Company Delivers Record FY24 Sales,
Profitability, EPS, Free Cash Flow and Orders
Curtiss-Wright Corporation (NYSE: CW) reports financial results
for the fourth quarter and full-year ended December 31, 2024.
Fourth Quarter 2024 Highlights:
- Reported sales of $824 million, up 5%, operating income of $155
million, operating margin of 18.8%, and diluted earnings per share
(EPS) of $3.09;
- Adjusted operating income of $163 million;
- Adjusted operating margin of 19.8%;
- Adjusted diluted EPS of $3.27, up 3%;
- Free cash flow (FCF) of $278 million, generating 223% Adjusted
FCF conversion;
- Total share repurchases of $112 million; and
- New orders of $939 million, up 37%, generating a book-to-bill
of 1.1x.
Full-Year 2024 Highlights:
- Reported sales of $3.1 billion, up 10%, operating income of
$529 million, operating margin of 16.9%, and diluted EPS of
$10.55;
- Adjusted operating income of $546 million, up 11%;
- Adjusted operating margin of 17.5%, up 10 basis points;
- Adjusted diluted EPS of $10.90, up 16%;
- FCF of $483 million, generating 116% Adjusted FCF
conversion;
- Total share repurchases of $250 million;
- New orders of $3.7 billion, up 20%, reflecting strong demand in
our Aerospace & Defense (A&D) markets, and book-to-bill of
1.2x; and
- Backlog of $3.4 billion, up 20%.
"Curtiss-Wright concluded the year with a strong, fourth quarter
financial performance that reflected better-than-expected sales
growth, record quarterly Adjusted diluted EPS of $3.27, strong free
cash flow and robust order activity," said Lynn M. Bamford, Chair
and CEO of Curtiss-Wright Corporation.
"We achieved numerous financial records in 2024, while
maintaining our commitment to invest in innovative technologies,
capacity expansion, talent and systems to support our future
growth. Our performance was highlighted by double-digit growth in
sales, operating income and diluted EPS, along with record free
cash flow of $483 million, as we delivered profitable growth while
reducing working capital. We also experienced strong demand across
our Defense and Commercial Aerospace markets, driving record new
orders of $3.7 billion. Our results this past year are a testament
to our teams' strong execution and the momentum we are building in
our Pivot to Growth strategy."
"Looking ahead, our strong backlog at the start of the year,
combined with the alignment of our technologies to favorable
secular growth trends in our end markets, reinforces our confidence
in delivering another strong performance in 2025. We anticipate
total sales growth of 7% to 8%, driven by strong organic growth in
our A&D and Commercial Nuclear markets, and the contribution
from our recently completed acquisition of Ultra Energy. We also
expect to deliver operating margin expansion of 40 to 60 basis
points while increasing our R&D investments, as well as
double-digit EPS growth and strong free cash flow generation. As a
result, we maintain line of sight to the three-year financial
targets that we communicated at our 2024 Investor Day and remain
well-positioned to drive long-term shareholder value."
Fourth Quarter 2024 Operating
Results
(In millions)
Q4-2024
Q4-2023
Change
Reported
Sales
$
824
$
786
5
%
Operating income
$
155
$
161
(4
%)
Operating margin
18.8
%
20.4
%
(160 bps)
Adjusted (1)
Sales
$
824
$
786
5
%
Operating income
$
163
$
163
0
%
Operating margin
19.8
%
20.8
%
(100 bps)
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $824 million increased 5% compared with the prior year
period;
- Total A&D market sales increased 6%, while total Commercial
market sales increased 3%;
- In our A&D markets, we experienced solid growth in the
defense markets principally driven by increased submarine revenues
in naval defense, as well as higher OEM sales in the commercial
aerospace market;
- In our Commercial markets, we experienced solid growth in the
power & process market, principally driven by higher sales of
commercial nuclear products that were partially offset by lower
industrial valve sales in the process market, in addition to lower
sales in the general industrial market; and
- Adjusted operating income was $163 million, essentially flat
compared with the prior year period, while Adjusted operating
margin decreased 100 basis points to 19.8%, as favorable overhead
absorption on overall higher revenues was partially offset by
higher investments in research and development in all three
segments, as well as unfavorable mix in both the Defense
Electronics and Naval & Power segments.
