Curtiss-Wright(CW) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 reported sales were $824 million, up 5% year-over-year, with operating income of $155 million and diluted EPS of $3.09[6] - Full-year 2024 sales reached $3.1 billion, a 10% increase, with operating income of $529 million and diluted EPS of $10.55, reflecting double-digit growth in both sales and EPS[6] - Total net sales for the three months ended December 31, 2024, increased to $824.3 million, a 5% increase from $785.8 million in the same period of 2023[21] - Gross profit for the year ended December 31, 2024, was $1,153.5 million, compared to $1,067.2 million in 2023, reflecting a year-over-year increase of 8.1%[21] - Net earnings for the year ended December 31, 2024, were $405.0 million, compared to $354.5 million in 2023, representing a 14.2% increase[21] - Basic earnings per share for the year ended December 31, 2024, increased to $10.61, up from $9.26 in 2023, a growth of 14.5%[21] - Operating income for the three months ended December 31, 2024, was $154.8 million, a decrease of 3.4% from $160.7 million in 2023[21] - Operating income for the same period was $528,597, reflecting a 9% increase compared to $484,602 in 2023[29] - Adjusted diluted earnings per share for the year ended December 31, 2024, was $10.90, up from $9.38 in 2023, marking a 16% increase[31] Cash Flow and Capital Management - Free cash flow for Q4 2024 was $278 million, representing a 3% increase, with an adjusted free cash flow conversion rate of 223%[6] - The company repurchased approximately 311,000 shares for $112 million in Q4 2024 and a total of 766,000 shares for $250 million in the full year[14] - Net cash provided by operating activities for Q4 2024 was $301.3 million, up from $282.4 million in Q4 2023, representing a growth of 6.5%[36] - Free cash flow for the year ended 2024 was $483.3 million, an increase of 19.8% compared to $403.4 million in 2023[36] - Adjusted free cash flow conversion for 2024 was 116%, compared to 114% in 2023, indicating improved efficiency in cash generation[36] Orders and Backlog - New orders in Q4 2024 totaled $939 million, a 37% increase, contributing to a full-year total of $3.7 billion in new orders, up 20%[14] - The backlog at the end of 2024 was $3.4 billion, reflecting a 20% increase from the previous year[14] Future Guidance - For 2025, the company anticipates total sales growth of 7% to 8%, with operating margin expansion of 40 to 60 basis points and double-digit EPS growth[7] - The 2025 guidance includes projected total sales of $3,335 - $3,385 million and diluted EPS of $12.10 - $12.40, indicating an 11% to 14% increase compared to 2024[15] - The company anticipates a diluted earnings per share (EPS) of $11.80 to $12.10 for 2025, which is an increase of 11% to 14% from the previous year[38] - Sales in the Aerospace & Defense markets are expected to grow by 5% to 7% in 2025, contributing to 69% of total sales[41] - The Naval & Power segment is projected to see a sales increase of 10% to 11% in 2025, with expected sales of $1.400 billion to $1.420 billion[38] Market Performance - The company experienced strong demand in its Aerospace & Defense markets, particularly in naval defense and commercial aerospace, driving significant revenue growth[9] - Organic sales growth for the Aerospace & Industrial segment was 5%, while Defense Electronics saw a 12% increase, and Naval & Power experienced a 12% growth[33] - The Naval Defense market showed a significant sales increase of 16% year-over-year, reaching $216,894[30] - Total commercial sales increased by 3% to $253,015, driven by growth in the Power & Process market[30] Expenses and Investments - Research and development expenses rose to $25.8 million for the three months ended December 31, 2024, up from $20.1 million in 2023, indicating a 28% increase[21] - The company plans to increase capital expenditures by $14 million to $24 million year-over-year to support growth and efficiency initiatives[39] Balance Sheet - Total assets as of December 31, 2024, reached $4,985.7 million, an increase from $4,620.9 million in 2023, reflecting a growth of 7.9%[23] - Total liabilities increased to $2,535.9 million as of December 31, 2024, compared to $2,292.6 million in 2023, marking an increase of 10.6%[23] - The company reported a total current asset increase to $1,849.6 million as of December 31, 2024, from $1,717.1 million in 2023, a growth of 7.7%[23] Dividends - The company declared dividends per share of $0.21 for the three months ended December 31, 2024, compared to $0.20 in 2023, a 5% increase[21]