Curtiss-Wright reported higher third-quarter sales and earnings, with orders outpacing revenue and its backlog expanding. The aerospace and defense and commercial supplier also raised its full-year 2026 outlook for sales, operating income, margins, earnings per share and free cash flow.
Key details
- Third-quarter sales were $953 million, up 10% from a year earlier. Reported operating income was $188 million, with a 19.7% operating margin.
- On an adjusted basis, operating income rose 11% to $189 million and operating margin increased 30 basis points to 19.9%. Adjusted diluted earnings per share climbed 16% to $3.94; reported diluted EPS was $3.77.
- Free cash flow was $157 million, equal to 108% of the company’s cash-conversion measure.
- Curtiss-Wright reported $1.1 billion in new orders, up 15%, for a book-to-bill ratio of 1.1. Backlog stood at $4.6 billion, up 12% year to date.
- The company reported $352 million in share repurchases among its quarterly highlights.
- Full-year adjusted sales growth guidance rose to 8%–10%, from 8%–9%. Curtiss-Wright said the increase reflects continued strong growth in its aerospace and defense and commercial markets.
- Adjusted operating-income growth guidance increased to 12%–14%, from 11%–13%.
- The adjusted operating-margin forecast rose to 19.2%–19.4%, representing a 60-to-80-basis-point increase from the prior year. The previous range was 19.1%–19.3%, or growth of 50 to 70 basis points.
- Adjusted diluted EPS guidance increased to $15.40–$15.60, from $15.10–$15.40. The new range implies 16%–18% growth.
- The free-cash-flow forecast increased by $10 million to $595 million–$615 million. The company said the outlook continues to reflect conversion above 105%.
Additional disclosure
Management scheduled a webcast for November 5 to discuss the quarterly results and full-year expectations. The accompanying presentation was made available through the company’s investor-relations website.
Plain-English implications
Orders grew faster than sales, and the 1.1 book-to-bill ratio alongside a larger backlog indicates that incoming business exceeded revenue during the quarter. The raised guidance reflects improved expectations across several financial measures, while the reported repurchases show substantial capital returned through share buybacks.