Thu, May 8, 7:10 PM (7 days ago)
**Curtiss-Wright Corporation (CW) Q1 2025 Financial Summary** Curtiss-Wright Corporation (CW), a global integrated business, reported strong financial performance for Q1 2025, with notable improvements in revenue, profit margins, and earnings. Here are the key points: **Financial Health and Performance:** - **Revenue:** Total net sales increased by 13% to $805.6 million, driven by growth in both product and service sales. - **Profit Margins:** Gross profit rose to $292.5 million, with a gross margin of 36.3%. Operating income increased by 29% to $129.2 million, reflecting improved operational efficiency and higher sales. - **Earnings:** Net earnings surged by 32% to $101.3 million, with basic and diluted earnings per share (EPS) at $2.69 and $2.68, respectively. **Cash Flow:** - **Operating Cash Flow:** Net cash used in operating activities decreased by $7 million to $(38.8) million, primarily due to higher cash earnings. - **Investing Cash Flow:** Net cash used in investing activities increased by $13 million to $(24.9) million, mainly due to additional consideration paid for the Ultra Energy acquisition. - **Financing Cash Flow:** Net cash used in financing activities increased by $92 million to $(98.6) million, largely due to the repayment of 3.85% Senior Notes. **Segment Performance:** - **Aerospace & Industrial:** Sales increased by 4% to $227.2 million, with operating income up by 9% to $29.9 million. - **Defense Electronics:** Sales rose by 16% to $245.2 million, with operating income up by 40% to $67.4 million. - **Naval & Power:** Sales increased by 18% to $333.2 million, with operating income up by 19% to $41.9 million. **Trends and Uncertainties:** - **Growth Drivers:** Strong demand in aerospace defense, naval defense, and commercial aerospace markets drove sales growth. - **Operational Excellence:** Benefits from operational excellence initiatives and favorable absorption on higher sales contributed to improved margins. - **Acquisitions:** The WSC and Ultra Energy acquisitions positively impacted the Naval & Power segment. - **Foreign Currency:** Favorable foreign currency translation benefited the Aerospace & Industrial segment. **Future Operations Impact:** - **Restructuring:** The 2024 Restructuring Program is expected to be substantially completed by June 30, 2025, aiming to improve operational efficiency. - **Debt Compliance:** CW remains in compliance with all debt agreements and credit facility covenants, with the ability to borrow additional debt without violating covenants. - **Share Repurchases:** CW repurchased approximately 42,000 shares of its common stock for $14 million in Q1 2025. **Conclusion:** Curtiss-Wright Corporation demonstrated robust financial performance in Q1 2025, with significant growth in revenue, earnings, and profit margins. The company's strategic initiatives, operational excellence, and favorable market conditions position it well for future growth. However, ongoing uncertainties related to global economic conditions, supply chain disruptions, and geopolitical risks may impact future performance.