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]

Group 1: National Policy and Company Strategy - The national government supports the safe and orderly development of nuclear power, with plans to advance major projects such as coastal nuclear power by March 13, 2025 [2] - The company is actively preparing for project approvals, aiming to meet the necessary conditions for more nuclear power projects [2] Group 2: Market Performance and Financial Metrics - In the first half of 2025, the average market price of electricity decreased compared to the same period last year, primarily due to declines in the Guangdong and Guangxi regions [2] - The company experienced a reduction in maintenance days, totaling approximately 414 days, which is a decrease of 109 days year-on-year, attributed to different maintenance types and the application of new technologies [2] - The company achieved a VAT refund of approximately 500 million yuan in the first half of 2025, which represents a decline compared to the previous year [2] Group 3: Financial Health and Taxation - As of June 30, 2025, the company's debt-to-asset ratio was 60.2%, an increase of 0.9 percentage points from the beginning of the year, with expectations of further increases as construction projects progress [3] - The increase in income tax expenses in the first half of 2025 was due to the expiration of tax incentives for certain units and adjustments in VAT refund tax management, which will have a relatively small impact moving forward [3]

Core Viewpoint - China General Nuclear Power Corporation (CGN) is focused on ensuring the safe and stable operation of its existing nuclear power units and the high-quality construction of its ongoing projects, contributing to the new energy system in China [1] Financial Performance - In the first half of 2025, the company achieved an on-grid electricity generation of 113.60 billion kilowatt-hours [1] - The company reported a revenue of RMB 39.167 billion [1] - The net profit attributable to the parent company was RMB 5.952 billion [1] Business Focus - The company does not currently engage in smart grid business as a nuclear power enterprise [1] - CGN emphasizes its commitment to the safety and stability of its operational units and the quality of its construction projects [1]

Core Viewpoint - China National Nuclear Corporation (CNNC) launched the "Eight Directions Nuclear Protection" technical service product and signed strategic cooperation agreements with partners from Russia, France, the United States, and China, marking a significant step in expanding the international nuclear power service market and contributing to the sustainable development of global nuclear energy [1][2]. Group 1 - The "Eight Directions Nuclear Protection" product is a systematic integration and upgrade of CNNC's nearly 400 reactor-years of operational experience and technical capabilities, showcasing unique advantages in strength, leading standards, and deep integration with digital technology [1][2]. - The product aims to adapt to the diversified demands of the future nuclear power market and is positioned as a one-stop leader in nuclear power technical services, covering all aspects from initial production preparation to long-term operational support and specialized maintenance [2]. Group 2 - The launch event was attended by over 140 representatives from more than 70 domestic and international nuclear power-related enterprises, engineering construction companies, technical support units, operation and maintenance service units, equipment suppliers, research institutes, and universities [3]. - CNNC plans to enhance cooperation with various partners in technology collaboration, market development, standard building, and cultural exchange, promoting the "Eight Directions Nuclear Protection" brand and contributing to high-quality global nuclear energy development [2].

Group 1 - The report highlights that China has built the world's largest and fastest-growing renewable energy system, contributing to a quarter of the global increase in green areas [1] - By June 2025, China's non-fossil energy installed capacity is expected to reach 2.22 billion kilowatts, accounting for 60.9% of total installed capacity, with nuclear power leading globally [1] - The production of photovoltaic components and lithium batteries has increased significantly, with growth rates of over 370% and 640% respectively since the 14th Five-Year Plan [1] Group 2 - China is advancing green development in key sectors, with 1.69 billion square meters of new green building area expected in urban areas by 2024 [2] - The country aims for approximately 70% of the clean transportation of bulk goods in key industries by 2024, while also enhancing ecological safety through large-scale afforestation [2] - Continuous strengthening of technological innovation and policy incentives is noted, including the establishment of key laboratories for carbon peak and carbon neutrality technologies [2]

