Why Is Curtiss-Wright (CW) Up 1.4% Since Last Earnings Report?

It has been about a month since the last earnings report for Curtiss-Wright (CW). Shares have added about 1.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Curtiss-Wright due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Curtiss-Wright Corporation before we dive into how investors and analysts have reacted as of late.

Curtiss-Wright Q4 Earnings Outpace Estimates, Revenues Increase Y/Y

Curtiss-Wright reported adjusted earnings per share (EPS) of $3.79, which beat the Zacks Consensus Estimate of $3.66 by 3.6%. The bottom line also came in higher than the year-ago quarter’s earnings of $3.27 per share.

The company reported GAAP earnings of $3.69 per share, up 19.4% from the prior-year period.

The year-over-year upside in GAAP earnings can be attributed to higher sales and operating income compared with the year-ago level.

CW’s 2025 adjusted earnings of $13.23 per share increased 21.4% from $10.90 registered in the prior-year quarter.

CW’s Operational Performance

The company’s net sales of $947 million increased 14.9% year over year. The top line beat the Zacks Consensus Estimate of $890 million by 6.4%.

For 2025, the company reported revenues worth $3.50 billion, reflecting a solid improvement from $3.12 billion registered in 2024.

The company reported an adjusted operating income of $181.8 million, up 17.4% year over year. Its adjusted operating margin was 19.7%, down 10 basis points (bps).

Curtiss-Wright’s total backlog at the end of the fourth quarter was $4.1 billion.

New orders of $1.1 billion rose 18% year over year, driven by the strong demand in the company’s commercial nuclear and naval defense markets.

CW’s Segmental Performance

Aerospace & Industrial: Sales in this segment improved 5% year over year to $262 million.

The adjusted operating income decreased 2% to $53 million. Also, the unit’s adjusted operating margin contracted 120 bps to 20.1%.

Defense Electronics: Sales in this segment improved 17% year over year to $267 million.

The unit’s adjusted operating income improved 25% to $69 million. The adjusted operating margin expanded 160 bps to 25.9%.

Naval & Power: Sales in this segment increased 21% year over year to $417 million.

The segment's adjusted operating income increased 13% to $75 million. The adjusted operating margin contracted 120 bps to 17.9%.

Financial Position of CW

CW’s cash and cash equivalents as of Dec. 31, 2025, were $371.4 million compared with $385 million as of Dec. 31, 2024.

The long-term debt was $0.76 billion compared with $0.96 billion as of Dec. 31, 2024.

The net cash flow from operating activities amounted to $643.4 million during 2025 compared with $544.3 million in the prior-year period.

The free cash flow as of Dec. 31, 2025, was $315 million compared with $278 million a year ago.

2026 Guidance of CW

CW expects to generate adjusted earnings in the band of $14.70-$15.15 per share. The Zacks Consensus Estimate for earnings is pegged at $14.89 per share, which lies below the midpoint of the company’s guided range.

Curtiss-Wright expects to generate sales in the range of $3.71-$3.77 billion. The Zacks Consensus Estimate for sales is pegged at $3.75 billion, which lies above the midpoint of the company’s guidance.

The company expects to generate free cash flow in the band of $575-$595 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 11.49% due to these changes.

VGM Scores

At this time, Curtiss-Wright has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Curtiss-Wright has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Curtiss-Wright belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Mercury Systems (MRCY), has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Mercury Systems reported revenues of $232.87 million in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $0.16 for the same period compares with $0.07 a year ago.

Mercury Systems is expected to post earnings of $0.06 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -41.7%.

Mercury Systems has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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