Fourth Quarter 2024 Segment
Performance
Aerospace & Industrial
(In millions)
Q4-2024
Q4-2023
Change
Reported
Sales
$
251
$
238
5
%
Operating income
$
48
$
44
9
%
Operating margin
19.1
%
18.5
%
60 bps
Adjusted (1)
Sales
$
251
$
238
5
%
Operating income
$
54
$
44
22
%
Operating margin
21.3
%
18.5
%
280 bps
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $251 million, up $13 million, or 5%;
- Higher revenue in the aerospace defense market reflected higher
sales for our actuation equipment principally on the F-35 and other
fighter jet programs;
- Commercial aerospace market revenue increases reflected
increased demand and higher OEM sales of sensors products and
surface treatment services on narrowbody and widebody
platforms;
- Lower general industrial market revenue was principally driven
by reduced sales of industrial vehicle products serving off-highway
and specialty vehicle platforms; and
- Adjusted operating income was $54 million, up 22%, reflecting a
strong Adjusted operating margin up 280 basis points to 21.3%, as
favorable absorption on higher revenues and the benefits of our
restructuring and cost containment initiatives were partially
offset by higher investment in research and development.
Defense Electronics
(In millions)
Q4-2024
Q4-2023
Change
Reported
Sales
$
227
$
240
(5
%)
Operating income
$
55
$
69
(21
%)
Operating margin
24.1
%
28.8
%
(470 bps)
Adjusted (1)
Sales
$
227
$
240
(5
%)
Operating income
$
55
$
69
(20
%)
Operating margin
24.3
%
28.8
%
(450 bps)
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $227 million, down $12 million, or 5%;
- Higher revenue in the aerospace defense market was principally
driven by increased sales of flight test instrumentation
equipment;
- Ground defense market revenue declines principally reflected
the timing of sales of embedded computing equipment on the Stryker
ground combat vehicle;
- Lower revenue in the naval defense market reflected the timing
of sales of embedded computing equipment supporting various
domestic and international programs; and
- Adjusted operating income was $55 million, down 20% from the
prior year period, while Adjusted operating margin decreased 450
basis points to 24.3%, primarily due to unfavorable absorption on
lower defense revenues, unfavorable mix of products, and higher
investment in research and development.
Naval & Power
(In millions)
Q4-2024
Q4-2023
Change
Reported
Sales
$
346
$
308
12
%
Operating income
$
65
$
57
15
%
Operating margin
18.8
%
18.5
%
30 bps
Adjusted (1)
Sales
$
346
$
308
12
%
Operating income
$
66
$
59
11
%
Operating margin
19.1
%
19.3
%
(20 bps)
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $346 million, up $38 million, or 12%;
- Revenue growth in the naval defense market was stronger than
anticipated principally driven by higher demand and timing of
revenues on the Virginia-class and Columbia-class submarine
programs, in addition to higher growth for aircraft handling
systems to international customers;
- Lower revenue in the aerospace defense market principally
reflected the timing of sales of arresting systems equipment
supporting various international customers;
- Higher power & process market revenues mainly reflected
increased commercial nuclear aftermarket sales supporting the
maintenance of U.S. operating reactors. Those increases were
partially offset by lower industrial valve sales in the process
market; and
- Adjusted operating income was $66 million, up 11% from the
prior year period, while Adjusted operating margin decreased 20
basis points to 19.1%, as favorable absorption on higher revenues
was partially offset by unfavorable mix of products and higher
investment in research and development.
Free Cash Flow
(In millions)
Q4-2024
Q4-2023
Change
Net cash provided by operating
activities
$
301
$
282
7
%
Capital expenditures
(23
)
(13
)
84
%
Reported free cash flow
$
278
$
270
3
%
Adjusted free cash flow (1)
$
278
$
270
3
%
(1) A reconciliation of Reported to
Adjusted free cash flow is available in the Appendix.
