Core Insights - Aerospace-Defense Equipment stocks are expected to benefit from strategic mergers and acquisitions, enhancing operational scale and market presence, despite ongoing supply-chain challenges affecting aircraft deliveries and profitability [1][3][5]. Industry Overview - The Zacks Aerospace-Defense Equipment industry includes firms manufacturing essential components for aerospace and defense, such as aerostructures, propulsion systems, and defense electronics, while also providing aftermarket support services [2]. Trends Shaping the Industry - Recent mergers and acquisitions, such as TransDigm's $110 million acquisition of Servotronics and Teledyne's acquisition of Maretron assets, are expected to improve economies of scale and revenue growth [3]. - Global air passenger traffic is projected to grow by 5.8% year-over-year in 2025, indicating strong growth potential for aerospace-defense equipment stocks, particularly in commercial aviation [4]. Supply Chain Challenges - Supply-chain disruptions are impacting aircraft deliveries, with current deliveries 30% below peak levels, contributing to a backlog of 17,000 aircraft, which represents an 18% shortfall of the active global fleet [5]. Industry Performance - The Zacks Aerospace-Defense Equipment industry has outperformed both the S&P 500 composite and its sector, with a collective stock surge of 46.2% over the past year compared to 27.1% for the Aerospace sector and 10.9% for the S&P 500 [8]. Valuation Metrics - The industry is currently trading at an EV/Sales ratio of 11.14X, significantly higher than the S&P 500's 5.41X and the sector's 3.27X, indicating a premium valuation for capital-intensive aerospace-defense stocks [11]. Notable Companies - **Heico Corp.**: Expected to see a 13.3% sales improvement in fiscal 2025, with a long-term earnings growth rate of 17.6% [15][16]. - **AAR Corp.**: Anticipated 17.2% sales growth in fiscal 2025, with a Zacks Rank of 2 (Buy) [17][18]. - **Curtiss-Wright**: Projected 8.8% sales growth in fiscal 2025, recently awarded an $80 million contract by the USAF [20][22].

Q1 2021 Performance - Adjusted net sales increased by 2% overall, with Aerospace & Defense markets up by 8%[4] - Adjusted operating income increased by 15%, leading to an adjusted operating margin increase of 160 bps to 150%[4] - Adjusted diluted EPS was $151, an increase of 18%[4] - New orders reached $571 million, up by 3%, driven by a strong 12x book-to-bill ratio in commercial markets[4] FY 2021 Adjusted Guidance - The company raised full-year guidance for sales, operating income, operating margin, and EPS[5] - Expect sales growth of 7% - 9%, with solid growth in both A&D and commercial end markets[5] - Solid operating income growth of 9% - 11% outpacing sales growth, and driving continued margin expansion of 30 - 40 bps to 166% - 167%[5] - Adjusted diluted EPS increased by $010 to a new range of $710 - $730, up 8% - 11%[5] - Maintained FCF guidance range of $330 - $360 million, with adjusted FCF conversion >110%[5] Segment Performance (Q1 2021) - Aerospace & Industrial sales decreased by 15% to $178 million, while operating margin decreased by 330 bps to 104%[6] - Defense Electronics sales increased by 31% to $182 million, with operating margin up 170 bps to 209%[6] - Naval & Power sales increased by 1% to $230 million, with operating margin up 300 bps to 177%[6] 2021E End Market Sales Growth (Guidance) - Total Aerospace & Defense markets are expected to grow by 7% - 9%, accounting for 66% of total sales[8] - Total Commercial Markets are expected to grow by 6% - 8%, accounting for 34% of total sales[8] - Total Curtiss-Wright sales are expected to grow by 7% - 9%, with organic growth up 2% - 4%[8] 2021E Financial Outlook (Guidance) - Total sales are projected to be between $2450 - $2500 million, representing a 7% - 9% increase[10] - Total operating income is projected to be between $408 - $418 million, representing a 9% - 11% increase[10] - Diluted EPS is projected to be between $710 - $730, representing an 8% - 11% increase[12] - Free cash flow is projected to be between $330 - $360 million, with a free cash flow conversion of ~116%[14]

Q2 2021 Earnings Presentation Q2 2021 EARNINGS CONFERENCE CALL AUGUST 4, 2021 Listen-Only dial-in numbers: (844) 220-4970 (domestic) (262) 558-6349 (international) Conference ID: 6349664 SAFE HARBOR STATEMENT Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this website from one to twelve months following the initial presentation, but content will not be updated to reflect new information that may b ...

