Curtiss-Wright Corporation (NYSE: CW) reports financial results
for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights:
- Reported sales of $799 million, up 10%;
- Reported operating income of $145 million, operating margin of
18.1%, and diluted earnings per share (EPS) of $2.89;
- Adjusted operating income of $149 million, up 11%;
- Adjusted operating margin of 18.7%, up 20 basis points;
- Adjusted diluted EPS of $2.97, up 17%;
- New orders of $860 million, up 2%, reflected a book-to-bill of
1.1x driven by solid demand within our Aerospace & Defense
(A&D) markets;
- Backlog of $3.3 billion, up 16% year-to-date; and
- Free cash flow (FCF) of $163 million, generating 142% Adjusted
FCF conversion.
Raised Full-Year 2024 Adjusted Financial
Guidance:
- Sales increased to new range of 7% to 9% growth (previously 6%
to 8%), principally driven by strong growth in our A&D
markets;
- Operating income increased to new range of 7% to 10% growth
(previously 6% to 9%);
- Maintained operating margin range of 17.4% to 17.6%, flat to up
20 basis points compared with the prior year;
- Diluted EPS increased to new range of $10.55 to $10.75, up 12%
to 15% (previously $10.40 to $10.65, up 11% to 14%); and
- Free cash flow increased to new range of $430 to $450 million,
up 4% to 9% (previously $425 to $445 million, up 3% to 8%), and
continues to reflect greater than 105% FCF conversion.
"Curtiss-Wright achieved strong third quarter results,
highlighted by mid-teens revenue growth in our A&D end markets,
a better-than-expected operational performance in our Defense
Electronics segment and a 17% year-over-year increase in Adjusted
diluted EPS," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright
Corporation. "We continue to demonstrate solid order activity,
yielding an overall book-to-bill of 1.1x in the quarter,
highlighted by record quarterly orders within our Defense
Electronics segment. We also delivered solid cash generation,
resulting in an exceptional free cash flow conversion of 142%.
Based on the strong year-to-date performance and our continued
momentum in executing on our Pivot to Growth strategy, we once
again raised our full-year 2024 outlook for sales, diluted EPS and
free cash flow."
“We continue to leverage our strong balance sheet in support of
our disciplined capital allocation strategy. This includes
delivering on our commitment to drive solid returns to our
shareholders as we completed the recently announced $100 million
expansion of our 2024 share repurchase program during the quarter.
Additionally, we remain focused on supplementing our organic growth
with high quality, strategic acquisitions that meet our stringent
financial criteria to drive long-term shareholder value.”
Third Quarter 2024 Operating
Results
(In millions)
Q3-2024
Q3-2023
Change
Reported
Sales
$
799
$
724
10
%
Operating income
$
145
$
133
9
%
Operating margin
18.1
%
18.3
%
(20 bps)
Adjusted (1)
Sales
$
799
$
724
10
%
Operating income
$
149
$
134
11
%
Operating margin
18.7
%
18.5
%
20 bps
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $799 million increased 10% compared with the prior
year;
- Total A&D market sales increased 15%, as we experienced
strong growth in the defense markets principally driven by
increased demand for our defense electronics products and higher
submarine and aircraft carrier revenues in naval defense, as well
as higher OEM sales in the commercial aerospace market;
- Total Commercial market sales were flat, reflecting solid
growth in the power & process market, principally driven by
higher sales of our commercial nuclear products, which was offset
by lower sales in the general industrial market; and
- Adjusted operating income of $149 million increased 11%, while
Adjusted operating margin increased 20 basis points to 18.7%,
principally driven by favorable overhead absorption on higher
revenues in all three segments and partially offset by an
unfavorable mix of products.
Third Quarter 2024 Segment
Performance
Aerospace & Industrial
(In millions)
Q3-2024
Q3-2023
Change
Reported
Sales
$
229
$
220
4
%
Operating income
$
37
$
39
(4
%)
Operating margin
16.4
%
17.7
%
(130 bps)
Adjusted (1)
Sales
$
229
$
220
4
%
Operating income
$
39
$
39
1
%
Operating margin
17.2
%
17.7
%
(50 bps)
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $229 million, up $8 million, or 4%;
- Commercial aerospace market revenue increases reflected strong
demand and higher OEM sales of sensors products and surface
treatment services on narrowbody and widebody platforms;
- Higher revenue in the aerospace defense market reflected the
timing of sales for our actuation equipment on various fighter jet
programs;
- Lower general industrial market revenue was principally driven
by reduced sales of industrial vehicle products to off-highway
vehicle platforms and lower sales of industrial automation and
services; and
- Adjusted operating income was $39 million, up 1% from the prior
year, while Adjusted operating margin decreased 50 basis points to
17.2%, as favorable absorption on higher sales as well as the
benefits of our restructuring initiatives were offset by
unfavorable mix of products.
