Curtiss-Wright (CW) FY Conference Transcript

Summary of Curtiss Wright's Presentation at the William Blair Growth Stock Conference Company Overview - Company: Curtiss Wright - Industry: Aerospace and Defense - Key Personnel: CEO Lynn Bamford, CFO Chris Farkas, Head of Investor Relations Jim Ryan - Milestone: Celebrated 95 years on the New York Stock Exchange [8][9] Core Messages - Pivot to Growth Strategy: Launched four years ago, focusing on growth and operational excellence [6][12] - Financial Performance: Strong financial results with a track record of achieving financial targets set during Investor Days [7][12] - Engineering Workforce: Approximately 9,000 employees, with 2,000 engineers, emphasizing collaboration and talent development [11] Operational Strategies - Operational Growth Platform: Focus on maximizing profitability through commercial and operational excellence [12] - R&D Investments: Increased R&D investments above sales growth, contributing to margin expansion and earnings growth in the mid-teens [12][26] - Cost Efficiency: Ongoing consolidation programs to drive efficiencies and reinvest in the business [13] End Markets and Growth Opportunities - Navy Footprint: Significant supplier for U.S. Navy platforms, targeting increased content for future generation platforms [19][20] - Defense Electronics: Partnership with NVIDIA to enhance electronics capabilities for battlefield technology [20] - Nuclear Industry: Focus on aftermarket services, life extensions, and new reactor builds, including small modular reactors (SMRs) [18][22][24] Market Trends - Commercial Aerospace: Anticipated multiyear ramp in growth, heavily focused on OEM [31] - Foreign Military Spending: Increased spending contributing to growth in defense markets [31] - Nuclear Energy Expansion: Targeting significant growth in nuclear energy, with potential for $1.5 billion in market share from Eastern Europe and additional opportunities from U.S. reactor builds [28][39][40] Financial Targets and Performance - **Sales Growth**: Targeting over 5$1.3 billion in free cash flow over three years, with a strong focus on capital allocation [35][36] Future Outlook - Nuclear Reactor Opportunities: Anticipating orders for AP1000 reactors in 2026, with significant growth potential in the nuclear sector [43] - Strategic Partnerships: Collaborations with major players in the nuclear industry to enhance market position [40][41] Conclusion - Investment Proposition: Curtiss Wright's pivot to growth strategy is yielding positive results, with strong market positioning and a focus on delivering value to shareholders [28][29]