Curtiss-Wright (CW) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $806 million, up 13% year-over-year, with all segments contributing to growth and strong performance in aerospace, defense, and commercial markets.

• Operating income rose 34% to $134 million, with margin expansion of 260 basis points, and net earnings increased 32% to $101 million.

• Diluted EPS increased 42% to $2.82, with adjusted EPS up 42% and basic EPS up 35% to $2.68.

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

• Raised full-year 2025 guidance for sales, operating margins, and EPS, reflecting confidence in continued growth.

Financial highlights

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

• Adjusted operating income was $134 million (+34%), with company-wide margin expanding to 16.6% from 14.0%.

• Diluted EPS was $2.82, up 42% year-over-year; net earnings were $101 million, up from $76 million.

• Free cash flow was negative $55 million, a 5% improvement year-over-year, with FCF conversion expected to exceed 105% for 2025.

• Book-to-bill ratio was 1.26, with backlog at $3.7 billion, up 7% since year-end.

Outlook and guidance

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

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

• Diluted EPS projected at $12.45–$12.80, up 14–17% year-over-year.

• Free cash flow guidance increased to $495–$515 million, with capex up nearly $20 million and FCF conversion >105%.

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