Curtiss-Wright (CW) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with sales of $3.5 billion up 12%, operating income up 19% to $651 million, and diluted EPS up 21% to $13.23, driven by the Pivot to Growth strategy and robust demand across A&D and commercial markets.

• Fourth quarter sales rose 15% year-over-year to $947 million, with 11% organic growth and contributions from acquisitions.

• Free cash flow reached $554 million for the year, with a 111% conversion rate.

• New orders for 2025 totaled $4.1 billion, up 10%, with backlog up 18% to $4.1 billion and a book-to-bill ratio of 1.2x.

• Robust order intake and backlog growth support a positive outlook for 2026.

Financial highlights

• Q4 2025 sales reached $947 million, up 15% (11% organic); operating income $187 million, up 14%; diluted EPS $3.79, up 16%.

• Full-year adjusted operating margin expanded 110 basis points to 18.6%.

• Record $465 million in share repurchases and increased annual dividend for the ninth consecutive year.

• Capital expenditures rose nearly 50% in 2025 to support growth.

• Free cash flow conversion at 111% for 2025; targeted >105% for 2026.

Outlook and guidance

• 2026 organic sales projected to grow 6%-8% to $3.71–$3.77 billion, with operating margin expansion of 30-60 basis points to 18.9%-19.2%.

• Diluted EPS expected to rise 11%-15% to $14.70-$15.15.

• Free cash flow forecasted at $575-$595 million, with a 105%+ conversion rate.

• Capital expenditures to increase 25-30% to $110-$120 million.

• Minimum $60 million share repurchase planned for 2026.