- Reported free cash flow of $278 million increased $8 million,
primarily due to the timing of customer advances driving improved
working capital partially offset by higher capital
investments;
- Adjusted free cash flow of $278 million increased $8 million;
and
- Capital expenditures increased approximately $11 million
compared with the prior year period, primarily due to higher growth
investments within the Naval & Power segment.
New Orders and Backlog
- New orders of $939 million increased 37% in the fourth quarter,
principally reflecting strong demand across our A&D
markets;
- Full-year 2024 new orders of $3.7 billion increased 20% and
generated an overall book-to-bill of approximately 1.2x, reflecting
strong growth within our A&D markets as well as solid demand
for commercial nuclear products within our Commercial markets;
and
- Backlog of $3.4 billion, up 20% from December 31, 2023.
Share Repurchase and Dividends
- During the fourth quarter, the Company repurchased
approximately 311,000 shares of its common stock for approximately
$112 million;
- During full-year 2024, the Company repurchased approximately
766,000 shares for $250 million; and
- The Company also declared a quarterly dividend of $0.21 a
share.
Full-Year 2025 Guidance
The Company's full-year 2025 financial guidance(1) is as
follows:
($ in millions, except EPS)
2025 Guidance
% Chg vs 2024 Adjusted
Total Sales
$3,335 - $3,385
7 - 8%
Operating Income
$598 - $613
10 - 12%
Operating Margin
17.9% - 18.1%
40 - 60 bps
Diluted EPS
$12.10 - $12.40
11 - 14%
Free Cash Flow(2)
$485 - $505
0 - 4%
(1) Reconciliations of Reported to
Adjusted 2024 operating results and 2025 financial guidance are
available in the Appendix and exclude first-year purchase
accounting costs associated with prior-year acquisitions.
(2) 2025 Free Cash Flow guidance includes
higher capital expenditures supporting growth and efficiency
(reflecting a $14 to $24 million year-over-year increase compared
with 2024 results) and the timing of prior year record customer
advances.
**********
A more detailed breakdown of the Company’s 2025 financial
guidance by segment and by market, as well as all reconciliations
of Reported GAAP amounts to Adjusted non-GAAP amounts, can be found
in the accompanying schedules. Historical financial results are
available in the Investor Relations section of Curtiss-Wright’s
website.
Conference Call & Webcast
Information
The Company will host a conference call to discuss fourth
quarter and full-year 2024 financial results and expectations for
2025 guidance at 11:00 a.m. ET on Thursday, February 13, 2025. A
live webcast of the call and the accompanying financial
presentation, as well as a webcast replay of the call, will be made
available on the internet by visiting the Investor Relations
section of the Company’s website at www.curtisswright.com.
(Tables to Follow)
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
EARNINGS (UNAUDITED)
($'s in thousands, except per
share data)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Product sales
$
698,626
$
667,879
$
2,639,953
$
2,389,711
Service sales
125,687
117,912
481,236
455,662
Total net sales
824,313
785,791
3,121,189
2,845,373
Cost of product sales
437,801
414,010
1,690,574
1,507,480
Cost of service sales
69,082
67,051
277,066
270,715
Total cost of sales
506,883
481,061
1,967,640
1,778,195
Gross profit
317,430
304,730
1,153,549
1,067,178
Research and development expenses
25,781
20,066
91,647
85,764
Selling expenses
36,158
36,306
145,360
137,088
