Curtiss-Wright Reports Fourth Quarter and Full-year 2024 Financial Results; Issues Full-year 2025 Guidance Reflecting Higher Sales, Operating Margin Expansion and Double-digit EPS Growth

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Business Wire

Wed, Feb 12, 2025, 2:30 PM 11 min read

Reported sales of $824 million, up 5%, operating income of $155 million, operating margin of 18.8%, and diluted earnings per share (EPS) of $3.09;
Adjusted operating income of $163 million;
Adjusted operating margin of 19.8%;
Adjusted diluted EPS of $3.27, up 3%;
Free cash flow (FCF) of $278 million, generating 223% Adjusted FCF conversion;
Total share repurchases of $112 million; and
New orders of $939 million, up 37%, generating a book-to-bill of 1.1x.

Full-Year 2024 Highlights:

Reported sales of $3.1 billion, up 10%, operating income of $529 million, operating margin of 16.9%, and diluted EPS of $10.55;
Adjusted operating income of $546 million, up 11%;
Adjusted operating margin of 17.5%, up 10 basis points;
Adjusted diluted EPS of $10.90, up 16%;
FCF of $483 million, generating 116% Adjusted FCF conversion;
Total share repurchases of $250 million;
New orders of $3.7 billion, up 20%, reflecting strong demand in our Aerospace & Defense (A&D) markets, and book-to-bill of 1.2x; and
Backlog of $3.4 billion, up 20%.

"Curtiss-Wright concluded the year with a strong, fourth quarter financial performance that reflected better-than-expected sales growth, record quarterly Adjusted diluted EPS of $3.27, strong free cash flow and robust order activity," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.

"We achieved numerous financial records in 2024, while maintaining our commitment to invest in innovative technologies, capacity expansion, talent and systems to support our future growth. Our performance was highlighted by double-digit growth in sales, operating income and diluted EPS, along with record free cash flow of $483 million, as we delivered profitable growth while reducing working capital. We also experienced strong demand across our Defense and Commercial Aerospace markets, driving record new orders of $3.7 billion. Our results this past year are a testament to our teams' strong execution and the momentum we are building in our Pivot to Growth strategy."

"Looking ahead, our strong backlog at the start of the year, combined with the alignment of our technologies to favorable secular growth trends in our end markets, reinforces our confidence in delivering another strong performance in 2025. We anticipate total sales growth of 7% to 8%, driven by strong organic growth in our A&D and Commercial Nuclear markets, and the contribution from our recently completed acquisition of Ultra Energy. We also expect to deliver operating margin expansion of 40 to 60 basis points while increasing our R&D investments, as well as double-digit EPS growth and strong free cash flow generation. As a result, we maintain line of sight to the three-year financial targets that we communicated at our 2024 Investor Day and remain well-positioned to drive long-term shareholder value."

Fourth Quarter 2024 Operating Results

(In millions)	Q4-2024			Q4-2023			Change
*Reported*
Sales	$	824		$	786		5	%
Operating income	$	155		$	161		(4	%)
Operating margin		18.8	%		20.4	%	(160 bps)

*Adjusted ⁽¹⁾*
Sales	$	824		$	786		5	%
Operating income	$	163		$	163		0	%
Operating margin		19.8	%		20.8	%	(100 bps)
⁽¹⁾ Reconciliations of Reported to Adjusted operating results are available in the Appendix.

Sales of $824 million increased 5% compared with the prior year period;
Total A&D market sales increased 6%, while total Commercial market sales increased 3%;
In our A&D markets, we experienced solid growth in the defense markets principally driven by increased submarine revenues in naval defense, as well as higher OEM sales in the commercial aerospace market;
In our Commercial markets, we experienced solid growth in the power & process market, principally driven by higher sales of commercial nuclear products that were partially offset by lower industrial valve sales in the process market, in addition to lower sales in the general industrial market; and
Adjusted operating income was $163 million, essentially flat compared with the prior year period, while Adjusted operating margin decreased 100 basis points to 19.8%, as favorable overhead absorption on overall higher revenues was partially offset by higher investments in research and development in all three segments, as well as unfavorable mix in both the Defense Electronics and Naval & Power segments.

