Financial Data and Key Metrics Changes - The company reported sales of $869 million, representing a 9% year-over-year increase, with 6% organic growth [5][6] - Operating income increased by 14% year-over-year, leading to a 90 basis points expansion in overall operating margin to 19.6% [6][14] - Diluted earnings per share (EPS) rose by 14% year-over-year, slightly exceeding expectations [6][9] - Free cash flow was $176 million, up 8% year-over-year, reflecting nearly 140% conversion due to higher cash earnings and lower tax payments [6][9] Business Line Data and Key Metrics Changes - In the aerospace and industrial segment, sales increased by 8%, driven by strong demand in commercial aerospace and ground defense markets [10][11] - The defense electronics segment saw a 4% sales growth, primarily due to tactical communications equipment revenues [11][12] - The naval and power segment experienced a 12% increase in sales, driven by production acceleration on submarine programs [12][13] Market Data and Key Metrics Changes - The order book increased by 8%, resulting in a book-to-bill ratio of 1.1 times, indicating continued confidence in future growth [6][46] - The backlog reached a record of over $3.9 billion, up 14% year-to-date [8][46] - Strong demand for commercial nuclear orders was noted, including new contracts supporting government sites [7][8] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy, emphasizing operational excellence and targeted investments [4][24] - There is a strong alignment with U.S. defense priorities, particularly in shipbuilding and defense electronics [25][26] - The company is positioned to capitalize on increased global defense spending and has significant content in key defense programs [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning across A&D and commercial markets, anticipating meaningful growth opportunities into the next decade [4][24] - The company raised its full-year 2025 guidance for sales, operating income, and EPS, reflecting strong year-to-date performance [8][9] - Management acknowledged potential impacts from government shutdowns but remained optimistic about the order pipeline and future growth [41][47] Other Important Information - The company plans to maintain a strong focus on research and development while also pursuing strategic acquisitions [33][80] - Increased capital expenditures are anticipated to support future growth initiatives, with a 40% year-over-year increase expected [22][64] Q&A Session Summary Question: Can you provide details on the AP1000 reactor content? - Management confirmed that the content per reactor coolant pump (RCP) is approximately $28 million, with additional content expected to increase significantly [39][40] Question: How are bookings performing across segments? - Overall bookings were strong, with a book-to-bill ratio of 1.1 times, although some delays were noted in the defense electronics segment due to government shutdowns [41][46] Question: What is the outlook for the nuclear market in the U.S.? - Management indicated that the first orders are expected from Poland and Bulgaria, with U.S. orders anticipated to follow, but timing remains uncertain [60][61] Question: What is the capacity for building AP1000 reactors? - The company estimates a capacity of 12-16 reactors per year, with increased capital expenditures aimed at supporting this capacity [62][64] Question: What is the state of the M&A pipeline? - Management confirmed that M&A remains a top priority, with ongoing discussions for strategic acquisitions [80]

