Yahoo Finance

• Fourth Quarter Sales Increase: 5% year over year, driven by defense electronics and naval and power segments.

• Fourth Quarter Operating Margin: 19.8%.

• Fourth Quarter Diluted EPS Growth: 3% year over year.

• Fourth Quarter Free Cash Flow: $278 million, 223% conversion rate.

• Fourth Quarter Order Book Growth: 37% year over year, 1.1 times book to bill.

• Full Year 2024 Sales Growth: Double-digit growth.

• Full Year 2024 Diluted EPS: $10.90, 16% increase year over year.

• Full Year 2024 Adjusted Free Cash Flow: $483 million, 116% conversion rate.

• Full Year 2024 Order Book: $3.7 billion, 20% increase year over year, 1.2 times book to bill.

• 2025 Sales Growth Projection: 7% to 8%, including acquisitions.

• 2025 Operating Margin Projection: 18% at midpoint, 40 to 60 basis points expansion.

• 2025 Diluted EPS Guidance: $12.10 to $12.40, 11% to 14% growth.

• 2025 Free Cash Flow Guidance: $485 million to $505 million.

• Warning! GuruFocus has detected 1 Warning Sign with CW.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Curtiss-Wright Corp (NYSE:CW) achieved record financial results in 2024, with double-digit growth in sales and operating income.

• The company reported a strong free cash flow of $278 million in Q4 2024, reflecting a 223% conversion rate.

• Curtiss-Wright Corp (NYSE:CW) experienced a 37% year-over-year growth in its order book in Q4 2024, driven by strong demand in A&D markets and commercial nuclear.

• The company successfully integrated two new acquisitions in 2024, expanding its commercial nuclear portfolio and enhancing its global footprint.

• Curtiss-Wright Corp (NYSE:CW) increased its dividend for the eighth consecutive year and repurchased $250 million in stock in 2024.

Negative Points

• Operating income was flat in Q4 2024, despite a 5% increase in sales.

• The company's general industrial market faced challenges with lower global off-highway and specialty industrial vehicle sales.

• Curtiss-Wright Corp (NYSE:CW) experienced under absorption and timing issues in its defense electronics segment, impacting profitability.

• The naval and power segment's profitability was affected by unfavorable mix across defense and process markets.

• The company anticipates potential challenges from tariffs and geopolitical uncertainties, which could impact future operations.

Q & A Highlights

Q: Can you provide more color on the strategic value of the Ultra Energy acquisition, particularly in relation to European SMR manufacturers? A: Lynn Bamford, Chairman of the Board, Chief Executive Officer: The acquisition of Ultra Energy enhances our position with European SMR manufacturers by allowing us to provide more localized content through our European footprint. This is particularly beneficial with companies like Rolls-Royce. Ultra Energy's high-temperature, pressure, and sensor technologies, primarily designed for the nuclear market, have broader applicability, which we can leverage across our commercial aerospace market. The acquisition also brings deep industry knowledge and customer connections, broadening our capabilities and market reach.