Defense Electronics
(In millions)
Q3-2024
Q3-2023
Change
Reported
Sales
$
243
$
216
12
%
Operating income
$
64
$
56
13
%
Operating margin
26.2
%
26.0
%
20 bps
Adjusted (1)
Sales
$
243
$
216
12
%
Operating income
$
64
$
56
15
%
Operating margin
26.5
%
26.0
%
50 bps
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $243 million, up $27 million, or 12%;
- Higher revenue in the aerospace defense market was principally
driven by increased sales of our embedded computing equipment on
various domestic and international helicopter programs, partially
offset by the timing of flight test equipment sales;
- Strong revenue growth in the ground defense market primarily
reflected higher sales of tactical battlefield communications
equipment;
- Higher commercial aerospace market revenue principally
reflected increased OEM sales of avionics and electronics on
various platforms; and
- Adjusted operating income was $64 million, up 15% from the
prior year, while Adjusted operating margin increased 50 basis
points to 26.5%, primarily due to favorable absorption on higher
A&D revenues.
Naval & Power
(In millions)
Q3-2024
Q3-2023
Change
Reported
Sales
$
327
$
288
14
%
Operating income
$
53
$
48
11
%
Operating margin
16.2
%
16.6
%
(40 bps)
Adjusted (1)
Sales
$
327
$
288
14
%
Operating income
$
54
$
49
10
%
Operating margin
16.4
%
17.0
%
(60 bps)
(1) Reconciliations of Reported to
Adjusted operating results are available in the Appendix.
- Sales of $327 million, up $39 million, or 14%;
- Strong revenue growth in the naval defense market principally
reflected higher demand on the Virginia-class submarine,
Columbia-class submarine and CVN-81 aircraft carrier programs, as
well as higher growth on various next-generation submarine
development programs;
- Higher power & process market revenues mainly reflected
increased commercial nuclear aftermarket sales supporting the
maintenance of U.S. operating reactors; and
- Adjusted operating income was $54 million, up 10% from the
prior year, while Adjusted operating margin decreased 60 basis
points to 16.4%, as favorable absorption on higher revenues was
partially offset by an unfavorable mix of products and the timing
of development programs.
Free Cash Flow
(In millions)
Q3-2024
Q3-2023
Change
Net cash provided by operating
activities
$
177
$
146
21
%
Capital expenditures
(15
)
(9
)
56
%
Reported free cash flow
$
163
$
137
19
%
Adjusted free cash flow (1)
$
163
$
137
19
%
(1) A reconciliation of Reported to
Adjusted free cash flow is available in the Appendix.
- Reported free cash flow of $163 million increased $26 million
year over year, primarily driven by higher cash earnings and lower
working capital;
- Adjusted free cash flow of $163 million; and
- Capital expenditures increased $5 million compared with the
prior year period, due to growth investments within the Aerospace
& Industrial and Defense Electronics segments.
New Orders and Backlog
- New orders of $860 million increased 2% compared with the prior
year and generated an overall book-to-bill of approximately 1.1x,
principally driven by continued strong demand for defense
electronics products within our A&D markets; and
- Backlog of $3.3 billion, up 16% from December 31, 2023,
reflecting higher demand in both our A&D and Commercial
markets.
Share Repurchase and Dividends
- During the third quarter, the Company repurchased 355,578
shares of its common stock for approximately $113 million and
remains on track to repurchase a total of $150 million in shares in
2024; and
- The Company declared a quarterly dividend of $0.21 a
share.
