Core Viewpoint - Curtiss-Wright Corporation has secured a significant defense contract with Boeing to supply mission computer technology for the U.S. Air Force's C-17 Globemaster III fleet modernization program, with an estimated lifetime value exceeding $400 million [2][4]. Group 1: Contract Details - The contract involves providing mission computer technology for the C-17 Flight Deck Obsolescence and Technology Refresh program [2]. - The estimated lifetime value of the contract is over $400 million [2]. Group 2: Deliverables - Curtiss-Wright will deliver Modular Open Systems Approach (MOSA)-aligned mission computers for integration into the C-17 aircraft fleet [3]. - The systems are designed to enhance computing performance and support the U.S. Air Force and allied partners throughout the aircraft's planned service life [3]. Group 3: Management Commentary - Lynn M. Bamford, Chair and CEO of Curtiss-Wright, emphasized the importance of their rugged, modular mission computing technology in supporting the long-term readiness of the C-17, which is vital for global logistics and mobility operations [4]. - The scalable, MOSA-aligned solution is intended to adapt to future mission needs, ensuring availability and performance for decades [4]. Group 4: Strategic Context - The C-17 has been a cornerstone of U.S. Air Force strategic airlift operations since the early 1990s, crucial for global transport [4]. - The work will be conducted within Curtiss-Wright's Defense Electronics segment [4]. Group 5: Price Action - Curtiss-Wright shares increased by 1.48%, reaching $658.92 at the time of publication [5].

Industry Overview - The Zacks Aerospace sector's fourth-quarter 2025 earnings are expected to rise by 51.6% with revenues increasing by 17.3% due to strong order activity, rising geopolitical tensions, solid defense spending, and a recovery in commercial aerospace [1] Defense Stocks Performance - U.S. defense stocks are anticipated to perform well in the fourth quarter, driven by heightened geopolitical tensions that encourage governments to maintain or expand defense spending [4] - Increased order inflows and long-term contract awards are expected, particularly for companies focused on advanced technologies such as artificial intelligence and cyber security [5] - Companies with exposure to commercial aerospace are likely to benefit from the recovery in global air travel, which supports demand for aircraft and related components [6] Challenges - Persistent challenges such as skilled labor shortages and supply-chain disruptions may partially offset the positive performance of defense companies [7] Potential Defense Outperformers - **BWX Technologies**: Expected to benefit from its role as a supplier of nuclear reactors and fuel for U.S. Navy submarines, with a consensus estimate of 91 cents per share, a decrease of 1.1% year-over-year, and an Earnings ESP of +4.71% [8][9] - **Curtiss-Wright**: Anticipated to gain from strong demand for defense technologies, with a consensus estimate of $3.66 per share, an increase of 11.9% year-over-year, and an Earnings ESP of +0.67% [10][11] - **CAE Inc.**: Expected to benefit from solid utilization rates in aviation training, with a consensus estimate of 22 cents per share, an increase of 4.8% year-over-year, and an Earnings ESP of +0.57% [12][13] - **Rocket Lab Corporation**: Demonstrated high operational reliability with 21 successful launches, expected to positively impact earnings, with a consensus estimate of a loss of 5 cents per share, an improvement of 50% year-over-year, and an Earnings ESP of +4.76% [14][15]

Core Viewpoint - Curtiss-Wright Corporation has been selected by Boeing to provide mission computer technology for the U.S. Air Force's C-17 Globemaster III Flight Deck Obsolescence and Technology Refresh program, with a contract value exceeding $400 million [1]. Group 1: Contract Details - The contract aims to extend the operational life and capability of the C-17, a critical airlift platform for the military [1]. - Curtiss-Wright will supply Modular Open Systems Approach (MOSA)-aligned mission computers for integration into the C-17 aircraft fleet, enhancing computing performance and technology insertion [2][3]. Group 2: Company Insights - Lynn M. Bamford, Chair and CEO of Curtiss-Wright, emphasized the importance of their rugged, modular mission computing technology in supporting the long-term readiness of the C-17 [2][3]. - The C-17 has been a cornerstone of the U.S. Air Force's strategic airlift since the early 1990s, crucial for transporting heavy equipment, vehicles, and troops [3]. Group 3: Company Background - Curtiss-Wright Corporation is a global integrated business providing engineered products and solutions primarily to Aerospace & Defense markets, employing approximately 9,100 skilled employees [5].

