Curtiss-Wright Reports Second Quarter 2024 Financial Results and Raises Full-Year 2024 Guidance
Curtiss-Wright Corp. (NYSE: CW) reported strong second-quarter 2024 financial results with sales of $785 million, up 11% YoY. Operating income was $129 million, with a margin of 16.4%, while adjusted income reached $133 million. Adjusted EPS increased by 24% to $2.67. The company recorded new orders worth $995 million, reflecting an 18% increase and a book-to-bill ratio of 1.3x. The backlog rose 13% to $3.2 billion, and free cash flow was $100 million.
Full-year 2024 guidance has been raised: sales growth forecast of 6-8%, operating income growth of 6-9%, and EPS range of $10.40-$10.65. FCF is expected to be $425-$445 million. The effective tax rate was reduced by 100 bps to 22.5%.
Curtiss-Wright also announced a $200 million acquisition of Ultra Energy, which is anticipated to be accretive to adjusted EPS and generate FCF with over 100% conversion.
The company continues to implement its Pivot to Growth strategy, including restructuring actions expected to save $10 million annually by 2025.
Curtiss-Wright Corp. (NYSE: CW) ha riportato risultati finanziari solidi per il secondo trimestre 2024, con vendite di 785 milioni di dollari, in aumento dell'11% rispetto all'anno precedente. Il reddito operativo è stato di 129 milioni di dollari, con un margine del 16,4%, mentre il reddito rettificato ha raggiunto i 133 milioni di dollari. L'ADE rettificato è aumentato del 24% a 2,67 dollari. L'azienda ha registrato nuovi ordini per un valore di 995 milioni di dollari, con un incremento del 18% e un rapporto book-to-bill di 1,3x. Il backlog è aumentato del 13% a 3,2 miliardi di dollari e il flusso di cassa libero è stato di 100 milioni di dollari.
Le previsioni per l'intero anno 2024 sono state riviste al rialzo: la crescita delle vendite è stimata tra il 6 e l'8%, una crescita del reddito operativo tra il 6 e il 9%, e un intervallo di EPS tra 10,40 e 10,65 dollari. Si prevede che il FCF sarà compreso tra 425 e 445 milioni di dollari. L'aliquota fiscale effettiva è stata ridotta di 100 basis points al 22,5%.
Curtiss-Wright ha anche annunciato un'acquisizione di 200 milioni di dollari di Ultra Energy, che si prevede sarà accrescitiva per l'EPS rettificato e genererà un flusso di cassa libero con una conversione superiore al 100%.
L'azienda continua a implementare la sua strategia di Pivot to Growth, comprese azioni di ristrutturazione che si prevede porteranno a un risparmio annuale di 10 milioni di dollari entro il 2025.
Curtiss-Wright Corp. (NYSE: CW) reportó resultados financieros sólidos para el segundo trimestre de 2024, con ventas de 785 millones de dólares, un aumento del 11% interanual. El ingreso operativo fue de 129 millones de dólares, con un margen del 16,4%, mientras que el ingreso ajustado alcanzó los 133 millones de dólares. El EPS ajustado aumentó un 24% a 2,67 dólares. La compañía registró nuevos pedidos por un valor de 995 millones de dólares, lo que refleja un aumento del 18% y una relación book-to-bill de 1,3x. La cartera de pedidos aumentó un 13% a 3.2 mil millones de dólares, y el flujo de caja libre fue de 100 millones de dólares.
Las proyecciones para todo el año 2024 han sido elevadas: se prevé un crecimiento de ventas del 6-8%, un crecimiento del ingreso operativo del 6-9% y un rango de EPS de 10,40-10,65 dólares. Se espera que el FCF esté entre 425 y 445 millones de dólares. La tasa de impuesto efectiva se redujo en 100 puntos básicos al 22,5%.
Curtiss-Wright también anunció una adquisición de 200 millones de dólares de Ultra Energy, que se anticipa será positiva para el EPS ajustado y generará flujo de caja libre con una conversión superior al 100%.
La empresa continúa implementando su estrategia Pivot to Growth, incluyendo acciones de reestructuración que se espera ahorrarán 10 millones de dólares anualmente para 2025.
Curtiss-Wright Corp. (NYSE: CW)는 2024년 2분기 강력한 재무 실적을 보고했습니다. 매출은 7억 8,500만 달러로, 지난해보다 11% 증가했습니다. 영업 이익은 1억 2,900만 달러이며, 영업 마진은 16.4%였습니다. 조정된 소득은 1억 3,300만 달러에 도달했습니다. 조정된 EPS는 24% 증가하여 2.67달러를 기록했습니다. 이 회사는 9억 9,500만 달러의 신규 주문을 기록했으며, 이는 18% 증가한 수치로, book-to-bill 비율은 1.3배입니다. 백로그는 13% 증가하여 32억 달러에 달했으며, 자유 현금 흐름은 1억 달러였습니다.
2024년 전체 연도 전망이 상향 조정되었습니다: 매출 성장률 6-8%, 영업 이익 성장률 6-9%, EPS 범위 10.40-10.65달러로 예상하고 있습니다. FCF는 4억 2,500만에서 4억 4,500만 달러로 예상됩니다. 실질 세율은 100bp 인하되어 22.5%가 되었습니다.
Curtiss-Wright는 또한 조정된 EPS에 긍정적인 영향을 주고, 100% 이상의 변환으로 자유 현금 흐름을 생성할 것으로 예상되는 Ultra Energy를 2억 달러에 인수한다고 발표했습니다.
회사는 Growth 전략으로의 전환을 계속 진행하고 있으며, 2025년까지 연간 1천만 달러를 절감할 것으로 예상되는 구조 조정 조치를 포함하고 있습니다.
Curtiss-Wright Corp. (NYSE: CW) a annoncé des résultats financiers solides pour le deuxième trimestre de 2024, avec des ventes de 785 millions de dollars, en hausse de 11 % par rapport à l'année précédente. Le résultat d'exploitation était de 129 millions de dollars, avec une marge de 16,4 %, tandis que le revenu ajusté a atteint 133 millions de dollars. Le BPA ajusté a augmenté de 24 % pour atteindre 2,67 dollars. L'entreprise a enregistré de nouvelles commandes d'une valeur de 995 millions de dollars, reflétant une augmentation de 18 % et un ratio commande à facturation de 1,3x. Le carnet de commandes a augmenté de 13 % pour atteindre 3,2 milliards de dollars, et le flux de trésorerie libre était de 100 millions de dollars.
