second quarter 2026
Filed Aug 6, 2026Curtiss-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.