Curtiss-Wright (CW) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 sales of $3.1B, up 10% year-over-year, with double-digit growth in sales and operating income, and strong demand across core A&D and commercial nuclear markets.

• Operating income for 2024 rose 11% to $546M; diluted EPS increased 16% to $10.90.

• Free cash flow reached $483M for 2024 (116% conversion), with Q4 FCF at $278M.

• Orders rose 20% to $3.7B, with backlog up 20% to $3.4B.

• Integrated Ultra Energy and WSC acquisitions, expanding the commercial nuclear portfolio and global footprint.

Financial highlights

• Q4 2024 sales were $824M, up 5% year-over-year, with operating margin at 19.8%.

• Q4 diluted EPS was $3.27, up 3% year-over-year; full-year adjusted EPS was $10.90, up 16%.

• Full-year 2024 operating margin was 17.5%, up 10 bps; Q4 adjusted operating income was $163M.

• Q4 new orders were $939M, up 37% year-over-year.

• R&D investment increased by $6M year-over-year.

Outlook and guidance

• 2025 guidance: 7%-8% total sales growth, 10%-12% operating income growth, 40-60 bps margin expansion (midpoint 18.0%), and 11%-14% EPS growth to $12.10-$12.40.

• Free cash flow expected at $485-$505M, with >105% conversion.

• End market sales growth in 2025 led by Power & Process (16%-18%), Commercial Aerospace (10%-12%), and steady growth in Defense segments.

• Minimum $60M share repurchase planned for 2025.

• Continued incremental R&D investments.