

Adjusted

Sales:

Aerospace & Industrial

233,232

—

233,232

226,260

—

226,260

Defense Electronics

228,461

—

228,461

197,722

—

197,722

Naval & Power

323,098

—

323,098

280,414

—

280,414

Total sales

784,791

—

784,791

704,396

—

704,396

Operating income (expense):

Aerospace & Industrial(2)

35,246

2,619

37,865

35,665

—

35,665

Defense Electronics(2)

58,244

523

58,767

43,180

—

43,180

Naval & Power(1)(2)

46,283

342

46,625

46,782

2,659

49,441

Total segments

139,773

3,484

143,257

125,627

2,659

128,286

Corporate and other(2)

(10,876

)

964

(9,912

)

(12,852

)

—

(12,852

)

Total operating income

128,897

4,448

133,345

112,775

2,659

115,434

Operating margins:

As Reported

Adjusted

As Reported

Adjusted

As Reported

Adjusted

Aerospace & Industrial

15.1

16.2

15.8

(70 bps)

40 bps

Defense Electronics

25.5

25.7

21.8

370 bps

390 bps

Naval & Power

14.3

14.4

16.7

17.6

(240 bps)

(320 bps)

Total Curtiss-Wright

16.4

17.0

16.0

16.4

40 bps

60 bps

Segment margins

17.8

18.3

17.8

18.2

— bps

10 bps

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

(2) 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)

Six Months Ended

June 30, 2024

June 30, 2023

% Change

As Reported

Adjustments

Adjusted

As Reported

Adjustments

Adjusted

As Reported

Adjusted

Sales:

Aerospace & Industrial

452,557

—

452,557

428,707

—

428,707

Defense Electronics

440,202

—

440,202

359,876

—

359,876

Naval & Power

605,199

—

605,199

546,673

—

546,673

Total sales

1,497,958

—

1,497,958

1,335,256

—

1,335,256

Operating income (expense):

Aerospace & Industrial(2)

62,712

2,619

65,331

62,210

—

62,210

Defense Electronics(2)

106,325

523

106,848

66,548

—

66,548

Naval & Power (1)(2)

81,474

342

81,816

84,719

5,335

90,054

Total segments

250,511

3,484

253,995

213,477

5,335

218,812

Corporate and other(2)

(21,653

)

964

(20,689

)

(22,087

)

—

(22,087

)

Total operating income

228,858

4,448

233,306

191,390

5,335

196,725

Operating margins:

As Reported

Adjusted

As Reported

Adjusted

As Reported

Adjusted

Aerospace & Industrial

13.9

14.4

14.5

(60 bps)

(10 bps)

Defense Electronics

24.2

24.3

18.5

570 bps

580 bps

Naval & Power

13.5

15.5

16.5

(200 bps)

(300 bps)

Total Curtiss-Wright

15.3

15.6

14.3

14.7

100 bps

90 bps

Segment margins

16.7

17.0

16.0

16.4

70 bps

60 bps

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

(2) 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

June 30, 2024

June 30, 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

154,104

—

154,104

132,192

—

132,192

Ground Defense

84,939

—

84,939

70,875

—

70,875

Naval Defense

209,847

—

209,847

180,956

—

180,956

Commercial Aerospace

93,316

—

93,316

82,033

—

82,033

Total Aerospace & Defense

542,206

—

542,206

466,056

—

466,056

Commercial markets:

Power & Process

138,601

—

138,601

131,000

—

131,000

General Industrial

103,984

—

103,984

107,340

—

107,340

Total Commercial

242,585

—

242,585

238,340

—

238,340

Total Curtiss-Wright

784,791

—

784,791

704,396

—

704,396

Six Months Ended

June 30, 2024

June 30, 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

286,178

—

286,178

232,071

—

232,071

Ground Defense

175,700

—

175,700

137,132

—

137,132

Naval Defense

387,494

—

387,494

352,912

—

352,912

Commercial Aerospace

183,091

—

183,091

152,523

—

152,523

Total Aerospace & Defense

1,032,463

—

1,032,463

874,638

—

874,638

Commercial markets:

Power & Process

262,639

—

262,639

251,338

—

251,338

General Industrial

202,856

—

202,856

209,280

—

209,280

Total Commercial

465,495

—

465,495

460,618

—

460,618

Total Curtiss-Wright

1,497,958

—

1,497,958

1,335,256

—

1,335,256

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

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

Three Months Ended

Six Months Ended

June 30,

2024

2023

2024

2023

Diluted earnings per share - As Reported

2.58

2.10

4.58

3.58

First year purchase accounting adjustments

—

0.05

—

0.10

Restructuring costs

0.09

—

0.09

—

Diluted earnings per share - Adjusted (1)