Full-Year 2024 Guidance
The Company is updating its full-year 2024 Adjusted financial
guidance(1) as follows:
($ in millions, except EPS)
2024 Adjusted Non-GAAP
Guidance (Prior)
2024 Adjusted Non-GAAP
Guidance (Current)
Change vs 2023 Adjusted
(Current)
Total Sales
$3,010 - $3,060
$3,050 - $3,095
Up 7% - 9%
Operating Income
$525 - $539
$531 - $545
Up 7% - 10%
Operating Margin
17.4% - 17.6%
17.4% - 17.6%
Up 0 - 20 bps
Diluted EPS
$10.40 - $10.65
$10.55 - $10.75
Up 12% - 15%
Free Cash Flow
$425 - $445
$430 - $450
Up 4% - 9%
(1) Reconciliations of Reported to
Adjusted 2023 operating results and 2024 financial guidance are
available in the Appendix.
**********
A more detailed breakdown of the Company’s 2024 financial
guidance by segment and by market, as well as all reconciliations
of Reported GAAP amounts to Adjusted Non-GAAP amounts, can be found
in the accompanying schedules. Historical financial results are
available in the Investor Relations section of Curtiss-Wright’s
website.
Conference Call & Webcast
Information
The Company will host a conference call to discuss its third
quarter 2024 financial results and updates to 2024 guidance at
10:00 a.m. ET on Thursday, October 31, 2024. A live webcast of the
call and the accompanying financial presentation, as well as a
webcast replay of the call, will be made available on the internet
by visiting the Investor Relations section of the Company’s website
at www.curtisswright.com.
(Tables to Follow)
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (UNAUDITED)
($'s in thousands, except per
share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Product sales
$
684,216
$
613,915
$
1,941,327
$
1,721,832
Service sales
114,702
110,411
355,549
337,750
Total net sales
798,918
724,326
2,296,876
2,059,582
Cost of product sales
434,370
380,163
1,252,773
1,093,469
Cost of service sales
66,285
62,695
207,984
203,664
Total cost of sales
500,655
442,858
1,460,757
1,297,133
Gross profit
298,263
281,468
836,119
762,449
Research and development expenses
20,734
23,464
65,866
65,698
Selling expenses
37,311
34,084
109,202
100,782
General and administrative expenses
92,035
91,401
281,092
272,060
Restructuring expenses
3,280
—
6,198
—
Operating income
144,903
132,519
373,761
323,909
Interest expense
11,408
12,496
33,194
40,432
Other income, net
10,126
7,023
28,294
22,744
Earnings before income taxes
143,621
127,046
368,861
306,221
Provision for income taxes
(32,461
)
(30,268
)
(81,735
)
(71,598
)
Net earnings
$
111,160
$
96,778
$
287,126
$
234,623
Net earnings per share:
Basic earnings per share
$
2.91
$
2.53
$
7.51
$
6.13
Diluted earnings per share
$
2.89
$
2.51
$
7.47
$
6.09
Dividends per share
$
0.21
$
0.20
$
0.62
$
0.59
Weighted-average shares outstanding:
Basic
38,208
38,285
38,245
38,301
Diluted
38,451
38,558
38,451
38,538
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
($'s in thousands, except par
value)
September 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
443,850
$
406,867
Receivables, net
857,614
732,678
Inventories, net
582,584
510,033
Other current assets
68,035
67,502
Total current assets
1,952,083
1,717,080
Property, plant, and equipment, net
330,292
332,796
Goodwill
1,583,448
1,558,826
Other intangible assets, net
532,397
557,612
Operating lease right-of-use assets,
net
156,613
141,435
Prepaid pension asset
279,212
261,869
Other assets
51,693
51,351
Total assets
$
4,885,738
$
4,620,969
Liabilities
Current liabilities:
Current portion of long-term debt
$
90,000
$
—
Accounts payable
222,542
243,833
Accrued expenses
194,414
188,039
Deferred revenue
392,330
303,872
Other current liabilities
87,369
70,800
Total current liabilities
986,655
806,544
Long-term debt
959,302
1,050,362
Deferred tax liabilities, net
124,186
132,319
Accrued pension and other postretirement
benefit costs
68,159
66,875
Long-term operating lease liability
134,866
118,611
Long-term portion of environmental
reserves
14,661
12,784
Other liabilities
107,490
105,061
Total liabilities
$
2,395,319
$
2,292,556
Stockholders' equity
Common stock, $1 par value
$
49,187
$
49,187
Additional paid in capital
144,394
140,182
Retained earnings
3,751,183
3,487,751
Accumulated other comprehensive loss
(203,428
)
(213,223
)
Less: cost of treasury stock
(1,250,917
)
(1,135,484
)
Total stockholders' equity
$
2,490,419
$
2,328,413
Total liabilities and stockholders'
equity
$
4,885,738
$
4,620,969
Use and Definitions of Non-GAAP Financial Information
(Unaudited)
The Corporation supplements its financial information determined
under U.S. generally accepted accounting principles (GAAP) with
certain non-GAAP financial information. Curtiss-Wright believes
that these Adjusted (non-GAAP) measures provide investors with
improved transparency in order to better measure Curtiss-Wright’s
ongoing operating and financial performance and better comparisons
of our key financial metrics to our peers. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. Curtiss-Wright encourages investors to review its
financial statements and publicly filed reports in their entirety
and not to rely on any single financial measure. Reconciliations of
“Reported” GAAP amounts to “Adjusted” non-GAAP amounts are
furnished within this release.
