Curtiss-Wright Delivers Strong Q3 2026 Earnings & Raises Full-Year Guidance

Executive Summary

Curtiss-Wright Corporation (NYSE: CW) filed an 8-K under Item 2.02 detailing its third-quarter 2026 financial results and updated full-year 2026 financial guidance. The company demonstrated double-digit revenue and operating income expansion, supported by strong demand across Aerospace & Defense (A&D) and Commercial end markets, prompting management to raise full-year targets across all core financial metrics.

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Third Quarter 2026 Financial Highlights

• Revenue: Reported net sales of $953 million, an increase of 10% compared to $869 million in Q3 2025.
  • A&D market sales grew 9% YoY.
  • Commercial market sales climbed 11% YoY.
• Operating Income & Margin:
  • Reported operating income reached $188 million (19.7% margin, up 60 bps).
  • Adjusted operating income reached $189 million (19.9% margin, up 30 bps).
• Earnings Per Share:
  • Reported diluted EPS of $3.77.
  • Adjusted diluted EPS of $3.94, rising 16% YoY.
• Cash Flow & Capital Deployment:
  • Free Cash Flow (FCF) stood at $157 million, reflecting a 108% FCF conversion rate.
  • Share repurchases totaled $352 million during the quarter.
• Bookings & Backlog:
  • New orders totaled $1.1 billion, up 15% YoY, achieving a 1.1x book-to-bill ratio.
  • Total backlog reached $4.6 billion, up 12% year-to-date.

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Segment Performance Overview

• Aerospace & Industrial:
  • Sales: $282 million (+14% YoY).
  • Adjusted Operating Income: $55 million (+19% YoY), with margins expanding 80 bps to 19.4% due to favorable absorption, pricing/mix, and restructuring benefits.
• Defense Electronics:
  • Sales: $259 million (+2% YoY).
  • Adjusted Operating Income: $70 million (-5% YoY), with margins contracting 220 bps to 27.0%, impacted by product mix and increased R&D investments.

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Upwardly Revised Full-Year 2026 Guidance

• Sales Growth: Raised to 8%–10% (previously 8%–9%).
• Operating Income Growth: Raised to 12%–14% (previously 11%–13%).
• Operating Margin: Increased to 19.2%–19.4% (up 60 to 80 bps YoY; previously 19.1%–19.3%).
• Adjusted Diluted EPS: Increased to $15.40–$15.60 (+16% to 18% YoY; previously $15.10–$15.40).
• Free Cash Flow: Lifted by $10 million to $595–$615 million (>105% conversion).