Curtiss-Wright (CW) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $806 million, up 13% year-over-year, with operating income up 34% to $134 million and diluted EPS up 42% to $2.82, driven by strong performance across all segments and robust defense demand.

• Record new orders of $1.0 billion, up 13%, with a book-to-bill ratio of 1.26x and backlog exceeding $3.6 billion, providing strong visibility for future growth.

• Free cash flow improved 5% year-over-year in Q1, despite typical seasonal outflow, and cash flow conversion is expected to exceed 105% for 2025.

• Raised full-year 2025 guidance for sales, operating margins, and EPS, reflecting confidence in continued momentum and operational efficiency initiatives.

• Net earnings increased 32% to $101 million, with comprehensive income reaching $120 million, up from $61 million in the prior year.

Financial highlights

• Q1 2025 sales reached $806 million, up from $713 million in Q1 2024 (+13%), with 11% organic growth.

• Adjusted operating income rose 34% to $134 million, with margin expanding to 16.6% from 14.0% year-over-year.

• Diluted EPS was $2.82, up 42% year-over-year; basic EPS was $2.69, up from $2.00.

• Gross profit increased to $292 million from $254 million year-over-year.

• Free cash flow was negative $55 million, a $3 million improvement year-over-year, reflecting higher cash earnings and increased capital investments.

Outlook and guidance

• Full-year 2025 sales guidance raised to $3.365–$3.415 billion, up 8–9% from 2024, with 5–7% organic growth.

• Operating margin guidance increased to 18.3–18.5%, up 80–100 basis points year-over-year.

• Diluted EPS guidance raised to $12.45–$12.80, up 14–17% year-over-year.

• Free cash flow guidance increased to $495–$515 million, reflecting >105% FCF conversion and higher capex for growth.

• Guidance incorporates potential direct impacts from tariffs and mitigating actions.