Financial Data and Key Metrics Changes - The company reported revenue of $869 million for Q3 2025, representing a 9% year-over-year increase, with 6% organic growth [5] - Operating income increased by 14% year-over-year, leading to an overall operating margin expansion of 90 basis points to 19.6% [5] - Diluted earnings per share (EPS) rose by 14% year-over-year, slightly exceeding expectations due to improved operational performance and fewer shares outstanding [5] - Free cash flow was $176 million, up 8% year-over-year, reflecting nearly 140% conversion due to higher cash earnings and lower tax payments [5] Business Line Data and Key Metrics Changes - In the Aerospace and Industrial segment, sales increased by 8%, driven by strong demand in commercial aerospace and modest growth in aerospace defense [10] - The Defense Electronics segment saw a 4% sales growth, primarily due to tactical communications equipment revenues [11] - The Naval and Power segment experienced a 12% increase in sales, driven by production acceleration on submarine programs [12] Market Data and Key Metrics Changes - The order book increased by 8%, resulting in a book-to-bill ratio of 1.1 times, indicating continued confidence in future top-line growth [5] - The backlog reached a record of over $3.9 billion, up 14% year-to-date [8] - Commercial nuclear orders saw tremendous growth, including new multi-year contracts funded by the DOE [6][8] Company Strategy and Development Direction - The company is focused on a "pivot to growth" strategy, emphasizing operational and commercial excellence while making targeted investments [4] - There is a strong alignment with U.S. defense priorities, particularly in shipbuilding and defense electronics, which are expected to benefit from increased global defense spending [24][25] - The company aims to capitalize on growth opportunities in commercial aerospace and nuclear markets, with expectations for significant revenue growth in the coming years [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning across A&D and commercial markets, anticipating meaningful growth opportunities well into the next decade [4] - The company raised its full-year 2025 guidance for sales, operating income, and EPS, reflecting strong year-to-date performance and a growing backlog [8][9] - Management acknowledged potential impacts from the government shutdown but indicated that the overall pipeline remains healthy and growing [37][43] Other Important Information - The company is maintaining its free cash flow guidance while increasing capital expenditures to support future growth initiatives [9][22] - Share repurchase activity has been accelerated, with expectations to exceed $450 million in repurchases for the year [32] Q&A Session Summary Question: Can you provide details on the AP1000 reactor content? - Management confirmed that the content per reactor coolant pump (RCP) is approximately $28 million, with additional content expected to increase significantly [35][36] Question: How did bookings perform by segment, particularly in defense electronics? - The company reported a book-to-bill ratio of 1.1 times, with defense electronics experiencing some order push-outs due to the government shutdown, but the overall pipeline remains strong [37][38] Question: What is the expected timeline for revenue recognition on the AP1000 orders? - Revenue recognition will depend on the timing of material receipts, with some revenue expected in 2026 and a quicker acceleration in 2027 [52][53]

Financial Performance - Sales reached $869 million, a 9% increase overall, with organic growth at 6%[6] - Operating income increased by 14% to $170 million, resulting in a year-over-year margin expansion of 90 bps to 196%[6] - Diluted EPS increased by 14% to $340[6] - Free Cash Flow (FCF) increased by 8% to $176 million, with an FCF conversion rate of 137%[6] Orders and Backlog - New orders totaled $927 million, an 8% increase, resulting in a book-to-bill ratio of 11x[6] - Backlog increased by 14% year-to-date[6] Guidance - Total sales growth guidance increased to 10-11%, with organic growth now up 7-8% year-over-year[6] - Operating income growth guidance increased to 16-19%, maintaining an operating margin of 185-187%, up 100-120 bps year-over-year[6] - The company is on track to deliver 19-21% EPS growth and strong FCF generation at approximately 108% conversion[6] Segment Performance - Aerospace & Industrial sales increased by 8% to $248 million, driven by strong demand in Commercial Aerospace and higher sales in Aerospace Defense and Ground Defense[7] - Defense Electronics sales increased by 4% to $253 million, driven by higher revenues in Aerospace Defense and Naval Defense[7] - Naval & Power sales increased by 12% to $368 million, driven by higher Naval Defense revenues and solid organic growth in Commercial Nuclear[7]