Les prévisions pour l'ensemble de l'année 2024 ont été révisées à la hausse : prévision de croissance des ventes de 6 à 8 %, croissance du résultat d'exploitation de 6 à 9 %, et une fourchette de BPA de 10,40 à 10,65 dollars. Le FCF devrait se situer entre 425 et 445 millions de dollars. Le taux d'imposition effectif a été réduit de 100 points de base à 22,5 %.
Curtiss-Wright a également annoncé une acquisition de 200 millions de dollars d'Ultra Energy, qui devrait être accretive pour le BPA ajusté et générer un flux de trésorerie libre avec plus de 100 % de conversion.
L'entreprise continue de mettre en œuvre sa stratégie de Pivot to Growth, y compris des actions de restructuration qui devraient permettre d'économiser 10 millions de dollars par an d'ici 2025.
Curtiss-Wright Corp. (NYSE: CW) berichtete von starken finanziellen Ergebnissen für das zweite Quartal 2024 mit einem Umsatz von 785 Millionen US-Dollar, was einem Anstieg von 11% im Vergleich zum Vorjahr entspricht. Das Betriebsergebnis betrug 129 Millionen US-Dollar mit einer Marge von 16,4%, während das bereinigte Ergebnis 133 Millionen US-Dollar erreichte. Der bereinigte EPS stieg um 24% auf 2,67 US-Dollar. Das Unternehmen verzeichnete neue Aufträge im Wert von 995 Millionen US-Dollar, was einem Anstieg von 18% entspricht und ein Verhältnis von Buch zu Rechnung von 1,3x hat. Der Auftragsbestand stieg um 13% auf 3,2 Milliarden US-Dollar, und der freie Cashflow betrug 100 Millionen US-Dollar.
Die Prognosen für das Gesamtjahr 2024 wurden angehoben: Es wird ein Umsatzwachstum von 6-8%, ein Betriebsergebniswachstum von 6-9% und eine EPS-Spanne von 10,40-10,65 US-Dollar erwartet. Der FCF wird voraussichtlich zwischen 425 und 445 Millionen US-Dollar liegen. Der effektive Steuersatz wurde um 100 Basispunkte auf 22,5% gesenkt.
Curtiss-Wright kündigte zudem eine Akquisition von Ultra Energy im Wert von 200 Millionen US-Dollar an, die als akquisitorisch für den bereinigten EPS angesehen wird und mit über 100% Konversion freien Cashflow erzeugen soll.
Das Unternehmen setzt seine Pivot to Growth-Strategie fort, einschließlich von Umstrukturierungsmaßnahmen, die bis 2025 voraussichtlich jährlich 10 Millionen US-Dollar einsparen werden.
- Sales increased by 11% to $785 million.
- Operating income grew by 14% to $129 million.
- Adjusted EPS increased by 24% to $2.67.
- New orders rose 18% to $995 million.
- Backlog increased by 13% to $3.2 billion.
- Raised full-year 2024 guidance with sales growth of 6-8%.
- Acquisition of Ultra Energy is expected to be accretive to adjusted EPS.
- Naval & Power segment operating margin decreased by 320 bps.
- General industrial market revenues declined modestly.
Second Quarter 2024 Highlights:
-
Reported sales of
$785 million 11% ; -
Reported operating income of
$129 million 16.4% , and diluted earnings per share (EPS) of$2.58 -
Adjusted operating income of
$133 million 16% ; -
Adjusted operating margin of
17.0% , up 60 basis points; -
Adjusted diluted EPS of
$2.67 24% ; -
New orders of
$995 million 18% , reflected a book-to-bill of approximately 1.3x driven by strong demand within our Aerospace & Defense (A&D) markets; -
Backlog of
$3.2 billion 13% year-to-date; and -
Free cash flow (FCF) of
$100 million 97% Adjusted FCF conversion.
Raised Full-Year 2024 Adjusted Financial Guidance:
-
Sales increased to new range of
6% to8% growth (previously5% to7% ), driven by strong growth in our A&D markets; -
Operating income increased to new range of
6% to9% growth (previously5% to8% ); -
Maintained operating margin range of
17.4% to17.6% , flat to up 20 basis points compared with the prior year; -
Diluted EPS increased to new range of
$10.40 $10.65 11% to14% (previously$10.10 $10.40 8% to11% ); -
Reduced effective tax rate by 100 bps to
22.5% following consolidation ofU.K. legal entity structure, and -
Free cash flow increased to new range of
$425 $445 million 3% to8% (previously$415 $435 million 0% to5% ), and continues to reflect greater than105% FCF conversion.
"Curtiss-Wright delivered strong second quarter results, highlighted by mid-teens revenue growth in our A&D end markets, continued operating margin expansion, and
"As we discussed at our Investor Day event in May, we continue to build momentum through the execution of our Pivot to Growth strategy. We remain focused on accelerating operational excellence to drive margin expansion and generate funding to reinvest into the business. As part of this strategy, we recently launched restructuring actions to support volume increases, improve efficiencies and further optimize our operations. These actions are expected to produce both recurring operational savings and increased free cash flow."
2024 Restructuring Program and Other Cost Savings Initiatives
-
During the second quarter of 2024, the Company initiated restructuring actions across all three segments, principally within the Aerospace & Industrial segment. These initiatives are expected to result in approximately
$15 million $10 million -
Curtiss-Wright launched a
U.K. legal entity consolidation program anticipated to facilitate more efficient cash repatriation. This initiative is expected to generate approximately$5 million $5 million
Acquisition of Ultra Energy
-
On June 3, 2024, the Company announced the acquisition of Ultra Nuclear Limited and Weed Instrument Co., Inc. (“Ultra Energy”) for
$200 million - Ultra Energy is a leading global provider of safety-critical monitoring systems, temperature and pressure sensors, and reactor protection and control systems principally to the commercial nuclear and A&D markets;
-
The business is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a free cash flow conversion rate in excess of
100% ; and -
The acquisition is expected to close in the third quarter of 2024, subject to
U.K. regulatory approval, and the acquired business will operate within Curtiss-Wright's Naval & Power segment.