General and administrative expenses
92,405
87,664
373,497
359,724
Restructuring expenses
8,250
—
14,448
—
Operating income
154,836
160,694
528,597
484,602
Interest expense
11,675
10,961
44,869
51,393
Other income, net
10,034
7,117
38,328
29,861
Earnings before income taxes
153,195
156,850
522,056
463,070
Provision for income taxes
(35,343
)
(36,963
)
(117,078
)
(108,561
)
Net earnings
$
117,852
$
119,887
$
404,978
$
354,509
Basic earnings per share
$
3.11
$
3.14
$
10.61
$
9.26
Diluted earnings per share
$
3.09
$
3.11
$
10.55
$
9.20
Dividends per share
$
0.21
$
0.20
$
0.83
$
0.79
Weighted average shares outstanding:
Basic
37,874
38,232
38,153
38,283
Diluted
38,137
38,505
38,373
38,529
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
($'s in thousands, except par
value)
December 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
385,042
$
406,867
Receivables, net
835,037
732,678
Inventories, net
541,442
510,033
Other current assets
88,073
67,502
Total current assets
1,849,594
1,717,080
Property, plant, and equipment, net
339,118
332,796
Goodwill
1,675,718
1,558,826
Other intangible assets, net
596,831
557,612
Operating lease right-of-use assets,
net
169,350
141,435
Prepaid pension asset
299,130
261,869
Other assets
55,963
51,351
Total assets
$
4,985,704
$
4,620,969
Liabilities
Current liabilities:
Current portion of long-term and
short-term debt
$
90,000
$
—
Accounts payable
247,185
243,833
Accrued expenses
219,054
188,039
Deferred revenue
459,421
303,872
Other current liabilities
80,288
70,800
Total current liabilities
1,095,948
806,544
Long-term debt
958,949
1,050,362
Deferred tax liabilities
140,659
132,319
Accrued pension and other postretirement
benefit costs
67,413
66,875
Long-term operating lease liability
148,175
118,611
Other liabilities
124,761
117,845
Total liabilities
$
2,535,905
$
2,292,556
Stockholders' equity
Common stock, $1 par value
$
49,187
$
49,187
Additional paid in capital
147,940
140,182
Retained earnings
3,861,073
3,487,751
Accumulated other comprehensive loss
(243,225
)
(213,223
)
Less: cost of treasury stock
(1,365,176
)
(1,135,484
)
Total stockholders' equity
2,449,799
2,328,413
Total liabilities and stockholders'
equity
$
4,985,704
$
4,620,969
Use and Definitions of Non-GAAP Financial Information
(Unaudited)
The Corporation supplements its financial information determined
under U.S. generally accepted accounting principles (GAAP) with
certain non-GAAP financial information. Curtiss-Wright believes
that these Adjusted (non-GAAP) measures provide investors with
improved transparency in order to better measure Curtiss-Wright’s
ongoing operating and financial performance and better comparisons
of our key financial metrics to our peers. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. Curtiss-Wright encourages investors to review its
financial statements and publicly filed reports in their entirety
and not to rely on any single financial measure. Reconciliations of
“Reported” GAAP amounts to “Adjusted” non-GAAP amounts are
furnished within this release.
The following definitions are provided:
Adjusted Operating Income, Operating
Margin, Net Earnings and Diluted EPS
These Adjusted financials are defined as Reported Operating
Income, Operating Margin, Net Earnings and Diluted Earnings per
Share under GAAP excluding: (i) the impact of first year purchase
accounting costs associated with acquisitions, specifically
one-time inventory step-up, backlog amortization, deferred revenue
adjustments and transaction costs; (ii) costs associated with the
