Curtiss-Wright (CW) 18th Annual Global Transportation & Industrials Conference summary

Strategic growth and market positioning

• Achieving and exceeding >5% organic growth CAGR over a three-year window, with strong alignment to defense and commercial aerospace priorities.

• Defense business achieved double-digit growth last year, with continued momentum expected due to alignment with defense priorities and foreign military sales.

• Commercial aerospace business is set to exceed high single-digit growth, supported by Boeing and Airbus production ramps.

• Commercial nuclear segment achieved low double-digit growth, with expectations to maintain this over the three-year horizon.

• Revenue growth is central to the pivot-to-growth strategy, ingrained across the organization.

Financial performance and targets

• Operating income growth is outpacing sales growth, driving continued margin expansion and maintaining top-quartile performance.

• Operating margin expanded by 900 basis points over 12 years, with only a minor setback during the pandemic.

• EPS targeted to grow at >10% CAGR, supported by strong sales, margin expansion, and efficient capital allocation.

• $250 million in share buybacks and $240 million in commercial nuclear acquisitions completed last year.

• Free cash flow conversion consistently above 100%, with $1.3 billion targeted over three years and $1 billion already achieved in two years.

Defense and government trends

• Naval segment is the largest, benefiting from increased industrial base funding and strong Navy customer support.

• Golden Dome initiative and partnership with Leidos for Enduring Shield expected to drive future growth.

• Favorable trends in government contracting, including a shift to commerciality and firm fixed price contracts, align with company strengths.

• Additive manufacturing capabilities being developed, especially for naval applications.