Core Viewpoint - The China National Nuclear Corporation (CNNC) has made significant achievements in energy development during the "14th Five-Year Plan" period, enhancing its core capabilities and contributing to national energy security and economic stability under the leadership of the Communist Party of China [2] Group 1: Energy Industry Development - The CNNC has optimized its energy layout by integrating nuclear energy with renewable sources such as wind, solar, and hydropower, establishing a diversified energy supply system with a total installed capacity exceeding 120 million kilowatts [3] - From 2021 to the present, CNNC has received approval for 46 nuclear power units nationwide, with 18 units approved by CNNC, accounting for 41.67% of the total [3] - The cumulative power generation of CNNC from 2021 to July 31, 2025, is expected to reach 1,055 billion kilowatt-hours, with an average annual growth rate of approximately 15 billion kilowatt-hours, reflecting a year-on-year increase of 7% [3] Group 2: Renewable Energy Enhancement - CNNC has established a clean energy matrix integrating wind, solar, hydrogen, and storage, with controllable new energy installations exceeding 100 million kilowatts and operational capacity over 54 million kilowatts [4] - The first nuclear heating project in southern China has been completed, expected to benefit 40,000 households by the end of the "14th Five-Year Plan" [4] - The first large-scale industrial nuclear steam supply project has been launched, providing 4.8 million tons of industrial steam annually to petrochemical enterprises [4] Group 3: Technological Innovation - CNNC has formed a comprehensive technological innovation system, leading the development of advanced nuclear technologies such as the "Hualong One" reactor and the world's first commercial high-temperature gas-cooled reactor [5] - The company has made significant progress in digital transformation, integrating digital technologies with its operations to enhance efficiency and safety [6] Group 4: Social Responsibility and Community Impact - CNNC has contributed 8,470 billion kilowatt-hours of clean electricity from its operational nuclear power units, supporting economic stability and energy supply [7] - The Altarash Hydropower Station project in Xinjiang has improved irrigation rates significantly, benefiting over 6 million people and promoting high-quality economic development in southern Xinjiang [7] - In Zhejiang, a project utilizing ecological aquaculture has been established, generating additional income for the local community while meeting energy needs [7] Group 5: Nuclear Safety and Quality Control - CNNC has implemented stringent safety measures, achieving a world-leading performance in nuclear safety with a WANO full score unit ratio maintained for three consecutive years [8] - The company aims to maintain advanced WANO indicators in 2024, with a target of having up to 22 full score units among its operational reactors [8]

2025年3月26日和5月21日，中国广核电力股份有限公司分别经董事会和股东大会审议通过申请注册与发 行银行间多品种债务融资工具（TDFI）议案。近日，公司收到交易商协会《接受注册通知书》，同意 接受其债务融资工具注册。本次注册自通知书落款日起2年内有效，公司在有效期内可分期发行超短期 融资券等多种产品，每期发行需确定主承销商等要素。公司将按规定在额度及有效期内择机发行，并及 时披露进展。 ...

Macro Strategy - The recent cooling of US employment data makes a rate cut in September almost certain, with expectations of a 25bps cut and potential for 1-2 additional cuts throughout the year [1][13][17] - The US non-farm payrolls for August showed an increase of only 22,000, significantly below the expected 75,000, indicating a weakening labor market [1][17] - The unemployment rate rose to 4.324%, slightly above expectations, reflecting a trend of declining labor demand [1][17] Fixed Income - The issuance of green bonds in the primary market totaled approximately 8.767 billion yuan, an increase of 1.651 billion yuan from the previous week [2] - The secondary market saw a total transaction volume of green bonds amounting to 48.2 billion yuan, a decrease of 4 billion yuan from the previous week [2] Industry Analysis - In the non-ferrous metals sector, copper prices are under pressure due to slow demand recovery, while supply is expected to tighten due to large-scale maintenance in domestic smelting plants [9] - Gold prices have surged to new highs, driven by increased safe-haven demand amid concerns over US employment data and geopolitical tensions [9] - The aluminum market is experiencing a slight increase in production capacity utilization, but overall demand remains subdued, indicating a cautious outlook for prices [9] Utility Sector - Investment opportunities in the power sector are highlighted, particularly in hydropower and thermal power, as demand peaks during summer [10][11] - The nuclear power sector is expected to see growth with multiple approvals for new projects, enhancing profitability and dividend potential [10][11] Steel Industry - The steel industry is transitioning from active to passive destocking, driven by policy changes and infrastructure projects, which may support a rebound in rebar prices [11][12] - The forecast for the company's net profit shows significant growth, with expected increases of 63.24%, 261.43%, and 174.62% from 2025 to 2027 [12] Resin Industry - The resin sector is poised for growth due to increasing demand from AI and cloud services, with projected revenue growth for the company reaching 52 billion yuan by 2025 [12] - The company is well-positioned in the high-frequency resin market, catering to major global manufacturers, which enhances its competitive edge [12]