Company's 2024 Restructuring Program; and (iii) the sale or
divestiture of a business or product line, as applicable.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
TO ADJUSTED (UNAUDITED)
($'s in thousands)
Three Months Ended
Three Months Ended
December 31, 2024
December 31, 2023
% Change
As Reported
Adjustments
Adjusted
As Reported
Adjustments
Adjusted
As Reported
Adjusted
Sales:
Aerospace & Industrial
$
250,917
$
—
$
250,917
$
238,224
$
—
$
238,224
5%
5%
Defense Electronics
227,475
—
227,475
239,751
—
239,751
(5)%
(5)%
Naval & Power
345,921
—
345,921
307,816
—
307,816
12%
12%
Total sales
$
824,313
$
—
$
824,313
$
785,791
$
—
$
785,791
5%
5%
Operating income
(expense):
Aerospace & Industrial(3)
$
47,876
$
5,694
$
53,570
$
44,054
$
—
$
44,054
9%
22%
Defense Electronics(3)
54,775
587
55,362
69,015
—
69,015
(21)%
(20)%
Naval & Power(1)(2)(3)
65,150
962
66,112
56,845
2,529
59,374
15%
11%
Total segments
$
167,801
$
7,243
$
175,044
$
169,914
$
2,529
$
172,443
(1)%
2%
Corporate and other(3)
(12,965
)
1,414
(11,551
)
(9,221
)
—
(9,221
)
(41)%
(25)%
Total operating income
$
154,836
$
8,657
$
163,493
$
160,693
$
2,529
$
163,222
(4)%
—%
Operating
margins:
As Reported
Adjusted
As Reported
Adjusted
As Reported
Adjusted
Aerospace & Industrial
19.1
%
21.3
%
18.5
%
18.5
%
60 bps
280 bps
Defense Electronics
24.1
%
24.3
%
28.8
%
28.8
%
(470 bps)
(450 bps)
Naval & Power
18.8
%
19.1
%
18.5
%
19.3
%
30 bps
(20 bps)
Total Curtiss-Wright
18.8
%
19.8
%
20.4
%
20.8
%
(160 bps)
(100 bps)
Segment margins
20.4
%
21.2
%
21.6
%
21.9
%
(120 bps)
(70 bps)
(1) Excludes first year purchase
accounting adjustments in both the current and prior year
periods.
(2) Excludes trailing costs in the prior
year period associated with the divestiture of our German valves
business.
(3) Excludes costs associated with the
Company's 2024 Restructuring Program in the current period.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
TO ADJUSTED (UNAUDITED)
($'s in thousands)
Year Ended
Year Ended
December 31, 2024
December 31, 2023
% Change
As Reported
Adjustments
Adjusted
As Reported
Adjustments
Adjusted
As Reported
Adjusted
Sales:
Aerospace & Industrial
$
932,133
$
—
$
932,133
$
887,228
$
—
$
887,228
5%
5%
Defense Electronics
910,706
—
910,706
815,912
—
815,912
12%
12%
Naval & Power
1,278,350
—
1,278,350
1,142,233
—
1,142,233
12%
12%
Total sales
$
3,121,189
$
—
$
3,121,189
$
2,845,373
$
—
$
2,845,373
10%
10%
Operating income
(expense):
Aerospace & Industrial(3)
$
148,023
$
10,239
$
158,262
$
145,278
$
—
$
145,278
2%
9%
Defense Electronics(3)
224,739
1,929
226,668
191,775
—
191,775
17%
18%
Naval & Power (1)(2)(3)
199,663
2,063
201,726
189,227
9,198
198,425
6%
2%
Total segments
$
572,425
$
14,231
$
586,656
$
526,280
$
9,198
$
535,478
9%
10%
Corporate and other(3)
(43,828
)
3,038
(40,790
)
(41,678
)
—
(41,678
)
(5)%
2%
Total operating income
$
528,597
$
17,269
$
545,866
$
484,602
$
9,198
$
493,800
9%
11%
Operating
margins:
As Reported
Adjusted
As Reported
Adjusted
As Reported
Adjusted
Aerospace & Industrial
15.9
%
17.0
%
16.4
%
16.4
%
(50 bps)
60 bps
Defense Electronics
24.7
%
24.9
%
23.5
%
23.5
%
120 bps
140 bps
Naval & Power
15.6
%
15.8
%
16.6
%
17.4
%
(100 bps)
(160 bps)
Total Curtiss-Wright
16.9
%
17.5
%
17.0
%
17.4
%
(10 bps)
10 bps
Segment margins
18.3
%
18.8
%
18.5
%
18.8
%
(20 bps)
— bps
(1) Excludes first year purchase
accounting adjustments in both the current and prior year
periods.
(2) Excludes trailing costs in the prior
year period associated with the divestiture of our German valves
business.