Fourth Quarter 2024 Segment Performance

Aerospace & Industrial

(In millions)	Q4-2024			Q4-2023			Change
*Reported*
Sales	$	251		$	238		5	%
Operating income	$	48		$	44		9	%
Operating margin		19.1	%		18.5	%	60 bps

*Adjusted ⁽¹⁾*
Sales	$	251		$	238		5	%
Operating income	$	54		$	44		22	%
Operating margin		21.3	%		18.5	%	280 bps
⁽¹⁾ Reconciliations of Reported to Adjusted operating results are available in the Appendix.

Sales of $251 million, up $13 million, or 5%;
Higher revenue in the aerospace defense market reflected higher sales for our actuation equipment principally on the F-35 and other fighter jet programs;
Commercial aerospace market revenue increases reflected increased demand and higher OEM sales of sensors products and surface treatment services on narrowbody and widebody platforms;
Lower general industrial market revenue was principally driven by reduced sales of industrial vehicle products serving off-highway and specialty vehicle platforms; and
Adjusted operating income was $54 million, up 22%, reflecting a strong Adjusted operating margin up 280 basis points to 21.3%, as favorable absorption on higher revenues and the benefits of our restructuring and cost containment initiatives were partially offset by higher investment in research and development.

Defense Electronics

(In millions)	Q4-2024			Q4-2023			Change
*Reported*
Sales	$	227		$	240		(5	%)
Operating income	$	55		$	69		(21	%)
Operating margin		24.1	%		28.8	%	(470 bps)

*Adjusted ⁽¹⁾*
Sales	$	227		$	240		(5	%)
Operating income	$	55		$	69		(20	%)
Operating margin		24.3	%		28.8	%	(450 bps)
⁽¹⁾ Reconciliations of Reported to Adjusted operating results are available in the Appendix.

Sales of $227 million, down $12 million, or 5%;
Higher revenue in the aerospace defense market was principally driven by increased sales of flight test instrumentation equipment;
Ground defense market revenue declines principally reflected the timing of sales of embedded computing equipment on the Stryker ground combat vehicle;
Lower revenue in the naval defense market reflected the timing of sales of embedded computing equipment supporting various domestic and international programs; and
Adjusted operating income was $55 million, down 20% from the prior year period, while Adjusted operating margin decreased 450 basis points to 24.3%, primarily due to unfavorable absorption on lower defense revenues, unfavorable mix of products, and higher investment in research and development.

Naval & Power

(In millions)	Q4-2024			Q4-2023			Change
*Reported*
Sales	$	346		$	308		12	%
Operating income	$	65		$	57		15	%
Operating margin		18.8	%		18.5	%	30 bps

*Adjusted ⁽¹⁾*
Sales	$	346		$	308		12	%
Operating income	$	66		$	59		11	%
Operating margin		19.1	%		19.3	%	(20 bps)
⁽¹⁾ Reconciliations of Reported to Adjusted operating results are available in the Appendix.

Sales of $346 million, up $38 million, or 12%;
Revenue growth in the naval defense market was stronger than anticipated principally driven by higher demand and timing of revenues on the Virginia-class and Columbia-class submarine programs, in addition to higher growth for aircraft handling systems to international customers;
Lower revenue in the aerospace defense market principally reflected the timing of sales of arresting systems equipment supporting various international customers;
Higher power & process market revenues mainly reflected increased commercial nuclear aftermarket sales supporting the maintenance of U.S. operating reactors. Those increases were partially offset by lower industrial valve sales in the process market; and
Adjusted operating income was $66 million, up 11% from the prior year period, while Adjusted operating margin decreased 20 basis points to 19.1%, as favorable absorption on higher revenues was partially offset by unfavorable mix of products and higher investment in research and development.

Free Cash Flow

(In millions)	Q4-2024			Q4-2023			Change
Net cash provided by operating activities	$	301		$	282		7	%
Capital expenditures		(23	)		(13	)	84	%
Reported free cash flow	$	278		$	270		3	%
Adjusted free cash flow ⁽¹⁾	$	278		$	270		3	%
⁽¹⁾A reconciliation of Reported to Adjusted free cash flow is available in the Appendix.

