Sales Performance - Total sales for Q3 2025 increased by $70 million, or 9%, to $869 million compared to Q3 2024, with segment increases of $19 million in Aerospace & Industrial, $10 million in Defense Electronics, and $41 million in Naval & Power [100]. - For the nine months ended September 30, 2025, total sales rose by $255 million, or 11%, to $2,551 million, driven by increases of $33 million in Aerospace & Industrial, $68 million in Defense Electronics, and $154 million in Naval & Power [101]. - Sales for the three months ended September 30, 2025, increased by $19 million, or 8%, to $248 million compared to the prior year period [115]. - Sales in the Defense Electronics segment for the three months ended September 30, 2025, increased by $10 million, or 4%, to $253 million [124]. - Sales in the Naval & Power segment for the three months ended September 30, 2025, increased by $41 million, or 12%, to $368 million [133]. - Sales in the commercial aerospace market increased by $12 million in the third quarter, primarily due to higher demand for actuation equipment and sensors [115]. - Sales for the nine months ended September 30, 2025, increased by $191 million, or 12%, to $1,789 million, driven by higher sales across all markets [144]. - The aerospace defense market saw increased sales due to higher demand for embedded computing equipment and actuation equipment, contributing to overall growth [144]. - Sales in the commercial aerospace market benefited from higher OEM demand for sensors and surface treatment services, along with increased sales of flight data recorder technology [144]. Operating Income - Operating income for Q3 2025 increased by $21 million, or 15%, to $166 million, with an operating margin of 19.1%, up 100 basis points from the prior year [103]. - Operating income for the nine months ended September 30, 2025 rose by $78 million, or 21%, to $452 million, with an operating margin of 17.7%, an increase of 140 basis points compared to the same period in 2024 [104]. - Operating income for the third quarter rose by $8 million, or 21%, to $45 million, with an operating margin of 18.3%, an increase of 190 basis points [119]. - Operating income in the Defense Electronics segment for the third quarter increased by $10 million, or 16%, to $74 million, with an operating margin of 29.2% [128]. - Operating income during the nine months ended September 30, 2025, increased by $14 million, or 14%, to $114 million, with an operating margin of 16.0% [120]. New Orders - New orders in Q3 2025 increased by $67 million, primarily due to naval defense orders and an increase in commercial nuclear product orders in the Naval & Power segment [111]. - New orders for the nine months ended September 30, 2025 increased by $187 million, driven by naval defense orders and an increase in orders for sensors and surface treatment services in the Aerospace & Industrial segment [112]. - New orders in the Naval & Power segment for the third quarter increased by $88 million, primarily due to the timing of naval defense orders [138]. - New orders in the third quarter increased by $29 million, primarily driven by higher demand for sensors and actuation products [121]. Financial Expenses and Income - Interest expense decreased by $1 million, or 8%, to $10 million in Q3 2025, and by $2 million, or 6%, to $31 million for the nine months ended September 30, 2025, due to lower borrowings [106]. - Other income, net, decreased by $5 million, or 47%, to $5 million in Q3 2025, and by $6 million, or 21%, to $22 million for the nine months ended September 30, 2025, primarily due to lower interest income [107]. - The effective tax rate for Q3 2025 was 22.5%, slightly down from 22.6% in the prior year, while the nine-month effective tax rate decreased to 21.6% from 22.2% [108]. - Comprehensive income for Q3 2025 was $107 million, down from $141 million in the prior year, while for the nine months it increased to $405 million from $297 million [109]. Cash Flow and Investments - Operating cash inflow for the nine months ended September 30, 2025, was $290,658 thousand, an increase of $48 million from the prior year, primarily due to higher cash earnings [148]. - Net cash used for investing activities decreased by $17 million from the prior year, primarily due to the acquisition of WSC in the previous period [150]. - The corporation repurchased approximately 684,000 shares of common stock for $325 million during the nine months ended September 30, 2025, compared to 455,000 shares for $138 million in the prior year [154]. - Dividend payments increased to $17 million for the nine months ended September 30, 2025, up from $16 million in the prior year, with a quarterly dividend increase to $0.24 per share starting in Q2 2025 [156]. Debt and Compliance - As of September 30, 2025, the corporation had approximately $10 million of outstanding borrowings under the Credit Agreement and $714 million of unused credit available [153]. - The corporation's average debt outstanding was $982 million for the three months ended September 30, 2025, down from $1.0 billion in the prior year [152]. - The corporation was in compliance with all debt agreements and had the ability to borrow an additional $2.7 billion without violating its debt to capitalization covenant [157][158].