(3) Excludes costs associated with the
Company's 2024 Restructuring Program in the current period.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED)
($'s in thousands)
Three Months Ended
Three Months Ended
December 31, 2024
December 31, 2023
% Change
As Reported
Adjustments
Adjusted Sales
As Reported
Adjustments
Adjusted Sales
Change in As Reported
Sales
Change in Adjusted
Sales
Aerospace & Defense
markets:
Aerospace Defense
$
171,432
$
—
$
171,432
$
171,527
$
—
$
171,527
0
%
0
%
Ground Defense
84,654
—
84,654
87,691
—
87,691
(3
%)
(3
%)
Naval Defense
216,894
—
216,894
187,240
—
187,240
16
%
16
%
Commercial Aerospace
98,318
—
98,318
92,723
—
92,723
6
%
6
%
Total Aerospace & Defense
$
571,298
$
—
$
571,298
$
539,181
$
—
$
539,181
6
%
6
%
Commercial markets:
Power & Process
$
146,772
$
—
$
146,772
$
136,541
$
—
$
136,541
7
%
7
%
General Industrial
106,243
—
106,243
110,069
—
110,069
(3
%)
(3
%)
Total Commercial
$
253,015
$
—
$
253,015
$
246,610
$
—
$
246,610
3
%
3
%
Total Curtiss-Wright
$
824,313
$
—
$
824,313
$
785,791
$
—
$
785,791
5
%
5
%
Year Ended
Year Ended
December 31, 2024
December 31, 2023
% Change
As Reported
Adjustments
Adjusted Sales
As Reported
Adjustments
Adjusted Sales
Change in As Reported
Sales
Change in Adjusted
Sales
Aerospace & Defense
markets:
Aerospace Defense
$
616,590
$
—
$
616,590
$
551,622
$
—
$
551,622
12
%
12
%
Ground Defense
353,326
—
353,326
308,008
—
308,008
15
%
15
%
Naval Defense
821,898
—
821,898
720,013
—
720,013
14
%
14
%
Commercial Aerospace
378,086
—
378,086
324,949
—
324,949
16
%
16
%
Total Aerospace & Defense
$
2,169,900
$
—
$
2,169,900
$
1,904,592
$
—
$
1,904,592
14
%
14
%
Commercial markets:
Power & Process
$
540,788
$
—
$
540,788
$
509,998
$
—
$
509,998
6
%
6
%
General Industrial
410,501
—
410,501
430,783
—
430,783
(5
%)
(5
%)
Total Commercial
$
951,289
$
—
$
951,289
$
940,781
$
—
$
940,781
1
%
1
%
Total Curtiss-Wright
$
3,121,189
$
—
$
3,121,189
$
2,845,373
$
—
$
2,845,373
10
%
10
%
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Diluted earnings per share - As
Reported
$
3.09
$
3.11
$
10.55
$
9.20
First year purchase accounting
adjustments
0.01
0.02
0.04
0.15
Divested German valves business
—
0.03
—
0.03
Restructuring expenses
0.17
—
0.31
—
Diluted earnings per share - Adjusted
(1)
$
3.27
$
3.16
$
10.90
$
9.38
(1) All adjustments are presented net of
income taxes.
