Curtiss-Wright (CW, Financial) Corporation announced impressive first-quarter results for 2025, with revenue reaching $806 million, surpassing analysts' expectations of $767.75 million. The company experienced significant gains in new orders, sales, operating income, and diluted earnings per share (EPS), underpinned by their "Pivot to Growth" strategy.
The majority of Curtiss-Wright's end markets showed considerable growth, driven in part by a 15% surge in the Aerospace and Defense (A&D) sector, thanks to favorable timing of naval defense revenues. Additionally, the company's Defense Electronics division outperformed projections, playing a crucial role in boosting diluted EPS by 42%.
The quarter also witnessed record-breaking order momentum, exceeding $1 billion, reflecting strong demand in both the Aerospace & Defense and commercial nuclear markets. This performance highlights Curtiss-Wright's robust position in these key sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Curtiss-Wright Corp (CW, Financial) is $378.39 with a high estimate of $432.00 and a low estimate of $308.11. The average target implies an upside of 4.51% from the current price of $362.05. More detailed estimate data can be found on the Curtiss-Wright Corp (CW) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Curtiss-Wright Corp's (CW, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Curtiss-Wright Corp (CW, Financial) in one year is $255.22, suggesting a downside of 29.51% from the current price of $362.05. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Curtiss-Wright Corp (CW) Summary page.
CW Key Business Developments
Release Date: February 13, 2025
- Fourth Quarter Sales Increase: 5% year over year, driven by defense electronics and naval and power segments.
- Fourth Quarter Operating Margin: 19.8%.
- Fourth Quarter Diluted EPS Growth: 3% year over year.
- Fourth Quarter Free Cash Flow: $278 million, 223% conversion rate.
- Fourth Quarter Order Book Growth: 37% year over year, 1.1 times book to bill.
- Full Year 2024 Sales Growth: Double-digit growth.
- Full Year 2024 Diluted EPS: $10.90, 16% increase year over year.
- Full Year 2024 Adjusted Free Cash Flow: $483 million, 116% conversion rate.
- Full Year 2024 Order Book: $3.7 billion, 20% increase year over year, 1.2 times book to bill.
- 2025 Sales Growth Projection: 7% to 8%, including acquisitions.
- 2025 Operating Margin Projection: 18% at midpoint, 40 to 60 basis points expansion.
- 2025 Diluted EPS Guidance: $12.10 to $12.40, 11% to 14% growth.
- 2025 Free Cash Flow Guidance: $485 million to $505 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Curtiss-Wright Corp (CW, Financial) achieved record financial results in 2024, with double-digit growth in sales and operating income.
- The company reported a strong free cash flow of $278 million in Q4 2024, reflecting a 223% conversion rate.
- Curtiss-Wright Corp (CW) experienced a 37% year-over-year growth in its order book in Q4 2024, driven by strong demand in A&D markets and commercial nuclear.
- The company successfully integrated two new acquisitions in 2024, expanding its commercial nuclear portfolio and enhancing its global footprint.
- Curtiss-Wright Corp (CW) increased its dividend for the eighth consecutive year and repurchased $250 million in stock in 2024.
Negative Points
- Operating income was flat in Q4 2024, despite a 5% increase in sales.
- The company's general industrial market faced challenges with lower global off-highway and specialty industrial vehicle sales.
- Curtiss-Wright Corp (CW) experienced under absorption and timing issues in its defense electronics segment, impacting profitability.
- The naval and power segment's profitability was affected by unfavorable mix across defense and process markets.
- The company anticipates potential challenges from tariffs and geopolitical uncertainties, which could impact future operations.
