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Revenue: $869 million, a 9% increase year over year.

Operating Income: Increased 14% year over year.

Operating Margin: Expanded by 90 basis points to 19.6%.

Diluted EPS: Increased 14% year over year.

Free Cash Flow: $176 million, up 8% year over year.

Book-to-Bill Ratio: 1.1 times.

Order Backlog: Up 14% year-to-date, exceeding $3.9 billion.

Full Year Sales Growth Guidance: 10% to 11% increase expected.

Full Year Operating Income Growth Guidance: 16% to 19% increase expected.

Full Year Operating Margin Guidance: Expected to exceed 18.5%.

Full Year Diluted EPS Growth Guidance: 19% to 21% increase expected.

Full Year Free Cash Flow Guidance: $520 million to $535 million, up 8% to 11%.

Capital Expenditures: Expected to increase by approximately 40% year over year.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Curtiss-Wright Corp (NYSE:CW) reported a 9% year-over-year increase in sales, with 6% organic growth, indicating strong operational performance.

Operating income increased by 14% year over year, surpassing sales growth and contributing to a 90 basis point expansion in operating margin to 19.6%.

Free cash flow rose by 8% year over year to $176 million, reflecting a 140% conversion rate due to higher cash earnings and lower tax payments.

The company raised its full-year 2025 guidance, expecting sales to increase by 10% to 11% and operating income to grow by 16% to 19%.

Curtiss-Wright Corp (NYSE:CW) has a strong backlog, up 14% year-to-date, reaching a record of over $3.9 billion, providing confidence in future growth.

The timing of orders within the aerospace defense and ground defense markets was affected by the extended continuing resolution, causing some delays.

The Defense Electronics segment experienced a pushout of over $50 million in orders due to the government shutdown and continuing resolution.

Despite strong performance, the general industrial market sales remained flat, reflecting ongoing macroeconomic challenges affecting global industrial vehicle markets.

The company anticipates a sequential decline in naval defense revenues in the fourth quarter due to the timing of material receipts.

Curtiss-Wright Corp (NYSE:CW) faces potential impacts from a government shutdown, which could delay order processing and affect short-cycle businesses.

Q: Can you provide an update on the AP1000 reactor content and potential growth? A: Lynn Bamford, CEO, explained that Curtiss-Wright is working to increase its content per AP1000 plant. Historically, the company had $10 million to $20 million of content on top of reactor coolant pumps (RCPs), but they are now targeting to double or triple that amount. This effort is ongoing, and while nothing is assured yet, they are optimistic about adding meaningful business on top of the RCPs.

Q: How did the government shutdown and continuing resolution impact bookings, particularly in Defense Electronics? A: Lynn Bamford noted that the shutdown and continuing resolution affected some parts of their business, particularly in Defense Electronics, where over $50 million of orders were pushed out of Q3. However, they are confident that none of this business has gone away, and the pipeline remains healthy and growing. Chris Farkas, CFO, added that the order book improved sequentially in Q3, and they expect a 30- to 45-day turnaround time for orders to resume normal flow once the shutdown is resolved.

Q: What is the potential for US market orders for AP1000 reactors, and what is the expected timing? A: Lynn Bamford mentioned that while the first order is expected to be driven by the Poland opportunity, the US market is also promising, especially with recent partnerships and funding announcements. However, the timing for US orders remains uncertain, and they are focused on the first order in 2026, likely from Poland or Bulgaria.

Q: Can you provide an update on the state of the M&A pipeline and potential activity in 2026? A: Lynn Bamford stated that M&A remains a top priority, with ongoing discussions for strategic acquisitions. They are focused on properties that add value to their portfolio, but they are cautious about overpaying. The company is committed to strategic and financial fit in any potential acquisitions.

Q: How is Curtiss-Wright positioned for growth in 2026, and what are the expectations for margin expansion? A: Lynn Bamford expressed confidence in driving growth across all segments in 2026, supported by strong market dynamics in aerospace, defense, and nuclear sectors. They anticipate being well ahead of their 2024 Investor Day targets and are committed to operating margin expansion. More specific guidance for 2026 will be provided after closing out the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.