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]

Core Viewpoint - Curtiss-Wright Corp. (CW) is positioned as a strong investment option within the Zacks Aerospace Defense Equipment industry, benefiting from its 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 3.2% to $12.55 per share over the past month [2] - CW's projected revenues for 2025 are estimated at $3.38 billion, reflecting an 8.3% growth [2] - The company's long-term earnings growth rate is forecasted at 12% [2] - CW has consistently surpassed expectations in the last four quarters, achieving an average earnings surprise of 13.34% [2] Group 2: Debt Profile - Curtiss-Wright's total debt to capital ratio stands at 27.25%, significantly lower than the industry average of 52.52% [3] - The times interest earned (TIE) ratio is 13.3, indicating a strong ability to meet future interest obligations [3] Group 3: Return on Equity - CW's return on equity (ROE) is currently at 18.02%, outperforming the industry average of 11.19%, demonstrating effective fund utilization [4] Group 4: Liquidity Position - The current ratio for Curtiss-Wright is 1.89, surpassing the industry average of 1.79, indicating a solid capacity to meet short-term liabilities [5] Group 5: Shareholder Initiatives - CW has increased its quarterly dividend to 24 cents per share, a 14.3% rise from the previous 21 cents, leading to an annualized dividend of 96 cents [6] - The current dividend yield is 0.22%, which is better than the industry average of 0.19% [6] Group 6: Commercial Nuclear Business - The U.S. market remains crucial for CW's nuclear power expansion, with significant growth in commercial nuclear aftermarket sales driven by demand for advanced small modular reactors [7] - In December 2024, CW expanded its nuclear solutions portfolio by acquiring Ultra Energy, enhancing its capabilities in neutron and radiation monitoring [7] Group 7: Stock Performance - Over the past three months, Curtiss-Wright's stock has increased by 35.7%, compared to the industry's growth of 7.9% [9]

Technical Analysis - Curtiss-Wright Corporation (CW) has reached a key level of support, with its 50-day simple moving average crossing above its 200-day simple moving average, indicating a "golden cross" [1] - A golden cross is a bullish technical chart pattern that suggests a potential breakout, as it occurs when a stock's short-term moving average surpasses a longer-term moving average [1][2] Performance Metrics - Over the past four weeks, CW has gained 24%, indicating strong upward momentum [3] - The company currently holds a 2 (Buy) rating on the Zacks Rank, suggesting that the stock may be positioned for further gains [3] Earnings Outlook - There have been no earnings estimate cuts for CW in the current quarter, with four revisions higher in the past 60 days, indicating a positive earnings outlook [3] - The Zacks Consensus Estimate for CW has also increased, further supporting the bullish case for the stock [3][5]

