Curtiss-Wright: Curtiss-Wright Reports First Quarter 2025 Financial Results and Raises Full-year 2025 Guidance for Sales, Operating Margin, EPS and Free Cash Flow

Curtiss-Wright Corporation (NYSE: CW) reports financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights: Reported sales of $806 million, up 13%, operating income of $129 million, up 29%, operating margin of 16.0%, and diluted earnings per share (EPS) of $2.68; Adjusted operating income of $134 million, up 34%; Adjusted operating margin of 16.6%, up 260 basis points; Adjusted diluted EPS of $2.82, up 42%; and Record new orders of $1.0 billion, up 13%, reflecting a 1.26x book-to-bill. Raised Full-Year 2025 Adjusted Financial Outlook: Sales guidance increased to new range of 8% to 9% growth (previously 7% to 8%), which continues to reflect growth in the majority of Curtiss-Wright's end markets; Operating income guidance increased to new range of 13% to 16% growth (previously 10% to 12%); Operating margin guidance range increased by 40 basis points to 18.3% to 18.5%, now up 80 to 100 basis points compared with the prior year; Diluted EPS guidance increased to new range of $12.45 to $12.80, now up 14% to 17% (previously $12.10 to $12.40, or 11% to 14%); Free cash flow (FCF) guidance range increased by $10 million to $495 million to $515 million, which continues to reflect greater than 105% FCF conversion; and Full-year 2025 guidance includes the potential direct impacts from tariffs on our operations as well as mitigating actions. "I'm proud of our team's outstanding first quarter 2025 performance as we delivered significant increases in new orders, sales, operating income and diluted EPS, and continued to execute on our Pivot to Growth strategy," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. "We achieved strong growth in the majority of our end markets, accentuated by the timing of naval defense revenues which drove a better than expected increase of 15% in our A&D markets. Additionally, we benefited from a stronger than anticipated operational performance in our Defense Electronics segment, which in combination, greatly contributed to 42% growth in diluted EPS. We were also pleased to start the year with strong momentum in orders, reaching a record quarterly high of more than $1 billion. This performance continues to reflect strong demand in our Aerospace & Defense and commercial nuclear markets." "Overall, we are confident in our ability to achieve strong growth and profitability this year. Building on the strength of our first quarter results, we have raised our full-year outlook and now expect to generate total sales growth of 8% to 9%, operating margin expansion of 80 to 100 basis points, and diluted EPS growth of 14% to 17%. Furthermore, we continue to maintain an efficient balance sheet, with ample liquidity, to execute on our disciplined capital allocation strategy. Curtiss-Wright remains well positioned to deliver long-term profitable growth for our shareholders." First Quarter 2025 Operating Results (In millions) Q1-2025 Q1-2024 Change Reported Sales $ 806 $ 713 13 % Operating income $ 129 $ 100 29 % Operating margin 16.0 % 14.0 % 200 bps Adjusted (1) Sales $ 806 $ 713 13 % Operating income $ 134 $ 100 34 % Operating margin 16.6 % 14.0 % 260 bps (1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. Sales of $806 million, up $92 million, or 13% compared with the prior year; Total Aerospace & Defense (A&D) market sales increased 15%, while total Commercial market sales increased 9%; In our A&D markets, strong growth in the defense markets was driven by higher than expected submarine revenues in naval defense and increased sales of defense electronics products supporting all defense markets, as well as higher OEM sales in the commercial aerospace market; In our Commercial markets, strong growth in the power & process market was principally driven by the contributions from acquisitions and higher organic sales of commercial nuclear products, while sales in the general industrial market increased slightly; and Adjusted operating income of $134 million increased 34%, while Adjusted operating margin increased 260 basis points to 16.6%, principally driven by favorable overhead absorption on higher revenues in all three segments, the benefits of the Company's restructuring and operational excellence initiatives, and favorable foreign currency translation, as well as an unfavorable naval contract adjustment in the prior year that did not recur in 2025. First Quarter 2025 Segment Performance Aerospace & Industrial (In millions) Q1-2025 Q1-2024 Change Reported Sales $ 227 $ 219 4 % Operating income $ 30 $ 27 9 % Operating margin 13.2 % 12.5 % 70 bps Adjusted (1) Sales $ 227 $ 219 4 % Operating income $ 32 $ 27 15 % Operating margin 13.9 % 12.5 % 140 bps (1) Note: Reconciliations of Reported to Adjusted operating results are available in the Appendix. Sales of $227 million, up $8 million, or 4%; Aerospace defense market revenue increases reflected higher sales