Core Insights - Curtiss-Wright reported revenue of $869.17 million for the quarter ended September 2025, reflecting an 8.8% increase year-over-year, although it was a slight miss of 0.32% compared to the Zacks Consensus Estimate of $871.92 million [1] - The earnings per share (EPS) for the quarter was $3.40, up from $2.97 in the same quarter last year, surpassing the consensus estimate of $3.28 by 3.66% [1] Financial Performance - Adjusted Sales in Aerospace & Industrial reached $247.99 million, slightly above the estimated $247.75 million, marking an 8.5% increase from the previous year [4] - Adjusted Sales in Naval & Power were reported at $368.03 million, below the estimate of $377.42 million, but showed a 12.5% year-over-year increase [4] - Adjusted Sales in Defense Electronics amounted to $253.16 million, exceeding the average estimate of $247.19 million, with a year-over-year growth of 4.2% [4] Operating Income - Adjusted Operating Income for Naval & Power was $61.25 million, slightly below the estimate of $61.87 million [4] - Adjusted Operating Income for Defense Electronics was reported at $73.96 million, surpassing the average estimate of $64.25 million [4] - Adjusted Operating Income for Aerospace & Industrial was $46.01 million, above the estimate of $44.64 million [4] - Corporate and other reported an adjusted operating loss of $10.85 million, worse than the estimate of $7.49 million [4] Stock Performance - Curtiss-Wright's shares have returned 8.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a 1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Curtiss-Wright reported quarterly earnings of $3.4 per share, exceeding the Zacks Consensus Estimate of $3.28 per share, and up from $2.97 per share a year ago, representing an earnings surprise of +3.66% [1] - The company posted revenues of $869.17 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.32%, but up from $798.92 million year-over-year [2] - The stock has increased approximately 65.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.61, with expected revenues of $870.89 million, and for the current fiscal year, the EPS estimate is $12.94 on revenues of $3.43 billion [7] - The estimate revisions trend for Curtiss-Wright was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Aerospace - Defense Equipment industry, to which Curtiss-Wright belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Curtiss-Wright Corporation reported strong financial results for Q3 2025, leading to an increase in full-year guidance for sales, operating income, and diluted EPS, driven by the successful implementation of its "Pivot to Growth" strategy [1][2]. Financial Performance - Reported sales reached $869 million, a 9% increase from Q3 2024, with operating income of $166 million, reflecting a 15% growth [3][5]. - Adjusted operating income was $170 million, up 14%, with an adjusted operating margin of 19.6%, an increase of 90 basis points [5][6]. - Diluted EPS increased to $3.31, with adjusted diluted EPS at $3.40, both up 14% year-over-year [5][6]. Segment Performance - **Aerospace & Industrial**: Sales of $248 million, up 8%, with operating income of $45 million, a 21% increase [4][11]. - **Defense Electronics**: Sales of $253 million, a 4% increase, with operating income of $74 million, up 16% [7][12]. - **Naval & Power**: Sales of $368 million, a 12% increase, with operating income of $58 million, up 9% [8][13]. Order and Backlog - New orders totaled $927 million, an 8% increase, resulting in a book-to-bill ratio of 1.1x [5][14]. - The backlog increased to $3.9 billion, reflecting a 14% growth year-to-date [5][14]. Cash Flow and Capital Allocation - Free cash flow for Q3 2025 was $176 million, an 8% increase, with a conversion rate of 137% [9][14]. - The company expanded its share repurchase program, targeting over $450 million in annual repurchases, indicating confidence in future performance [2][14]. Updated Guidance - Full-year 2025 sales guidance was raised to a range of $3,420 million to $3,455 million, reflecting a growth of 10% to 11% [15]. - Operating income guidance was increased to $634 million to $647 million, representing a growth of 16% to 19% [15]. - Diluted EPS guidance was updated to a range of $12.95 to $13.20, indicating a growth of 19% to 21% [15].

Core Insights - Curtiss-Wright (CW) is expected to report quarterly earnings of $3.28 per share, reflecting a 10.4% increase year over year [1] - Revenue forecasts stand at $871.92 million, indicating a 9.1% year-over-year growth [1] - Analysts have revised the consensus EPS estimate 0.6% higher in the last 30 days, showing a collective reevaluation of initial estimates [1] Revenue Estimates - Adjusted Sales for Aerospace & Industrial are projected at $247.75 million, representing an 8.4% increase year over year [4] - Adjusted Sales for Naval & Power are estimated at $377.42 million, indicating a 15.3% year-over-year growth [4] - Adjusted Sales for Defense Electronics are expected to reach $247.19 million, reflecting a 1.7% increase year over year [4] Operating Income Estimates - Reported Operating Income for Naval & Power is anticipated to be $58.19 million, up from $53.04 million in the same quarter last year [5] - Reported Operating Income for Defense Electronics is projected at $64.19 million, compared to $63.64 million in the same quarter of the previous year [5] - Reported Operating Income for Aerospace & Industrial is expected to be $44.92 million, an increase from $37.44 million in the same quarter last year [6] Stock Performance - Over the past month, Curtiss-Wright shares have gained 8.6%, outperforming the Zacks S&P 500 composite, which increased by 2.1% [6] - The company holds a Zacks Rank of 3 (Hold), suggesting that its performance is likely to align with the overall market in the upcoming period [6]