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Financial Data and Key Metrics Changes - The company reported revenue of $869 million, representing a 9% year-over-year increase, with 6% organic growth [5][6] - Operating income increased by 14% year-over-year, leading to a 90 basis points expansion in overall operating margin to 19.6% [6][14] - Diluted earnings per share (EPS) rose by 14% year-over-year, slightly exceeding expectations [6][9] - Free Cash Flow was $176 million, up 8% year-over-year, reflecting nearly 140% conversion due to higher cash earnings and lower tax payments [6][9] Business Line Data and Key Metrics Changes - In the aerospace and industrial segment, sales increased by 8%, driven by strong demand in commercial aerospace and ground defense markets [10] - The defense electronics segment saw a 4% sales growth, primarily due to tactical communications equipment revenues [11] - The naval and power segment experienced a 12% increase in sales, driven by production acceleration on submarine programs [12][13] Market Data and Key Metrics Changes - The order book increased by 8%, resulting in a Book-to-Bill ratio of 1.1 times, indicating continued confidence in future top-line growth [6][8] - The backlog reached a record of over $3.9 billion, up 14% year-to-date [8][46] - Strong demand was noted in commercial aerospace and nuclear markets, with significant new contracts supporting growth [7][8] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy, emphasizing operational excellence and targeted investments [4][24] - There is a strong alignment with U.S. defense priorities, particularly in shipbuilding and defense electronics, which are expected to benefit from increased government funding [25][26] - The company is committed to maintaining a robust R&D investment to support future growth opportunities [20][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in A&D and commercial markets, projecting continued strong performance into 2026 [4][8] - The company anticipates a 10%-11% increase in sales for the full year 2025, supported by a strong backlog and market demand [8][20] - Management acknowledged potential impacts from government shutdowns but remained confident in the resilience of their order pipeline [41][47] Other Important Information - The company has increased its share repurchase program, anticipating over $450 million in buybacks for the year [33][34] - Capital expenditures are expected to rise by approximately 40% year-over-year to support growth initiatives [22][35] Q&A Session Summary Question: Can you provide details on the AP1000 reactor content? - Management confirmed that the content per reactor coolant pump (RCP) is around $28 million, with additional content expected to increase significantly [40][49] Question: How are bookings performing across segments? - Overall bookings were strong with a Book-to-Bill ratio of 1.1 times, though some delays were noted in the defense electronics segment due to government funding issues [41][46] Question: What is the outlook for the nuclear market? - Management indicated that the first orders are expected from Poland and Bulgaria, with U.S. orders anticipated to follow [60][61] Question: What is the state of the M&A pipeline? - The company is actively pursuing strategic acquisitions and remains focused on finding properties that align with its growth strategy [79][80] Question: Are there signs of improvement in the industrial vehicle market? - Management noted a stabilization in the industrial vehicle market, with slight improvements in orders during the quarter [83]

Financial Data and Key Metrics Changes - The company reported sales of $869 million, representing a 9% year-over-year increase, with 6% organic growth [5][6] - Operating income increased by 14% year-over-year, leading to a 90 basis points expansion in overall operating margin to 19.6% [6][14] - Diluted earnings per share (EPS) rose by 14% year-over-year, slightly exceeding expectations [6][9] - Free cash flow was $176 million, up 8% year-over-year, reflecting nearly 140% conversion due to higher cash earnings and lower tax payments [6][9] Business Line Data and Key Metrics Changes - In the aerospace and industrial segment, sales increased by 8%, driven by strong demand in commercial aerospace and ground defense markets [10][11] - The defense electronics segment saw a 4% sales growth, primarily due to tactical communications equipment revenues [11][12] - The naval and power segment experienced a 12% increase in sales, driven by production acceleration on submarine programs [12][13] Market Data and Key Metrics Changes - The order book increased by 8%, resulting in a book-to-bill ratio of 1.1 times, indicating continued confidence in future growth [6][46] - The backlog reached a record of over $3.9 billion, up 14% year-to-date [8][46] - Strong demand for commercial nuclear orders was noted, including new contracts supporting government sites [7][8] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy, emphasizing operational excellence and targeted investments [4][24] - There is a strong alignment with U.S. defense priorities, particularly in shipbuilding and defense electronics [25][26] - The company is positioned to capitalize on increased global defense spending and has significant content in key defense programs [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning across A&D and commercial markets, anticipating meaningful growth opportunities into the next decade [4][24] - The company raised its full-year 2025 guidance for sales, operating income, and EPS, reflecting strong year-to-date performance [8][9] - Management acknowledged potential impacts from government shutdowns but remained optimistic about the order pipeline and future growth [41][47] Other Important Information - The company plans to maintain a strong focus on research and development while also pursuing strategic acquisitions [33][80] - Increased capital expenditures are anticipated to support future growth initiatives, with a 40% year-over-year increase expected [22][64] Q&A Session Summary Question: Can you provide details on the AP1000 reactor content? - Management confirmed that the content per reactor coolant pump (RCP) is approximately $28 million, with additional content expected to increase significantly [39][40] Question: How are bookings performing across segments? - Overall bookings were strong, with a book-to-bill ratio of 1.1 times, although some delays were noted in the defense electronics segment due to government shutdowns [41][46] Question: What is the outlook for the nuclear market in the U.S.? - Management indicated that the first orders are expected from Poland and Bulgaria, with U.S. orders anticipated to follow, but timing remains uncertain [60][61] Question: What is the capacity for building AP1000 reactors? - The company estimates a capacity of 12-16 reactors per year, with increased capital expenditures aimed at supporting this capacity [62][64] Question: What is the state of the M&A pipeline? - Management confirmed that M&A remains a top priority, with ongoing discussions for strategic acquisitions [80]

Financial Data and Key Metrics Changes - The company reported revenue of $869 million for Q3 2025, representing a 9% year-over-year increase, with 6% organic growth [5] - Operating income increased by 14% year-over-year, leading to an overall operating margin expansion of 90 basis points to 19.6% [5] - Diluted earnings per share (EPS) rose by 14% year-over-year, slightly exceeding expectations due to improved operational performance and fewer shares outstanding [5] - Free cash flow was $176 million, up 8% year-over-year, reflecting nearly 140% conversion due to higher cash earnings and lower tax payments [5] Business Line Data and Key Metrics Changes - In the Aerospace and Industrial segment, sales increased by 8%, driven by strong demand in commercial aerospace and modest growth in aerospace defense [10] - The Defense Electronics segment saw a 4% sales growth, primarily due to tactical communications equipment revenues [11] - The Naval and Power segment experienced a 12% increase in sales, driven by production acceleration on submarine programs [12] Market Data and Key Metrics Changes - The order book increased by 8%, resulting in a book-to-bill ratio of 1.1 times, indicating continued confidence in future top-line growth [5] - The backlog reached a record of over $3.9 billion, up 14% year-to-date [8] - Commercial nuclear orders saw tremendous growth, including new multi-year contracts funded by the DOE [6][8] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy, emphasizing operational and commercial excellence while making targeted investments [4] - There is a strong alignment with U.S. defense priorities, particularly in shipbuilding and defense electronics, which are expected to benefit from increased global defense