Curtiss-Wright Announces New $100 Million Expansion of 2024 Share Repurchase Program and Raises Minimum Annual Repurchase Plan to $60 Million for 2025

Rhea-AI Summary

Curtiss-Wright (NYSE: CW) has announced a significant expansion of its share repurchase initiatives. The company is adding $100 million to its 2024 share repurchase program, which will run alongside the existing $50 million program. This follows a recently completed $100 million opportunistic program from Q3, bringing total expected repurchases to $250 million in 2024.

Starting January 2025, CW will increase its annual share repurchase commitment to $60 million, up from the previous $50 million plan, aimed at offsetting potential dilution from compensation plans. The company cites its healthy balance sheet and expectations for strong profitability and free cash flow growth as enablers of these initiatives.

Positive

• Total share repurchases increased to $250 million for 2024
• Annual share repurchase commitment raised to $60 million from $50 million for 2025
• Strong balance sheet supporting increased shareholder returns
• Expected strong growth in profitability and free cash flow

Negative

• Potential impact on cash reserves available for strategic investments
• Share repurchases may limit funds available for business expansion

Insights

Financial Analyst

This significant expansion of the share repurchase program signals strong confidence in Curtiss-Wright's financial health and future prospects. The total $250 million planned for 2024 represents approximately 1.8% of the company's market cap, which could provide meaningful support for the stock price. The increased minimum annual repurchase to $60 million starting 2025 demonstrates a long-term commitment to returning capital to shareholders while maintaining flexibility for strategic growth initiatives.

The structured approach using 10b5-1 programs provides transparency and predictability to the market. The company's ability to execute an opportunistic $100 million buyback in Q3 while announcing additional repurchases suggests robust free cash flow generation and a healthy balance sheet. This balanced capital allocation strategy, prioritizing both strategic acquisitions and shareholder returns, positions the company well for sustainable long-term growth.

DAVIDSON, N.C.--(BUSINESS WIRE)-- Curtiss-Wright Corporation (NYSE: CW) today announced a $100 million expansion of its 2024 share repurchase program, which it expects to complete via a 10b5-1 program by the end of the year. This program will be conducted in concurrence with the existing $50 million share repurchase program being executed this year, and follows the recent completion of a $100 million opportunistic program that was executed in the third quarter. As a result, the Company now expects annual share repurchases of $250 million in 2024.

Beginning in January 2025, the Company also expects to repurchase $60 million in shares via a 10b5-1 program, an increase from the prior $50 million annual plan, which is expected to offset potential dilution from compensation plans.

“We are pleased to announce this new $100 million expansion of our 2024 repurchase program and increase to our annual share buyback commitment,” said Lynn M. Bamford, Chair and Chief Executive Officer of Curtiss-Wright Corporation. “These increases are enabled by our healthy balance sheet and support our continued expectations for strong growth in profitability and free cash flow. Overall, we maintain a strong focus on disciplined capital allocation centered on pursuing strategic acquisitions as an accelerator to organic growth, reinvesting in our business, and returning capital to shareholders through share repurchase and dividend distributions.”

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE: CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,600 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216613898/en/

Jim Ryan

(704) 869-4621

jim.ryan@curtisswright.com

Source: Curtiss-Wright Corporation

FAQ

How much is Curtiss-Wright's total share repurchase program for 2024?

Curtiss-Wright's total share repurchase program for 2024 amounts to $250 million, consisting of a new $100 million expansion, an existing $50 million program, and a completed $100 million opportunistic program from Q3.

What is CW's new annual share repurchase commitment for 2025?

Starting January 2025, Curtiss-Wright has increased its annual share repurchase commitment to $60 million, up from the previous $50 million plan.

How will Curtiss-Wright execute its new $100 million share repurchase expansion?

The $100 million expansion will be executed through a 10b5-1 program, expected to be completed by the end of 2024.

What is the purpose of CW's increased share repurchase program for 2025?

The increased $60 million annual share repurchase program for 2025 is designed to offset potential dilution from compensation plans.