Curtiss-Wright 2025 Q1 Earnings Beats Expectations with Net Income Up 32.5%

Curtiss-Wright (CW) reported its fiscal 2025 Q1 earnings on May 8th, 2025. The company surpassed expectations with a remarkable increase in net income by 32.5%, driven by strong performance across its business segments. Curtiss-Wright's raised guidance highlights confidence in achieving substantial growth, projecting total sales growth of 8% to 9% and operating margin expansion of 80 to 100 basis points. Diluted EPS is expected to rise by 14% to 17%, reflecting ongoing demand strength in Aerospace & Defense and commercial nuclear markets.

Revenue
Curtiss-Wright's revenue increased significantly in Q1 2025, reaching $805.64 million, up from $713.17 million in Q1 2024. The Aerospace & Industrial segment contributed $227.44 million, showcasing robust performance, while the Defense Electronics segment saw revenue rise to $245.72 million. The Naval & Power segment led the growth with revenue of $333.36 million. Intersegment revenues deducted $870,000, bringing the total revenue to $805.64 million.

Earnings/Net Income
Curtiss-Wright's earnings per share (EPS) rose by 34.5% to $2.69 in Q1 2025, up from $2.00 in Q1 2024, indicating continued earnings growth. The company achieved a net income of $101.34 million, reflecting a 32.5% increase from the previous year. This sustained profitability exemplifies Curtiss-Wright's robust operational resilience. EPS performance was strong and indicative of the company's positive earnings trajectory.

Price Action
The stock price of Curtiss-Wright experienced significant growth, climbing 3.57% during the latest trading day, 7.92% over the most recent full trading week, and surging an impressive 31.27% month-to-date.

Post-Earnings Price Action Review
For the past five years, the strategy of purchasing Curtiss-Wright (CW) shares following a quarter-over-quarter revenue increase and holding for 30 days has yielded substantial returns. This approach has delivered a remarkable 379.31% return, significantly outperforming the benchmark with a 286.75% excess return. Despite experiencing a maximum drawdown of -27.23%, the strategy boasts a Sharpe ratio of 1.22, indicating moderate returns relative to risk. The compound annual growth rate (CAGR) of 36.98% and volatility of 30.31% demonstrate effective growth management while maintaining a reasonable level of risk.

CEO Commentary
"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. The company achieved strong growth in most of its end markets, with A&D markets driven by a 15% increase in naval defense revenues and robust performance in Defense Electronics. Bamford expressed confidence in the firm’s capability for strong growth and profitability, highlighting a disciplined capital allocation strategy and the potential for long-term profitable growth for shareholders.

Guidance
Curtiss-Wright raised its full-year financial outlook, now expecting total sales growth of 8% to 9%, operating margin expansion of 80 to 100 basis points, and diluted EPS growth of 14% to 17%. The company also increased its free cash flow guidance range by $10 million to $495 million to $515 million, maintaining a strong liquidity position. Full-year guidance factors in potential tariff impacts while reflecting ongoing demand strength in Aerospace & Defense and commercial nuclear markets.

Additional News
During the last three weeks, Curtiss-Wright announced a strategic move to enhance shareholder value through a share repurchase program, buying back 42,383 shares of its common stock for approximately $14 million. This decision underscores the company's commitment to returning capital to shareholders while maintaining a strong balance sheet. Furthermore, the company declared a quarterly dividend of $0.21 per share, reinforcing its stable financial position. Additionally, Curtiss-Wright continues to focus on growth through strategic acquisitions, aiming to expand its footprint in the commercial nuclear and process markets. This approach aligns with the company's long-term strategy to drive sustainable growth across its diverse market segments.