Reported free cash flow of $278 million increased $8 million, primarily due to the timing of customer advances driving improved working capital partially offset by higher capital investments;
Adjusted free cash flow of $278 million increased $8 million; and
Capital expenditures increased approximately $11 million compared with the prior year period, primarily due to higher growth investments within the Naval & Power segment.

New Orders and Backlog

New orders of $939 million increased 37% in the fourth quarter, principally reflecting strong demand across our A&D markets;
Full-year 2024 new orders of $3.7 billion increased 20% and generated an overall book-to-bill of approximately 1.2x, reflecting strong growth within our A&D markets as well as solid demand for commercial nuclear products within our Commercial markets; and
Backlog of $3.4 billion, up 20% from December 31, 2023.

Share Repurchase and Dividends

During the fourth quarter, the Company repurchased approximately 311,000 shares of its common stock for approximately $112 million;
During full-year 2024, the Company repurchased approximately 766,000 shares for $250 million; and
The Company also declared a quarterly dividend of $0.21 a share.

Full-Year 2025 Guidance

The Company's full-year 2025 financial guidance⁽¹⁾ is as follows:

($ in millions, except EPS)	2025 Guidance	% Chg vs 2024 Adjusted
Total Sales	$3,335 - $3,385	7 - 8%
Operating Income	$598 - $613	10 - 12%
Operating Margin	17.9% - 18.1%	40 - 60 bps
Diluted EPS	$12.10 - $12.40	11 - 14%
Free Cash Flow⁽²⁾	$485 - $505	0 - 4%
(1) Reconciliations of Reported to Adjusted 2024 operating results and 2025 financial guidance are available in the Appendix and exclude first-year purchase accounting costs associated with prior-year acquisitions. (2) 2025 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency (reflecting a $14 to $24 million year-over-year increase compared with 2024 results) and the timing of prior year record customer advances.

**********

A more detailed breakdown of the Company’s 2025 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.

Conference Call & Webcast Information

The Company will host a conference call to discuss fourth quarter and full-year 2024 financial results and expectations for 2025 guidance at 11:00 a.m. ET on Thursday, February 13, 2025. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.

(Tables to Follow)

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
($'s in thousands, except per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Product sales	$	698,626		$	667,879		$	2,639,953		$	2,389,711
Service sales		125,687			117,912			481,236			455,662
Total net sales		824,313			785,791			3,121,189			2,845,373

Cost of product sales		437,801			414,010			1,690,574			1,507,480
Cost of service sales		69,082			67,051			277,066			270,715
Total cost of sales		506,883			481,061			1,967,640			1,778,195

Gross profit		317,430			304,730			1,153,549			1,067,178

Research and development expenses		25,781			20,066			91,647			85,764
Selling expenses		36,158			36,306			145,360			137,088
General and administrative expenses		92,405			87,664			373,497			359,724
Restructuring expenses		8,250			—			14,448			—

Operating income		154,836			160,694			528,597			484,602

Interest expense		11,675			10,961			44,869			51,393
Other income, net		10,034			7,117			38,328			29,861

Earnings before income taxes		153,195			156,850			522,056			463,070
Provision for income taxes		(35,343	)		(36,963	)		(117,078	)		(108,561	)
Net earnings	$	117,852		$	119,887		$	404,978		$	354,509

Basic earnings per share	$	3.11		$	3.14		$	10.61		$	9.26
Diluted earnings per share	$	3.09		$	3.11		$	10.55		$	9.20

Dividends per share	$	0.21		$	0.20		$	0.83		$	0.79

Weighted average shares outstanding:
Basic		37,874			38,232			38,153			38,283
Diluted		38,137			38,505			38,373			38,529

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($'s in thousands, except par value)

	December 31,			December 31,
		2024			2023
Assets
Current assets:
Cash and cash equivalents	$	385,042		$	406,867
Receivables, net		835,037			732,678
Inventories, net		541,442			510,033
Other current assets		88,073			67,502
Total current assets		1,849,594			1,717,080
Property, plant, and equipment, net		339,118			332,796
Goodwill		1,675,718			1,558,826
Other intangible assets, net		596,831			557,612
Operating lease right-of-use assets, net		169,350			141,435
Prepaid pension asset		299,130			261,869
Other assets		55,963			51,351
Total assets	$	4,985,704		$	4,620,969

