8-K: Curtiss-Wright Posts Record FY25, Projects Strong 2026 Growth

Curtiss-Wright Corporation reported record financial results for full-year 2025, driven by double-digit sales and EPS growth, and provided an optimistic outlook for 2026 with anticipated higher sales and operating margin expansion.

Summary

• Curtiss-Wright achieved record full-year 2025 results with reported sales of $3.5 billion, up 12%, adjusted operating income of $651 million, up 19%, and adjusted diluted EPS of $13.23, up 21%.
• Full-year 2025 free cash flow reached a record $554 million, generating 111% FCF conversion, and new orders totaled $4.1 billion, up 10%, resulting in a book-to-bill of 1.2x.
• The company's backlog increased 18% to $4.1 billion as of December 31, 2025.
• For the fourth quarter of 2025, reported sales were $947 million, up 15%, adjusted operating income was $187 million, up 14%, and adjusted diluted EPS was $3.79, up 16%.
• Fourth quarter free cash flow was $315 million, achieving 224% FCF conversion, and new orders were $1.1 billion, up 18%, with a book-to-bill of 1.2x.
• For full-year 2026, Curtiss-Wright anticipates total organic sales growth of 6% to 8%, operating margin expansion of 30 to 60 basis points to a range of 18.9% to 19.2%, and diluted EPS growth of 11% to 15% (projected $14.70 to $15.15).
• Free cash flow for 2026 is guided to be strong, ranging from $575 million to $595 million, with over 105% FCF conversion, despite higher capital expenditures of approximately $25 million compared to 2025.

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as a highly positive report, marked by record financial achievements in 2025, strong operational execution, and an optimistic 2026 outlook that exceeds previously communicated targets, demonstrating robust growth momentum.

Positives

• Achieved record full-year 2025 sales, profitability, EPS, free cash flow, and new orders.
• Delivered double-digit organic sales growth in both Q4 2025 (11%) and full-year 2025 (9%).
• Expanded adjusted operating margin by 110 basis points to 18.6% for full-year 2025.
• Generated strong free cash flow of $554 million in FY25 with 111% conversion, and a record $315 million in Q4 2025 with 224% conversion.
• Experienced robust demand across Aerospace & Defense and Commercial Nuclear markets, driving full-year new orders of $4.1 billion and an 18% increase in backlog to $4.1 billion.
• Repurchased a record $465 million in shares during full-year 2025.
• Provided an optimistic full-year 2026 outlook reflecting higher sales (6-8% organic growth), operating margin expansion (30-60 bps), and double-digit EPS growth (11-15%).
• The company is on track to exceed its three-year financial targets communicated at its 2024 Investor Day, including organic revenue CAGR, operating income growth, EPS CAGR, and FCF conversion.

Negatives

• Adjusted operating margin in the Aerospace & Industrial segment decreased 120 basis points to 20.1% in Q4 2025, primarily due to unfavorable mix.
• Adjusted operating margin in the Naval & Power segment decreased 120 basis points to 17.9% in Q4 2025, attributed to unfavorable mix of products and higher investment in research and development.
• Sales in the General Industrial market were essentially flat in both Q4 2025 and full-year 2025.
• Ground Defense market revenues are projected to decrease by 4-6% in 2026 due to the timing of tactical communications and ground vehicle revenues.

Risks

• A reduction in anticipated orders.
• An economic downturn.
• Geopolitical risks.
• Evolving impacts from tariffs between the U.S. and other countries (including implementation of new tariffs and retaliatory measures).
• Changes in the competitive marketplace and/or customer requirements.
• A change in government spending.
• An inability to perform customer contracts at anticipated cost levels.
• Other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies.
• The impact of a global pandemic or national epidemic.

Future Outlook

Curtiss-Wright anticipates total organic sales growth of 6% to 8% in 2026, with operating margin expansion of 30 to 60 basis points to a range of 18.9% to 19.2%. Diluted EPS is projected to grow 11% to 15%, and strong free cash flow generation is expected, while increasing R&D and capital investments. The company is confident in achieving its three-year financial targets communicated at its 2024 Investor Day.

