Curtiss-Wright(US:CW) ZACKSยท2025-02-17 15:41Core Viewpoint - Curtiss-Wright Corporation reported mixed financial results for the fourth quarter of 2024, with adjusted EPS beating estimates but a decline in GAAP earnings, leading to a 5.5% drop in share price on February 14, 2024 [1][2]. Financial Performance - Adjusted EPS for Q4 2024 was $3.27, exceeding the Zacks Consensus Estimate of $3.08 by 6.2% and improving 3.5% from $3.16 in the same quarter last year [1][2]. - GAAP EPS was reported at $3.09, down 0.6% from $3.11 in the prior year [2]. - Total net sales for Q4 2024 reached $824.3 million, a 4.9% increase year over year, surpassing the Zacks Consensus Estimate of $785 million [3]. - For the full year 2024, revenues were $3.12 billion, up from $2.85 billion in 2023 [3]. Operational Metrics - Adjusted operating income for Q4 was $163 million, consistent with the prior year, but the adjusted operating margin contracted by 100 basis points to 19.8% due to increased R&D investments [4]. - Total backlog at the end of Q4 was $3.4 billion, a 20% increase from the end of 2023, driven by demand in aerospace and defense markets [5]. Segment Performance - Aerospace & Industrial segment sales increased by 5% year over year to $250.9 million, supported by strong demand in commercial aerospace and defense markets [6]. - Adjusted operating income for this segment rose 22% to $54 million, with an adjusted operating margin expanding by 280 basis points to 21.3% [7]. - Defense Electronics segment sales declined by 5% to $227.5 million, primarily due to decreased sales in the Ground defense market [8]. - Adjusted operating income for Defense Electronics fell 20% to $55 million, with a margin contraction of 450 basis points to 24.3% [9]. - Naval & Power segment sales increased by 12% to $345.9 million, driven by demand for submarine programs and commercial nuclear aftermarket sales [10]. - Adjusted operating income for this segment rose 11% to $66 million, although the margin contracted by 20 basis points to 19.1% [11]. Financial Position - Cash and cash equivalents as of December 31, 2024, were $385 million, down from $406.9 million a year earlier [12]. - Long-term debt decreased to $0.96 billion from $1.05 billion as of December 31, 2023 [12]. - Net cash flow from operating activities was $544.3 million in 2024, compared to $448.1 million in the previous year [12]. - Adjusted free cash flow at the end of 2024 was $483.3 million, up from $413.4 million in the prior year [13]. 2025 Guidance - For 2025, Curtiss-Wright expects adjusted EPS in the range of $12.10-$12.40, with the Zacks Consensus Estimate at $11.92 [14]. - The company anticipates sales between $3.34 billion and $3.39 billion, with the consensus estimate at $3.35 billion [15]. - Expected free cash flow for 2025 is projected to be between $485 million and $505 million [15].