Second Quarter 2024 Operating Results
(In millions) |
Q2-2024 |
Q2-2023 |
Change |
|||||
Reported |
|
|
|
|||||
Sales |
$ |
785 |
|
$ |
704 |
|
11 |
% |
Operating income |
$ |
129 |
|
$ |
113 |
|
14 |
% |
Operating margin |
|
16.4 |
% |
|
16.0 |
% |
40 bps |
|
|
|
|
|
|||||
Adjusted (1) |
|
|
|
|||||
Sales |
$ |
785 |
|
$ |
704 |
|
11 |
% |
Operating income |
$ |
133 |
|
$ |
115 |
|
16 |
% |
Operating margin |
|
17.0 |
% |
|
16.4 |
% |
60 bps |
|
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
||||||||
-
Sales of
$785 million 11% compared with the prior year period; -
Total A&D market sales increased
16% , while total Commercial market sales increased2% ; - In our A&D markets, we experienced strong growth in the defense markets principally driven by strong demand for our defense electronics products and the timing of production ramps in naval defense, as well as higher OEM sales in the commercial aerospace market;
- In our Commercial markets, we experienced solid growth in the power & process markets, principally driven by higher sales of our commercial nuclear products, while sales in the general industrial market declined modestly; and
-
Adjusted operating income of
$133 million 16% , while Adjusted operating margin increased 60 basis points to17.0% , principally driven by favorable overhead absorption on higher revenues in all three segments and favorable mix in the Defense Electronics segment, partially offset by unfavorable mix and timing of development programs in the Naval & Power segment.
Second Quarter 2024 Segment Performance
Aerospace & Industrial
(In millions) |
Q2-2024 |
Q2-2023 |
Change |
|||||
Reported |
|
|
|
|||||
Sales |
$ |
233 |
|
$ |
226 |
|
3 |
% |
Operating income |
$ |
35 |
|
$ |
36 |
|
(1 |
%) |
Operating margin |
|
15.1 |
% |
|
15.8 |
% |
(70 bps) |
|
|
|
|
|
|||||
Adjusted (1) |
|
|
|
|||||
Sales |
$ |
233 |
|
$ |
226 |
|
3 |
% |
Operating income |
$ |
38 |
|
$ |
36 |
|
6 |
% |
Operating margin |
|
16.2 |
% |
|
15.8 |
% |
40 bps |
|
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
||||||||
-
Sales of
$233 million $7 million 3% ; - Commercial aerospace market revenue increases reflected strong demand and higher OEM sales of sensors and actuation products, as well as surface treatment services, on narrowbody and widebody platforms;
- General industrial market revenues declined modestly, as the benefit of higher sales of surface treatment services was more than offset by reduced sales of industrial vehicle products to off-highway vehicle platforms; and
-
Adjusted operating income was
$38 million 6% from the prior year, while adjusted operating margin increased 40 basis points to16.2% , mainly due to solid absorption on higher sales and the initial benefits of our restructuring initiatives.
Defense Electronics
(In millions) |
Q2-2024 |
Q2-2023 |
Change |
|||||
Reported |
|
|
|
|||||
Sales |
$ |
228 |
|
$ |
198 |
|
16 |
% |
Operating income |
$ |
58 |
|
$ |
43 |
|
35 |
% |
Operating margin |
|
25.5 |
% |
|
21.8 |
% |
370 bps |
|
|
|
|
|
|||||
Adjusted (1) |
|
|
|
|||||
Sales |
$ |
228 |
|
$ |
198 |
|
16 |
% |
Operating income |
$ |
59 |
|
$ |
43 |
|
36 |
% |
Operating margin |
|
25.7 |
% |
|
21.8 |
% |
390 bps |
|
| (1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. | ||||||||
-
Sales of
$228 million $31 million 16% ; - Higher revenue in the aerospace defense market was principally driven by increased sales of our embedded computing equipment on various domestic and international helicopter programs;
- Strong revenue growth in the ground defense market primarily reflected higher sales of tactical battlefield communications equipment; and
-
Adjusted operating income was
$59 million 36% from the prior year, while adjusted operating margin increased 390 basis points to25.7% , reflecting favorable absorption and mix on higher revenues, and the benefits of our cost containment initiatives.
Naval & Power
(In millions) |
Q2-2024 |
Q2-2023 |
Change |
|||||
Reported |
|
|
|
|||||
Sales |
$ |
323 |
|
$ |
280 |
|
15 |
% |
Operating income |
$ |
46 |
|
$ |
47 |
|
(1 |
%) |
Operating margin |
|
14.3 |
% |
|
16.7 |
% |
(240 bps) |
|
|
|
|
|
|||||
Adjusted (1) |
|
|
|
|||||
Sales |
$ |
323 |
|
$ |
280 |
|
15 |
% |
Operating income |
$ |
47 |
|
$ |
49 |
|
(6 |
%) |
Operating margin |
|
14.4 |
% |
|
17.6 |
% |
(320 bps) |
|
(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. |
||||||||
-
Sales of
$323 million $43 million 15% ; - Strong revenue growth in the naval defense market principally reflected higher demand on various submarine programs and the CVN-81 aircraft carrier program;
- Higher revenue in the aerospace defense market was primarily driven by increased sales of our arresting systems equipment supporting various domestic and international customers;
-
Higher power & process market revenues mainly reflected increased commercial nuclear aftermarket sales supporting the maintenance of
U.S. operating reactors; and -
Adjusted operating income was
$47 million 6% from the prior year, while adjusted operating margin decreased 320 basis points to14.4% , as favorable absorption on higher revenues was more than offset by unfavorable mix of products and timing of development programs.
Free Cash Flow
(In millions) |
Q2-2024 |
Q2-2023 |
Change |
|||||
Net cash provided by operating activities |
$ |
111 |
|
$ |
111 |
|
— |
% |
Capital expenditures |
|
(11 |
) |
|
(12 |
) |
(8 |
%) |
Reported free cash flow |
$ |
100 |
|
$ |
99 |
|
1 |
% |
Adjusted free cash flow (1) |
$ |
100 |
|
$ |
99 |
|
1 |
% |
(1) A reconciliation of Reported to Adjusted free cash flow is available in the Appendix. |
||||||||
-
Reported free cash flow of
$100 million -
Adjusted free cash flow of
$100 million -
Capital expenditures decreased
$1 million
New Orders and Backlog
-
New orders of
$995 million 18% compared with the prior year and generated an overall book-to-bill of approximately 1.3x, principally driven by strong demand for naval defense and commercial aerospace products within our A&D markets; and -
Backlog of
$3.2 billion 13% from December 31, 2023, reflects strong demand in both our A&D and Commercial markets.
Share Repurchase and Dividends
-
During the second quarter, the Company repurchased 47,174 shares of its common stock for approximately
$13 million -
The Company also declared a quarterly dividend of
$0.21 5% from the previous quarter.