Summary of Curtiss-Wright (CW) FY Conference Call - May 22, 2025 Company Overview - **Company**: Curtiss-Wright Corporation - **Industry**: Defense, Aerospace, and Nuclear sectors - **Key Executives Present**: Lynn Bemford (CFO), Chris Farkas (CEO) [3][6] Core Points and Arguments Growth Strategy - **Pivot to Growth Strategy**: The company is on track to achieve greater than 5% organic growth CAGR over the next three years, with a focus on defense, aerospace, and commercial nuclear sectors [10][12]. - **Defense Business Growth**: Projected mid to high single-digit growth, with double-digit growth achieved last year [10][11]. - **Commercial Aerospace**: Anticipated to exceed high single-digit growth rates as Boeing and Airbus ramp up production [11]. - **Commercial Nuclear**: Targeting low double-digit growth, with confidence in achieving this over the three-year horizon [12]. Financial Performance - **Operating Income Growth**: Expected to outpace sales growth, indicating continued operating margin expansion [14]. - **EPS Growth**: Targeting greater than 10% CAGR, supported by strong sales growth and capital allocation strategies [15]. - **Free Cash Flow**: On track to generate approximately $1 billion in free cash flow, with a long-term target of $1.3 billion [17]. Defense Sector Insights - **Defense Budget**: The company benefits from a $150 billion reconciliation bill on top of an $850 billion base budget, with a focus on shipbuilding and naval projects [18][19]. - **Golden Dome Initiative**: Expected to positively impact Curtiss-Wright, with partnerships enhancing capabilities in smart weaponry [20][21]. - **Acquisition of Industrial Base Funding**: Increased from $15 million to $21 million, indicating strong support from Navy customers [19]. International Exposure - **NATO Spending**: Increased military spending among NATO countries, with expectations for growth in international military sales, now approximately 10% of total portfolio [41][42]. - **Rearm Europe Program**: Seen as a positive development for future sales growth [43]. Commercial Nuclear Developments - **Nuclear Power Plants**: Anticipated doubling of the commercial nuclear segment from $300 million to $600 million by 2028, with significant growth expected from new builds in Poland and Bulgaria [51][52]. - **Flight Recorders**: Long-standing expertise in flight recorders is expected to drive growth, particularly with new FAA mandates [45][46]. Capital Allocation and M&A Strategy - **M&A Pipeline**: Strong pipeline with a focus on acquiring companies in Defense Electronics, Naval Safety, and Commercial Nuclear sectors [58]. - **Share Repurchase**: $700 million in stock repurchased over the past four years, with an expanded authorization of $534 million for future buybacks [60][61]. Research and Development - **Investment in R&D**: Over half of internal R&D spending is allocated to Defense Electronics, with ongoing partnerships (e.g., with NVIDIA) to enhance product development [38][39]. Additional Important Insights - **Operational Excellence**: The company has expanded its operating margin by 900 basis points over the last twelve years, demonstrating consistent performance [14][15]. - **Additive Manufacturing**: Growing capabilities in this area align with government contracting trends, which favor commercial pricing models [24][27]. - **SMR Development**: Engaged with major SMR providers, with potential content ranging from $20 million to $120 million per plant, indicating significant future revenue opportunities [63][64]. This summary encapsulates the key points discussed during the conference call, highlighting the company's growth strategies, financial performance, sector insights, and future opportunities.

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Curtiss-Wright (CW) currently holding a Momentum Style Score of A [2] - Style Scores complement the Zacks Rank, which has a strong track record of outperformance; CW has a Zacks Rank of 2 (Buy) [3] Group 2: Performance Metrics - CW shares have increased by 7.53% over the past week, outperforming the Zacks Aerospace - Defense Equipment industry, which rose by 0.82% [5] - Over the past month, CW's price change is 23.16%, compared to the industry's 8.54% [5] - In the last quarter, CW shares rose by 21.38%, and over the past year, they increased by 43.96%, while the S&P 500 moved -3.42% and 14.16%, respectively [6] Group 3: Trading Volume and Earnings Outlook - CW's average 20-day trading volume is 229,544 shares, indicating a bullish sign when combined with rising stock prices [7] - In the past two months, four earnings estimates for CW have increased, with no downward revisions, raising the consensus estimate from $12.20 to $12.55 [9] - For the next fiscal year, four estimates have also moved upwards, with no downward revisions during the same period [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, CW is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a promising near-term investment [11]

Market Overview - The compact rotary actuator market is segmented into various product types including pneumatic, electric, hydraulic, and others, with growth trends projected from 2020 to 2031 [2][3]. - The market is also categorized by applications such as industrial automation, medical devices, robotics, and others, with significant growth expected in these sectors [2][3]. Industry Development Status - The compact rotary actuator industry is characterized by specific development features and factors influencing its growth, including both favorable and unfavorable elements [3]. - Barriers to entry in the compact rotary actuator industry are identified, impacting new entrants [3]. Supply and Demand Analysis - Global supply and demand dynamics for compact rotary actuators are forecasted from 2020 to 2031, detailing production capacity, output, and utilization rates [3][4]. - The report includes a detailed analysis of the compact rotary actuator market in China, highlighting production capacity, output, and market demand trends [4][5]. Regional Market Analysis - The report provides a comprehensive analysis of the compact rotary actuator market across major regions, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, with sales revenue and market share data from 2020 to 2031 [3][4][5]. - Specific insights into the sales volume and revenue trends for compact rotary actuators in North America, Europe, and Asia-Pacific are presented [4][5][6]. Competitive Landscape - The competitive landscape of the global compact rotary actuator market is analyzed, including market share and revenue data for major manufacturers from 2020 to 2025 [4][5][6]. - The report identifies leading manufacturers in the compact rotary actuator market, detailing their production capacities, sales volumes, and revenue [6][7]. Product Type Analysis - A detailed analysis of different product types of compact rotary actuators is provided, including sales volume and revenue forecasts from 2020 to 2031 [5][6]. - The report also discusses price trends for various product types in the compact rotary actuator market [5][6]. Application Analysis - The report examines the sales volume and revenue of compact rotary actuators across different applications, with forecasts extending to 2031 [6][7]. - Insights into market share and revenue trends for specific applications such as industrial automation and robotics are included [6][7]. Industry Development Environment - The report outlines the development trends and key driving factors for the compact rotary actuator industry, including a SWOT analysis of Chinese enterprises [6][7]. - An analysis of the policy environment affecting the compact rotary actuator industry in China is also provided [6][7]. Supply Chain Analysis - The supply chain for the compact rotary actuator industry is described, including key raw materials and major downstream customers [6][7]. - The report discusses procurement and production models within the compact rotary actuator industry [6][7].

