Curtiss-Wright(US:CW)2025-11-06 20:34Sales Performance - Total sales for Q3 2025 increased by $70 million, or 9%, to $869 million compared to Q3 2024, with segment increases of $19 million in Aerospace & Industrial, $10 million in Defense Electronics, and $41 million in Naval & Power [100]. - For the nine months ended September 30, 2025, total sales rose by $255 million, or 11%, to $2,551 million, driven by increases of $33 million in Aerospace & Industrial, $68 million in Defense Electronics, and $154 million in Naval & Power [101]. - Sales for the three months ended September 30, 2025, increased by $19 million, or 8%, to $248 million compared to the prior year period [115]. - Sales in the Defense Electronics segment for the three months ended September 30, 2025, increased by $10 million, or 4%, to $253 million [124]. - Sales in the Naval & Power segment for the three months ended September 30, 2025, increased by $41 million, or 12%, to $368 million [133]. - Sales in the commercial aerospace market increased by $12 million in the third quarter, primarily due to higher demand for actuation equipment and sensors [115]. - Sales for the nine months ended September 30, 2025, increased by $191 million, or 12%, to $1,789 million, driven by higher sales across all markets [144]. - The aerospace defense market saw increased sales due to higher demand for embedded computing equipment and actuation equipment, contributing to overall growth [144]. - Sales in the commercial aerospace market benefited from higher OEM demand for sensors and surface treatment services, along with increased sales of flight data recorder technology [144]. Operating Income - Operating income for Q3 2025 increased by $21 million, or 15%, to $166 million, with an operating margin of 19.1%, up 100 basis points from the prior year [103]. - Operating income for the nine months ended September 30, 2025 rose by $78 million, or 21%, to $452 million, with an operating margin of 17.7%, an increase of 140 basis points compared to the same period in 2024 [104]. - Operating income for the third quarter rose by $8 million, or 21%, to $45 million, with an operating margin of 18.3%, an increase of 190 basis points [119]. - Operating income in the Defense Electronics segment for the third quarter increased by $10 million, or 16%, to $74 million, with an operating margin of 29.2% [128]. - Operating income during the nine months ended September 30, 2025, increased by $14 million, or 14%, to $114 million, with an operating margin of 16.0% [120]. New Orders - New orders in Q3 2025 increased by $67 million, primarily due to naval defense orders and an increase in commercial nuclear product orders in the Naval & Power segment [111]. - New orders for the nine months ended September 30, 2025 increased by $187 million, driven by naval defense orders and an increase in orders for sensors and surface treatment services in the Aerospace & Industrial segment [112]. - New orders in the Naval & Power segment for the third quarter increased by $88 million, primarily due to the timing of naval defense orders [138]. - New orders in the third quarter increased by $29 million, primarily driven by higher demand for sensors and actuation products [121]. Financial Expenses and Income - Interest expense decreased by $1 million, or 8%, to $10 million in Q3 2025, and by $2 million, or 6%, to $31 million for the nine months ended September 30, 2025, due to lower borrowings [106]. - Other income, net, decreased by $5 million, or 47%, to $5 million in Q3 2025, and by $6 million, or 21%, to $22 million for the nine months ended September 30, 2025, primarily due to lower interest income [107]. - The effective tax rate for Q3 2025 was 22.5%, slightly down from 22.6% in the prior year, while the nine-month effective tax rate decreased to 21.6% from 22.2% [108]. - Comprehensive income for Q3 2025 was $107 million, down from $141 million in the prior year, while for the nine months it increased to $405 million from $297 million [109]. Cash Flow and Investments - Operating cash inflow for the nine months ended September 30, 2025, was $290,658 thousand, an increase of $48 million from the prior year, primarily due to higher cash earnings [148]. - Net cash used for investing activities decreased by $17 million from the prior year, primarily due to the acquisition of WSC in the previous period [150]. - The corporation repurchased approximately 684,000 shares of common stock for $325 million during the nine months ended September 30, 2025, compared to 455,000 shares for $138 million in the prior year [154]. - Dividend payments increased to $17 million for the nine months ended September 30, 2025, up from $16 million in the prior year, with a quarterly dividend increase to $0.24 per share starting in Q2 2025 [156]. Debt and Compliance - As of September 30, 2025, the corporation had approximately $10 million of outstanding borrowings under the Credit Agreement and $714 million of unused credit available [153]. - The corporation's average debt outstanding was $982 million for the three months ended September 30, 2025, down from $1.0 billion in the prior year [152]. - The corporation was in compliance with all debt agreements and had the ability to borrow an additional $2.7 billion without violating its debt to capitalization covenant [157][158].