What were the key takeaways from Curtiss-Wright's earnings call?

What factors drove the changes in Curtiss-Wright's revenue and profit?

Did Curtiss-Wright beat or miss consensus estimates last quarter?

What is Curtiss-Wright's gross profit margin?

What is the revenue and EPS growth rate for Curtiss-Wright year over year?

What does Curtiss-Wright do and what are its main business segments?

What is the market's earnings forecast for Curtiss-Wright next quarter?

What guidance did Curtiss-Wright's management provide for the next earnings period?

- **Revenue & Profit Growth**: Q3 2025 revenue up 9% YoY to $869 million, operating margin expands to 19.6%, EPS guidance raised to $12.95-13.20 (19-21% YoY growth).
- **Free Cash Flow Strength**: $520-535 million free cash flow (105% conversion), with $450+ million share buybacks in 2025.
- **Strategic Growth Drivers**: 
  - **Defense Electronics**: 29.2% operating margin, 4% sales growth driven by embedded computing and tactical communications.
  - **Nuclear Expansion**: $3.9 billion backlog, 14% YoY order growth, targeting >$1.5 billion annual nuclear revenue by mid-2030s.
  - **AI & Automation**: Continued investment in AI-driven solutions for aerospace, defense, and industrial markets.
- **AP1000 Opportunity**: Potential $100-200 million+ per plant content in Poland, Bulgaria, and U.S., with first orders expected in 2026.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue of $869 million, up 9% YoY, driven by 6% organic growth across all segments. Operating income increased 14% YoY, with operating margin expanding 90 basis points to 19.6%.
- **Free Cash Flow**: $176 million for the quarter, up 8% YoY, with full-year guidance of $520-535 million (105% conversion rate). Capital expenditures increased 40% YoY to support growth.
- **2025 Guidance Update**: Sales growth raised to 10-11%, operating income growth to 16-19%, and EPS to $12.95-13.20 (19-21% YoY growth). Free cash flow conversion expected to exceed 105%.
- **Strategic Focus**: Continued investment in AI, nuclear technologies, and defense electronics to capitalize on long-term growth vectors in aerospace, defense, and energy markets.

**【CFO Financial Commentary】**
- **Segment Performance**: 
  - **Aerospace & Industrial**: 8% sales growth, 17% operating income growth, and 140 basis points margin expansion to 18.6%, driven by naval defense programs (Columbia/Virginia-class submarines) and commercial nuclear orders.
  - **Defense Electronics**: 4% sales growth, 19% operating income growth, and 270 basis points margin expansion to 29.2%, supported by embedded computing for UAVs and tactical communications.
  - **Naval & Power**: 12% sales growth, 14% operating income growth, and 20 basis points margin expansion to 16.6%, fueled by submarine programs and I&C Solutions' SMR development.
- **Liquidity & Capital Allocation**: $450 million+ share buybacks in 2025, maintaining strong balance sheet with $1.2 billion in available liquidity.

**【Q&A Key Highlights】**
- **AP1000 Reactor Content**: Potential for $100-200 million+ per plant (vs. historical $28 million/RCP), with Poland and Bulgaria orders expected in 2026. Free cash flow conversion to remain >105% despite elevated CapEx for nuclear capacity.
- **Government Shutdown Impact**: $50 million+ Defense Electronics orders delayed in Q3, but pipeline remains healthy with 1.1x book-to-bill and 3.9 billion backlog. Resolution expected to restore normal order flow within 30-45 days.
- **M&A Strategy**: Prioritizing acquisitions in defense electronics, nuclear, and aerospace with strategic fit and financial discipline. No major deals announced in 2025, but pipeline remains active.
- **Commercial Nuclear Momentum**: Record $3.9 billion backlog, 14% YoY order growth, and 16%+ sales guidance for 2025. Poland, Bulgaria, and U.S. AP1000 orders could drive >$1.5 billion annual revenue by mid-2030s.

Curtiss-Wright Corporation (CW) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CW

CW fundamentals

You can ask Aime