The following definitions are provided:
Adjusted Operating Income, Operating
Margin, Net Earnings and Diluted EPS
These Adjusted financials are defined as Reported Operating
Income, Operating Margin, Net Earnings and Diluted Earnings per
Share under GAAP excluding: (i) the impact of first year purchase
accounting costs associated with acquisitions, specifically
one-time inventory step-up, backlog amortization, deferred revenue
adjustments and transaction costs; (ii) costs associated with the
Company's 2024 Restructuring Program; and (iii) the sale or
divestiture of a business or product line, as applicable.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
TO ADJUSTED (UNAUDITED)
($'s in thousands)
Three Months Ended
Three Months Ended
September 30, 2024
September 30, 2023
% Change
As Reported
Adjustments
Adjusted
As Reported
Adjustments
Adjusted
As Reported
Adjusted
Sales:
Aerospace & Industrial
$
228,659
$
—
$
228,659
$
220,297
$
—
$
220,297
4
%
4
%
Defense Electronics
243,029
—
243,029
216,285
—
216,285
12
%
12
%
Naval & Power
327,230
—
327,230
287,744
—
287,744
14
%
14
%
Total sales
$
798,918
$
—
$
798,918
$
724,326
$
—
$
724,326
10
%
10
%
Operating income
(expense):
Aerospace & Industrial(2)
$
37,435
$
1,926
$
39,361
$
39,014
$
—
$
39,014
(4
)%
1
%
Defense Electronics(2)
63,639
819
64,458
56,212
—
56,212
13
%
15
%
Naval & Power(1)(2)
53,039
759
53,798
47,663
1,333
48,996
11
%
10
%
Total segments
$
154,113
$
3,504
$
157,617
$
142,889
$
1,333
$
144,222
8
%
9
%
Corporate and other(2)
(9,210
)
660
(8,550
)
(10,370
)
—
(10,370
)
11
%
18
%
Total operating income
$
144,903
$
4,164
$
149,067
$
132,519
$
1,333
$
133,852
9
%
11
%
Operating
margins:
As Reported
Adjusted
As Reported
Adjusted
As Reported
Adjusted
Aerospace & Industrial
16.4
%
17.2
%
17.7
%
17.7
%
(130 bps)
(50 bps)
Defense Electronics
26.2
%
26.5
%
26.0
%
26.0
%
20 bps
50 bps
Naval & Power
16.2
%
16.4
%
16.6
%
17.0
%
(40 bps)
(60 bps)
Total Curtiss-Wright
18.1
%
18.7
%
18.3
%
18.5
%
(20 bps)
20 bps
Segment margins
19.3
%
19.7
%
19.7
%
19.9
%
(40 bps)
(20 bps)
(1) Excludes first year purchase
accounting adjustments in both the current and prior year
periods.
