CURTISS WRIGHT CORP (CW): Results of Operations and Financial Condition
CURTISS WRIGHT CORP (CW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Curtiss-Wright Corporation, Page 1 Exhibit 99.1 NEWS RELEASE CURTISS-WRIGHT REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS AND RAISES FULL-YEAR 2026 GUIDANCE DAVIDSON, N.C. – August 5, 2026 – Curtiss-Wright Corporation (NYSE: CW) reports financial results for the second quarter en
How this was made
The 30-second read
Why it matters
The key tradable element is the quantified guidance raise (sales, operating income, operating margin, diluted EPS, and FCF) supported by Q2 performance and order growth (book-to-bill 1.16x).
Market read
A same-day guidance raise with detailed segment drivers and cash flow metrics is likely to prompt immediate estimate revisions and positioning changes.
What to watch
FCF strength is highlighted, but traders should watch whether the higher FCF conversion is repeatable and whether order growth sustains into the second half.
Curtiss-Wright reports second-quarter sales growth, margin expansion, stronger free cash flow and raises full-year 2026 adjusted guidance.
Sales increased 5%, adjusted operating income increased 12%, adjusted diluted EPS increased 15%, and free cash flow increased 37%. New orders increased 8% and management raised full-year adjusted sales, operating income, operating margin, diluted EPS and free-cash-flow guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Reported salesGAAP | $924 million | – | 5% |
| Product salesGAAP | $ 777,167 | – | – |
| Service salesGAAP | 146,841 | – | – |
| Total cost of salesGAAP | 559,918 | – | – |
| Cost of product salesGAAP | 478,529 | – | – |
| Cost of service salesGAAP | 81,389 | – | – |
| Operating incomeGAAP | $179 million | – | 14% |
| Operating marginGAAP | 19.3% | – | 150 bps |
| Diluted earnings per shareGAAP | $4.07 | – | – |
| Adjusted salesnon-GAAP | $924 million | – | 5% |
| Adjusted operating incomenon-GAAP | $179 million | – | 12% |
| Adjusted operating marginnon-GAAP | 19.4% | – | 110 basis points |
| Adjusted diluted EPSnon-GAAP | $3.72 | – | 15% |
| Net cash provided by operating activitiesGAAP | $181 million | – | 33% |
| Net capital expendituresother | (21) | – | 8% |
| Free cash flownon-GAAP | $160 million | – | 37% |
| Free cash flow conversionnon-GAAP | 116% | – | – |
| New ordersother | $1.1 billion | – | 8% |
| Book-to-billother | 1.16x | – | – |
| Backlogother | $4.5 billion | – | 10% from December 31, 2025 |
| Six-month total net salesGAAP | 1,837,695 | – | – |
| Six-month product salesGAAP | 1,548,186 | – | – |
| Six-month service salesGAAP | 289,509 | – | – |
| Six-month total cost of salesGAAP | 1,142,122 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Aerospace & IndustrialGrowth reflected increased sales of sensors products and actuation equipment supporting domestic and international fighter jet programs, higher sales of electromechanical actuation equipment, higher commercial-aerospace OEM sales of actuation equipment, sensors products and surface treatment services, and higher industrial vehicle product sales. | $268 million | – | 12% |
| Defense ElectronicsHigher aerospace-defense revenue from embedded computing equipment on domestic fighter jet and UAV programs was more than offset by lower ground-defense revenue due to the timing of tactical communications equipment sales. Higher sales on helicopter programs were also partially offset. | $246 million | – | (3 %) |
| Naval & PowerGrowth was driven by timing of revenue on the Virginia-class submarine program, higher naval-shipyard aftermarket revenue, higher commercial nuclear solutions sales supporting next-generation advanced reactors, and higher government nuclear revenue. | $410 million | – | 7 % |
Full-Year 2026 Adjusted Non-GAAP Guidance (Current) outlook
- Revenue$3,768 - $3,813
- NoteOperating Income: $720 - $736
- NoteOperating Margin: 19.1% - 19.3%
- NoteDiluted EPS: $15.10 - $15.40
- NoteFree Cash Flow: $585 - $605
- NoteTotal Sales change vs 2025 Adjusted: 8 - 9%
- NoteOperating Income change vs 2025 Adjusted: 11 - 13%
- NoteOperating Margin change vs 2025 Adjusted: 50 - 70 bps
- NoteDiluted EPS change vs 2025 Adjusted: 14 - 16%
- NoteFree Cash Flow change vs 2025 Adjusted: 6 - 9%
- Note2026 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency, reflecting a year-over-year increase of approximately $25 million compared with 2025 results.
Capital returns
- During the second quarter, the Company repurchased 20,105 shares of its common stock for approximately $15 million.
- In May 2026, the Board of Directors authorized an 8% increase in the quarterly dividend, from twenty-four cents ($0.24) per share to twenty-six cents ($0.26) per share.
- During the second quarter, the Company declared a quarterly dividend of $0.26 a share.
What drove it
- Total Aerospace & Defense market sales increased 6%, while total Commercial market sales increased 5%.
- Adjusted operating-income growth and margin expansion were driven by favorable absorption on higher revenues, favorable mix in Aerospace & Industrial and Defense Electronics, and restructuring benefits, partially offset by higher research-and-development investment.
- New orders increased 8%, driven by record demand for defense electronics products.
- A&D order growth reflected aerospace and ground defense demand and continued strong demand for commercial aerospace products. Commercial-market demand was supported by commercial nuclear, process and industrial products.
Concerns
- Defense Electronics sales declined 3%, as lower ground-defense revenue reflected the timing of tactical communications equipment sales.
- Higher investment in research and development partially offset adjusted operating-income and margin benefits.
- The company cited lower sales on various helicopter programs within Defense Electronics.
