Curtiss-Wright (CW) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 10% to $952.6M; adjusted operating income increased 11%, adjusted diluted EPS rose 16% to $3.94, and FY26 guidance was raised across major metrics.

• Orders climbed 15% to $1.1B, with 1.1x book-to-bill; backlog reached a record $4.6B, up 12% YTD.

Financial highlights

• Q3 reported sales were $952.6M versus $869.2M; reported operating income was $187.9M versus $166.3M, and net earnings were $138.9M versus $124.8M.

• Adjusted operating income rose 11% to $189M; adjusted operating margin increased 30 bps to 19.9%.

• Reported diluted EPS was $3.77 versus $3.31; adjusted diluted EPS was $3.94 versus $3.40.

• Q3 free cash flow was $157M with 108% conversion; higher capital investment and tax payments more than offset higher cash earnings.

• New orders were $1.1B, up 15% YoY, with 1.1x book-to-bill; backlog reached $4.6B, up 12% YTD, with ~90% expected to convert within 36 months.

Outlook and guidance

• FY26 adjusted sales growth guidance increased to 8%–10%; operating income growth guidance rose to 12%–14%.

• Adjusted operating margin guidance is 19.2%–19.4%, up 60–80 bps; adjusted diluted EPS guidance is $15.40–$15.60, up 16%–18%.

• Free cash flow guidance increased $10M to $595M–$615M, with conversion above 105%; capital expenditures are projected at $115M–$120M.

• Segment sales growth guidance: Aerospace & Industrial 10%–11%, Defense Electronics 4%–6%, and Naval & Power 11%–12%.

• Management described 2027 prospects as very good but provided no specific 2027 guidance; Q4 component availability challenges are not expected to affect revenue or margins.