Q2 2025 Highlights - Sales reached $877 million, a 12% increase overall, with 9% organic growth[6] - Operating Income increased by 20% to $160 million, resulting in a 130 bps year-over-year margin expansion to 183%[6] - Diluted EPS increased by 21% to $323[6] - Free Cash Flow increased by 17% to $117 million[6] - New Orders totaled $1 billion, resulting in a book-to-bill ratio greater than 11x, and backlog increased by 12% year-to-date[6] Full-Year 2025 Guidance - Total Sales growth is projected to increase by 9% - 10% due to strengthening A&D market growth[6] - Operating Income growth is targeted at 15% - 18%, with an Operating Margin of 185% - 187%, up 100 - 120 bps year-over-year[6] - The company is on track to deliver high-teens EPS growth (up 16% - 19%) and strong FCF generation (~108% conversion)[6] End Market Sales Growth Guidance - Aerospace Defense is expected to grow by 7% - 9%, contributing to 19% of sales[10] - Naval Defense is expected to grow by 7% - 9%, contributing to 26% of sales[10] - Commercial Aerospace is expected to grow by 13% - 15%, contributing to 13% of sales[10] - Power & Process is expected to grow by 16% - 18%, contributing to 19% of sales[10]

Core Viewpoint - Curtiss-Wright Corporation reported strong first-quarter 2025 earnings, with adjusted EPS of $2.82, exceeding estimates and reflecting significant year-over-year growth in both sales and earnings [1][2][3]. Financial Performance - The company achieved net sales of $805.6 million, a 13% increase year over year, surpassing the Zacks Consensus Estimate of $767 million by 5% [3]. - Adjusted operating income was reported at $134 million, with an adjusted operating margin of 17.9% [3]. Backlog and Orders - Total backlog at the end of Q1 was $3.7 billion, an 8.8% increase from the end of 2024, driven by demand in aerospace, defense, and commercial markets [4]. - New orders reached $1 billion, up 13% year over year, supported by strong demand in naval defense, commercial aerospace, and commercial nuclear sectors [4]. Segment Performance - **Aerospace & Industrial**: Sales increased 4% to $227 million, driven by higher commercial aerospace sales and defense market revenues [5]. Adjusted operating income improved 15% to $50 million, with a margin expansion of 140 bps to 13.9% [6]. - **Defense Electronics**: Sales rose 16% to $245 million, fueled by ground and naval defense market revenues [7]. Operating income increased 40% to $67 million, with a margin expansion of 480 bps to 27.5% [8]. - **Naval & Power**: Sales grew 18% to $333 million, driven by demand for submarine programs and commercial nuclear products [9][10]. Adjusted operating income increased 28% to $45 million, with a margin expansion of 100 bps to 12.6% [11]. Financial Position - As of March 31, 2025, cash and cash equivalents were $226.5 million, down from $385 million at the end of 2024 [12]. Long-term debt remained flat at $0.96 billion [12]. - Net cash outflow from operating activities was $38.8 million, an improvement from $45.6 million in the prior year [12]. Adjusted free cash outflow was $54.5 million, compared to $57.7 million a year ago [12]. 2025 Guidance - The company raised its 2025 guidance for adjusted earnings to a range of $12.45-$12.80 per share, up from $12.10-$12.40 [13]. - Sales guidance was also increased to $3.37-$3.42 billion, compared to the previous range of $3.34-$3.39 billion [14]. - Free cash flow guidance was raised to $495-$515 million, up from $485-$505 million [14].