Organic Sales and Organic Operating
Income
The Corporation discloses organic sales and organic operating
income because the Corporation believes it provides investors with
insight as to the Company’s ongoing business performance. Organic
sales and organic operating income are defined as sales and
operating income, excluding contributions from acquisitions and
results of operations from divested businesses or product lines
during the last twelve months, costs associated with the Company's
2024 Restructuring Program, and foreign currency fluctuations.
Three Months Ended
December 31,
2024 vs. 2023
Aerospace &
Industrial
Defense Electronics
Naval & Power
Total Curtiss-Wright
Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
As Reported
5%
9%
(5%)
(21%)
12%
15%
5%
(4%)
Less: Acquisitions
0%
0%
0%
0%
0%
1%
0%
0%
Restructuring
0%
13%
0%
1%
0%
(1%)
0%
5%
Foreign currency
0%
(2%)
0%
0%
0%
(2%)
0%
(1%)
Organic
5%
20%
(5%)
(20%)
12%
13%
5%
0%
Year Ended
December 31,
2024 vs. 2023
Aerospace &
Industrial
Defense Electronics
Naval & Power
Total Curtiss-Wright
Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
As Reported
5%
2%
12%
17%
12%
6%
10%
9%
Less: Acquisitions
0%
0%
0%
0%
(1%)
0%
0%
0%
Restructuring
0%
7%
0%
1%
0%
0%
0%
3%
Foreign currency
0%
(1%)
0%
0%
0%
(1%)
(1%)
0%
Organic
5%
8%
12%
18%
11%
5%
9%
12%
Free Cash Flow and Free Cash Flow
Conversion
The Corporation discloses free cash flow because it measures
cash flow available for investing and financing activities. Free
cash flow represents cash available to repay outstanding debt,
invest in the business, acquire businesses, return capital to
shareholders and make other strategic investments. Free cash flow
is defined as net cash provided by operating activities less
capital expenditures. Adjusted free cash flow excludes payments
associated with the Westinghouse legal settlement in the prior year
period. The Corporation discloses adjusted free cash flow
conversion because it measures the proportion of net earnings
converted into free cash flow and is defined as adjusted free cash
flow divided by adjusted net earnings.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
NON-GAAP FINANCIAL DATA
(UNAUDITED)
($'s in thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
301,299
$
282,372
$
544,275
$
448,089
Capital expenditures
(23,271
)
(12,629
)
(60,974
)
(44,666
)
Free cash flow
$
278,028
$
269,743
$
483,301
$
403,423
Westinghouse legal settlement
—
—
—
10,000
Adjusted free cash flow
$
278,028
$
269,743
$
483,301
$
413,423
Adjusted free cash flow conversion
223
%
221
%
116
%
114
%
CURTISS-WRIGHT
CORPORATION
2025 Guidance
As of February 12,
2025
($'s in millions, except per
share data)
2024 Reported
(GAAP)
2024
Adjustments
(Non- GAAP)(1)
2024 Adjusted
(Non- GAAP)(1)
2025 Reported
Guidance (GAAP)
2025
Adjustments
(Non- GAAP)(2)
2025 Adjusted
Guidance (Non-GAAP)(2)
Low
High
Low
High
2025 Chg vs 2024
Adjusted
Sales:
Aerospace & Industrial
$
932
$
—
$
932
$
960
$
975
$
—
$
960
$
975
3 - 5%
Defense Electronics
911
—
911
975
990
—
975
990
7 - 9%
Naval & Power
1,278
—
1,278
1,400
1,420
—
1,400
1,420
10 - 11%
Total sales
$
3,121
$
—
$
3,121
$
3,335
$
3,385
$
—
$
3,335
$
3,385
7 - 8%
Operating income:
Aerospace & Industrial
$
148
$
10
$
158
$
164
$
169
$
3
$
167
$
172
5 - 8%
Defense Electronics
225
2
227
244
250
—
244
250
8 - 10%
Naval & Power
200
2
202
217
223
11
228
234
13 - 16%
Total segments
572
15
587
624
641
14
638
655
Corporate and other
(44
)
3
(41
)
(40
)
(42
)
—
(40
)
(42
)
Total operating income
$
529
$
17
$
546
$
584
$
599
$
14
$
598
$
613
10 - 12%
Interest expense
$
(45
)
$
—
$
(45
)
$
(42
)
$
(43
)
$
—
$
(42
)
$
(43
)
Other income, net
38
—
38
33
34
—
33
34
Earnings before income taxes
522
17
539
$
575
$
590
$
14
589
603
Provision for income taxes
(117
)
(4
)
(121
)
(127
)
(130
)
(3
)
(130
)
(133
)
Net earnings
$
405
$
13
$
418
$
448
$
460
$
11
$
459
$
470
Diluted earnings per share
$
10.55
$
0.35
$
10.90
$
11.80
$
12.10
$
0.30
$
12.10
$
12.40
11 - 14%
Diluted shares outstanding
38.4
38.4
37.9
37.9
37.9
37.9
Effective tax rate
22.4
%
22.4
%
22.0
%
22.0
%
22.0
%
22.0
%
Operating margins:
Aerospace & Industrial
15.9
%
17.0
%
17.1
%
17.3
%
17.4
%
17.6
%
40 - 60 bps
Defense Electronics
24.7
%
24.9
%
25.0
%
25.2
%
25.0
%
25.2
%
10 - 30 bps
Naval & Power
15.6
%
15.8
%
15.5
%
15.7
%
16.3
%
16.5
%
50 - 70 bps
Total operating margin
16.9
%
17.5
%
17.5
%
17.7
%
17.9
%
18.1
%
40 - 60 bps
Free cash flow(3)
$
483
$
—
$
483
$
485
$
505
$
—
$
485
$
505
0 - 4%
Notes: Amounts may not add due to
rounding.