Full-Year 2024 Guidance
The Company is updating its full-year 2024 Adjusted financial guidance(1) as follows:
($ in millions, except EPS) |
2024 Adjusted Non-GAAP Guidance (Prior) |
2024 Adjusted Non-GAAP Guidance (Current) |
Change vs 2023 Adjusted (Current) |
Total Sales |
|
|
Up |
Operating Income |
|
|
Up |
Operating Margin |
|
|
Up 0 - 20 bps |
Diluted EPS |
|
|
Up |
Free Cash Flow |
|
|
Up |
(1) Reconciliations of Reported to Adjusted 2023 operating results and 2024 financial guidance are available in the Appendix. |
|||
**********
A more detailed breakdown of the Company’s 2024 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted Non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.
Conference Call & Webcast Information
The Company will host a conference call to discuss its second quarter 2024 financial results and updates to 2024 guidance at 10:00 a.m. ET on Thursday, August 8, 2024. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.
(Tables to Follow)
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) |
|||||||||||||||
($'s in thousands, except per share data) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Product sales |
$ |
661,407 |
|
|
$ |
583,036 |
|
|
$ |
1,257,111 |
|
|
$ |
1,107,917 |
|
Service sales |
|
123,384 |
|
|
|
121,360 |
|
|
|
240,847 |
|
|
|
227,339 |
|
Total net sales |
|
784,791 |
|
|
|
704,396 |
|
|
|
1,497,958 |
|
|
|
1,335,256 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of product sales |
|
428,926 |
|
|
|
369,549 |
|
|
|
818,403 |
|
|
|
713,306 |
|
Cost of service sales |
|
71,764 |
|
|
|
75,274 |
|
|
|
141,699 |
|
|
|
140,969 |
|
Total cost of sales |
|
500,690 |
|
|
|
444,823 |
|
|
|
960,102 |
|
|
|
854,275 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
284,101 |
|
|
|
259,573 |
|
|
|
537,856 |
|
|
|
480,981 |
|
|
|
|
|
|
|
|
|
||||||||
Research and development expenses |
|
22,152 |
|
|
|
20,210 |
|
|
|
45,132 |
|
|
|
42,234 |
|
Selling expenses |
|
35,126 |
|
|
|
34,273 |
|
|
|
71,891 |
|
|
|
66,698 |
|
General and administrative expenses |
|
95,008 |
|
|
|
92,315 |
|
|
|
189,057 |
|
|
|
180,659 |
|
Restructuring expenses |
|
2,918 |
|
|
|
— |
|
|
|
2,918 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
128,897 |
|
|
|
112,775 |
|
|
|
228,858 |
|
|
|
191,390 |
|
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
11,216 |
|
|
|
14,992 |
|
|
|
21,786 |
|
|
|
27,936 |
|
Other income, net |
|
8,560 |
|
|
|
7,954 |
|
|
|
18,168 |
|
|
|
15,721 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
126,241 |
|
|
|
105,737 |
|
|
|
225,240 |
|
|
|
179,175 |
|
Provision for income taxes |
|
(26,770 |
) |
|
|
(24,738 |
) |
|
|
(49,274 |
) |
|
|
(41,330 |
) |
Net earnings |
$ |
99,471 |
|
|
$ |
80,999 |
|
|
$ |
175,966 |
|
|
$ |
137,845 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
2.60 |
|
|
$ |
2.11 |
|
|
$ |
4.60 |
|
|
$ |
3.60 |
|
Diluted earnings per share |
$ |
2.58 |
|
|
$ |
2.10 |
|
|
$ |
4.58 |
|
|
$ |
3.58 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.41 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
38,302 |
|
|
|
38,329 |
|
|
|
38,273 |
|
|
|
38,309 |
|
Diluted |
|
38,501 |
|
|
|
38,555 |
|
|
|
38,460 |
|
|
|
38,528 |
|
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
($'s in thousands, except par value) |
|||||||
|
|
|
|
||||
|
June 30, |
|
December 31, |
||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
382,564 |
|
|
$ |
406,867 |
|
Receivables, net |
|
817,135 |
|
|
|
732,678 |
|
Inventories, net |
|
559,142 |
|
|
|
510,033 |
|
Other current assets |
|
77,039 |
|
|
|
67,502 |
|
Total current assets |
|
1,835,880 |
|
|
|
1,717,080 |
|
Property, plant, and equipment, net |
|
326,969 |
|
|
|
332,796 |
|
Goodwill |
|
1,571,004 |
|
|
|
1,558,826 |
|
Other intangible assets, net |
|
545,448 |
|
|
|
557,612 |
|
Operating lease right-of-use assets, net |
|
146,956 |
|
|
|
141,435 |
|
Prepaid pension asset |
|
272,857 |
|
|
|
261,869 |
|
Other assets |
|
49,080 |
|
|
|
51,351 |
|
Total assets |
$ |
4,748,194 |
|
|
$ |
4,620,969 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
90,000 |
|
|
$ |
— |
|
Accounts payable |
|
224,778 |
|
|
|
243,833 |
|
Accrued expenses |
|
158,505 |
|
|
|
188,039 |
|
Deferred revenue |
|
341,601 |
|
|
|
303,872 |
|
Other current liabilities |
|
81,632 |
|
|
|
70,800 |
|
Total current liabilities |
|
896,516 |
|
|
|
806,544 |
|
Long-term debt |
|
959,655 |
|
|
|
1,050,362 |
|
Deferred tax liabilities, net |
|
128,277 |
|
|
|
132,319 |
|
Accrued pension and other postretirement benefit costs |
|
67,650 |
|
|
|
66,875 |
|
Long-term operating lease liability |
|
123,586 |
|
|
|
118,611 |
|
Long-term portion of environmental reserves |
|
14,157 |
|
|
|
12,784 |
|
Other liabilities |
|
99,933 |
|
|
|
105,061 |
|
Total liabilities |
$ |
2,289,774 |
|
|
$ |
2,292,556 |
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Common stock, |
$ |
49,187 |
|
|
$ |
49,187 |
|
Additional paid in capital |
|
135,574 |
|
|
|
140,182 |
|
Retained earnings |
|
3,648,005 |
|
|
|
3,487,751 |
|
Accumulated other comprehensive loss |
|
(233,488 |
) |
|
|
(213,223 |
) |
Less: cost of treasury stock |
|
(1,140,858 |
) |
|
|
(1,135,484 |
) |
Total stockholders' equity |
$ |
2,458,420 |
|
|
$ |
2,328,413 |
|
|
|
|
|
||||
Total liabilities and stockholders' equity |
$ |
4,748,194 |
|
|
$ |
4,620,969 |
|
Use and Definitions of Non-GAAP Financial Information (Unaudited)
The Corporation supplements its financial information determined under
The following definitions are provided:
Adjusted Sales, Operating Income, Operating Margin, Net Earnings and Diluted EPS
These Adjusted financials are defined as Reported Sales, Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) costs associated with the Company's 2024 Restructuring Program; and (iii) the sale or divestiture of a business or product line, as applicable.