for our actuation equipment, principally on the F-35 and other fighter jet programs; Commercial aerospace market revenue increases reflected increased demand and higher OEM sales of sensors products and surface treatment services on narrowbody and widebody platforms; General industrial market revenue reflected higher sales of industrial automation equipment offset by reduced sales of industrial vehicle products serving on- and off-highway vehicle platforms; and Adjusted operating income was $32 million, up 15% from the prior year, reflecting a strong Adjusted operating margin that increased 140 basis points to 13.9%, driven by favorable absorption on higher revenues, the benefits of the Company's restructuring initiatives and favorable foreign currency translation. Defense Electronics (In millions) Q1-2025 Q1-2024 Change Reported Sales $ 245 $ 212 16 % Operating income $ 67 $ 48 40 % Operating margin 27.5 % 22.7 % 480 bps Adjusted (1) Sales $ 245 $ 212 16 % Operating income $ 67 $ 48 40 % Operating margin 27.5 % 22.7 % 480 bps (1) Note: There were no adjustments to segment operating results. Sales of $245 million, up $33 million, or 16%; Strong revenue growth in the aerospace defense market was principally driven by increased sales of our embedded computing equipment on various helicopter programs; Ground defense market revenue increases principally reflected higher sales supporting U.S. ground vehicle modernization; Higher revenue in the naval defense market reflected increased sales of our embedded computing equipment supporting various domestic and international programs; and Adjusted operating income was $67 million, up 40% from the prior year, while Adjusted operating margin increased 480 basis points to 27.5%, primarily due to favorable absorption on higher defense revenues, the benefits of our operational excellence initiatives, and favorable mix of products. Naval & Power (In millions) Q1-2025 Q1-2024 Change Reported Sales $ 333 $ 282 18 % Operating income $ 42 $ 35 19 % Operating margin 12.6 % 12.5 % 10 bps Adjusted (1) Sales $ 333 $ 282 18 % Operating income $ 45 $ 35 28 % Operating margin 13.5 % 12.5 % 100 bps (1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. Sales of $333 million, up $51 million, or 18%; Revenue growth in the naval defense market was stronger than anticipated principally due to higher demand and the timing of revenues on the Virginia-class and Columbia-class submarine programs, in addition to higher growth on various next-generation submarine development programs and increased sales of aircraft handling systems equipment to international customers; Lower revenue in the aerospace defense market reflected the timing of sales of arresting systems equipment supporting various international customers; Higher power & process market revenues mainly reflected the contribution from acquisitions to our commercial nuclear and process markets, as well as higher organic sales of commercial nuclear products supporting the maintenance of existing operating reactors and the development of next-generation advanced reactors; and Adjusted operating income was $45 million, up 28% from the prior year, while Adjusted operating margin increased 100 basis points to 13.5%, due to favorable absorption on higher revenues partially offset by unfavorable mix of products and higher investment in development programs. Our results also reflected an unfavorable naval contract adjustment in the prior year that did not recur in 2025. Free Cash Flow (In millions) Q1-2025 Q1-2024 Change Net cash used for operating activities $ (39 ) $ (46 ) 15 % Capital expenditures (16 ) (12 ) (31 %) Free cash flow $ (55 ) $ (58 ) 5 % Free cash flow of ($55) million increased $3 million, as higher cash earnings were partially offset by the timing of collections as well as higher capital investments driven by growth investments in all three segments. New Orders and Backlog New orders of $1.0 billion increased 13% compared with the prior year principally reflecting strong demand across our naval defense, commercial aerospace and commercial nuclear end markets; and Backlog of $3.7 billion, up 7% from December 31, 2024, reflects higher demand across the A&D and Commercial markets. Share Repurchase and Dividends During the first quarter, the Company repurchased 42,383 shares of its common stock for approximately $14 million; and The Company declared a quarterly dividend of $0.21 a share. Full-Year 2025 Guidance The Company is updating its full-year 2025 Adjusted financial guidance (1) as follows: ($ In millions, except EPS) 2025 Adjusted Non-GAAP Guidance (Prior) 2025 Adjusted Non-GAAP Guidance (Current) Change vs 2024 Adjusted (Current) Total Sales $3,335 - $3,385 $3,365 - $3,415 8 - 9% Operating Income $598 - $613 $614 - $632 13 - 16% Operating Margin 17.9% - 18.1% 18.3% - 18.5% 80 - 100 bps Diluted EPS $12.10 - $12.40 $12.45 - $12.80 14 - 17% Free Cash Flow (2) $485 - $505 $495 - $515 2 - 7% (1) Reconciliations of Reported to Adjusted 2024 operating r