Core Insights - Curtiss-Wright Corporation is a global company focused on engineered products and services for the Aerospace and Defense sectors [1] Financial Performance - The company declared a quarterly dividend of $0.24 per share, payable on April 13, 2026, to shareholders recorded by March 26, 2026, reflecting its commitment to returning value to shareholders [2] - The price-to-earnings (P/E) ratio is approximately 50, indicating strong investor confidence in future earnings potential [3] - The price-to-sales ratio is about 6.9, suggesting investors pay $6.90 for every $1 of sales [3] - The enterprise value to sales ratio is around 7.17, reflecting the company's valuation in relation to its sales [4] - The enterprise value to operating cash flow ratio is approximately 40.91, indicating the company's valuation compared to its cash flow from operations [4] - The earnings yield is about 2%, representing the percentage of each dollar invested that was earned by the company [4] - The debt-to-equity ratio is approximately 0.45, indicating a moderate level of debt compared to equity, suggesting a balanced financing approach [5] - The current ratio is about 1.75, showing the company's strong ability to cover short-term liabilities with short-term assets, highlighting its financial stability [5]

Core Viewpoint - Curtiss-Wright Corporation has declared a quarterly dividend of $0.24 per share, reflecting its commitment to returning value to shareholders [1] Company Summary - Curtiss-Wright Corporation operates as a global integrated business, primarily serving the Aerospace & Defense markets with highly engineered products, solutions, and services [1]

Core Insights - Rising global security threats are leading to increased defense spending, attracting investor interest in defense companies like Kratos Defense & Security Solutions, Inc. (KTOS) and Curtiss-Wright (CW) [1][2] Group 1: Company Positioning - KTOS and CW are positioned to benefit from sustained increases in U.S. and allied defense budgets, focusing on modernization and advanced military systems [2] - KTOS specializes in unmanned systems, space technologies, and missile defense, while CW provides high-value engineered components and control systems critical to defense and aerospace [2] Group 2: Company Developments - KTOS is expanding its manufacturing capacity with a new 55,000-square-foot hypersonic system facility in Maryland, enhancing production and testing capabilities [4] - KTOS is also expanding its operations in Alabama with a new 40,000-square-foot facility to meet growing defense demand [5] - CW is collaborating with Green Hills Software to develop a high-performance safety-certifiable COTS computing solution, enhancing its avionics and aerospace market position [6] - CW's PacStar tactical edge servers have been validated for Azure Local, expanding its market in hybrid cloud and edge computing [7] Group 3: Financial Estimates - The Zacks Consensus Estimate for KTOS's 2026 earnings per share (EPS) indicates a year-over-year increase of 41.92% [8] - The Zacks Consensus Estimate for CW's 2026 EPS indicates a year-over-year increase of 11.21% [10] Group 4: Valuation and Debt - KTOS shares trade at a forward Price/Sales (P/S F12M) ratio of 12.28X, while CW's ratio is 6.57X [12] - KTOS currently has no debt, whereas CW has a total debt to capital ratio of 27.69% [13] Group 5: Stock Performance - Over the past three months, KTOS shares have risen by 32.9%, while CW shares have increased by 12.2% [14] Group 6: Investment Preference - Current preference leans towards KTOS due to stronger earnings growth, superior debt management, and better price performance compared to CW [15][16]

