Curtiss-Wright Awarded Contracts Valued in Excess of $130 Million to Support Critical U.S. Naval Defense Platforms

Rhea-AI Summary

Curtiss-Wright (NYSE: CW) announced contracts exceeding $130 million to supply critical components for U.S. Navy's Virginia-class and Columbia-class submarines, and Ford-class aircraft carriers.

The deals include propulsion valves, pumps, and advanced instrumentation. These contracts, awarded by Bechtel Plant Machinery, Inc. (BPMI), support ship construction, spare parts, and submarine back-fit procurements.

Engineering and manufacturing will occur in New York and Pennsylvania facilities and will continue until 2029. Curtiss-Wright's technologies enhance safety, efficiency, and reduce costs for naval operations.

Positive

• Contracts valued over $130 million enhance revenue streams.
• Long-term relationship with U.S. Nuclear Navy strengthens company credibility.
• Engineering and manufacturing will continue through 2029, ensuring long-term work and stability.
• Technologies provided by Curtiss-Wright reduce manpower and costs, increasing operational efficiency.
• Support for critical U.S. naval defense platforms reflects strong Congressional backing.
• Work performed in New York and Pennsylvania facilities boosts local economies.

Negative

• Long-term contracts may pose risks if project deadlines or specifications are not met.
• Dependence on U.S. Navy contracts could limit market diversification.
• Potential cost overruns could reduce profitability.
• Geopolitical changes or budget cuts in defense spending could impact future contracts.

Insights

Financial Analyst

The contract awarded to Curtiss-Wright, valued at over $130 million, is significant for the company’s financial health. This influx of revenue is likely to have a positive impact on its earnings over the next several years, with work continuing through 2029. Investors should note that such long-term contracts provide stability and predictable cash flows, which can support the company's stock price. Additionally, the contracts are with the U.S. Navy, a reliable and creditworthy client, minimizing payment risk. With the defense sector generally experiencing steady growth due to geopolitical tensions and defense spending, Curtiss-Wright is well-positioned for sustained performance. However, it is essential to monitor any potential delays or cost overruns in the execution of these contracts, as these can affect profitability.

Defense Industry Analyst

The awarded contracts underscore Curtiss-Wright’s strategic importance in the U.S. naval defense infrastructure. Supplying propulsion valves, pumps and advanced instrumentation for Virginia-class submarines, Columbia-class submarines and Ford-class aircraft carriers, Curtiss-Wright is critical to the enhancement and maintenance of these naval platforms. The continued support from Congress for these programs further solidifies their importance and longevity, promising future opportunities for Curtiss-Wright. Additionally, the contracts illustrate the company’s technological prowess, particularly with power-dense motors and enhanced valve designs, which are important for efficient and safe naval operations. Understanding the competitive landscape, Curtiss-Wright’s long-standing relationship with the U.S. Navy gives it a competitive edge, bolstering its market position.

DAVIDSON, N.C.--(BUSINESS WIRE)-- Curtiss-Wright Corporation (NYSE: CW) today announced it has been awarded contracts valued in excess of $130 million to provide propulsion valves, pumps and advanced instrumentation and control systems for the U.S. Navy’s Virginia-class nuclear powered attack submarine, Columbia-class submarine and Ford-class aircraft carrier programs. The awards were received from Bechtel Plant Machinery, Inc. (BPMI) to support ship construction, spare parts and submarine back-fit procurements.

“Curtiss-Wright is pleased to have been awarded these important naval defense contracts, building upon our long-standing relationship with the U.S. Nuclear Navy and reflecting our ongoing support of these critical naval defense platforms, which continue to receive strong Congressional support,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. “We look forward to delivering the most advanced, reliable and vital technologies and remain well-positioned to benefit from the continued expansion of our U.S. naval fleet.”

Curtiss-Wright is performing this work at its facilities in New York and Pennsylvania within the Company’s Defense Electronics and Naval & Power Segments. Engineering and manufacturing have commenced and will continue through 2029.

For over 60 years, Curtiss-Wright has ensured safe, reliable operations by supplying innovative, high-performance products for every nuclear submarine and aircraft carrier commissioned by the U.S. Navy. In addition, Curtiss-Wright technologies, such as power-dense motors and enhanced valve designs, enable more efficient operations, reduce manpower and cost, and increase safety. For more information on Curtiss-Wright’s Defense Electronics Segment and Naval & Power Segment products for the U.S. Navy, please visit www.cwdefense.com or www.curtisswright.com/organization/naval-power/, respectively.

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.

This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including statements relating to Curtiss-Wright Corporation's expectations of future performance of our pump and valve products, the continued relationship with an existing customer, the continued funding of these programs by the U.S. Navy, the successful implementation of our products into these naval defense programs, the overall success of these naval defense programs and future opportunities associated with these programs, are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US and Foreign government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515751801/en/

Jim Ryan

(704) 869-4621

jim.ryan@curtisswright.com

Source: Curtiss-Wright Corporation

FAQ

What are the details of Curtiss-Wright's new contracts?

Curtiss-Wright has been awarded contracts valued in excess of $130 million to supply propulsion valves, pumps, and advanced instrumentation for U.S. Navy's submarines and aircraft carriers.

Which naval programs will benefit from Curtiss-Wright's contracts?

The U.S. Navy's Virginia-class and Columbia-class submarines, and Ford-class aircraft carriers will benefit from these contracts.

Who awarded the contracts to Curtiss-Wright?

The contracts were awarded by Bechtel Plant Machinery, Inc. (BPMI).

Where will Curtiss-Wright execute the contract work?

Curtiss-Wright will perform the work at its facilities in New York and Pennsylvania.

When is the engineering and manufacturing work expected to continue until?

The engineering and manufacturing work is expected to continue until 2029.

What benefits do Curtiss-Wright's technologies provide to the U.S. Navy?

Curtiss-Wright's technologies enhance safety, enable more efficient operations, reduce manpower and costs.