Investment Rating - The report suggests a positive outlook for the nuclear power industry, particularly in the U.S., with a focus on companies involved in nuclear fuel supply, equipment manufacturing, and power operations [9][16]. Core Insights - The U.S. government has signed a cooperation agreement with Westinghouse Electric to build nuclear reactor projects valued at no less than $80 billion, indicating significant investment in the nuclear sector [1][11]. - The commercialization of Small Modular Reactors (SMRs) in the U.S. is expected to accelerate by 2025, driven by the demand from AI tech giants' data centers, regulatory support, and demonstration projects from leading SMR companies [2][12]. - The U.S. nuclear supply chain is heavily reliant on foreign suppliers for critical components and fuel, which presents both challenges and opportunities for domestic manufacturers and foreign suppliers from Japan, South Korea, and Europe [3][13]. - The surge in demand from AI data centers is revitalizing interest in nuclear power as a stable, low-carbon energy source, highlighting the urgency for new nuclear builds to meet rising electricity demands [4][14]. Summary by Sections Upstream - Focus on companies with scarce licenses and limited capacity, such as Cameco and Centrus Energy, which are positioned to benefit from the growing demand for nuclear fuel [9][16]. Midstream - Attention should be given to nuclear equipment manufacturers like BWX Technologies, Doosan Enerbility, and NuScale Power, which are expected to see growth as demonstration projects come online [9][16]. Downstream - Emphasis on nuclear power operators such as Talen Energy and Entergy, which are likely to have visible operating cash flows and benefit from the increasing reliance on nuclear energy [9][16].

Core Insights - The article discusses the 10 largest defense stocks in 2025, highlighting increased demand driven by global military conflicts and rising defense budgets, particularly in Europe [1][2] - The NYSE Arca Defense Index has increased by 43.81% year-to-date as of October 23, significantly outperforming the S&P 500 Index, which has returned 14.82% [3] - Smaller-cap defense contractors are also performing well due to demand for next-generation military technology, such as AI-powered drones [4] Defense Industry Trends - European countries are increasing their defense budgets, influenced by U.S. policy changes under President Trump, which has led to a greater emphasis on self-funding defense initiatives [2] - The U.S. has made significant arms deals, such as a $142 billion package to Saudi Arabia, contributing to the strong performance of American defense stocks [3] Company Performance - Curtiss-Wright Corporation (NYSE:CW) has a market cap of $21 billion and is noted for its innovative offerings in growing markets, with a price target raised to $502 from $457 [9][11] - Rocket Lab Corporation (NASDAQ:RKLB) has a market cap of $30.8 billion, with a price target increased to $75 from $50, reflecting strong growth in its Space Systems segment and a bullish outlook from analysts [14][15][16] Investment Insights - The article emphasizes the importance of hedge fund holdings in defense stocks, suggesting that mimicking top hedge fund picks can lead to market outperformance [8] - The methodology for identifying the largest defense stocks includes market capitalization and hedge fund interest, providing insights into investor sentiment [7]

Core Insights - Curtiss-Wright Corporation is advancing its commercial nuclear operations in response to the U.S. Government's plans for the next two decades, which have historically sidelined this segment due to public concerns [1] Group 1: Company Developments - The company is focusing on enhancing its commercial nuclear operations, indicating a strategic shift towards this sector [1] - The U.S. Government's long-term plans are expected to provide a supportive environment for the growth of commercial nuclear operations [1] Group 2: Industry Context - The commercial nuclear sector has faced challenges in the past, primarily due to negative public sentiment [1] - The renewed focus from the government may signal a change in the industry's trajectory, potentially leading to increased investment and development opportunities [1]