Curtiss-Wright (CW, Financial) has secured a substantial contract with the United States Air Force, valued at approximately $80 million. The firm-fixed-price agreement is an Indefinite Delivery, Indefinite Quantity contract, highlighting Curtiss-Wright's role in delivering High-Speed Data Acquisition System hardware and related repair services. This contract encompasses the company's full suite of Flight Test Instrumentation products, serving both current production platforms and future Air Force development initiatives.
Under this exclusive contract, Curtiss-Wright will provide advanced aerospace instrumentation technology. This includes High-Speed Data Acquisition, Network, Recording, Gateway, RF, and Data Analysis Software products and services. It also entails delivering product enhancements, upgrades, and repair services, along with technical and field support for the High-Speed Data Acquisition System equipment. The contract is set to extend until March 2030.
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 $418.39 with a high estimate of $525.00 and a low estimate of $308.11. The average target implies an downside of 8.36% from the current price of $456.54. 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 $273.06, suggesting a downside of 40.19% from the current price of $456.54. 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: May 08, 2025
- Sales: $806 million, a 13% increase year-over-year, or 11% on an organic basis.
- Operating Income: Increased 34% year-over-year, with a 260 basis points expansion in operating margin.
- Diluted Earnings Per Share (EPS): Increased 42% year-over-year.
- Free Cash Flow: Increased 5% year-over-year.
- New Orders: Increased 13% year-over-year to over $1 billion, with a book-to-bill ratio of 1.26 times.
- Backlog: Reached a record of over $3.6 billion.
- Full Year Sales Guidance: Increased by 8% to 9%.
- Operating Margin Guidance: Expected to increase by 80 to 100 basis points, reaching 18.3% to 18.5%.
- Full Year EPS Guidance: Expected to grow 14% to 17%.
- Free Cash Flow Guidance: Raised to $495 to $515 million, up 2% to 7% over 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Curtiss-Wright Corp (CW, Financial) reported a 13% year-over-year increase in sales for Q1 2025, driven by strong growth in aerospace and defense markets.
- Operating income increased by 34% year-over-year, resulting in a 260 basis point expansion in operating margins.
- Diluted earnings per share rose by 42% year-over-year, exceeding expectations due to higher aerospace and defense sales.
- The company achieved a record backlog exceeding $3.6 billion, providing strong visibility and confidence in long-term growth.
- Curtiss-Wright Corp (CW) raised its full-year 2025 guidance for sales, operating margins, and earnings per share, reflecting improved outlooks in most aerospace and defense markets.
Negative Points
- Approximately 20% of Curtiss-Wright Corp (CW)'s business is subject to tariff impacts, with an estimated $30 million gross impact for the remainder of 2025.
- The company faces potential margin dilution from the Ultra Energy acquisition as it integrates this business into operations.
- There is ongoing uncertainty related to macroeconomic conditions, including potential recessionary signals and tariff-related headwinds.
- The general industrial market is expected to see flat sales in 2025, with modest growth in automation offset by reduced sales of industrial vehicle products.
- Curtiss-Wright Corp (CW) is cautious about the commercial aerospace market due to ongoing supply chain issues and conservatism in Boeing's production outlook.