(2) Excludes costs associated with the
Company's 2024 Restructuring Program in the current period.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
TO ADJUSTED (UNAUDITED)
($'s in thousands)
Nine Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
% Change
As Reported
Adjustments
Adjusted
As Reported
Adjustments
Adjusted
As Reported
Adjusted
Sales:
Aerospace & Industrial
$
681,216
$
—
$
681,216
$
649,004
$
—
$
649,004
5
%
5
%
Defense Electronics
683,231
—
683,231
576,161
—
576,161
19
%
19
%
Naval & Power
932,429
—
932,429
834,417
—
834,417
12
%
12
%
Total sales
$
2,296,876
$
—
$
2,296,876
$
2,059,582
$
—
$
2,059,582
12
%
12
%
Operating income
(expense):
Aerospace & Industrial(2)
$
100,147
$
4,546
$
104,693
$
101,224
$
—
$
101,224
(1
)%
3
%
Defense Electronics(2)
169,964
1,342
171,306
122,760
—
122,760
38
%
40
%
Naval & Power (1)(2)
134,513
1,101
135,614
132,382
6,669
139,051
2
%
(2
)%
Total segments
$
404,624
$
6,989
$
411,613
$
356,366
$
6,669
$
363,035
14
%
13
%
Corporate and other(2)
(30,863
)
1,624
(29,239
)
(32,457
)
—
(32,457
)
5
%
10
%
Total operating income
$
373,761
$
8,613
$
382,374
$
323,909
$
6,669
$
330,578
15
%
16
%
Operating
margins:
As Reported
Adjusted
As Reported
Adjusted
As Reported
Adjusted
Aerospace & Industrial
14.7
%
15.4
%
15.6
%
15.6
%
(90 bps)
(20 bps)
Defense Electronics
24.9
%
25.1
%
21.3
%
21.3
%
360 bps
380 bps
Naval & Power
14.4
%
14.5
%
15.9
%
16.7
%
(150 bps)
(220 bps)
Total Curtiss-Wright
16.3
%
16.6
%
15.7
%
16.1
%
60 bps
50 bps
Segment margins
17.6
%
17.9
%
17.3
%
17.6
%
30 bps
30 bps
(1) Excludes first year purchase
accounting adjustments in both the current and prior year
periods.
(2) Excludes costs associated with the
Company's 2024 Restructuring Program in the current period.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
SALES BY END MARKET
(UNAUDITED)
($'s in thousands)
Three Months Ended
Three Months Ended
September 30, 2024
September 30, 2023
% Change
Aerospace & Defense
markets:
Aerospace Defense
$
158,980
$
148,023
7
%
Ground Defense
92,973
83,185
12
%
Naval Defense
217,510
179,862
21
%
Commercial Aerospace
96,677
79,703
21
%
Total Aerospace & Defense
$
566,140
$
490,773
15
%
Commercial markets:
Power & Process
$
131,376
$
122,118
8
%
General Industrial
101,402
111,435
(9
%)
Total Commercial
$
232,778
$
233,553
0
%
Total Curtiss-Wright
$
798,918
$
724,326
10
%
Nine Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
% Change
Aerospace & Defense
markets:
Aerospace Defense
$
445,158
$
380,095
17
%
Ground Defense
268,672
220,317
22
%
Naval Defense
605,004
532,773
14
%
Commercial Aerospace
279,768
232,226
20
%
Total Aerospace & Defense
$
1,598,602
$
1,365,411
17
%
Commercial markets:
Power & Process
$
394,016
$
373,457
6
%
General Industrial
304,258
320,714
(5
%)
Total Commercial
$
698,274
$
694,171
1
%
Total Curtiss-Wright
$
2,296,876
$
2,059,582
12
%
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
RECONCILIATION OF AS REPORTED
TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Diluted earnings per share - As
Reported
$
2.89
$
2.51
$
7.47
$
6.09
First year purchase accounting
adjustments
0.02
0.03
0.02
0.13
Restructuring costs
0.06
—
0.15
—
Diluted earnings per share - Adjusted
(1)
$
2.97
$
2.54
$
7.64
$
6.22
(1) All adjustments are presented net of
income taxes.
