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1. Company Snapshot

1.a. Company Description

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services to the aerospace, defense, general industrial, and power generation markets worldwide.worldwide.It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power.


The Aerospace & Industrial segment offers industrial vehicle products, such as electronic throttle control devices, joysticks, and transmission shifters; sensors, controls and electro-mechanical actuation components used in commercial and military aircraft; and surface technology services, including shot peening, laser peening, and coatings.The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, turret aiming and stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions.The Naval & Power segment offers hardware, pumps, pump seals, control rod drive mechanisms, valves, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing products for nuclear power plants and nuclear equipment manufacturers; and naval propulsion and auxiliary equipment, including coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems, as well as ship repair and maintenance services primarily to the U.S. navy.


Curtiss-Wright Corporation was founded in 1929 and is headquartered in Davidson, North Carolina.

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1.b. Last Insights on CW

Curtiss-Wright's recent performance was driven by strong Q4 earnings, beating estimates with $3.79 per share, up from $3.27 a year ago. The company's aerospace footing, expanding clean-energy and defense roles, and solid liquidity underscore growth potential. A $550 million share buyback authorization also supports shareholder returns. Institutional investors, including Baird Financial Group and Creative Planning, have increased their stakes, signaling confidence. With record FY25 sales, profitability, and EPS, Curtiss-Wright expects another strong performance in 2026.

1.c. Company Highlights

2. Curtiss-Wright's Strong 2025 Performance Sets Stage for Continued Growth

Curtiss-Wright Corporation reported a record year of financial performance in 2025, driven by strong growth in sales, profitability, free cash flow, and new orders. Sales increased 15% year over year to $947 million, with 11% organic growth and a solid contribution from the I&C Solutions acquisition. The company's operating margin expanded 110 basis points to a new record of 18.6%, and diluted earnings per share increased 21% to $3.79, beating analyst estimates of $3.66.

Publication Date: Feb -15

📋 Highlights
  • Record 2025 Financials:: Sales rose 15% YoY to $947M ($947 million), with free cash flow hitting $315M (224% conversion) and operating margin expanding 110 bps to 18.6%.
  • 2026 Guidance:: Organic sales growth of 6-8%, operating margin of 18.9-19.2%, and diluted EPS growth of 11-15%, driven by margin expansion and share repurchases.
  • Defense & Aerospace Momentum:: Defense orders of $100M+ deferred to 2026, with C-17 program progress and $80B AP1000 nuclear reactor funding cited as key growth drivers.
  • Nuclear & Strategic Partnerships:: Aligning with U.S. nuclear goals (10 AP1000 reactors), partnerships with Rolls Royce and TerraPower, and South Korea’s ATR 1,400 reactor content.
  • Capital Allocation & Supply Chain:: $60M share buybacks in 2026 to offset dilution, $110-120M capex (25% YoY up), and proactive supply chain management for rare earths and memory parts.

Segment Performance

The company's aerospace and defense markets grew 16%, with commercial aerospace sales increasing 20%. The Defense Electronics segment is expected to grow 4% to 6% in 2026, with operating income growth of 4% to 6% and operating margin flat to up 20 basis points. Lynn M. Bamford stated that they feel optimistic about their ability to grow their defense business at a pace that matches or beats the US military sales.

Guidance and Outlook

For 2026, the company expects organic sales growth of 6% to 8%, with operating income growth outpacing sales growth. Operating margin is expected to expand 30 to 60 basis points to a range of 18.9% to 19.2%. Diluted earnings per share are expected to grow 11% to 15%. Analysts estimate next year's revenue growth at 7.9%, which is in line with the company's guidance.

Valuation

With a P/E Ratio of 52.18 and an EV/EBITDA of 34.85, the company's valuation multiples are relatively high, suggesting that the market has already priced in a significant amount of growth. However, with a ROE of 18.74% and an ROIC of 12.35%, the company is generating strong returns on equity and invested capital. The dividend yield is relatively low at 0.14%, but the free cash flow yield is 2.05%, indicating a reasonable level of cash generation.

Growth Drivers

The company is well-positioned to benefit from favorable industry tailwinds in defense and commercial nuclear. The administration's focus on commercial solutions and agile contracting is expected to drive growth in the Defense Electronics segment. Additionally, the company's partnership with Rolls Royce and its work with TerraPower are expected to drive growth in the commercial nuclear segment.

