Curtiss-Wright Corporation (CW) Earnings & Analysis

Latest quarter

Curtiss-Wright reported Q2 FY2026 revenue of $924.0 million, which was below the consensus of $930.6 million; revenue was −0.71% against the consensus. The company reported adjusted EPS, as the consensus counts it, of $3.72, above the $3.62 consensus and 2.76% above that benchmark. Curtiss-Wright said revenue increased 5.41% from $876.6 million in Q2 FY2025, while diluted EPS increased 27.6% to $4.07 from $3.19. The company reported gross margin of 39.4%, compared with 37.2% a year earlier, and operating margin of 19.3%, compared with 17.8%. Curtiss-Wright also reported free cash flow of $160.3 million, up 37.0% from $117.0 million in the prior-year quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Christopher Connor, executive vice president and chief financial officer, said the Defense Electronics order book had recovered from delays earlier in the year, with orders up 47.0% year over year in Q2 after rising 18.0% in Q1. Connor said ground-defense orders included long-term production orders for turret drive stabilization systems, while the general-industrial order book was up 21.0% year to date. He added that Curtiss-Wright expected a good order book in Q3.

Bamford told analysts that the company viewed the earlier Defense Electronics delays as timing rather than a reduction in demand. Connor said Defense Electronics revenue was expected to be relatively flat sequentially in Q3 because of order timing, followed by a big fourth quarter for that business; he also said tactical-communications growth was expected to improve in Q4.

On commercial aerospace, Connor said the company continued to see order growth and expected FY2026 revenue growth of 10.0% to 12.0%. He said higher sales, product mix and restructuring actions contributed to the company’s margin outlook, while Curtiss-Wright continued to invest in research and development.

Bamford said supply-chain pressures had increased during the first half of 2026. She said the company was largely secured for its 2026 revenue and was focusing on positioning for 2027, including through inventory tools, supplier relationships, alternative materials and price adjustments where supply-chain costs could not be avoided.

On capital allocation, Bamford said acquisitions remained the company’s top priority for capital use, although the company would require both strategic and financial fit. She said Curtiss-Wright was evaluating a significant potential acquisition but did not provide a valuation or say that an agreement had been reached.

Guidance

Curtiss-Wright raised its FY2026 adjusted sales-growth outlook to 8.00%–9.00%, adjusted operating-income-growth outlook to 11.0%–13.0%, adjusted diluted EPS outlook to $15.10–$15.40, and adjusted operating-margin outlook to 19.1%–19.3%. The company also increased its FY2026 free-cash-flow outlook to $585.0 million–$605.0 million. Curtiss-Wright continues to expect organic revenue growth of 9.00%, overall revenue growth of 10.0%, and commercial-aerospace revenue growth of 10.0%–12.0% in FY2026.