Liabilities
Current liabilities:
Current portion of long-term and short-term debt	$	90,000		$	—
Accounts payable		247,185			243,833
Accrued expenses		219,054			188,039
Deferred revenue		459,421			303,872
Other current liabilities		80,288			70,800
Total current liabilities		1,095,948			806,544
Long-term debt		958,949			1,050,362
Deferred tax liabilities		140,659			132,319
Accrued pension and other postretirement benefit costs		67,413			66,875
Long-term operating lease liability		148,175			118,611
Other liabilities		124,761			117,845
Total liabilities	$	2,535,905		$	2,292,556

Stockholders' equity
Common stock, $1 par value	$	49,187		$	49,187
Additional paid in capital		147,940			140,182
Retained earnings		3,861,073			3,487,751
Accumulated other comprehensive loss		(243,225	)		(213,223	)
Less: cost of treasury stock		(1,365,176	)		(1,135,484	)
Total stockholders' equity		2,449,799			2,328,413

Total liabilities and stockholders' equity	$	4,985,704		$	4,620,969

Use and Definitions of Non-GAAP Financial Information (Unaudited)

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright’s ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliations of "Reported" GAAP amounts to "Adjusted" non-GAAP amounts are furnished within this release.

The following definitions are provided:

Adjusted Operating Income, Operating Margin, Net Earnings and Diluted EPS

These Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) costs associated with the Company's 2024 Restructuring Program; and (iii) the sale or divestiture of a business or product line, as applicable.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)
($'s in thousands)

	Three Months Ended								Three Months Ended
	December 31, 2024								December 31, 2023								% Change
	As Reported			Adjustments		Adjusted			As Reported			Adjustments		Adjusted			As Reported	Adjusted
Sales:
Aerospace & Industrial	$	250,917		$	—	$	250,917		$	238,224		$	—	$	238,224		5%	5%
Defense Electronics		227,475			—		227,475			239,751			—		239,751		(5)%	(5)%
Naval & Power		345,921			—		345,921			307,816			—		307,816		12%	12%

Total sales	$	824,313		$	—	$	824,313		$	785,791		$	—	$	785,791		5%	5%

Operating income (expense):
Aerospace & Industrial⁽³⁾	$	47,876		$	5,694	$	53,570		$	44,054		$	—	$	44,054		9%	22%
Defense Electronics⁽³⁾		54,775			587		55,362			69,015			—		69,015		(21)%	(20)%
Naval & Power^(1)(2)(3)		65,150			962		66,112			56,845			2,529		59,374		15%	11%

Total segments	$	167,801		$	7,243	$	175,044		$	169,914		$	2,529	$	172,443		(1)%	2%
Corporate and other⁽³⁾		(12,965	)		1,414		(11,551	)		(9,221	)		—		(9,221	)	(41)%	(25)%

Total operating income	$	154,836		$	8,657	$	163,493		$	160,693		$	2,529	$	163,222		(4)%	—%

Operating margins:	As Reported					Adjusted			As Reported					Adjusted			As Reported	Adjusted
Aerospace & Industrial		19.1	%				21.3	%		18.5	%				18.5	%	60 bps	280 bps
Defense Electronics		24.1	%				24.3	%		28.8	%				28.8	%	(470 bps)	(450 bps)
Naval & Power		18.8	%				19.1	%		18.5	%				19.3	%	30 bps	(20 bps)
Total Curtiss-Wright		18.8	%				19.8	%		20.4	%				20.8	%	(160 bps)	(100 bps)

Segment margins		20.4	%				21.2	%		21.6	%				21.9	%	(120 bps)	(70 bps)

⁽¹⁾ Excludes first year purchase accounting adjustments in both the current and prior year periods.
⁽²⁾ Excludes trailing costs in the prior year period associated with the divestiture of our German valves business.
⁽³⁾ Excludes costs associated with the Company's 2024 Restructuring Program in the current period.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)
($'s in thousands)

