Curtiss-Wright(CW) - 2021 Q2 - Earnings Call Presentation

Q2 2021 Performance Highlights - Adjusted Net Sales increased 14% overall, with A&D markets up 11% and Commercial markets up 21%[5] - Adjusted Operating Income increased 24%, and Adjusted Operating Margin increased 120 bps to 156%[5] - Adjusted Diluted EPS was $156, up 22%[5] - New orders reached $679 million, up 11%, driven by a strong 11x book-to-bill in Commercial markets[5] FY 2021 Adjusted Guidance - The company raised full-year guidance for Sales, Operating Income, Operating Margin, and EPS[6] - Overall sales growth is expected to be 7% - 9%, with solid growth in both A&D and Commercial end markets[6] - Operating income growth is projected to be 9% - 12%, outpacing sales growth, driving margin expansion of 40 - 50 bps to 167% - 168%[6] - Adjusted diluted EPS increased by $005 to a new range of $715 - $735, up 9% - 12%[6] - Free Cash Flow (FCF) guidance is maintained in the range of $330 - $360 million, with Adjusted FCF conversion >110%[6] Segment Performance (Q2 2021) - Aerospace & Industrial sales increased 17% to $194 million, with a margin of 157%, up 800 bps, driven by strong growth in industrial vehicle sales (>40%)[8] - Defense Electronics sales increased 17% to $163 million, with a margin of 189%, down 510 bps, reflecting increased R&D ($4 million) and unfavorable mix and FX ($2 million)[8] - Naval & Power sales increased 11% to $252 million, with a margin of 172%, up 30 bps, driven by strong growth in naval defense[8] 2021E End Market Sales Growth (Guidance) - Total Curtiss-Wright sales are expected to grow by 7% - 9%[9] - Aerospace Defense is projected to grow by 2% - 4%, representing 19% of sales[9] - Ground Defense is projected to grow by 100% - 105%, representing 9% of sales[9] - Naval Defense is projected to grow by 0% - 2%, representing 28% of sales[9] - Commercial Aero is projected to remain flat, representing 10% of sales[9] - Power & Process is projected to grow by 1% - 3%, representing 18% of sales[9] - General Industrial is projected to grow by 15% - 17%, representing 15% of sales[9]