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Curtiss-Wright Q1 Earnings Outpace Estimates, '25 View Raised
CWCurtiss-Wright(CW) ZACKS· ZACKS·2025-05-09 15:05

Core Viewpoint - Curtiss-Wright Corporation reported strong first-quarter 2025 earnings, with adjusted EPS of 2.82,exceedingestimatesandreflectingsignificantyear−over−yeargrowthinbothsalesandearnings[1][2][3].FinancialPerformance−Thecompanyachievednetsalesof2.82, exceeding estimates and reflecting significant year-over-year growth in both sales and earnings [1][2][3]. Financial Performance - The company achieved net sales of 805.6 million, a 13% increase year over year, surpassing the Zacks Consensus Estimate of 767millionby5767 million by 5% [3]. - Adjusted operating income was reported at 134 million, with an adjusted operating margin of 17.9% [3]. Backlog and Orders - Total backlog at the end of Q1 was 3.7billion,an8.83.7 billion, an 8.8% increase from the end of 2024, driven by demand in aerospace, defense, and commercial markets [4]. - New orders reached 1 billion, up 13% year over year, supported by strong demand in naval defense, commercial aerospace, and commercial nuclear sectors [4]. Segment Performance - Aerospace & Industrial: Sales increased 4% to 227million,drivenbyhighercommercialaerospacesalesanddefensemarketrevenues[5].Adjustedoperatingincomeimproved15227 million, driven by higher commercial aerospace sales and defense market revenues [5]. Adjusted operating income improved 15% to 50 million, with a margin expansion of 140 bps to 13.9% [6]. - Defense Electronics: Sales rose 16% to 245million,fueledbygroundandnavaldefensemarketrevenues[7].Operatingincomeincreased40245 million, fueled by ground and naval defense market revenues [7]. Operating income increased 40% to 67 million, with a margin expansion of 480 bps to 27.5% [8]. - Naval & Power: Sales grew 18% to 333million,drivenbydemandforsubmarineprogramsandcommercialnuclearproducts[9][10].Adjustedoperatingincomeincreased28333 million, driven by demand for submarine programs and commercial nuclear products [9][10]. Adjusted operating income increased 28% to 45 million, with a margin expansion of 100 bps to 12.6% [11]. Financial Position - As of March 31, 2025, cash and cash equivalents were 226.5million,downfrom226.5 million, down from 385 million at the end of 2024 [12]. Long-term debt remained flat at 0.96billion[12].−Netcashoutflowfromoperatingactivitieswas0.96 billion [12]. - Net cash outflow from operating activities was 38.8 million, an improvement from 45.6millionintheprioryear[12].Adjustedfreecashoutflowwas45.6 million in the prior year [12]. Adjusted free cash outflow was 54.5 million, compared to 57.7millionayearago[12].2025Guidance−Thecompanyraisedits2025guidanceforadjustedearningstoarangeof57.7 million a year ago [12]. 2025 Guidance - The company raised its 2025 guidance for adjusted earnings to a range of 12.45-12.80pershare,upfrom12.80 per share, up from 12.10-12.40[13].−Salesguidancewasalsoincreasedto12.40 [13]. - Sales guidance was also increased to 3.37-3.42billion,comparedtothepreviousrangeof3.42 billion, compared to the previous range of 3.34-3.39billion[14].−Freecashflowguidancewasraisedto3.39 billion [14]. - Free cash flow guidance was raised to 495-515million,upfrom515 million, up from 485-$505 million [14].