Core Viewpoint - Curtiss-Wright Corporation reported strong first-quarter 2025 earnings, with adjusted EPS of $2.82, exceeding estimates and reflecting significant year-over-year growth in both sales and earnings [1][2][3]. Financial Performance - The company achieved net sales of $805.6 million, a 13% increase year over year, surpassing the Zacks Consensus Estimate of $767 million by 5% [3]. - Adjusted operating income was reported at $134 million, with an adjusted operating margin of 17.9% [3]. Backlog and Orders - Total backlog at the end of Q1 was $3.7 billion, an 8.8% increase from the end of 2024, driven by demand in aerospace, defense, and commercial markets [4]. - New orders reached $1 billion, up 13% year over year, supported by strong demand in naval defense, commercial aerospace, and commercial nuclear sectors [4]. Segment Performance - **Aerospace & Industrial**: Sales increased 4% to $227 million, driven by higher commercial aerospace sales and defense market revenues [5]. Adjusted operating income improved 15% to $50 million, with a margin expansion of 140 bps to 13.9% [6]. - **Defense Electronics**: Sales rose 16% to $245 million, fueled by ground and naval defense market revenues [7]. Operating income increased 40% to $67 million, with a margin expansion of 480 bps to 27.5% [8]. - **Naval & Power**: Sales grew 18% to $333 million, driven by demand for submarine programs and commercial nuclear products [9][10]. Adjusted operating income increased 28% to $45 million, with a margin expansion of 100 bps to 12.6% [11]. Financial Position - As of March 31, 2025, cash and cash equivalents were $226.5 million, down from $385 million at the end of 2024 [12]. Long-term debt remained flat at $0.96 billion [12]. - Net cash outflow from operating activities was $38.8 million, an improvement from $45.6 million in the prior year [12]. Adjusted free cash outflow was $54.5 million, compared to $57.7 million a year ago [12]. 2025 Guidance - The company raised its 2025 guidance for adjusted earnings to a range of $12.45-$12.80 per share, up from $12.10-$12.40 [13]. - Sales guidance was also increased to $3.37-$3.42 billion, compared to the previous range of $3.34-$3.39 billion [14]. - Free cash flow guidance was raised to $495-$515 million, up from $485-$505 million [14].

Financial Performance - Total sales for the three months ended March 31, 2025, increased by $92 million, or 13%, to $805.6 million compared to the prior year period[93] - Operating income for the same period rose by $29 million, or 29%, to $129.2 million, with an operating margin increase of 200 basis points to 16.0%[94] - Net earnings increased by $24.8 million, or 32%, to $101.3 million compared to the prior year period[93] - Comprehensive income for the three months ended March 31, 2025, was $120 million, compared to $61 million in the prior year[98] Orders and Sales Growth - New orders for the three months ended March 31, 2025, totaled $1,018 million, an increase of $116 million, or 13%, from the prior year[93] - Sales in the Aerospace & Industrial segment increased by $8 million, or 4%, to $227.2 million, driven by higher demand for actuation equipment[100] - Defense Electronics segment sales rose by $33 million, or 16%, to $245.2 million, primarily due to increased demand for embedded computing equipment[110] - Naval & Power segment sales increased by $51 million, or 18%, to $333.2 million, reflecting strong performance in naval defense orders[93] - Sales for the three months ended March 31, 2025, increased by $51 million, or 18%, to $333 million compared to the prior year period[115] - Sales in the Naval Defense market increased by $34 million, attributed to higher demand and timing of sales on submarine programs[115] - Total sales in Aerospace & Defense markets rose by $73 million, or 15%, to $563 million, with notable increases across all segments[122] - Sales in the Power & Process market increased by $20 million, or 15%, primarily due to acquisitions and higher commercial nuclear aftermarket sales[123] Operating Income and Margins - Operating income in the Defense Electronics segment increased by $19 million, or 40%, to $67.4 million, with an operating margin of 27.5%[111] - Operating income rose by $7 million, or 19%, to $42 million, with an operating margin of 12.6%, up 10 basis points from the previous year[118] Tax and Cash Flow - The effective tax rate for the three months ended March 31, 2025, was 19.0%, down from 22.7% in the prior year period[98] - Net cash used in operating activities decreased by $7 million from the prior year, reflecting higher cash earnings[127] - Net cash used in investing activities increased by $13 million, mainly due to additional consideration for the Ultra Energy acquisition[128] Debt and Credit Facilities - As of March 31, 2025, the Corporation had approximately $22 million in letters of credit and $728 million in unused credit available under its credit facility[130] - The Corporation's average debt outstanding was $1,021 million for the three months ended March 31, 2025, with a consistent average interest rate of 3.8%[129]