3. NewsRoom

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Curtiss-Wright (NYSE:CW) Sets New 1-Year High – Here’s What Happened

Feb -22

Source: defenseworld.net

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Caprock Group LLC Takes Position in Curtiss-Wright Corporation $CW

Feb -15

Source: defenseworld.net

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Curtiss-Wright Corporation (CW) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Compared to Estimates, Curtiss-Wright (CW) Q4 Earnings: A Look at Key Metrics

Feb -12

Source: zacks.com

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Curtiss-Wright (CW) Tops Q4 Earnings and Revenue Estimates

Feb -12

Source: zacks.com

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Curtiss-Wright Reports Fourth Quarter and Full-Year 2025 Financial Results; Full-Year 2026 Outlook Reflects Higher Sales, Operating Margin Expansion, Double-Digit EPS Growth and Strong Free Cash Flow

Feb -11

Source: businesswire.com

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4 Defense Stocks Poised to Outperform This Earnings Cycle

Feb -09

Source: zacks.com

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Curtiss-Wright Selected by Boeing to Supply Mission Computers for U.S. Air Force C-17 Fleet Modernization

Feb -09

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Naval & Power

Expected Growth: 4%

Curtiss-Wright's Naval & Power segment growth is driven by increasing demand for nuclear power generation, expansion in naval defense spending, and growing adoption of advanced propulsion systems. Additionally, the company's strategic acquisitions and investments in digital technologies, such as artificial intelligence and cybersecurity, are expected to contribute to its growth.

Aerospace & Industrial

Expected Growth: 4%

Curtiss-Wright's Aerospace & Industrial segment growth is driven by increasing demand for commercial aerospace, defense, and industrial technologies. Key drivers include rising aircraft production, growing defense spending, and adoption of advanced industrial automation solutions. Additionally, the company's strategic acquisitions and investments in digital transformation, cybersecurity, and sustainability initiatives are expected to fuel future growth.

Defense Electronics

Expected Growth: 4%

Curtiss-Wright's Defense Electronics segment growth is driven by increasing demand for advanced electronic systems in military aircraft, ships, and ground vehicles. The company's expertise in ruggedized electronics, cybersecurity, and signal processing technologies positions it to benefit from the modernization of defense platforms and the growing need for secure communication systems.

Intersegment Revenues

Expected Growth: 4%

Curtiss-Wright's 4% intersegment revenue growth is driven by increasing demand for nuclear and defense technologies, expansion in commercial aerospace, and strategic acquisitions. Additionally, the company's focus on innovation, cost savings initiatives, and a strong backlog of orders contribute to its growth momentum.

7. Detailed Products

Nuclear Products

Curtiss-Wright's nuclear products provide safety-critical solutions for the nuclear power industry, including reactor coolant pumps, motors, and generators.

Actuation Systems

Curtiss-Wright's actuation systems provide motion control solutions for aerospace, defense, and industrial applications.

Sensors and Controls

Curtiss-Wright's sensors and controls provide advanced sensing and control solutions for aerospace, defense, and industrial applications.

Embedded Computing

Curtiss-Wright's embedded computing solutions provide rugged, high-performance computing platforms for aerospace, defense, and industrial applications.

Avionics and Electronics

Curtiss-Wright's avionics and electronics provide advanced avionics systems, displays, and electronic components for aerospace and defense applications.

Naval and Power Generation

Curtiss-Wright's naval and power generation solutions provide advanced propulsion, power generation, and distribution systems for naval and industrial applications.

8. Curtiss-Wright Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Curtiss-Wright Corporation is medium due to the presence of alternative products and services in the aerospace and defense industry.

Bargaining Power Of Customers

The bargaining power of customers for Curtiss-Wright Corporation is low due to the company's strong brand reputation and the complexity of its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Curtiss-Wright Corporation is medium due to the presence of multiple suppliers in the industry, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for Curtiss-Wright Corporation is low due to the high barriers to entry in the aerospace and defense industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Curtiss-Wright Corporation is high due to the presence of several established players in the industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.71%
Debt Cost 5.74%
Equity Weight 68.29%
Equity Cost 9.85%
WACC 8.55%
Leverage 46.43%

11. Quality Control: Curtiss-Wright Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 4.2

Quality: 5.1

Yield: 4.0

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Curtiss-Wright

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Growth: 6.1

Quality: 6.9

Yield: 0.0

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Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

695.5$

Current Price

695.5$

Potential

-0.00%

Expected Cash-Flows