Organic Sales and Organic Operating
Income
The Corporation discloses organic sales and organic operating
income because the Corporation believes it provides investors with
insight as to the Company’s ongoing business performance. Organic
sales and organic operating income are defined as sales and
operating income, excluding contributions from acquisitions and
results of operations from divested businesses or product lines
during the last twelve months, costs associated with the Company's
2024 Restructuring Program, and foreign currency fluctuations.
Three Months Ended
September 30,
2024 vs. 2023
Aerospace &
Industrial
Defense Electronics
Naval & Power
Total Curtiss-Wright
Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
As Reported
4%
(4%)
12%
13%
14%
11%
10%
9%
Less: Acquisitions
0%
0%
0%
0%
(1%)
0%
0%
0%
Restructuring
0%
5%
0%
1%
0%
0%
0%
3%
Foreign Currency
(1%)
(2%)
0%
0%
0%
0%
0%
(1%)
Organic
3%
(1%)
12%
14%
13%
11%
10%
11%
Nine Months Ended
September 30,
2024 vs. 2023
Aerospace &
Industrial
Defense Electronics
Naval & Power
Total Curtiss-Wright
Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
As Reported
5%
(1%)
19%
38%
12%
2%
12%
15%
Less: Acquisitions
0%
0%
0%
0%
(1%)
0%
0%
0%
Restructuring
0%
4%
0%
1%
0%
0%
0%
2%
Foreign Currency
0%
0%
(1%)
0%
0%
0%
(1%)
1%
Organic
5%
3%
18%
39%
11%
2%
11%
18%
Free Cash Flow and Free Cash Flow
Conversion
The Corporation discloses free cash flow because it measures
cash flow available for investing and financing activities. Free
cash flow represents cash available to repay outstanding debt,
invest in the business, acquire businesses, return capital to
shareholders and make other strategic investments. Free cash flow
is defined as net cash provided by operating activities less
capital expenditures. Adjusted free cash flow excludes payments
associated with the Westinghouse legal settlement in the prior year
period. The Corporation discloses adjusted free cash flow
conversion because it measures the proportion of net earnings
converted into free cash flow and is defined as adjusted free cash
flow divided by adjusted net earnings.
CURTISS-WRIGHT CORPORATION and
SUBSIDIARIES
NON-GAAP FINANCIAL DATA
(UNAUDITED)
($'s in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Net cash provided by operating
activities
$ 177,274
$ 146,364
$ 242,976
$ 165,717
Capital expenditures
(14,584
)
(9,373
)
(37,703
)
(32,037
)
Free cash flow
$ 162,690
$ 136,991
$ 205,273
$ 133,680
Westinghouse legal settlement
—
—
—
10,000
Adjusted free cash flow
$ 162,690
$ 136,991
$ 205,273
$ 143,680
Adjusted free cash flow conversion
142
%
140
%
70
%
60
%
CURTISS-WRIGHT
CORPORATION
2024 Guidance
As of October 30, 2024
($'s in millions, except per
share data)
2023 Reported
(GAAP)
2023 Adjustments
(Non- GAAP)(1,2)
2023 Adjusted
(Non- GAAP)(1,2)
2024 Reported
Guidance (GAAP)
2024 Adjustments
(Non-GAAP)(3)
2024 Adjusted
Guidance (Non-GAAP)(3)
Low
High
Low
High
2024 Chg
vs 2023
Adjusted
Sales:
Aerospace & Industrial
$
887
$
—
$
887
$
925
$
940
$
—
$
925
$
940
4 - 6%
Defense Electronics
816
—
816
892
907
—
892
907
9 - 11%
Naval & Power
1,142
—
1,142
1,233
1,248
—
1,233
1,248
8 - 9%
Total sales
$
2,845
$
—
$
2,845
$
3,050
$
3,095
$
—
$
3,050
$
3,095
7 - 9%
Operating income:
Aerospace & Industrial
$
145
$
—
$
145
$
148
$
152
$
9
$
157
$
161
8 - 11%
Defense Electronics
192
—
192
213
218
3
216
221
13 - 15%
Naval & Power
189
9
198
197
202
1
198
203
0 - 2%
Total segments
$
526
$
9
$
535
$
557
$
572
$
13
$
570
$
585
Corporate and other
(42
)
—
(42
)
(41
)
(42
)
2
(39
)
(40
)
Total operating income
$
485
$
9
$
494
$
516
$
530
$
15
$
531
$
545
7 - 10%
Interest expense
$
(51
)
$
—
$
(51
)
$
(44
)
$
(45
)
$
—
$
(44
)
$
(45
)
Other income, net
30
—
30
35
35
—
35
35
Earnings before income taxes
463
9
472
507
519
15
522
534
Provision for income taxes
(109
)
(2
)
(111
)
(114
)
(117
)
(3
)
(117
)
(120
)
Net earnings
$
355
$
6
$
361
$
393
$
401
$
12
$
405
$
413
Diluted earnings per share
$
9.20
$
0.18
$
9.38
$
10.23
$
10.44
$
0.32
$
10.55
$
10.75
12 - 15%
Diluted shares outstanding
38.5
38.5
38.4
38.4
38.4
38.4
Effective tax rate
23.4
%
23.4
%
22.5
%
22.5
%
22.5
%
22.5
%
Operating margins:
Aerospace & Industrial
16.4
%
16.4
%
16.0
%
16.2
%
16.9
%
17.1
%
50 - 70 bps
Defense Electronics
23.5
%
23.5
%
23.9
%
24.0
%
24.2
%
24.4
%
70 - 90 bps
Naval & Power
16.6
%
17.4
%
16.0
%
16.2
%
16.1
%
16.3
%
(110 - 130 bps)
Total operating margin
17.0
%
17.4
%
16.9
%
17.1
%
17.4
%
17.6
%
0 - 20 bps
Free cash flow
$
403
$
10
$
413
$
430
$
450
$
—
$
430
$
450
4 - 9%
Notes: Full year amounts may not add due
to rounding.
