Curtiss-Wright Corp

Curtiss-Wright Corporation has demonstrated strong customer order growth, contributing to an already robust backlog in the aerospace and nuclear power sectors. The manager expresses confidence in the company's essential role for its customers and the solid prospects for growth moving forward. This positive outlook is supported by the company's performance as a top contributor in the portfolio, indicating its resilience and potential for continued success.

Curtiss-Wright was mentioned as a longer-term holding that contributed positively to the portfolio's performance in the industrials sector, particularly benefiting from stocks levered to aerospace and defense, as well as AI-infrastructure. However, there was no explicit directional argument made regarding its future performance or valuation.

Curtiss-Wright Corporation has been a strong contributor to our portfolio, reflecting its solid performance and growth potential. With a weight of 4.18% in the portfolio and a total return effect of 1.72%, it demonstrates resilience and capability in the aerospace and defense sector. The company is well-positioned to benefit from favorable economic conditions and increased corporate investment, particularly as we look towards 2026. This optimism is supported by the company's robust fundamentals and strategic positioning within its industry.

Curtiss-Wright is an industrial conglomerate with a strong position in aerospace, defense, and nuclear power industries. The company benefits from several tailwinds, including rising demand for defense electronics, secular growth in commercial aviation, increased US naval defense spending, and foreign military sales. Approximately 80% of its earnings are tied to aerospace and defense, with a highly predictable order book generating significant free cash flow. Additionally, the commercial nuclear business is expected to grow significantly, with potential earnings growth of 5x over the next 5 to 8 years, driven by maintenance and new projects. The market has not fully recognized this growth potential, presenting an opportunity for investors.

Our Curtiss-Wright investment thesis is two-fold. First, we see several tailwinds continuing to benefit CW’s aerospace and defense markets. Second, we believe the Company’s commercial nuclear power business is under-appreciated due to the expanded opportunity to serve the rising power needs of data centers. Curtiss-Wright is the leading supplier of defense electronics, and its legacy in this market provides it with substantial incumbency advantages. We believe many of the following growth tailwinds are intact or are accelerating which should continue to propel CW’s financial results, including rising demand for defense electronics and secular growth in commercial aviation.

Our Curtiss-Wright investment thesis is two-fold. First, we see several tailwinds continuing to benefit CW’s aerospace and defense markets. Second, we believe the Company’s commercial nuclear power business is under-appreciated due to the expanded opportunity to serve the rising power needs of data centers. Curtiss-Wright has been able to drive organic revenue growth of roughly 5% and EPS growth of roughly 14%. We believe many of the following growth tailwinds are intact or are accelerating which should continue to propel CW’s financial results.