Q3 2021 Performance Highlights - Adjusted Sales increased by 12% overall[5] - Aerospace & Defense (A&D) markets were up by 15%[5] - Commercial markets increased by 6%[5] - Adjusted Operating Income rose by 12%, resulting in an Adjusted Operating Margin of 17.5%[5] - Adjusted Earnings Per Share (EPS) reached $1.88, exceeding expectations[5] - Adjusted Free Cash Flow (FCF) grew significantly by 76% to $97 million, with a 127% FCF conversion rate[5] - New Orders showed strong growth of 13%, leading to a Book-to-bill ratio exceeding 1.0x[5] Capital Allocation and Guidance - Share repurchase authorization expanded by $400 million, with a $200 million opportunistic program completed[5] - The company remains on track to complete $250 million in repurchases in 2021, expecting to repurchase approximately 2.0 million total shares[5] - $350 million open repurchase authorization remaining[5] - Full-year guidance maintained for Sales, Operating Income, Operating Margin, and FCF[5] - Adjusted EPS range raised, now $7.20 - $7.35, up 9% - 12%[5] 2021E Financial Outlook - Total Sales are projected to be between $2,465 million and $2,515 million, representing a 7% - 9% increase compared to 2020 Adjusted figures[8] - Aerospace & Industrial segment sales are expected to be between $760 million and $775 million, a 3% - 5% increase[8] - Defense Electronics segment sales are projected to be between $745 million and $760 million, a 22% - 24% increase[8] - Naval & Power segment sales are expected to be between $960 million and $980 million, a 1% - 3% increase[8] - Total Operating Income is projected to be between $411 million and $421 million, up 9% - 12%[10]

Q4 2021 Earnings Presentation Q4 2021 EARNINGS CONFERENCE CALL FEBRUARY 24, 2022 Listen-Only dial-in numbers: (844) 220-4970 (domestic) (262) 558-6349 (international) Conference ID: 1619366 Conference Call Replay: (855) 859-2056 (domestic) (404) 537-3406 (international) Conference ID: 1619366 SAFE HARBOR STATEMENT Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this website from one to twelve month ...

Q1 2022 Performance - Sales reached $559 million, impacted by the timing of Defense revenues[5] - New orders increased by 12%, resulting in a book-to-bill ratio exceeding 1.1x[5] - Adjusted diluted EPS was $1.31, surpassing expectations[5] - Total sales decreased by 5% from $590 million in Q1'21 to $559 million in Q1'22[7] Segment Performance (Q1 2022 vs Q1 2021) - Aerospace & Industrial sales increased by 8%, from $178 million to $191 million[7] - Defense Electronics sales decreased by 22%, from $182 million to $143 million[7] - Naval & Power sales decreased by 2%, from $230 million to $225 million[7] - Aerospace & Industrial margin increased by 260 bps to 13.0%[7] - Defense Electronics margin decreased by 460 bps to 16.3%[7] - Naval & Power margin decreased by 320 bps to 14.5%[7] FY 2022 Guidance - The company maintains FY'22 adjusted guidance, projecting sales growth of 3% - 5%[6] - The company anticipates EPS growth of 10% - 12%[6] - Aerospace & Industrial sales are projected to grow by 4% - 6%, reaching $805 - $825 million[10] - Defense Electronics sales are projected to grow by 2% - 4%, reaching $745 - $760 million[10] - Naval & Power sales are projected to grow by 2% - 3%, reaching $980 - $995 million[10] - The company expects operating margin to increase by 10 - 30 bps to 17.1% - 17.3%[14]

Core Viewpoint - Curtiss-Wright Corp. (CW) is positioned as a strong investment opportunity within the Zacks Aerospace Defense Equipment industry, driven by growth in commercial nuclear aftermarket sales and shareholder-friendly initiatives [1] Group 1: Growth Forecast & Financial Performance - The Zacks Consensus Estimate for CW's 2025 earnings per share (EPS) has risen by 3.7% to $12.61 [2] - CW's projected revenues for 2025 are $3.38 billion, reflecting an 8.5% growth [2] - The company's long-term earnings growth rate is estimated at 12% [2] - CW has consistently surpassed earnings expectations, achieving an average earnings surprise of 13.34% over the last four quarters [2] Group 2: Shareholder Returns - CW has been enhancing shareholder value through regular dividend payments, with a current quarterly dividend of 24 cents per share, leading to an annualized dividend of 96 cents [3] - The current dividend yield stands at 0.20%, which is above the industry average of 0.16% [3] Group 3: Financial Health - As of the end of Q1 2025, CW's current ratio is 1.89, surpassing the industry average of 1.76, indicating strong short-term liability management [4] - CW's return on equity (ROE) is 18.02%, significantly higher than the industry average of 8.44%, showcasing effective fund utilization [5] - The total debt to capital ratio for CW is 27.25%, well below the industry average of 51.94%, indicating a strong debt management position [6] - CW's times interest earned ratio (TIE) is 13.3, reflecting the company's capability to meet interest obligations comfortably [6] Group 4: Market Position & Operations - The U.S. market is crucial for CW's nuclear power expansion, with significant growth in commercial nuclear aftermarket sales driven by demand for small modular reactors [9] - The acquisition of Ultra Energy in December 2024 has bolstered CW's capabilities in neutron and radiation monitoring, sensors, and reactor protection systems [9] - CW is actively collaborating with leading 300-megawatt reactor designers to develop critical systems and equipment, positioning itself for growth in both U.S. and global nuclear markets [10] Group 5: Stock Performance - Over the past three months, CW's stock has increased by 57.4%, outperforming the industry's growth of 29% [11]

It has been about a month since the last earnings report for Curtiss-Wright (CW) . Shares have added about 18.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Curtiss-Wright due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?I ...

