Curtiss-Wright (CW) investor relations material

Defense and naval market outlook

• Naval defense represents over 25% of business, with strong long-term growth prospects into the 2030s and beyond.

• Significant government investment has increased industrial base funding from $15M to over $60M, supporting capacity expansion.

• Content growth expected on platforms like Virginia-class, Columbia-class, and CVN carriers, with new tech insertions and additive manufacturing leadership.

• Focus on becoming a second source for major ship components, driving incremental work and solidifying future growth.

• Second source content is a multi-year journey, with incremental wins and a marathon approach to growth.

Defense electronics and order book trends

• Defense Electronics segment saw record order growth, with Q1 orders up 18% YoY and April up 46% YoY.

• Large orders received for C-17 modernization, strategic deterrence, and tactical communications, supporting full-year confidence.

• Revenue expected to be flat in Q2, with sequential ramp in Q3 and Q4; full-year sales growth guided at 4%-6%.

• Short-cycle business model and inventory alignment support rapid order fulfillment.

• Margin ceiling not specified due to ongoing reinvestment in growth and technology innovation.

Aerospace, ground defense, and international business

• Broad portfolio reduces exposure to any single program, with unique products aligned to government mandates like MOSA and SOSA.

• Partnerships with NVIDIA and deployment of Fabric100 interconnect enhance battlefield decision-making capabilities.

• International business now 10% of total, with mid-teen growth rates and 10% YoY FMS growth expected for 2026.

• Strong presence on major fighter jets and ground vehicles, with significant order wins in Europe and robust naval content.

• International margins are on par with domestic in Defense Electronics, but accretive in Naval & Power segment.