	Year Ended								Year Ended
	December 31, 2024								December 31, 2023								% Change
	As Reported			Adjustments		Adjusted			As Reported			Adjustments		Adjusted			As Reported	Adjusted
Sales:
Aerospace & Industrial	$	932,133		$	—	$	932,133		$	887,228		$	—	$	887,228		5%	5%
Defense Electronics		910,706			—		910,706			815,912			—		815,912		12%	12%
Naval & Power		1,278,350			—		1,278,350			1,142,233			—		1,142,233		12%	12%

Total sales	$	3,121,189		$	—	$	3,121,189		$	2,845,373		$	—	$	2,845,373		10%	10%

Operating income (expense):
Aerospace & Industrial⁽³⁾	$	148,023		$	10,239	$	158,262		$	145,278		$	—	$	145,278		2%	9%
Defense Electronics⁽³⁾		224,739			1,929		226,668			191,775			—		191,775		17%	18%
Naval & Power ^(1)(2)(3)		199,663			2,063		201,726			189,227			9,198		198,425		6%	2%

Total segments	$	572,425		$	14,231	$	586,656		$	526,280		$	9,198	$	535,478		9%	10%
Corporate and other⁽³⁾		(43,828	)		3,038		(40,790	)		(41,678	)		—		(41,678	)	(5)%	2%

Total operating income	$	528,597		$	17,269	$	545,866		$	484,602		$	9,198	$	493,800		9%	11%

Operating margins:	As Reported					Adjusted			As Reported					Adjusted			As Reported	Adjusted
Aerospace & Industrial		15.9	%				17.0	%		16.4	%				16.4	%	(50 bps)	60 bps
Defense Electronics		24.7	%				24.9	%		23.5	%				23.5	%	120 bps	140 bps
Naval & Power		15.6	%				15.8	%		16.6	%				17.4	%	(100 bps)	(160 bps)
Total Curtiss-Wright		16.9	%				17.5	%		17.0	%				17.4	%	(10 bps)	10 bps

Segment margins		18.3	%				18.8	%		18.5	%				18.8	%	(20 bps)	— bps

⁽¹⁾ Excludes first year purchase accounting adjustments in both the current and prior year periods.
⁽²⁾ Excludes trailing costs in the prior year period associated with the divestiture of our German valves business.
⁽³⁾ Excludes costs associated with the Company's 2024 Restructuring Program in the current period.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED)
($'s in thousands)

	Three Months Ended						Three Months Ended
	December 31, 2024						December 31, 2023						% Change
	As Reported		Adjustments		Adjusted Sales		As Reported		Adjustments		Adjusted Sales		Change in As Reported Sales		Change in Adjusted Sales
Aerospace & Defense markets:
Aerospace Defense	$	171,432	$	—	$	171,432	$	171,527	$	—	$	171,527	0	%	0	%
Ground Defense		84,654		—		84,654		87,691		—		87,691	(3	%)	(3	%)
Naval Defense		216,894		—		216,894		187,240		—		187,240	16	%	16	%
Commercial Aerospace		98,318		—		98,318		92,723		—		92,723	6	%	6	%
Total Aerospace & Defense	$	571,298	$	—	$	571,298	$	539,181	$	—	$	539,181	6	%	6	%

Commercial markets:
Power & Process	$	146,772	$	—	$	146,772	$	136,541	$	—	$	136,541	7	%	7	%
General Industrial		106,243		—		106,243		110,069		—		110,069	(3	%)	(3	%)
Total Commercial	$	253,015	$	—	$	253,015	$	246,610	$	—	$	246,610	3	%	3	%

Total Curtiss-Wright	$	824,313	$	—	$	824,313	$	785,791	$	—	$	785,791	5	%	5	%

	Year Ended						Year Ended
	December 31, 2024						December 31, 2023						% Change
	As Reported		Adjustments		Adjusted Sales		As Reported		Adjustments		Adjusted Sales		Change in As Reported Sales		Change in Adjusted Sales
Aerospace & Defense markets:
Aerospace Defense	$	616,590	$	—	$	616,590	$	551,622	$	—	$	551,622	12	%	12	%
Ground Defense		353,326		—		353,326		308,008		—		308,008	15	%	15	%
Naval Defense		821,898		—		821,898		720,013		—		720,013	14	%	14	%
Commercial Aerospace		378,086		—		378,086		324,949		—		324,949	16	%	16	%
Total Aerospace & Defense	$	2,169,900	$	—	$	2,169,900	$	1,904,592	$	—	$	1,904,592	14	%	14	%