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||||||||||||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) |
|||||||||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|
|
|
|
||||||||||||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
% Change |
||||||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Adjusted |
|
As Reported |
|
Adjustments |
|
Adjusted |
|
As Reported |
|
Adjusted |
||||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace & Industrial |
$ |
233,232 |
|
|
$ |
— |
|
$ |
233,232 |
|
|
$ |
226,260 |
|
|
$ |
— |
|
$ |
226,260 |
|
|
3 |
% |
|
3 |
% |
||
Defense Electronics |
|
228,461 |
|
|
|
— |
|
|
|
228,461 |
|
|
|
197,722 |
|
|
|
— |
|
|
|
197,722 |
|
|
16 |
% |
|
16 |
% |
Naval & Power |
|
323,098 |
|
|
|
— |
|
|
|
323,098 |
|
|
|
280,414 |
|
|
|
— |
|
|
|
280,414 |
|
|
15 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total sales |
$ |
784,791 |
|
|
$ |
— |
|
|
$ |
784,791 |
|
|
$ |
704,396 |
|
|
$ |
— |
|
|
$ |
704,396 |
|
|
11 |
% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Aerospace & Industrial(2) |
$ |
35,246 |
|
|
$ |
2,619 |
|
|
$ |
37,865 |
|
|
$ |
35,665 |
|
|
$ |
— |
|
|
$ |
35,665 |
|
|
(1 |
)% |
|
6 |
% |
Defense Electronics(2) |
|
58,244 |
|
|
|
523 |
|
|
|
58,767 |
|
|
|
43,180 |
|
|
|
— |
|
|
|
43,180 |
|
|
35 |
% |
|
36 |
% |
Naval & Power(1)(2) |
|
46,283 |
|
|
|
342 |
|
|
|
46,625 |
|
|
|
46,782 |
|
|
|
2,659 |
|
|
|
49,441 |
|
|
(1 |
)% |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total segments |
$ |
139,773 |
|
|
$ |
3,484 |
|
|
$ |
143,257 |
|
|
$ |
125,627 |
|
|
$ |
2,659 |
|
|
$ |
128,286 |
|
|
11 |
% |
|
12 |
% |
Corporate and other(2) |
|
(10,876 |
) |
|
|
964 |
|
|
|
(9,912 |
) |
|
|
(12,852 |
) |
|
|
— |
|
|
|
(12,852 |
) |
|
15 |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total operating income |
$ |
128,897 |
|
|
$ |
4,448 |
|
|
$ |
133,345 |
|
|
$ |
112,775 |
|
|
$ |
2,659 |
|
|
$ |
115,434 |
|
|
14 |
% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating margins: |
As Reported |
|
|
|
Adjusted |
|
As Reported |
|
|
|
Adjusted |
|
As Reported |
|
Adjusted |
||||||||||||||
Aerospace & Industrial |
|
15.1 |
% |
|
|
|
|
16.2 |
% |
|
|
15.8 |
% |
|
|
|
|
15.8 |
% |
|
(70 bps) |
|
40 bps |
||||||
Defense Electronics |
|
25.5 |
% |
|
|
|
|
25.7 |
% |
|
|
21.8 |
% |
|
|
|
|
21.8 |
% |
|
370 bps |
|
390 bps |
||||||
Naval & Power |
|
14.3 |
% |
|
|
|
|
14.4 |
% |
|
|
16.7 |
% |
|
|
|
|
17.6 |
% |
|
(240 bps) |
|
(320 bps) |
||||||
Total Curtiss-Wright |
|
16.4 |
% |
|
|
|
|
17.0 |
% |
|
|
16.0 |
% |
|
|
|
|
16.4 |
% |
|
40 bps |
|
60 bps |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment margins |
|
17.8 |
% |
|
|
|
|
18.3 |
% |
|
|
17.8 |
% |
|
|
|
|
18.2 |
% |
|
— bps |
|
10 bps |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Excludes first year purchase accounting adjustments in both the current and prior year periods. |
|||||||||||||||||||||||||||||
(2) Excludes costs associated with the Company's 2024 Restructuring Program in the current period. |
|||||||||||||||||||||||||||||
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||||||||||||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) |
|||||||||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Six Months Ended |
|
Six Months Ended |
|
|
|
|
||||||||||||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
% Change |
||||||||||||||||||||||||
|
As Reported |
|
Adjustments |
|
Adjusted |
|
As Reported |
|
Adjustments |
|
Adjusted |
|
As Reported |
|
Adjusted |
||||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace & Industrial |
$ |
452,557 |
|
|
$ |
— |
|
$ |
452,557 |
|
|
$ |
428,707 |
|
|
$ |
— |
|
$ |
428,707 |
|
|
6 |
% |
|
6 |
% |
||
Defense Electronics |
|
440,202 |
|
|
|
— |
|
|
|
440,202 |
|
|
|
359,876 |
|
|
|
— |
|
|
|
359,876 |
|
|
22 |
% |
|
22 |
% |
Naval & Power |
|
605,199 |
|
|
|
— |
|
|
|
605,199 |
|
|
|
546,673 |
|
|
|
— |
|
|
|
546,673 |
|
|
11 |
% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total sales |
$ |
1,497,958 |
|
|
$ |
— |
|
|
$ |
1,497,958 |
|
|
$ |
1,335,256 |
|
|
$ |
— |
|
|
$ |
1,335,256 |
|
|
12 |
% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Aerospace & Industrial(2) |
$ |
62,712 |
|
|
$ |
2,619 |
|
|
$ |
65,331 |
|
|
$ |
62,210 |
|
|
$ |
— |
|
|
$ |
62,210 |
|
|
1 |
% |
|
5 |
% |
Defense Electronics(2) |
|
106,325 |
|
|
|
523 |
|
|
|
106,848 |
|
|
|
66,548 |
|
|
|
— |
|
|
|
66,548 |
|
|
60 |
% |
|
61 |
% |
Naval & Power (1)(2) |
|
81,474 |
|
|
|
342 |
|
|
|
81,816 |
|
|
|
84,719 |
|
|
|
5,335 |
|
|
|
90,054 |
|
|
(4 |
)% |
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total segments |
$ |
250,511 |
|
|
$ |
3,484 |
|
|
$ |
253,995 |
|
|