Market Overview - The AI-driven bull run of 2023 and 2024 has faced setbacks in 2025 due to the Fed's uncertainty over rate cuts, recession fears, and competition from a low-cost Chinese AI platform [1] - Concerns regarding the Trump administration's tariff and trade policies have negatively impacted confidence in risky assets, particularly in the technology sector [2] Company Highlights Howmet Aerospace Inc. (HWM) - HWM is experiencing strong momentum in the commercial aerospace market, supported by robust build rates and recovery in wide-body aircraft [6] - The company has a projected revenue growth rate of 8.5% and an earnings growth rate of 28.6% for the current year, with a 4.2% improvement in earnings estimates over the last 30 days [7] Newmont Corp. (NEM) - NEM is advancing its growth projects, including the Tanami expansion and the Ahafo North project, with a total investment of $950 million to $1,050 million [10][11] - The expected revenue growth rate is 2% and earnings growth rate is 20.1% for the current year, with a 9.7% increase in earnings estimates over the last 30 days [11] Sprouts Farmers Market Inc. (SFM) - SFM focuses on product innovation, e-commerce, and private label offerings, leading to better-than-expected fourth-quarter results [12] - The company anticipates net sales growth of 10.5% to 12.5% and comparable store sales growth of 4.5% to 6.5% for 2025, with expected revenue growth of 13.7% and earnings growth of 35.5% for the current year [13][14] GE Aerospace (GE) - GE Aerospace is benefiting from strong demand for commercial engines and rising defense budgets, with an expected organic revenue growth in the low-double-digit range [15][16] - The company has a projected revenue decline of 6.8% but an earnings growth rate of 19.6% for the current year, with a slight improvement in earnings estimates [16] Curtiss-Wright Corp. (CW) - CW is capitalizing on the global shift towards alternative energy, particularly in nuclear power, with potential orders for 20-25 new reactors in Central and Eastern Europe [17][18] - The expected revenue growth rate is 8.5% and earnings growth rate is 15.7% for the current year, with a 0.5% improvement in earnings estimates [19]

Summary of Curtiss Wright's Presentation at the William Blair Growth Stock Conference Company Overview - **Company**: Curtiss Wright - **Industry**: Aerospace and Defense - **Key Personnel**: CEO Lynn Bamford, CFO Chris Farkas, Head of Investor Relations Jim Ryan - **Milestone**: Celebrated 95 years on the New York Stock Exchange [8][9] Core Messages - **Pivot to Growth Strategy**: Launched four years ago, focusing on growth and operational excellence [6][12] - **Financial Performance**: Strong financial results with a track record of achieving financial targets set during Investor Days [7][12] - **Engineering Workforce**: Approximately 9,000 employees, with 2,000 engineers, emphasizing collaboration and talent development [11] Operational Strategies - **Operational Growth Platform**: Focus on maximizing profitability through commercial and operational excellence [12] - **R&D Investments**: Increased R&D investments above sales growth, contributing to margin expansion and earnings growth in the mid-teens [12][26] - **Cost Efficiency**: Ongoing consolidation programs to drive efficiencies and reinvest in the business [13] End Markets and Growth Opportunities - **Navy Footprint**: Significant supplier for U.S. Navy platforms, targeting increased content for future generation platforms [19][20] - **Defense Electronics**: Partnership with NVIDIA to enhance electronics capabilities for battlefield technology [20] - **Nuclear Industry**: Focus on aftermarket services, life extensions, and new reactor builds, including small modular reactors (SMRs) [18][22][24] Market Trends - **Commercial Aerospace**: Anticipated multiyear ramp in growth, heavily focused on OEM [31] - **Foreign Military Spending**: Increased spending contributing to growth in defense markets [31] - **Nuclear Energy Expansion**: Targeting significant growth in nuclear energy, with potential for $1.5 billion in market share from Eastern Europe and additional opportunities from U.S. reactor builds [28][39][40] Financial Targets and Performance - **Sales Growth**: Targeting over 5% organic sales growth, with mid to high single-digit growth in defense markets [31] - **Operating Margins**: Expected operating margin expansion, with a current target of 18.4% [34] - **Free Cash Flow**: Projecting $1.3 billion in free cash flow over three years, with a strong focus on capital allocation [35][36] Future Outlook - **Nuclear Reactor Opportunities**: Anticipating orders for AP1000 reactors in 2026, with significant growth potential in the nuclear sector [43] - **Strategic Partnerships**: Collaborations with major players in the nuclear industry to enhance market position [40][41] Conclusion - **Investment Proposition**: Curtiss Wright's pivot to growth strategy is yielding positive results, with strong market positioning and a focus on delivering value to shareholders [28][29]