Core Viewpoint - The implementation opinion released by the National Development and Reform Commission and the National Energy Administration aims to establish a preliminary integration innovation system between energy and artificial intelligence by 2027, enhancing the collaboration between computing power and electricity, and achieving significant breakthroughs in core technologies empowered by AI in the energy sector [1][3]. Group 1: Overall Requirements - The initiative is guided by Xi Jinping's thoughts and aims to deepen the integration of AI with the real economy, focusing on expanding application scenarios in the energy sector and enhancing the technological level of AI innovation [2]. - The goal is to improve the safety, reliability, and efficiency of energy systems, ensuring stable energy supply and supporting green and low-carbon transitions [2]. Group 2: Goals by 2027 - By 2027, the integration innovation system will be established, with significant breakthroughs in AI technologies applied to energy, including the deployment of over five specialized large models in various energy sectors [3]. - The initiative aims to identify over ten replicable and competitive demonstration projects and explore hundreds of typical application scenarios, fostering a batch of AI technology application R&D platforms in the energy sector [3]. Group 3: Application Scenarios - AI applications in the power grid will focus on safety, efficiency, and renewable energy consumption, including intelligent forecasting, diagnostic analysis, and planning [5][7]. - AI will also enhance new energy applications, such as virtual power plants and distributed energy storage, improving load-side optimization and dynamic response capabilities [9][10]. Group 4: Key Technology Supply - The initiative emphasizes addressing technical bottlenecks in the energy sector, including data isolation, fragmented computing power, and algorithm opacity, by promoting common key technology breakthroughs [31]. - It aims to establish high-quality data sets and enhance the integration of computing power and electricity, ensuring a robust foundation for AI applications in energy [31][32]. Group 5: Implementation and Support - Local energy authorities and relevant enterprises are encouraged to establish mechanisms to promote the development of AI in the energy sector, ensuring safety and innovation [33]. - The initiative will support pilot demonstrations of AI applications in energy, encouraging cross-sector collaboration and the establishment of innovation alliances [34][35].

Core Viewpoint - The implementation opinions released by the National Development and Reform Commission and the National Energy Administration aim to promote the integration of artificial intelligence (AI) with the energy sector, targeting significant advancements and applications by 2027 and 2030 [1][2][3]. Group 1: Overall Requirements - The initiative is guided by Xi Jinping's thoughts and aims to enhance the integration of AI with the energy sector, focusing on application scenarios and improving innovation levels in AI technologies [2][3]. - The goal is to ensure energy security, stability, and a green low-carbon transition while fostering new productive forces for the new energy system [2][3]. Group 2: Goals by 2027 - By 2027, a preliminary integration system of energy and AI will be established, with significant breakthroughs in core technologies and broader applications [3][4]. - The plan includes the application of over five specialized large models in various energy sectors, the identification of more than ten replicable and competitive demonstration projects, and the exploration of a hundred typical application scenarios [3][4]. Group 3: Goals by 2030 - By 2030, AI technologies in the energy sector are expected to reach a world-leading level, with improved collaborative mechanisms between computing power and electricity [4]. - The focus will be on achieving breakthroughs in intelligent control of electricity, intelligent exploration of energy resources, and intelligent prediction of new energy [4]. Group 4: Accelerating Application Scenarios - The integration of AI in the power grid will enhance safety, efficiency, and the management of electricity supply and demand [5][6]. - AI will also be applied in new energy businesses, such as virtual power plants and distributed energy storage, to optimize load control and enhance energy efficiency [7][8]. Group 5: Key Technology Supply - The initiative addresses technical bottlenecks in the energy sector, including data isolation and high energy consumption of algorithms, by promoting the development of common key technologies [23][24]. - Emphasis will be placed on building high-quality data sets, enhancing computational support, and improving model capabilities [23][24]. Group 6: Support Measures - The plan includes establishing a robust organizational framework to implement AI in the energy sector, promoting collaborative innovation, and enhancing standardization efforts [25][26]. - Pilot demonstrations will be organized to showcase replicable and scalable AI applications in the energy sector [26].