Financial Data and Key Metrics Changes - Sales for Q1 2025 reached $806 million, representing a 13% year-over-year increase or 11% on an organic basis, driven by growth in aerospace and defense markets [7][10] - Operating income increased by 34% year-over-year, resulting in a 260 basis points expansion in overall operating margin [8] - Diluted earnings per share (EPS) rose by 42% year-over-year, primarily due to higher aerospace and defense sales [8] - Free cash flow increased by 5% year-over-year, despite typically being a first-quarter outflow [8] - New orders increased by 13% year-over-year to a record of over $1 billion, resulting in a book-to-bill ratio of 1.26 times [8][10] Business Line Data and Key Metrics Changes - Aerospace and Industrial segment sales increased by 4%, with solid growth in defense markets, particularly in actuation equipment for F-35 and F-18 programs [12] - Defense Electronics segment saw a 16% sales growth, driven by embedded computing equipment sales supporting various C5ISR programs [13] - Naval and Power segment experienced an 18% sales growth, primarily due to higher revenue from naval defense platforms and contributions from acquisitions [15] Market Data and Key Metrics Changes - The overall backlog reached a record of over $3.6 billion, providing visibility and confidence in long-term growth [10] - The company expects total sales to grow by 8% to 9% in 2025, with strong growth anticipated in defense electronics and aerospace markets [10][24] - Commercial aerospace sales are projected to increase by 13% to 15%, driven by new cockpit voice recorder solutions [18] Company Strategy and Development Direction - The company is focused on operational growth and efficiency to expand margins and fund investments for profitable growth [6][29] - The strategy includes enhancing customer engagement and leveraging domain expertise in mission-critical technologies [5] - The company is well-positioned to capture growth trends in defense and commercial markets, with a strong emphasis on R&D and technological leadership [31][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results despite macroeconomic uncertainties [6][29] - The company raised its full-year guidance for sales, operating margins, and EPS, reflecting improved outlooks in key markets [10][11] - Management highlighted the importance of adapting to challenges such as tariffs and supply chain issues while maintaining operational excellence [21][29] Other Important Information - Approximately 20% of the company's business is subject to tariffs, with an estimated $30 million impact for 2025, but mitigation strategies are in place [21][45] - The company anticipates a total annualized savings of approximately $12 million from its restructuring program [22] Q&A Session Summary Question: Can you provide more detail on the tariff impact? - Management discussed the dynamic situation regarding tariffs and the proactive measures taken to mitigate impacts, including operational adjustments and pricing strategies [41][43] Question: What drove the increase in commercial aerospace guidance? - The increase was attributed solely to new cockpit voice recorder business, with expectations for long-term revenue growth due to FAA mandates [49][51] Question: How supportive has the current administration been towards nuclear energy? - Management expressed cautious optimism regarding ongoing support for nuclear energy, citing positive developments in Poland and Bulgaria [62][63] Question: What is the outlook for shipbuilding and how does it affect the company? - Management noted that while shipbuilding programs take time, there are immediate opportunities for growth due to increased funding and support for the industrial base [66] Question: Can you comment on Defense Electronics margin performance? - Management acknowledged conservatism in guidance due to various factors but emphasized ongoing operational excellence initiatives that are expected to drive future growth [70][72]