Commercial markets:
Power & Process	$	540,788	$	—	$	540,788	$	509,998	$	—	$	509,998	6	%	6	%
General Industrial		410,501		—		410,501		430,783		—		430,783	(5	%)	(5	%)
Total Commercial	$	951,289	$	—	$	951,289	$	940,781	$	—	$	940,781	1	%	1	%

Total Curtiss-Wright	$	3,121,189	$	—	$	3,121,189	$	2,845,373	$	—	$	2,845,373	10	%	10	%

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED)

	Three Months Ended				Year Ended
	December 31,				December 31,
		2024		2023		2024		2023
Diluted earnings per share - As Reported	$	3.09	$	3.11	$	10.55	$	9.20
First year purchase accounting adjustments		0.01		0.02		0.04		0.15
Divested German valves business		—		0.03		—		0.03
Restructuring expenses		0.17		—		0.31		—
Diluted earnings per share - Adjusted ⁽¹⁾	$	3.27	$	3.16	$	10.90	$	9.38

⁽¹⁾ All adjustments are presented net of income taxes.

Organic Sales and Organic Operating Income

The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions and results of operations from divested businesses or product lines during the last twelve months, costs associated with the Company's 2024 Restructuring Program, and foreign currency fluctuations.

	Three Months Ended
	December 31,
	2024 vs. 2023
	Aerospace & Industrial		Defense Electronics		Naval & Power		Total Curtiss-Wright
	Sales	Operating income	Sales	Operating income	Sales	Operating income	Sales	Operating income
As Reported	5%	9%	(5%)	(21%)	12%	15%	5%	(4%)
Less: Acquisitions	0%	0%	0%	0%	0%	1%	0%	0%
Restructuring	0%	13%	0%	1%	0%	(1%)	0%	5%
Foreign currency	0%	(2%)	0%	0%	0%	(2%)	0%	(1%)
Organic	5%	20%	(5%)	(20%)	12%	13%	5%	0%

	Year Ended
	December 31,
	2024 vs. 2023
	Aerospace & Industrial		Defense Electronics		Naval & Power		Total Curtiss-Wright
	Sales	Operating income	Sales	Operating income	Sales	Operating income	Sales	Operating income
As Reported	5%	2%	12%	17%	12%	6%	10%	9%
Less: Acquisitions	0%	0%	0%	0%	(1%)	0%	0%	0%
Restructuring	0%	7%	0%	1%	0%	0%	0%	3%
Foreign currency	0%	(1%)	0%	0%	0%	(1%)	(1%)	0%
Organic	5%	8%	12%	18%	11%	5%	9%	12%

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Adjusted free cash flow excludes payments associated with the Westinghouse legal settlement in the prior year period. The Corporation discloses adjusted free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as adjusted free cash flow divided by adjusted net earnings.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NON-GAAP FINANCIAL DATA (UNAUDITED)
($'s in thousands)


	Three Months Ended						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
Net cash provided by operating activities	$	301,299		$	282,372		$	544,275		$	448,089
Capital expenditures		(23,271	)		(12,629	)		(60,974	)		(44,666	)
Free cash flow	$	278,028		$	269,743		$	483,301		$	403,423
Westinghouse legal settlement		—			—			—			10,000
Adjusted free cash flow	$	278,028		$	269,743		$	483,301		$	413,423
Adjusted free cash flow conversion		223	%		221	%		116	%		114	%

CURTISS-WRIGHT CORPORATION
2025 Guidance
As of February 12, 2025
($'s in millions, except per share data)