spending [24][25] - The company aims to capitalize on growth opportunities in commercial aerospace and nuclear markets, with expectations for significant revenue growth in the coming years [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning across A&D and commercial markets, anticipating meaningful growth opportunities well into the next decade [4] - The company raised its full-year 2025 guidance for sales, operating income, and EPS, reflecting strong year-to-date performance and a growing backlog [8][9] - Management acknowledged potential impacts from the government shutdown but indicated that the overall pipeline remains healthy and growing [37][43] Other Important Information - The company is maintaining its free cash flow guidance while increasing capital expenditures to support future growth initiatives [9][22] - Share repurchase activity has been accelerated, with expectations to exceed $450 million in repurchases for the year [32] Q&A Session Summary Question: Can you provide details on the AP1000 reactor content? - Management confirmed that the content per reactor coolant pump (RCP) is approximately $28 million, with additional content expected to increase significantly [35][36] Question: How did bookings perform by segment, particularly in defense electronics? - The company reported a book-to-bill ratio of 1.1 times, with defense electronics experiencing some order push-outs due to the government shutdown, but the overall pipeline remains strong [37][38] Question: What is the expected timeline for revenue recognition on the AP1000 orders? - Revenue recognition will depend on the timing of material receipts, with some revenue expected in 2026 and a quicker acceleration in 2027 [52][53]

Financial Performance - Sales reached $869 million, a 9% increase overall, with organic growth at 6%[6] - Operating income increased by 14% to $170 million, resulting in a year-over-year margin expansion of 90 bps to 196%[6] - Diluted EPS increased by 14% to $340[6] - Free Cash Flow (FCF) increased by 8% to $176 million, with an FCF conversion rate of 137%[6] Orders and Backlog - New orders totaled $927 million, an 8% increase, resulting in a book-to-bill ratio of 11x[6] - Backlog increased by 14% year-to-date[6] Guidance - Total sales growth guidance increased to 10-11%, with organic growth now up 7-8% year-over-year[6] - Operating income growth guidance increased to 16-19%, maintaining an operating margin of 185-187%, up 100-120 bps year-over-year[6] - The company is on track to deliver 19-21% EPS growth and strong FCF generation at approximately 108% conversion[6] Segment Performance - Aerospace & Industrial sales increased by 8% to $248 million, driven by strong demand in Commercial Aerospace and higher sales in Aerospace Defense and Ground Defense[7] - Defense Electronics sales increased by 4% to $253 million, driven by higher revenues in Aerospace Defense and Naval Defense[7] - Naval & Power sales increased by 12% to $368 million, driven by higher Naval Defense revenues and solid organic growth in Commercial Nuclear[7]

Core Insights - Curtiss-Wright reported revenue of $869.17 million for the quarter ended September 2025, reflecting an 8.8% increase year-over-year, although it was a slight miss of 0.32% compared to the Zacks Consensus Estimate of $871.92 million [1] - The earnings per share (EPS) for the quarter was $3.40, up from $2.97 in the same quarter last year, surpassing the consensus estimate of $3.28 by 3.66% [1] Financial Performance - Adjusted Sales in Aerospace & Industrial reached $247.99 million, slightly above the estimated $247.75 million, marking an 8.5% increase from the previous year [4] - Adjusted Sales in Naval & Power were reported at $368.03 million, below the estimate of $377.42 million, but showed a 12.5% year-over-year increase [4] - Adjusted Sales in Defense Electronics amounted to $253.16 million, exceeding the average estimate of $247.19 million, with a year-over-year growth of 4.2% [4] Operating Income - Adjusted Operating Income for Naval & Power was $61.25 million, slightly below the estimate of $61.87 million [4] - Adjusted Operating Income for Defense Electronics was reported at $73.96 million, surpassing the average estimate of $64.25 million [4] - Adjusted Operating Income for Aerospace & Industrial was $46.01 million, above the estimate of $44.64 million [4] - Corporate and other reported an adjusted operating loss of $10.85 million, worse than the estimate of $7.49 million [4] Stock Performance - Curtiss-Wright's shares have returned 8.