(1) 2024 Adjusted financials are
defined as Reported Operating Income, Operating Margin, Net Income
and Diluted EPS under GAAP excluding costs associated with the
Company's 2024 Restructuring Program and the impact of first year
purchase accounting adjustments.
(2) 2025 Adjusted financials are
defined as Reported Operating Income, Operating Margin, Net Income
and Diluted EPS under GAAP excluding costs associated with the
Company's 2024 Restructuring Program and the impact of first year
purchase accounting adjustments.
(3) Free Cash Flow is defined as
cash flow from operations less capital expenditures. 2025 Free Cash
Flow guidance includes higher capital expenditures supporting
growth and efficiency (reflecting a $14 to $24 million
year-over-year increase compared with 2024 results) and the timing
of prior year record customer advances.
CURTISS-WRIGHT
CORPORATION
2025 Sales Growth Guidance by
End Market
As of February 12,
2025
2025 % Change vs. 2024
Adjusted
% Total Sales
Aerospace &
Defense Markets
Aerospace Defense
6 - 8%
20%
Ground Defense
3 - 5%
11%
Naval Defense
3 - 5%
25%
Commercial Aerospace
10 - 12%
13%
Total Aerospace & Defense
5 - 7%
69%
Commercial
Markets
Power & Process
16 - 18%
19%
General Industrial
Flat
12%
Total Commercial
9 - 11%
31%
Total Curtiss-Wright Sales
7 - 8%
100%
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global integrated
business that provides highly engineered products, solutions and
services mainly to Aerospace & Defense markets, as well as
critical technologies in demanding Commercial Power, Process and
Industrial markets. We leverage a workforce of approximately 8,800
highly skilled employees who develop, design and build what we
believe are the best engineered solutions to the markets we serve.
Building on the heritage of Glenn Curtiss and the Wright brothers,
Curtiss-Wright has a long tradition of providing innovative
solutions through trusted customer relationships. For more
information, visit www.curtisswright.com.
###
Certain statements made in this press release, including
statements about future revenue, financial performance guidance,
quarterly and annual revenue, net income, operating income growth,
future business opportunities, cost saving initiatives, the
successful integration of the Company’s acquisitions, and future
cash flow from operations, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements present management's expectations, beliefs,
plans and objectives regarding future financial performance, and
assumptions or judgments concerning such performance. Any
discussions contained in this press release, except to the extent
that they contain historical facts, are forward-looking and
accordingly involve estimates, assumptions, judgments and
uncertainties. Such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those expressed or implied. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Such risks and
uncertainties include, but are not limited to: a reduction in
anticipated orders; an economic downturn; changes in the
competitive marketplace and/or customer requirements; a change in
government spending; an inability to perform customer contracts at
anticipated cost levels; and other factors that generally affect
the business of aerospace, defense contracting, electronics,
marine, and industrial companies. Such factors are detailed in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2024, and subsequent reports filed with the Securities
and Exchange Commission.
This press release and additional information are available at
www.curtisswright.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250212441247/en/
Jim Ryan (704) 869-4621 Jim.Ryan@curtisswright.com
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