	2024 Reported (GAAP)			2024 Adjustments (Non- GAAP)⁽¹⁾			2024 Adjusted (Non- GAAP)⁽¹⁾			2025 Reported Guidance (GAAP)						2025 Adjustments (Non- GAAP)⁽²⁾			2025 Adjusted Guidance (Non-GAAP)⁽²⁾
										Low			High						Low			High			2025 Chg vs 2024 Adjusted
Sales:
Aerospace & Industrial	$	932		$	—		$	932		$	960		$	975		$	—		$	960		$	975		3 - 5%
Defense Electronics		911			—			911			975			990			—			975			990		7 - 9%
Naval & Power		1,278			—			1,278			1,400			1,420			—			1,400			1,420		10 - 11%
Total sales	$	3,121		$	—		$	3,121		$	3,335		$	3,385		$	—		$	3,335		$	3,385		7 - 8%

Operating income:
Aerospace & Industrial	$	148		$	10		$	158		$	164		$	169		$	3		$	167		$	172		5 - 8%
Defense Electronics		225			2			227			244			250			—			244			250		8 - 10%
Naval & Power		200			2			202			217			223			11			228			234		13 - 16%
Total segments		572			15			587			624			641			14			638			655
Corporate and other		(44	)		3			(41	)		(40	)		(42	)		—			(40	)		(42	)
Total operating income	$	529		$	17		$	546		$	584		$	599		$	14		$	598		$	613		10 - 12%

Interest expense	$	(45	)	$	—		$	(45	)	$	(42	)	$	(43	)	$	—		$	(42	)	$	(43	)
Other income, net		38			—			38			33			34			—			33			34
Earnings before income taxes		522			17			539		$	575		$	590		$	14			589			603
Provision for income taxes		(117	)		(4	)		(121	)		(127	)		(130	)		(3	)		(130	)		(133	)
Net earnings	$	405		$	13		$	418		$	448		$	460		$	11		$	459		$	470

Diluted earnings per share	$	10.55		$	0.35		$	10.90		$	11.80		$	12.10		$	0.30		$	12.10		$	12.40		11 - 14%
Diluted shares outstanding		38.4						38.4			37.9			37.9						37.9			37.9
Effective tax rate		22.4	%					22.4	%		22.0	%		22.0	%					22.0	%		22.0	%

Operating margins:
Aerospace & Industrial		15.9	%					17.0	%		17.1	%		17.3	%					17.4	%		17.6	%	40 - 60 bps
Defense Electronics		24.7	%					24.9	%		25.0	%		25.2	%					25.0	%		25.2	%	10 - 30 bps
Naval & Power		15.6	%					15.8	%		15.5	%		15.7	%					16.3	%		16.5	%	50 - 70 bps
Total operating margin		16.9	%					17.5	%		17.5	%		17.7	%					17.9	%		18.1	%	40 - 60 bps

Free cash flow⁽³⁾	$	483		$	—		$	483		$	485		$	505		$	—		$	485		$	505		0 - 4%

Notes: Amounts may not add due to rounding.
⁽¹⁾2024 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2024 Restructuring Program and the impact of first year purchase accounting adjustments.
⁽²⁾2025 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2024 Restructuring Program and the impact of first year purchase accounting adjustments.
⁽³⁾ Free Cash Flow is defined as cash flow from operations less capital expenditures. 2025 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency (reflecting a $14 to $24 million year-over-year increase compared with 2024 results) and the timing of prior year record customer advances.

CURTISS-WRIGHT CORPORATION
2025 Sales Growth Guidance by End Market
As of February 12, 2025

	2025 % Change vs. 2024 Adjusted	% Total Sales

Aerospace & Defense Markets
Aerospace Defense	6 - 8%	20%
Ground Defense	3 - 5%	11%
Naval Defense	3 - 5%	25%
Commercial Aerospace	10 - 12%	13%
Total Aerospace & Defense	5 - 7%	69%

Commercial Markets
Power & Process	16 - 18%	19%
General Industrial	Flat	12%
Total Commercial	9 - 11%	31%

Total Curtiss-Wright Sales	7 - 8%	100%

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE:CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,800 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.

###

Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212441247/en/

Contacts

Jim Ryan
(704) 869-4621
Jim.Ryan@curtisswright.com

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