Summary of Curtiss-Wright FY Conference Call - September 11, 2025 Company Overview - **Curtiss-Wright** is a 95-year-old engineering and manufacturing company with over 50% of its business in defense [4][5] - The company specializes in highly engineered systems for critical applications, particularly in defense, commercial aerospace, industrial, and nuclear power [4][9] Industry Insights Defense Sector - The **U.S. Department of Defense** budget for fiscal year 2026 is expected to increase by over 20%, which is anticipated to positively impact Curtiss-Wright's defense business [3] - The company has historically outpaced the growth of the defense budget, focusing on shipbuilding and defense electronics [5][6] - Curtiss-Wright is involved in over 400 platforms and 3,000 programs internationally, positioning itself well for growth as defense budgets increase [6][7] - The company is also focusing on aftermarket services, which are crucial for the U.S. fleet [6] Commercial Aerospace - The FAA's mandate for 25-hour cockpit voice recorders is expected to drive growth in the commercial aerospace segment, with retrofitting opportunities for existing fleets [22][23] - Curtiss-Wright has partnered with Honeywell to provide these recorders, with certification expected for Airbus platforms in the first half of 2026 [23][24] Nuclear Power - The company sees significant growth potential in the **commercial nuclear power** sector, particularly due to recent executive orders supporting domestic production and life extensions of existing plants [30][31] - Curtiss-Wright is heavily involved in the aftermarket, which currently accounts for 90% of its nuclear revenues [31] - The company anticipates its first AP-1000 order in 2026, with a focus on opportunities in Eastern Europe, particularly Poland and Bulgaria [34][35] Small Modular Reactors (SMRs) - Curtiss-Wright is actively pursuing opportunities in the SMR market, having established a partnership with Rolls-Royce [42][44] - The company aims to be a significant supplier across various SMR projects, with potential revenues projected to be substantial if the market takes off [45][46] Financial Performance and Strategy - The defense electronics business is experiencing strong growth, with margins approaching 30% [19][20] - The company has a robust cash flow generation strategy, with a focus on share buybacks and potential acquisitions [49][50] - Curtiss-Wright is committed to maintaining a strong balance sheet, with a current debt to EBITDA ratio of about 1.3 times [51] Key Growth Areas - **Subsea Pumps**: The company has delivered its first subsea pump to Shell, with expectations of significant orders in the coming years, projecting $250 million by the end of the decade and $500 million by the middle of the next decade [54][55] - **International Sales**: There is a growing interest in foreign military sales, with a projected 20% growth in 2025, indicating a shift above historical norms [15][16] Conclusion - Curtiss-Wright is well-positioned for growth across multiple sectors, particularly in defense, commercial aerospace, and nuclear power, with a strong focus on innovation and strategic partnerships [12][18][30]