$ |
213,477 |
|
|
$ |
5,335 |
|
|
$ |
218,812 |
|
|
17 |
% |
|
16 |
% |
Corporate and other(2) |
|
(21,653 |
) |
|
|
964 |
|
|
|
(20,689 |
) |
|
|
(22,087 |
) |
|
|
— |
|
|
|
(22,087 |
) |
|
2 |
% |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total operating income |
$ |
228,858 |
|
|
$ |
4,448 |
|
|
$ |
233,306 |
|
|
$ |
191,390 |
|
|
$ |
5,335 |
|
|
$ |
196,725 |
|
|
20 |
% |
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating margins: |
As Reported |
|
|
|
Adjusted |
|
As Reported |
|
|
|
Adjusted |
|
As Reported |
|
Adjusted |
||||||||||||||
Aerospace & Industrial |
|
13.9 |
% |
|
|
|
|
14.4 |
% |
|
|
14.5 |
% |
|
|
|
|
14.5 |
% |
|
(60 bps) |
|
(10 bps) |
||||||
Defense Electronics |
|
24.2 |
% |
|
|
|
|
24.3 |
% |
|
|
18.5 |
% |
|
|
|
|
18.5 |
% |
|
570 bps |
|
580 bps |
||||||
Naval & Power |
|
13.5 |
% |
|
|
|
|
13.5 |
% |
|
|
15.5 |
% |
|
|
|
|
16.5 |
% |
|
(200 bps) |
|
(300 bps) |
||||||
Total Curtiss-Wright |
|
15.3 |
% |
|
|
|
|
15.6 |
% |
|
|
14.3 |
% |
|
|
|
|
14.7 |
% |
|
100 bps |
|
90 bps |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment margins |
|
16.7 |
% |
|
|
|
|
17.0 |
% |
|
|
16.0 |
% |
|
|
|
|
16.4 |
% |
|
70 bps |
|
60 bps |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Excludes first year purchase accounting adjustments in both the current and prior year periods. |
|||||||||||||||||||||||||||||
(2) Excludes costs associated with the Company's 2024 Restructuring Program in the current period. |
|||||||||||||||||||||||||||||
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||||||||||||||||
RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED) |
|||||||||||||||||||||||||||||
($'s in thousands) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
||||||||||||||||||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
% Change |
|||||||||||||||||||||||
|
|
As Reported |
|
Adjustments |
|
Adjusted Sales |
|
As Reported |
|
Adjustments |
|
Adjusted Sales |
|
Change in As Reported Sales |
Change in Adjusted Sales |
||||||||||||||
Aerospace & Defense markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace Defense |
|
$ |
154,104 |
|
$ |
— |
|
$ |
154,104 |
|
$ |
132,192 |
|
$ |
— |
|
$ |
132,192 |
|
17 |
% |
17 |
% |
||||||
Ground Defense |
|
|
84,939 |
|
|
|
— |
|
|
|
84,939 |
|
|
|
70,875 |
|
|
|
— |
|
|
|
70,875 |
|
|
20 |
% |
20 |
% |
Naval Defense |
|
|
209,847 |
|
|
|
— |
|
|
|
209,847 |
|
|
|
180,956 |
|
|
|
— |
|
|
|
180,956 |
|
|
16 |
% |
16 |
% |
Commercial Aerospace |
|
|
93,316 |
|
|
|
— |
|
|
|
93,316 |
|
|
|
82,033 |
|
|
|
— |
|
|
|
82,033 |
|
|
14 |
% |
14 |
% |
Total Aerospace & Defense |
|
$ |
542,206 |
|
|
$ |
— |
|
|
$ |
542,206 |
|
|
$ |
466,056 |
|
|
$ |
— |
|
|
$ |
466,056 |
|
|
16 |
% |
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Power & Process |
|
$ |
138,601 |
|
|
$ |
— |
|
|
$ |
138,601 |
|
|
$ |
131,000 |
|
|
$ |
— |
|
|
$ |
131,000 |
|
|
6 |
% |
6 |
% |
General Industrial |
|
|
103,984 |
|
|
|
— |
|
|
|
103,984 |
|
|
|
107,340 |
|
|
|
— |
|
|
|
107,340 |
|
|
(3 |
%) |
(3 |
%) |
Total Commercial |
|
$ |
242,585 |
|
|
$ |
— |
|
|
$ |
242,585 |
|
|
$ |
238,340 |
|
|
$ |
— |
|
|
$ |
238,340 |
|
|
2 |
% |
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Curtiss-Wright |
|
$ |
784,791 |
|
|
$ |
— |
|
|
$ |
784,791 |
|
|
$ |
704,396 |
|
|
$ |
— |
|
|
$ |
704,396 |
|
|
11 |
% |
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Six Months Ended |
|
Six Months Ended |
|
|
|
||||||||||||||||||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
% Change |
|||||||||||||||||||||||
|
|
As Reported |
|
Adjustments |
|
Adjusted Sales |
|
As Reported |
|
Adjustments |
|
Adjusted Sales |
|
Change in As Reported Sales |
Change in Adjusted Sales |
||||||||||||||
Aerospace & Defense markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Aerospace Defense |
|
$ |
286,178 |
|
|
$ |
— |
|
|
$ |
286,178 |
|
|
$ |
232,071 |
|
|
$ |
— |
|
|
$ |
232,071 |
|
|
23 |
% |
23 |
% |
Ground Defense |
|
|
175,700 |
|
|
|
— |
|
|
|
175,700 |
|
|
|
137,132 |
|
|
|
— |
|
|
|
137,132 |
|
|
28 |
% |
28 |
% |
Naval Defense |
|
|
387,494 |
|
|
|
— |
|
|
|
387,494 |
|
|
|
352,912 |
|
|
|
— |
|
|
|
352,912 |
|
|
10 |
% |
10 |
% |
Commercial Aerospace |
|
|
183,091 |
|
|
|
— |
|
|
|
183,091 |
|
|
|
152,523 |
|
|
|
— |
|
|
|
152,523 |
|
|
20 |
% |
20 |
% |
Total Aerospace & Defense |
|
$ |
1,032,463 |
|
|
$ |
— |
|
|
$ |
1,032,463 |
|
|
$ |
874,638 |
|
|
$ |
— |
|
|
$ |
874,638 |
|
|
18 |
% |
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial markets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Power & Process |
|
$ |
262,639 |
|
|
$ |
— |
|
|
$ |
262,639 |
|
|
$ |
251,338 |
|
|
$ |
— |
|
|
$ |
251,338 |
|
|
4 |
