Curtiss-Wright Corporation (NYSE:CW) closed out its 2025 fiscal year with a strong fourth quarter, delivering results that surpassed analyst expectations on the top line and providing a forward-looking outlook that signals continued confidence in its growth trajectory. The aerospace, defense, and industrial technology company reported robust demand across its key markets, driving record orders and backlog.
Earnings & Revenue vs. Estimates
The company’s performance for the quarter ended December 31, 2025, exceeded Wall Street’s revenue forecast while meeting profitability expectations.
- Revenue: Reported sales of $947 million, a 14.9% increase year-over-year, came in above the analyst consensus estimate of approximately $916.9 million.
- Earnings Per Share (Adjusted): Adjusted diluted EPS of $3.79 was essentially in line with the analyst estimate of $3.80, representing a 16% increase compared to the fourth quarter of 2024.
For the full year 2025, Curtiss-Wright reported record sales of $3.5 billion, a 12% increase, and adjusted diluted EPS of $13.23, which climbed 21%.
Market Reaction & Price Action
Following the earnings release, the market’s immediate reaction appears measured. The stock’s after-market performance showed negligible movement. Over recent weeks, the share price has been relatively stable, with a slight gain over the past week and minimal change over the past month, suggesting the strong results were largely anticipated by investors. The absence of a significant post-earnings surge may reflect the high expectations already baked into the stock, given its consistent performance and the provided outlook that met, rather than dramatically exceeded, longer-term analyst projections.
Key Highlights from the Quarterly Report
The fourth quarter and full-year results were characterized by broad-based strength, operational execution, and robust future indicators.
Operational and Financial Strength:
- Record quarterly free cash flow of $315 million, representing a 224% conversion rate.
- Full-year free cash flow reached a record $554 million.
- The company returned significant capital to shareholders, repurchasing $465 million worth of its stock in 2025.
Demand and Backlog:
- New orders in Q4 surged 18% to $1.1 billion, producing a strong book-to-bill ratio of 1.2x.
- Full-year new orders reached a record $4.1 billion.
- The ending backlog grew 18% year-over-year to $4.1 billion, providing clear visibility into future revenue.
Segment Performance: Growth was driven by the Defense Electronics and Naval & Power segments, which saw sales increase by 17% and 21%, respectively. The Aerospace & Industrial segment posted a more modest 5% sales gain. Management cited strong demand in defense markets, commercial aerospace, and commercial nuclear power as key drivers.
Forward Guidance vs. Analyst Estimates
Looking ahead to 2026, Curtiss-Wright provided an outlook that aligns closely with existing analyst expectations, reinforcing a path of steady, profitable growth.
The company’s full-year 2026 adjusted guidance projects:
- Sales: $3.71 - $3.77 billion, implying 6-8% organic growth.
- Diluted EPS: $14.70 - $15.15, representing 11-15% growth.
- Operating Margin: Expansion of 30 to 60 basis points to a range of 18.9% - 19.2%.
This sales guidance midpoint of approximately $3.74 billion is slightly above the current analyst consensus estimate of $3.71 billion for the year. The EPS guidance range brackets the prevailing analyst consensus, indicating management’s expectations are in step with market forecasts. CEO Lynn Bamford linked the outlook to the company’s "Pivot to Growth" strategy, a strong backlog, and favorable secular trends in its core markets.
For a detailed breakdown of future quarterly and annual estimates, you can review the earnings and estimates page for Curtiss-Wright (CW).
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
