Curtiss-Wright Corp ((CW)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Curtiss-Wright Displays Strong Performance with Optimistic Future Outlook
Curtiss-Wright’s recent earnings call was marked by a positive sentiment amidst a backdrop of record-breaking financial performance in 2024. The company celebrated notable achievements, such as strategic acquisitions, despite facing challenges in certain segments like Defense Electronics and General Industrial. The overall mood was optimistic, with confidence expressed for the upcoming year.
Record Financial Results in 2024
Curtiss-Wright achieved unprecedented financial success in 2024, reporting double-digit growth in both sales and operating income. The company saw a significant 16% increase in diluted earnings per share, alongside a record adjusted free cash flow totaling $483 million. These results underscore Curtiss-Wright’s strong financial health and strategic prowess.
Strong Order Book and Backlog
The earnings call revealed a robust order book, with orders surging by 20% year-over-year to a record $3.7 billion, and a total backlog also increasing 20% to exceed $3.4 billion. This growth reflects the high demand for Curtiss-Wright’s offerings and secures a solid foundation for future operations.
Successful Acquisitions and Share Repurchases
In 2024, Curtiss-Wright made strategic moves to enhance its commercial nuclear portfolio by acquiring WSC and Ultra Energy. Additionally, the company executed share repurchases totaling $250 million, including a $100 million accelerated repurchase in December, demonstrating a commitment to delivering shareholder value.
Challenges in Defense Electronics
Despite the overall positive performance, the Defense Electronics segment faced hurdles, with both year-over-year and sequential revenue declines. These challenges were attributed to under absorption, timing issues, and an unfavorable product mix, necessitating attention for future improvement.
General Industrial Market Struggles
The General Industrial market encountered difficulties, as lower global off-highway and specialty industrial vehicle sales were reported, driven by customers reducing their inventory levels. This segment’s performance highlights an area of concern that the company aims to address moving forward.
Mixed Performance in Naval & Power Segment
While the Naval & Power segment experienced sales growth, profitability was hindered by an unfavorable mix and reduced international aircraft arresting systems revenues. This mixed performance suggests a need for strategic adjustments to enhance profitability.
Positive 2025 Financial Outlook
Curtiss-Wright’s outlook for 2025 is optimistic, with expectations of mid-single-digit organic sales growth and total growth between 7% to 8%, factoring in acquisitions. Operating income is projected to increase by 10% to 12%, with an operating margin expansion of 40 to 60 basis points. The company anticipates a 11% to 14% rise in diluted EPS, alongside robust free cash flow projections.
In conclusion, Curtiss-Wright’s earnings call painted a picture of a company enjoying significant successes while also acknowledging areas for growth. The overall sentiment was positive, with a confident outlook for future performance. Investors and stakeholders can look forward to Curtiss-Wright’s strategic maneuvers and financial resilience as it navigates the challenges and opportunities of 2025.