% |
4 |
% |
General Industrial |
|
|
202,856 |
|
|
|
— |
|
|
|
202,856 |
|
|
|
209,280 |
|
|
|
— |
|
|
|
209,280 |
|
|
(3 |
%) |
(3 |
%) |
Total Commercial |
|
$ |
465,495 |
|
|
$ |
— |
|
|
$ |
465,495 |
|
|
$ |
460,618 |
|
|
$ |
— |
|
|
$ |
460,618 |
|
|
1 |
% |
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Curtiss-Wright |
|
$ |
1,497,958 |
|
|
$ |
— |
|
|
$ |
1,497,958 |
|
|
$ |
1,335,256 |
|
|
$ |
— |
|
|
$ |
1,335,256 |
|
|
12 |
% |
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||
RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Diluted earnings per share - As Reported |
$ |
2.58 |
|
$ |
2.10 |
|
$ |
4.58 |
|
$ |
3.58 |
||||
First year purchase accounting adjustments |
|
— |
|
|
|
0.05 |
|
|
|
— |
|
|
|
0.10 |
|
Restructuring costs |
|
0.09 |
|
|
|
— |
|
|
|
0.09 |
|
|
|
— |
|
Diluted earnings per share - Adjusted (1) |
$ |
2.67 |
|
|
$ |
2.15 |
|
|
$ |
4.67 |
|
|
$ |
3.68 |
|
|
|
|
|
|
|
|
|
||||||||
(1) All adjustments are presented net of income taxes. |
|||||||||||||||
Organic Sales and Organic Operating Income
The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions and results of operations from divested businesses or product lines during the last twelve months, costs associated with the Company's 2024 Restructuring Program, and foreign currency fluctuations.
|
Three Months Ended |
||||||||||||||
|
June 30, |
||||||||||||||
|
2024 vs. 2023 |
||||||||||||||
|
Aerospace & Industrial |
|
Defense Electronics |
|
Naval & Power |
|
Total Curtiss-Wright |
||||||||
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
As Reported |
|
|
( |
|
|
|
|
|
|
|
( |
|
|
|
|
Less: Acquisitions |
|
|
|
|
|
|
|
|
( |
|
|
|
|
|
|
Restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||||||
|
June 30, |
||||||||||||||
|
2024 vs. 2023 |
||||||||||||||
|
Aerospace & Industrial |
|
Defense Electronics |
|
Naval & Power |
|
Total Curtiss-Wright |
||||||||
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
|
Sales |
|
Operating income |
As Reported |
|
|
|
|
|
|
|
|
|
|
( |
|
|
|
|
Less: Acquisitions |
|
|
|
|
|
|
|
|
( |
|
|
|
|
|
|
Restructuring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency |
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic |
|
|
|
|
|
|
|
|
|
|
( |
|
|
|
|
Free Cash Flow and Free Cash Flow Conversion
The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Adjusted free cash flow excludes payments associated with the Westinghouse legal settlement in the prior year period. The Corporation discloses adjusted free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as adjusted free cash flow divided by adjusted net earnings.
CURTISS-WRIGHT CORPORATION and SUBSIDIARIES |
|||||||||||||||
NON-GAAP FINANCIAL DATA (UNAUDITED) |
|||||||||||||||
($'s in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
111,335 |
|
|
$ |
110,952 |
|
|
$ |
65,702 |
|
|
$ |
19,353 |
|
Capital expenditures |
|
(11,064 |
) |
|
|
(12,003 |
) |
|
|
(23,119 |
) |
|
|
(22,664 |
) |
Free cash flow |
$ |
100,271 |
|
|
$ |
98,949 |
|
|
$ |
42,583 |
|
|
$ |
(3,311 |
) |
Westinghouse legal settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
Adjusted free cash flow |
$ |
100,271 |
|
|
$ |
98,949 |
|
|
$ |
42,583 |
|
|
$ |
6,689 |
|
Adjusted free cash flow conversion |
|
97 |
% |
|
|
119 |
% |
|
|
24 |
% |
|
|
5 |
% |
CURTISS-WRIGHT CORPORATION |
|||||||||||||||||||||||||||||||||
2024 Guidance |
|||||||||||||||||||||||||||||||||
As of August 7, 2024 |
|||||||||||||||||||||||||||||||||
($'s in millions, except per share data) |
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
2023 |
|
2023 |
|
|
|
2024 |
|
|
||||||||||||||||||||||
2023 |
|
Adjustments |
|
Adjusted |
|
2024 |
|
Adjustments |
|
2024 |
|||||||||||||||||||||||
Reported |
|
(Non- |
|
(Non- |
|
Reported Guidance |
|
(Non- |
|
Adjusted Guidance |
|||||||||||||||||||||||
(GAAP) |
|
GAAP)(1,2) |
|
GAAP)(1,2) |
|
(GAAP) |
|
GAAP)(3) |
|
(Non-GAAP)(3) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
Low |
|
High |
|
|
|
Low |
|
High |
|
2024 Chg vs 2023 Adjusted |
||||||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Aerospace & Industrial |
$ |
887 |
|
|
$ |
— |
|
|
$ |
887 |
|
|
$ |
925 |
|
$ |
940 |
|
|
$ |
— |
|
|
$ |
925 |
|
$ |
940 |
|
|
4 - |
||
Defense Electronics |
|
816 |
|
|
|
— |
|
|
|
816 |
|
|
|
882 |
|
|
897 |
|
|
|
— |
|
|
|
882 |
|
|
897 |
|
|
8 - |
||
Naval & Power |
|
1,142 |
|
|
|
— |
|
|
|
1,142 |
|
|
|
1,203 |
|
|
1,223 |
|
|
|
— |
|
|
|
1,203 |
|
|
1,223 |
|
|
5 - |
||
Total sales |
$ |
2,845 |
|
|
$ |
— |
|
|
$ |
2,845 |
|
|
$ |
3,010 |
|
$ |
3,060 |
|
|
$ |
— |
|
|
$ |
3,010 |
|
$ |
3,060 |
|
|
6 - |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Aerospace & Industrial |
$ |