Management Comments

• "Curtiss-Wright concluded a record-setting year with a strong fourth quarter financial performance that was highlighted by double-digit organic sales growth, adjusted operating margin of 19.7%, mid-teens growth in adjusted diluted EPS, and record quarterly free cash flow generation." Lynn M. Bamford, Chair and CEO.
• "Our full-year 2025 performance reflected the continued momentum that we are generating under our Pivot to Growth strategy. We delivered record-high sales and operating income, 110 basis points in operating margin expansion, and 21% growth in adjusted diluted EPS, as we maintained our commitment to operational excellence and targeted investments across the portfolio." Lynn M. Bamford, Chair and CEO.
• "Looking ahead, our strong backlog entering the year, combined with the alignment of our technologies to favorable secular growth trends, underpins our expectation to deliver total organic sales growth of 6% to 8% and another strong operational performance in 2026." Lynn M. Bamford, Chair and CEO.

Industry Context

StockSavvy.ai notes that Curtiss-Wright's strong performance in Aerospace & Defense is consistent with global trends of increased defense spending, particularly in U.S. defense budgets targeting shipbuilding and aircraft modernization, and NATO allies raising defense commitments. The robust growth in Commercial Nuclear aligns with rising pro-nuclear sentiment, the desire for reliable clean energy, and government initiatives supporting plant restarts, life extensions, and new builds, including Small Modular Reactors (SMRs) transitioning to prototype phases.

Comparison to Industry Standards

• The company's projected >105% FCF conversion for 2026 is in line with its Investor Day target, indicating strong cash generation efficiency.
• The anticipated 11-15% diluted EPS growth for 2026 is well in excess of the >10% EPS CAGR target set at the 2024 Investor Day, suggesting outperformance relative to internal benchmarks.
• The 18.9%-19.2% operating margin guidance for 2026 reflects a 30-60 bps expansion, contributing to a ~19% operating margin, which is a significant improvement of +170 bps since 2023, positioning the company for top-quartile margin performance.
• The 6-8% total organic sales growth guidance for 2026 contributes to an ~8.5% organic revenue CAGR (9.5% total) for 2024-2026, exceeding the >5% organic revenue CAGR target from the 2024 Investor Day.

Stakeholder Impact

• Shareholders: Positive impact due to record financial performance, strong EPS growth, consistent share repurchases ($465 million in FY25, minimum $60 million in FY26), increased dividends ($0.24 per share declared), and an optimistic future outlook exceeding targets.
• Employees: Positive impact from continued growth, targeted investments, and operational excellence initiatives, suggesting stability and potential for development.
• Customers: Positive impact from continued investments in R&D and capital, leading to enhanced products and solutions, particularly in Aerospace & Defense and Commercial Nuclear markets.
• Creditors: Positive impact from strong free cash flow generation and efficient working capital management, indicating robust financial health and ability to manage debt (e.g., $200 million Senior Notes due Dec 2026).

Next Steps

• Host a conference call on February 12, 2026, at 10:00 a.m. ET to discuss results and 2026 guidance.
• Continue increasing R&D and capital investments in 2026.
• Execute on the "Pivot to Growth" strategy.
• Achieve three-year financial targets communicated at the 2024 Investor Day.
• Repurchase a minimum of $60 million in shares in 2026 to offset dilution.

Key Dates

Recommendation

The filing demonstrates exceptional financial performance in 2025, achieving record sales, profitability, EPS, and free cash flow, significantly exceeding prior year results. The 2026 guidance is robust, projecting continued double-digit EPS growth and margin expansion, explicitly stating it's "well in excess of Investor Day target." Strong backlog, strategic alignment with secular growth trends in defense and nuclear power, and a disciplined capital allocation strategy including substantial share repurchases, underpin a highly positive outlook. These factors suggest strong future shareholder value creation, making it a compelling "strong buy" for a seasoned investor.

Keywords

Aerospace & Defense, Commercial Nuclear, Financial Results, Earnings, EPS, Free Cash Flow, Orders, Backlog, Operating Margin, Share Repurchase, Guidance, Naval Defense, Ground Defense, Commercial Aerospace, Power & Process, Industrial, SEC Filing, CW, Curtiss-Wright