Curtiss-Wright's Q4 2024: Contradictions Unveiled on Defense Spending, Reactor Timelines, and Margin Expectations

These are the key contradictions discussed in Curtiss-Wright's latest 2024Q4 earnings call, specifically including: European defense spending impact on FMS sales, timeline for reactor coolant pumps in AP1000 reactors, subsea pump technology status and timeline, and Defense Electronics margin expectations:



Strong Financial Performance and Growth:
- Curtiss-Wright generated double-digit growth in sales and operating income in 2024, reflecting the underlying demand within its core portfolio and record orders. Diluted earnings per share increased 16% year-over-year to $10.90.
- Growth was driven by strong demand across core markets, record order book, and strategic acquisitions.

Order Book and Backlog Expansion:
- The company's order book grew exceptionally strong in Q4, up 37% year-on-year, with a book-to-bill ratio of 1.1.
- This expansion was fueled by growth in all A&D markets and solid demand within commercial nuclear, leading to a record backlog of over $3.4 billion.

Naval & Power Segment Growth:
- The Naval & Power segment experienced 12% sales growth in 2024, exceeding expectations, driven by higher revenue across key platforms such as Columbia class and Virginia class submarines.
- Growth was primarily attributed to favorable timing of material receipts and increased demand for aircraft handling systems.

Acquisitions and Strategic Positioning:
- Curtiss-Wright acquired Ultra Energy, expanding its commercial nuclear portfolio and providing safety-critical products to global markets.
- The acquisition aligns with the company's strategic focus on expanding its presence with leading SMR designers and leveraging its U.K. manufacturing footprint.