Summary of Curtiss Wright's Presentation at the William Blair Growth Stock Conference Company Overview - **Company**: Curtiss Wright - **Industry**: Aerospace and Defense - **Key Personnel**: CEO Lynn Bamford, CFO Chris Farkas, Head of Investor Relations Jim Ryan - **Milestone**: Celebrated 95 years on the New York Stock Exchange [8][9] Core Messages - **Pivot to Growth Strategy**: Launched four years ago, focusing on growth and operational excellence [6][12] - **Financial Performance**: Strong financial results with a track record of achieving financial targets set during Investor Days [7][12] - **Engineering Workforce**: Approximately 9,000 employees, with 2,000 engineers, emphasizing collaboration and talent development [11] Operational Strategies - **Operational Growth Platform**: Focus on maximizing profitability through commercial and operational excellence [12] - **R&D Investments**: Increased R&D investments above sales growth, contributing to margin expansion and earnings growth in the mid-teens [12][26] - **Cost Efficiency**: Ongoing consolidation programs to drive efficiencies and reinvest in the business [13] End Markets and Growth Opportunities - **Navy Footprint**: Significant supplier for U.S. Navy platforms, targeting increased content for future generation platforms [19][20] - **Defense Electronics**: Partnership with NVIDIA to enhance electronics capabilities for battlefield technology [20] - **Nuclear Industry**: Focus on aftermarket services, life extensions, and new reactor builds, including small modular reactors (SMRs) [18][22][24] Market Trends - **Commercial Aerospace**: Anticipated multiyear ramp in growth, heavily focused on OEM [31] - **Foreign Military Spending**: Increased spending contributing to growth in defense markets [31] - **Nuclear Energy Expansion**: Targeting significant growth in nuclear energy, with potential for $1.5 billion in market share from Eastern Europe and additional opportunities from U.S. reactor builds [28][39][40] Financial Targets and Performance - **Sales Growth**: Targeting over 5% organic sales growth, with mid to high single-digit growth in defense markets [31] - **Operating Margins**: Expected operating margin expansion, with a current target of 18.4% [34] - **Free Cash Flow**: Projecting $1.3 billion in free cash flow over three years, with a strong focus on capital allocation [35][36] Future Outlook - **Nuclear Reactor Opportunities**: Anticipating orders for AP1000 reactors in 2026, with significant growth potential in the nuclear sector [43] - **Strategic Partnerships**: Collaborations with major players in the nuclear industry to enhance market position [40][41] Conclusion - **Investment Proposition**: Curtiss Wright's pivot to growth strategy is yielding positive results, with strong market positioning and a focus on delivering value to shareholders [28][29]

Group 1: Contract Award - General Dynamics Corp.'s NASSCO unit secured a $199 million contract for the maintenance, modernization, and repair of the USS America (LHA 6) warship, with potential total value reaching $209.2 million if options are exercised [1] - The contract is expected to be completed by July 2027, with work to be conducted in San Diego, CA [1] Group 2: Market Trends - Rising geopolitical tensions are increasing global investment in advanced naval vessels, benefiting shipbuilders like General Dynamics [2] - The demand for efficient naval security systems is driving growth in the naval ship market, with a projected compound annual growth rate of 6.5% for the global naval combat vessels market from 2025 to 2030 [4] Group 3: Company Positioning - General Dynamics' Marine Systems segment specializes in designing and building surface combatant and auxiliary ships for the U.S. Navy, along with modernization and lifecycle extension services [5] - The company's marine engineering expertise positions it well to secure more contracts, enhancing future revenue prospects [5] Group 4: Peer Opportunities - Lockheed Martin manufactures Littoral Combat Ships (LCS) with a long-term earnings growth rate of 10.5% and a projected 4.6% sales improvement in 2025 [6][7] - Huntington Ingalls Industries designs and constructs non-nuclear ships for the U.S. Navy and Coast Guard, with a long-term earnings growth rate of 11% and a 3.3% sales increase projected for 2025 [7][8] - BAE Systems designs and supports a range of naval ships, boasting a long-term earnings growth rate of 11.9% and a significant 62.6% sales growth estimate for 2025 [8][9] Group 5: Price Performance - General Dynamics shares have increased by 8.8% over the past three months, outperforming the industry growth of 8% [12]

Core Viewpoint - General Dynamics Corp.'s Bath Iron Works has secured a $216.5 million contract for planning yard support for DDG 51 warships, expected to be completed by July 31, 2026, indicating strong demand for naval capabilities amid rising geopolitical tensions [1][2]. Group 1: Company Developments - The contract awarded to Bath Iron Works is a testament to the increasing demand for modern naval ships, driven by heightened geopolitical tensions and the need for enhanced maritime security [2]. - Bath Iron Works specializes in building the DDG-51 Arleigh Burke-class guided-missile destroyers, which are in high demand due to their advanced warfighting capabilities [3]. - The Marine Systems segment of General Dynamics is noted for its expertise in designing and building surface combatant and auxiliary ships, positioning the company favorably for future contracts [5]. Group 2: Market Outlook - The global naval combat vessels market is projected to grow at a compound annual growth rate of 6.5% from 2025 to 2030, driven by the rising demand for efficient naval security systems [4]. - This growth in the naval ship market presents significant revenue opportunities for General Dynamics, enhancing its potential for securing additional contracts [5]. Group 3: Peer Opportunities - Other defense companies, such as Lockheed Martin, Huntington Ingalls Industries, and BAE Systems, are also positioned to benefit from the expanding naval combat vessels market, with respective long-term earnings growth rates of 10.5%, 11%, and 11.9% [6][7][8][9]. Group 4: Price Performance - General Dynamics shares have increased by 11.9% over the past three months, outperforming the industry average growth of 7.6% [10].