Curtiss-Wright's 2024 Success: A Blueprint for 2025 Growth

Curtiss-Wright Corporation (NYSE: CW) has just reported its financial results for the fourth quarter and full-year ended December 31, 2024, showcasing a strong performance driven by strategic investments in research and development (R&D) and a commitment to growth. As the company looks ahead to 2025, investors can draw insights from its past year's success to assess its potential for meeting or exceeding its financial targets.



In 2024, Curtiss-Wright achieved numerous financial records, including double-digit growth in sales, operating income, and diluted EPS, along with record free cash flow of $483 million. This performance was driven by strong demand across the company's defense and commercial aerospace markets, which resulted in record new orders of $3.7 billion. The company's strategic focus on R&D investments, capacity expansion, talent, and systems has contributed significantly to its financial performance and sets the stage for continued growth in 2025.

Looking ahead, Curtiss-Wright expects to deliver another strong performance in 2025, with total sales growth of 7% to 8% driven by strong organic growth in its A&D and Commercial Nuclear markets, as well as the contribution from its recently completed acquisition of Ultra Energy. The company also anticipates operating margin expansion of 40 to 60 basis points while increasing its R&D investments, as well as double-digit EPS growth and strong free cash flow generation.



Curtiss-Wright's acquisition of Ultra Energy is a strategic move that aligns with its growth strategy, as it expands its presence across major SMR designers and contributes to its overall revenue growth. In 2025, Ultra Energy is expected to generate high single-digit revenue growth and produce a low double-digit operating margin. This acquisition is expected to contribute to the company's total sales growth of 7% to 8% and operating income growth of 10% to 12%.

Regarding the impact on operating margins, the acquisition of Ultra Energy is initially expected to dilute the operating margin due to the inclusion of the business's lower-margin products. However, as the company integrates Ultra Energy and realizes synergies, the operating margin is expected to improve over time. In 2025, Curtiss-Wright expects its operating margin to range from 17.9% to 18.1%, up 40 basis points to 60 basis points from the previous year.

In terms of free cash flow, the acquisition of Ultra Energy is expected to contribute to the company's strong free cash flow generation. Curtiss-Wright projects a full-year free cash flow of $485 million to $505 million in 2025, which is essentially in line with or slightly above the record performance of the previous year. The company's focus on working capital management and higher cash earnings are expected to drive this growth in cash flow from operations. Additionally, the company expects capital expenditures to increase nearly $20 million year over year to support its future growth initiatives.



In conclusion, Curtiss-Wright's strong backlog and alignment with favorable secular growth trends reinforce its confidence in delivering another strong performance in 2025. The company's strategic focus on R&D investments, capacity expansion, talent, and systems, combined with its acquisition of Ultra Energy, positions it well to meet or exceed its financial targets. Investors should closely monitor Curtiss-Wright's progress throughout the year to capitalize on its growth potential.