145 |
|
|
$ |
— |
|
|
$ |
145 |
|
|
$ |
147 |
|
$ |
151 |
|
|
$ |
10 |
|
|
$ |
157 |
|
$ |
161 |
|
|
8 - |
||
Defense Electronics |
|
192 |
|
|
|
— |
|
|
|
192 |
|
|
|
209 |
|
|
215 |
|
|
|
3 |
|
|
|
212 |
|
|
218 |
|
|
11 - |
||
Naval & Power |
|
189 |
|
|
|
9 |
|
|
|
198 |
|
|
|
194 |
|
|
199 |
|
|
|
— |
|
|
|
194 |
|
|
199 |
|
|
(2) - |
||
Total segments |
|
526 |
|
|
|
9 |
|
|
|
535 |
|
|
|
550 |
|
|
565 |
|
|
|
13 |
|
|
|
562 |
|
|
578 |
|
|
|
||
Corporate and other |
|
(42 |
) |
|
|
— |
|
|
|
(42 |
) |
|
|
(40 |
) |
|
(41 |
) |
|
|
2 |
|
|
|
(38 |
) |
|
(39 |
) |
|
|
||
Total operating income |
$ |
485 |
|
|
$ |
9 |
|
|
$ |
494 |
|
|
$ |
510 |
|
$ |
524 |
|
|
$ |
15 |
|
|
$ |
525 |
|
$ |
539 |
|
|
6 - |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest expense |
$ |
(51 |
) |
|
$ |
— |
|
|
$ |
(51 |
) |
|
$ |
(44 |
) |
$ |
(45 |
) |
|
$ |
— |
|
|
$ |
(44 |
) |
$ |
(45 |
) |
|
|
||
Other income, net |
|
30 |
|
|
|
— |
|
|
|
30 |
|
|
|
35 |
|
|
35 |
|
|
|
— |
|
|
|
35 |
|
|
35 |
|
|
|
||
Earnings before income taxes |
|
463 |
|
|
|
9 |
|
|
|
472 |
|
|
|
501 |
|
|
514 |
|
|
|
15 |
|
|
|
516 |
|
|
529 |
|
|
|
||
Provision for income taxes |
|
(109 |
) |
|
|
(2 |
) |
|
|
(111 |
) |
|
|
(113 |
) |
|
(116 |
) |
|
|
(3 |
) |
|
|
(116 |
) |
|
(119 |
) |
|
|
||
Net earnings |
$ |
355 |
|
|
$ |
6 |
|
|
$ |
361 |
|
|
$ |
388 |
|
$ |
398 |
|
|
$ |
12 |
|
|
$ |
400 |
|
$ |
410 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted earnings per share |
$ |
9.20 |
|
|
$ |
0.18 |
|
|
$ |
9.38 |
|
|
$ |
10.09 |
|
$ |
10.34 |
|
|
$ |
0.31 |
|
|
$ |
10.40 |
|
$ |
10.65 |
|
|
11 - |
||
Diluted shares outstanding |
|
38.5 |
|
|
|
|
|
38.5 |
|
|
|
38.5 |
|
|
38.5 |
|
|
|
|
|
38.5 |
|
|
38.5 |
|
|
|
||||||
Effective tax rate |
|
23.4 |
% |
|
|
|
|
23.4 |
% |
|
|
22.5 |
% |
|
22.5 |
% |
|
|
|
|
22.5 |
% |
|
22.5 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Operating margins: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Aerospace & Industrial |
|
16.4 |
% |
|
|
|
|
16.4 |
% |
|
|
15.9 |
% |
|
16.1 |
% |
|
|
|
|
16.9 |
% |
|
17.1 |
% |
|
50 to 70 bps |
||||||
Defense Electronics |
|
23.5 |
% |
|
|
|
|
23.5 |
% |
|
|
23.7 |
% |
|
24.0 |
% |
|
|
|
|
24.0 |
% |
|
24.2 |
% |
|
50 to 70 bps |
||||||
Naval & Power |
|
16.6 |
% |
|
|
|
|
17.4 |
% |
|
|
16.1 |
% |
|
16.3 |
% |
|
|
|
|
16.1 |
% |
|
16.3 |
% |
|
(110 to 130 bps) |
||||||
Total operating margin |
|
17.0 |
% |
|
|
|
|
17.4 |
% |
|
|
16.9 |
% |
|
17.1 |
% |
|
|
|
|
17.4 |
% |
|
17.6 |
% |
|
0 to 20 bps |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Free cash flow |
$ |
403 |
|
|
$ |
10 |
|
|
$ |
413 |
|
|
$ |
425 |
|
$ |
445 |
|
|
$ |
— |
|
|
$ |
425 |
|
$ |
445 |
|
|
3 - |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Notes: Full year amounts may not add due to rounding. |
|||||||||||||||||||||||||||||||||
(1) 2023 Adjusted financials exclude the impact of first year purchase accounting adjustments. |
|||||||||||||||||||||||||||||||||
(2) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2023 Adjusted Free Cash Flow excluded a legal settlement payment of |
|||||||||||||||||||||||||||||||||
(3) 2024 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2024 Restructuring Program and the impact of first year purchase accounting adjustments. |
|||||||||||||||||||||||||||||||||
CURTISS-WRIGHT CORPORATION |
|||||
2024 Sales Growth Guidance by End Market |
|||||
As of August 7, 2024 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
2024 % Change vs. 2023 Adjusted |
|
|
||
|
|
|
|
|
|
|
Prior |
|
Current |
|
% Total Sales |
Aerospace & Defense Markets |
|
|
|
|
|
Aerospace Defense |
6 - |
|
7 - |
|
|
Ground Defense |
10 - |
|
10 - |
|
|
Naval Defense |
3 - |
|
5 - |
|
|
Commercial Aerospace |
10 - |
|
13 - |
|
|
Total Aerospace & Defense |
6 - |
|
8 - |
|
|
|
|
|
|
|
|
Commercial Markets |
|
|
|
|
|
Power & Process |
4 - |
|
4 - |
|
|
General Industrial |
1 - |
|
Flat |
|
|
Total Commercial |
2 - |
|
1 - |
|
|
|
|
|
|
|
|
Total Curtiss-Wright Sales |
5 - |
|
6 - |
|
|
|
|
|
|
|
|
Note: Sales percentages may not add due to rounding. |
|
|
|
|
|
|
|||||
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.
###
Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. 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 the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent reports filed with the Securities and Exchange Commission.
This press release and additional information are available at www.curtisswright.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807390005/en/
Jim Ryan
(704) 869-4621
Jim.Ryan@curtisswright.com
Source: Curtiss-Wright Corporation
FAQ
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