Curtiss-Wright NYSE: CW raised its full-year 2026 outlook after reporting first-quarter results that management said exceeded expectations, supported by revenue growth across all three business segments and stronger order activity in defense, commercial nuclear and industrial markets.
Chair and Chief Executive Officer Lynn Bamford said the company had a “highly productive start to 2026,” citing higher revenue and operating income in Aerospace & Industrial, Defense Electronics and Naval & Power. First-quarter sales were $914 million, up 13% from a year earlier. Operating income grew faster than sales, resulting in 100 basis points of operating margin expansion, while diluted earnings per share rose 23% year-over-year.
“The momentum continues to build across Curtiss-Wright’s portfolio,” Bamford said. She added that the company’s stronger start to the year and improved demand across key end markets gave management confidence to raise its full-year targets.
Orders and backlog reach new highs
New orders increased 16% in the quarter, producing a 1.3x book-to-bill ratio. Bamford said orders grew at a mid-teens rate in each of the company’s three segments, lifting Curtiss-Wright’s total order book to a record of nearly $4.3 billion.
In defense, Bamford pointed to an improved pace of orders following delays tied to the prior continuing resolution and the 2025 government shutdown. She said the Defense Electronics segment posted its best order performance since the third quarter of 2024, with awards including mission computer upgrades for the C-17 cockpit modernization program, next-generation helicopter platform work and increased activity in short-cycle businesses such as tactical communications.
In Naval & Power, the segment delivered a 1.5x book-to-bill ratio, helped by demand for nuclear propulsion equipment tied to current and next-generation U.S. Navy submarine programs. Bamford also cited commercial nuclear aftermarket demand and improving orders for industrial vehicle products within Aerospace & Industrial.
Segment results led by Naval & Power growth
Curtiss-Wright said Aerospace & Industrial sales rose 12% in the first quarter, exceeding expectations. The company attributed the outperformance primarily to defense markets, including higher sales of actuation and sensors equipment for U.S. and European fighter jet programs and electromagnetic actuation equipment for ground-based mobile launcher systems. Commercial aerospace also posted solid OEM sales growth tied to narrow-body and wide-body platforms, while general industrial sales increased at a mid-single-digit rate.
The segment’s operating income rose 24%, and operating margin expanded 150 basis points, driven by favorable absorption on higher revenue, restructuring savings and favorable mix.
Defense Electronics sales increased 5%, slightly ahead of expectations. The company reported higher domestic sales of embedded computing equipment for aircraft modernization programs and higher direct foreign military sales of embedded computing and flight data recorders to NATO and allied countries. Segment operating margin was 28.1%, up 60 basis points from the prior year.
Naval & Power sales increased 21%, also ahead of expectations. The company cited accelerated production on submarine programs, higher aftermarket revenue for naval shipyards, international demand for arresting systems and high-teens growth in Power and Process revenue. Operating income in the segment rose 33%, with 140 basis points of margin expansion.
Full-year outlook increased
Curtiss-Wright now expects total 2026 sales to grow 7% to 8%, up from its prior outlook, driven by stronger expectations in defense and commercial nuclear markets. The company now projects operating margin of 19% to 19.2%, representing 40 to 60 basis points of expansion.
Full-year diluted EPS is expected to be $14.90 to $15.30, up 13% to 16% from 2025. Free cash flow guidance was raised to $580 million to $600 million, which would represent 5% to 8% growth over last year and a free cash flow conversion rate of approximately 105%.
- Aerospace defense sales are now expected to grow 11% to 13%.
- Naval defense sales are now expected to grow 6% to 8%.
- Commercial aerospace sales growth remains forecast at 10% to 12%.
- Power and Process sales are now expected to increase 13% to 15%, supported by commercial nuclear.
- General industrial sales are still expected to be flat in 2026.
The company expects second-quarter sales to grow by mid-single digits year-over-year, with operating income growth in the high-single-digit-plus range. Management said it expects a high-teens second-quarter operating margin, followed by stronger margin expansion in the second half of the year.
Commercial nuclear and defense remain key growth areas
Bamford said Curtiss-Wright remains aligned with major defense priorities, including naval shipbuilding, submarine production, tactical aircraft modernization, next-generation air superiority, radar and strategic missile defense. She said the company’s technologies are used on more than 400 platforms and 3,000 programs worldwide.
In commercial nuclear, Bamford said Curtiss-Wright has content on every reactor across North America and South Korea and is supporting plant life extensions, power upgrades and modernization. She also said the company still expects an order this year for reactor coolant pumps tied to Westinghouse AP1000 reactors, though AP1000 revenue is not included in the current-year guidance.
The company also discussed its work with X-energy, where it has moved from design to prototype manufacturing for the Helium Circulator and Reactivity Control and Shutdown Systems. Bamford said Curtiss-Wright has previously disclosed $120 million of content per X-energy reactor, though she noted the current prototype work does not include the full complement of end-reactor content.
During the question-and-answer session, management said small modular reactor revenue was roughly 10% of commercial nuclear revenue last year and is targeted at 12% this year. The company also said commercial nuclear growth is benefiting from aftermarket demand and development work moving into prototyping.
Management discusses M&A, supply chain and industrial recovery
Asked about acquisitions, Bamford said Defense Electronics remains a priority area for potential deals, while commercial nuclear and aerospace technologies also remain areas of interest. Management said Curtiss-Wright has deployed $2.5 billion toward acquisitions since beginning its “pivot to growth” strategy, while maintaining a strong balance sheet and borrowing capacity.
On supply chain constraints, Bamford said the company is focused on memory and storage chips, printed circuit board-related issues and rare earth minerals. She said Curtiss-Wright is using supplier relationships, advanced buys, government priority ratings and alternative sourcing where possible.
For industrial vehicles, Bamford said the company has seen two strong quarters of bookings and is optimistic that the market can return to growth in 2027, though management is keeping the 2026 general industrial sales outlook flat.
Bamford closed the call by saying Curtiss-Wright remains focused on operational execution, R&D investment, capital deployment and shareholder returns as it targets another year of record financial performance.
About Curtiss-Wright NYSE: CW
Curtiss-Wright Corporation NYSE: CW is a diversified, global engineering company that designs, manufactures and services highly engineered products and integrated systems for the aerospace, defense, and industrial markets. Its offerings span a range of electromechanical, motion control and flow control technologies, including flight control and actuation systems, sensors and avionics components, pumps and valves, power conversion and heat exchangers, and platform integration solutions for marine and ground systems.
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