Core Insights - Curtiss-Wright and Green Hills Software have launched a new high-performance commercial off-the-shelf (COTS) solution aimed at enhancing safety-certifiable computing for aerospace applications [1] - The integrated platform combines Curtiss-Wright's V3-1222 3U VPX processing module with Green Hills Software's INTEGRITY-178 tuMP real-time operating system, facilitating the deployment of advanced multicore systems in safety-critical environments [1][2] Company Overview - Curtiss-Wright is a global integrated business providing engineered products and services primarily to Aerospace & Defense markets, with a workforce of approximately 9,000 employees [5][6] - Green Hills Software, founded in 1982, is a leader in embedded safety and security, known for its INTEGRITY-178B RTOS, which was the first operating system certified to EAL 6+, the highest level of security for software products [7] Product Features - The V3-1222 module features the 13th Gen Intel® Core™ i7 processor, which includes six performance cores and eight efficient cores, along with integrated Intel® Iris® Xe graphics [2] - The INTEGRITY-178 tuMP RTOS supports both bound multi-processing and symmetric multi-processing, allowing for optimized workload management across different core types [2] - The solution is designed to meet high Design Assurance Level (DAL A) certification objectives, ensuring compliance with relevant safety standards [2][3] Collaboration and Historical Context - The partnership between Curtiss-Wright and Green Hills Software builds on a long history of collaboration focused on Intel processor-based safety-certifiable platforms, enhancing processing power and graphics capabilities while adhering to safety requirements [3]

Group 1 - U.S. defense stocks saw a significant pre-market surge, with Northrop Grumman (NOC.US) rising nearly 8%, Lockheed Martin (LMT.US) over 6%, and Raytheon Technologies (RTX.US) over 3% [1] - President Trump proposed increasing the U.S. military budget for fiscal year 2027 from $1 trillion to $1.5 trillion, emphasizing the need for a stronger military amid current global tensions [1] - The geopolitical landscape is expected to dominate global affairs this year, with indications of U.S. military actions in Venezuela and potential military involvement regarding Greenland [1]

Core Insights - The AI-driven bull run of 2023 and 2024 has continued into 2025, with significant interest in old economy stocks from sectors such as industrials, finance, auto, materials, and construction [1][2] Company Summaries Wells Fargo & Co. (WFC) - Wells Fargo has consistently surpassed earnings estimates in the last four quarters, benefiting from the Federal Reserve's removal of a $1.95 trillion asset cap, which allows for growth in deposits, loans, and fee-based services [6][7] - The bank's expected revenue and earnings growth rates for the current year are 5.4% and 11.7%, respectively, with a 0.7% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [8] MasTec Inc. (MTZ) - MasTec is positioned to benefit from a surge in infrastructure spending related to AI data centers and electrification trends, with an expected revenue growth rate of 8.4% and earnings growth rate of 28.3% for the current year [11][13] - The company operates in four segments: Communications, Power Delivery, Pipeline Infrastructure, and Clean Energy and Infrastructure, all of which are experiencing growth due to increased infrastructure spending [12][13] Curtiss-Wright Corp. (CW) - Curtiss-Wright is benefiting from the global shift towards alternative energy, particularly in nuclear power, and has an expected revenue growth rate of 6.9% and earnings growth rate of 11.6% for the current year [14][16] - The company plays a significant role in the construction of new nuclear power plants, which is expected to drive long-term growth in commercial nuclear energy [15] Leidos Holdings Inc. (LDOS) - Leidos Holdings has a solid backlog of $47.66 billion, driven by increased orders from the Pentagon and other U.S. allies, which enhances its revenue-generation prospects [17] - The expected revenue and earnings growth rates for the current year are 3.4% and 4.8%, respectively, with a slight improvement in the Zacks Consensus Estimate for earnings over the last 30 days [19] Parker-Hannifin Corp. (PH) - Parker-Hannifin is experiencing steady demand in both commercial and military markets, with its Aerospace Systems segment revenues increasing approximately 13.3% year over year in the first quarter of fiscal 2026 [20][21] - The expected revenue and earnings growth rates for the current year are 6.1% and 10.6%, respectively, with a minor improvement in the Zacks Consensus Estimate for earnings over the last 30 days [23]

Company Overview - Curtiss-Wright Corporation is an engineering company with historical ties to the Wright Brothers, currently focusing on complex components and systems primarily for the aerospace and defense sectors [1]. Market Position - The company has a current market presence that reflects its specialization in the aerospace and defense industry, indicating a strong foothold in these critical sectors [1].