- Full-year free-cash-flow guidance includes higher capital expenditures supporting growth and efficiency.
What to watch
- Execution against raised full-year adjusted sales guidance of $3,768 - $3,813.
- Delivery against full-year adjusted operating-margin guidance of 19.1% - 19.3%.
- Sustainability of record demand for defense electronics products and the $4.5 billion backlog.
- Timing of tactical communications equipment sales in ground defense.
- Commercial nuclear solution sales as advanced-reactor projects transition from development into the initial prototype stage.
- Free-cash-flow delivery within the raised $585 - $605 guidance range despite higher capital expenditures.
Balance sheet and cash flow
- Net cash provided by operating activities was $181 million, compared with $137 million.
- Net capital expenditures were (21), compared with (19).
- Free cash flow was $160 million, compared with $117 million.
- Free cash flow increased $43 million, principally driven by higher cash earnings, lower working capital, and lower tax payments.
- Backlog was $4.5 billion, up 10% from December 31, 2025.
Analysis
Curtiss-Wright reported a strong second quarter, with reported sales of $924 million increasing 5% and reported operating income of $179 million increasing 14%. Adjusted operating income increased 12% to $179 million, while adjusted operating margin expanded 110 basis points to 19.4%. Adjusted diluted EPS increased 15% to $3.72, and reported diluted EPS was $4.07.
The growth profile was broad across end markets, although segment performance was uneven. Aerospace & Industrial sales increased 12% to $268 million and Naval & Power sales increased 7% to $410 million. Defense Electronics sales declined 3% to $246 million because of the timing of tactical communications equipment sales in ground defense, but its adjusted operating margin expanded 120 basis points to 28.0% on favorable embedded-computing mix and cost-containment initiatives.
Margin performance improved in all three segments. Aerospace & Industrial adjusted operating margin increased 180 basis points to 18.4%, Defense Electronics adjusted operating margin increased 120 basis points to 28.0%, and Naval & Power adjusted operating margin increased 80 basis points to 17.3%. Company-wide performance reflected favorable absorption, favorable mix in Aerospace & Industrial and Defense Electronics, and restructuring benefits, partly offset by higher research-and-development investment.
Cash generation accelerated, as free cash flow increased 37% to $160 million and free-cash-flow conversion was 116%. The company attributed the increase to higher cash earnings, lower working capital and lower tax payments. Capital allocation included approximately $15 million of repurchases and a quarterly dividend increase to $0.26 per share. New orders increased 8% to $1.1 billion, book-to-bill was 1.16x, and backlog was $4.5 billion, up 10% from December 31, 2025.
Management raised its full-year adjusted outlook across all disclosed financial measures. The current ranges are $3,768 - $3,813 for total sales, $720 - $736 for operating income, 19.1% - 19.3% for operating margin, $15.10 - $15.40 for diluted EPS, and $585 - $605 for free cash flow. The raised outlook follows strong first-half execution, while delivery will depend in part on continued defense-electronics demand, commercial-nuclear project progression and the timing of ground-defense communications revenue.
Management, verbatim
Curtiss-Wright delivered strong second quarter results, highlighted by mid-single digit revenue growth, operating margin expansion in all three segments, mid-teens growth in Adjusted diluted EPS, and better-than-expected free cash flow generation.
Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation
The momentum continues to build in our order book, underscored by record demand for our defense electronics products. Overall, we experienced strong order growth in both our A&D and Commercial markets, as total orders increased 8% year-over-year and resulted in an overall book-to-bill of 1.16x.
Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation
Based on our strong first-half execution and our outlook for the remainder of the year, we are confidently raising our full-year outlook for sales, operating income, operating margin, diluted EPS and free cash flow.
Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation
Not in the filing
stated, not guessed- Complete GAAP condensed consolidated statement of earnings was truncated after the "Gross prof" line.
- GAAP net income for the second quarter and prior-year comparison were not available in the provided text.
- Adjusted net income for the second quarter and prior-year comparison were not available in the provided text.
- GAAP and non-GAAP gross profit and gross margin were not available in the provided text.
- Operating expenses and tax rate were not available in the provided text.
- Prior-quarter comparisons were not reported for the disclosed metrics.
- Prior-year diluted EPS amounts for GAAP and adjusted diluted EPS were not reported in the provided text.
- Cash balance, debt balance and net debt were not available in the provided text.
- A prior release outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- Full-year 2026 segment and market guidance breakdown was referenced but was not included in the provided text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with an attached earnings release (Item 2.02) covering Q2 2026 results and a full-year 2026 guidance increase.
Ticker impact
Curtiss-Wright (CW) reported Q2 results and raised full-year 2026 guidance for sales, operating income, EPS, and free cash flow.
Bias toward upward revisions and support for the stock, with upside sensitivity to defense electronics order momentum and FCF sustainability.
The filing includes specific Q2 datapoints (sales, EPS, FCF) and a quantified guidance raise across multiple metrics, which typically drives near-term re-rating and forecast updates.
Market effects
Signals strength in aerospace and defense electronics demand and improved cash generation, potentially supportive for A&D suppliers’ sentiment.
Primarily US-listed defense industrial sentiment; limited direct regional spillover beyond US defense supply chain.
Defense electronics demand references domestic and international programs, but impact is mostly US-focused for traders.
Counterpoint
Defense electronics sales were down year over year in Q2, so the guidance raise may rely on mix, timing, and cost actions that could normalize later.
Key entities
- issuerCurtiss-Wright Corporation
Reported Q2 2026 financial results and raised full-year 2026 adjusted guidance in the 8-K earnings release.
- executiveLynn M. Bamford
Chair and CEO quoted on Q2 performance, order momentum, and the rationale for raising guidance.
