Curtiss-Wright (CW) Jefferies Global Industrial Conference 2024 summary

Strategic overview and market positioning

• Celebrated 95 years on the NYSE, highlighting a legacy in mission-critical aerospace, defense, and nuclear markets.

• Leverages core technologies across multiple end markets, maximizing R&D investments.

• Pivot to Growth strategy focuses on accelerating organic growth, operational excellence, and disciplined capital allocation.

• Aligns with secular trends like increased NATO defense spending and the global push for carbon-free energy.

• Book-to-bill ratio at 1.3x with 12% YoY revenue growth and rising backlog across all segments in 2024.

Financial targets and growth outlook

• Set three-year targets for a minimum 5% organic revenue CAGR across all markets.

• Defense businesses forecast mid- to high-single-digit growth; commercial aerospace expected to grow at high-single digits.

• Commercial nuclear and process segments projected to grow at mid-single-digit rates, excluding potential AP1000 orders.

• Operating income is targeted to grow faster than revenue, implying ongoing margin expansion.

• R&D investment continues to rise, supporting innovation and long-term profitability.

Operational excellence and restructuring

• Announced a $15M restructuring program in Q2 to achieve $10M in annualized savings, focusing on efficiency and growth in Defense Electronics.

• Continuous improvement is embedded in the culture, with consolidation efforts supporting future expansion.

• Operational and commercial excellence programs have driven margin expansion in 9 of the past 10 years.