(1) 2023 Adjusted financials exclude the
impact of first year purchase accounting adjustments.
(2) Free Cash Flow is defined as cash flow
from operations less capital expenditures. 2023 Adjusted Free Cash
Flow excluded a legal settlement payment of $10 million.
(3) 2024 Adjusted financials are defined
as Reported Operating Income, Operating Margin, Net Income and
Diluted EPS under GAAP excluding costs associated with the
Company's 2024 Restructuring Program and the impact of first year
purchase accounting adjustments.
CURTISS-WRIGHT
CORPORATION
2024 Sales Growth Guidance by
End Market
As of October 30, 2024
2024 % Change vs. 2023
Adjusted
Prior
Current
% Total Sales
Aerospace &
Defense Markets
Aerospace Defense
7 - 9%
9 - 11%
20%
Ground Defense
10 - 12%
10 - 12%
11%
Naval Defense
5 - 7%
9 - 11%
26%
Commercial Aerospace
13 - 15%
16 - 18%
12%
Total Aerospace & Defense
8 - 10%
10 - 12%
69%
Commercial
Markets
Power & Process
4 - 6%
5 - 7%
18%
General Industrial
Flat
(2 - 4%)
14%
Total Commercial
1 - 3%
1 - 3%
31%
Total Curtiss-Wright Sales
6 - 8%
7 - 9%
100%
Note: Sales percentages may not add due to
rounding.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global integrated
business that provides highly engineered products, solutions and
services mainly to Aerospace & Defense markets, as well as
critical technologies in demanding Commercial Power, Process and
Industrial markets. We leverage a workforce of approximately 8,600
highly skilled employees who develop, design and build what we
believe are the best engineered solutions to the markets we serve.
Building on the heritage of Glenn Curtiss and the Wright brothers,
Curtiss-Wright has a long tradition of providing innovative
solutions through trusted customer relationships. For more
information, visit www.curtisswright.com.
###
Certain statements made in this press release, including
statements about future revenue, financial performance guidance,
quarterly and annual revenue, net income, operating income growth,
future business opportunities, cost saving initiatives, the
successful integration of the Company’s acquisitions, and future
cash flow from operations, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements present management's expectations, beliefs,
plans and objectives regarding future financial performance, and
assumptions or judgments concerning such performance. Any
discussions contained in this press release, except to the extent
that they contain historical facts, are forward-looking and
accordingly involve estimates, assumptions, judgments and
uncertainties. Such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those expressed or implied. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Such risks and
uncertainties include, but are not limited to: a reduction in
anticipated orders; an economic downturn; changes in the
competitive marketplace and/or customer requirements; a change in
government spending; an inability to perform customer contracts at
anticipated cost levels; and other factors that generally affect
the business of aerospace, defense contracting, electronics,
marine, and industrial companies. Such factors are detailed in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2023, and subsequent reports filed with the Securities
and Exchange Commission.
This press release and additional information are available at
www.curtisswright.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030622596/en/
Jim Ryan (704) 869-4621 Jim.Ryan@curtisswright.com
Curtiss Wright (NYSE:CW)
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