Curtiss-Wright (CW) investor relations material

Defense market outlook and growth

• Defense business has consistently outpaced U.S. DOD budget growth, with strong positions in shipbuilding and defense electronics, supported by significant R&D investment.

• Well-aligned with FY 2026 defense budget priorities, including shipbuilding cadence and long-lead funding for major programs.

• Positioned on 400 platforms and 3,000 programs globally, with growing aftermarket and foreign military sales, expecting 20% FMS growth in 2025.

• Embedded computing and tactical communications are key international growth drivers, with NATO's increased spending representing a $400 billion opportunity over the next decade.

• Defense electronics margins are near 27%, with ongoing operational improvements and a focus on maintaining state-of-the-art technology.

Commercial aerospace and nuclear power opportunities

• FAA's 25-hour cockpit recorder mandate is driving growth, with retrofits and new builds ramping up, and key certifications with Boeing and Airbus expected by 2026.

• Commercial nuclear aftermarket is strong, with executive orders accelerating plant life extensions and new build activity in the U.S. and Europe.

• First AP1000 order expected in 2026, with Poland and Bulgaria as leading opportunities; site-specific engineering is the final milestone before major contracts.

• Small modular reactors (SMRs) present a significant long-term growth area, with partnerships like Rolls-Royce and X Energy, and prototyping work beginning in 2026-2027.

• Subsea pumps represent a new market, leveraging core technology, with $250 million in orders expected by decade's end.

Strategic initiatives and capital deployment

• Pivot to growth strategy launched four and a half years ago is yielding results, with multiple new product cycles just beginning.

• M&A remains the top strategic use of capital, focusing on differentiated IP and durable revenue streams, with both bolt-on and transformative deals considered.

• Strong cash flow supports record share buybacks ($450 million in 2024) and a growing dividend, with a disciplined approach to capital allocation.

• Capacity planning and supply chain readiness are priorities to support anticipated nuclear build-out, with flexibility to expand as demand grows.

• Regulatory streamlining and executive orders are making new nuclear capacity more feasible and affordable, supporting long-term industry growth.