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a 1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Curtiss-Wright reported quarterly earnings of $3.4 per share, exceeding the Zacks Consensus Estimate of $3.28 per share, and up from $2.97 per share a year ago, representing an earnings surprise of +3.66% [1] - The company posted revenues of $869.17 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.32%, but up from $798.92 million year-over-year [2] - The stock has increased approximately 65.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.61, with expected revenues of $870.89 million, and for the current fiscal year, the EPS estimate is $12.94 on revenues of $3.43 billion [7] - The estimate revisions trend for Curtiss-Wright was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Aerospace - Defense Equipment industry, to which Curtiss-Wright belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Curtiss-Wright Corporation reported strong financial results for Q3 2025, leading to an increase in full-year guidance for sales, operating income, and diluted EPS, driven by the successful implementation of its "Pivot to Growth" strategy [1][2]. Financial Performance - Reported sales reached $869 million, a 9% increase from Q3 2024, with operating income of $166 million, reflecting a 15% growth [3][5]. - Adjusted operating income was $170 million, up 14%, with an adjusted operating margin of 19.6%, an increase of 90 basis points [5][6]. - Diluted EPS increased to $3.31, with adjusted diluted EPS at $3.40, both up 14% year-over-year [5][6]. Segment Performance - **Aerospace & Industrial**: Sales of $248 million, up 8%, with operating income of $45 million, a 21% increase [4][11]. - **Defense Electronics**: Sales of $253 million, a 4% increase, with operating income of $74 million, up 16% [7][12]. - **Naval & Power**: Sales of $368 million, a 12% increase, with operating income of $58 million, up 9% [8][13]. Order and Backlog - New orders totaled $927 million, an 8% increase, resulting in a book-to-bill ratio of 1.1x [5][14]. - The backlog increased to $3.9 billion, reflecting a 14% growth year-to-date [5][14]. Cash Flow and Capital Allocation - Free cash flow for Q3 2025 was $176 million, an 8% increase, with a conversion rate of 137% [9][14]. - The company expanded its share repurchase program, targeting over $450 million in annual repurchases, indicating confidence in future performance [2][14]. Updated Guidance - Full-year 2025 sales guidance was raised to a range of $3,420 million to $3,455 million, reflecting a growth of 10% to 11% [15]. - Operating income guidance was increased to $634 million to $647 million, representing a growth of 16% to 19% [15]. - Diluted EPS guidance was updated to a range of $12.95 to $13.20, indicating a growth of 19% to 21% [15].

Core Insights - Curtiss-Wright (CW) is expected to report quarterly earnings of $3.28 per share, reflecting a 10.4% increase year over year [1] - Revenue forecasts stand at $871.92 million, indicating a 9.1% year-over-year growth [1] - Analysts have revised the consensus EPS estimate 0.6% higher in the last 30 days, showing a collective reevaluation of initial estimates [1] Revenue Estimates - Adjusted Sales for Aerospace & Industrial are projected at $247.75 million, representing an 8.4% increase year over year [4] - Adjusted Sales for Naval & Power are estimated at $377.42 million, indicating a 15.3% year-over-year growth [4] - Adjusted Sales for Defense Electronics are expected to reach $247.19 million, reflecting a 1.7% increase year over year [4] Operating Income Estimates - Reported Operating Income for Naval & Power is anticipated to be $58.19 million, up from $53.04 million in the same quarter last year [5] - Reported Operating Income for Defense Electronics is projected at $64.19 million, compared to $63.64 million in the same quarter of the previous year [5] - Reported Operating Income for Aerospace & Industrial is expected to be $44.92 million, an increase from $37.44 million in the same quarter last year [6] Stock Performance - Over the past month, Curtiss-Wright shares have gained 8.6%, outperforming the Zacks S&P 500 composite, which increased by 2.1% [6] - The company holds a Zacks Rank of 3 (Hold), suggesting that its performance is likely to align with the overall market in the upcoming period [6]