2.67

2.15

4.67

3.68

(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

June 30,

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

(1%)

16%

35%

15%

(1%)

11%

14%

Less: Acquisitions

(1%)

Restructuring

Foreign Currency

(1%)

Organic

16%

36%

14%

11%

18%

Six Months Ended

June 30,

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

22%

60%

11%

(4%)

12%

20%

Less: Acquisitions

(1%)

Restructuring

Foreign Currency

(1%)

Organic

22%

60%

10%

(3%)

12%

22%

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

Six Months Ended

June 30,

2024

2023

2024

2023

Net cash provided by operating activities

111,335

110,952

65,702

19,353

Capital expenditures

(11,064

)

(12,003

)

(23,119

)

(22,664

)

Free cash flow

100,271

98,949

42,583

(3,311

)

Westinghouse legal settlement

—

10,000

Adjusted free cash flow

100,271

98,949

42,583

6,689

Adjusted free cash flow conversion

119

CURTISS-WRIGHT CORPORATION

2024 Guidance

As of August 7, 2024

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

2023

2024

2023

Adjustments

Adjusted

2024

Adjustments

2024

Reported

(Non-

Reported Guidance

(Non-

Adjusted Guidance

(GAAP)

GAAP)(1,2)

(GAAP)

GAAP)(3)

(Non-GAAP)(3)

Low

High

Low

High

2024 Chg

vs 2023

Adjusted

Sales:

Aerospace & Industrial

887

—

887

925

940

—

925

940

4 - 6%

Defense Electronics

816

—

816

882

897

—

882

897

8 -10%

Naval & Power

1,142

—

1,142

1,203

1,223

—

1,203

1,223

5 -7%

Total sales

2,845

—

2,845

3,010

3,060

—

3,010

3,060

6 - 8%

Operating income:

Aerospace & Industrial

145

—

145

147

151

157

161

8 - 11%

Defense Electronics

192

—

192

209

215

212

218

11 - 13%

Naval & Power

189

198

194

199

—

194

199

(2) - 0%

Total segments

526

535

550

565

562

578

Corporate and other

(42

)

—

(42

)

(40

)

(41

)

(38

)

(39

)

Total operating income

485

494

510

524

525

539

6 - 9%

Interest expense

(51

)

—

(51

)

(44

)

(45

)

—

(44

)

(45

)

Other income, net

—

Earnings before income taxes

463

472

501

514

516

529

Provision for income taxes

(109

)

(111

)

(113

)

(116

)

(116

)

(119

)

Net earnings

355

361

388

398

400

410

Diluted earnings per share

9.20

0.18

9.38

10.09

10.34

0.31

10.40

10.65

11 - 14%

Diluted shares outstanding

38.5

Effective tax rate

23.4

22.5

Operating margins:

Aerospace & Industrial

16.4

15.9

16.1

16.9

17.1

50 to 70 bps

Defense Electronics

23.5

23.7

24.0

24.2

50 to 70 bps

Naval & Power

16.6

17.4

16.1

16.3

16.1

16.3

(110 to 130 bps)

Total operating margin

17.0

17.4

16.9

17.1

17.4

17.6

0 to 20 bps

Free cash flow

403

413

425

445

—

425

445

3 - 8%

Notes: Full year amounts may not add due to rounding.

(1) 2023 Adjusted financials exclude the impact of first year purchase accounting adjustments.

(2) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2023 Adjusted Free Cash Flow excluded a legal settlement payment of $10 million.

(3) 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.

CURTISS-WRIGHT CORPORATION

2024 Sales Growth Guidance by End Market

As of August 7, 2024

2024 % Change vs. 2023 Adjusted

Prior

Current

% Total Sales

Aerospace & Defense Markets

Aerospace Defense

6 - 8%

7 - 9%

20%

Ground Defense

10 - 12%

11%

Naval Defense

3 - 5%

5 - 7%

25%

Commercial Aerospace

10 - 12%

13 - 15%

12%

Total Aerospace & Defense

6 - 8%

8 - 10%

68%

Commercial Markets

Power & Process

4 - 6%

18%

General Industrial

1 - 3%

Flat

14%

Total Commercial

2 - 4%

1 - 3%

32%

Total Curtiss-Wright Sales

5 - 7%

6 - 8%

100%

Note: Sales percentages may not add due to rounding.

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 8,600 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; 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, 2023, 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/20240807390005/en/

Jim Ryan (704) 869-4621 Jim.Ryan@curtisswright.com

Curtiss Wright (NYSE:CW)
Historical Stock Chart
From Nov 2024 to Dec 2024