寇蒂斯莱特公司，第1页
第99.1展示文本 | |||||
寇蒂斯莱特报告2024年第三季度财务业绩，并提高2024年全年指引
北卡罗来纳州戴维森 – 2024年10月30日 – 寇蒂斯莱特公司（纽交所：CW）发布了截至2024年9月30日第三季度的财务报告。
Third Quarter 2024 Highlights:
•报告销售额为79900万美元，增长 10%;
•报告营业收入为14500万美元，营业利润率为18.1%，每股收益(EPS)为2.89美元；
•调整后的营业收入为14900万美元，增长11%;
•调整后的营业利润率为18.7%，上升了20个基点；
•调整后的摊薄后每股收益为2.97美元，增长17%；
•新订单为86000万美元，增长2%，反映出由我军工股市场内强劲需求推动的订单与账单比为1.1x；
•未处理的事项达到33亿美元，年初至今增长16%；和
•自由现金流（FCF）为$16300万，产生142%的调整后自由现金流转换率。
提高全年 2024年调整后的财务指引：
•销售额增长至7%至9%的新区间（之前是6%至8%），主要受强劲推动 我们军工市场增长较快；
•营业收入增加至新的7%到10%的增长区间（之前为6%到9%）;
•与上年相比，保持在17.4%至17.6%的营业利润率区间，与去年相比持平至上升20个基点;
•摊薄后每股收益增至新区间$10.55至$10.75，增长12%至15%（之前为$10.40至$10.65，增长11%至14%）；并
•自由现金流增加至新区间$430到$45000万，增长4%至9%（先前为$425到$44500万，增长3%至8%），并继续反映超过105%的自由现金流转换率。
寇蒂斯莱特 已实现 第三季度业绩强劲，特点是 在我们的军工股终端市场中实现了两位数的营业收入增长， 我们的军工股电子部门运营业绩高于预期，摊薄后每股收益同比增长17%。，"寇蒂斯莱特公司的董事长兼首席执行官林恩·M·班福德表示。"我们继续展现出可观的订单活动，季度整体订单到账比为 1.1x ，特点是 在我们的军工股电子部门实现了创纪录的季度订单。我们还实现了可观的现金生成，导致自由现金流转换率异常高达142%。 基于强劲的
表现和我们在执行"增长转型"策略上持续保持的势头，我们再次提升了2024财年的销售业绩、摊薄后每股收益和自由现金流预期。 今年迄今为止的交付总量 基于强劲的
表现和我们在执行"增长转型"策略上持续保持的势头，我们再次提升了2024财年的销售业绩、摊薄后每股收益和自由现金流预期。
我们继续利用我们强大的资产负债表，支持我们严格的资本配置战略。这包括我们承诺的向股东提供稳定回报，我们在本季度完成了最近宣布的10000万美元的2024年股票回购计划扩张。此外，我们继续专注于通过符合我们严格财务标准的、高质量的战略性收购来补充我们的有机增长，以推动长期股东价值。
寇蒂斯莱特股份有限公司，第2页
2024 年第三季度经营业绩
| （以百万计） | Q3-2024 | Q3-2023 | 变更 | ||||||||
| 报告 | |||||||||||
| 销售 | $ | 799 | $ | 724 | 10 | % | |||||
| 营业利润 | $ | 145 | $ | 133 | 9 | % | |||||
| 营业利润率 | 18.1 | % | 18.3 | % | （20 基点） | ||||||
调整后 (1) | |||||||||||
| 销售 | $ | 799 | $ | 724 | 10 | % | |||||
| 营业利润 | $ | 149 | $ | 134 | 11 | % | |||||
| 营业利润率 | 18.7 | % | 18.5 | % | 20 基点 | ||||||
(1)报告与调整后运营结果的对账可在附录中找到。
•销售额为$79900万，较去年增长10%；
•总的A&D市场销售额增长了15%，我们在军工股市场经历了强劲增长，主要是由于防御电子产品需求增加，海军防御领域的潜艇和航空母舰收入增加，以及商用航空航天市场的OEm销售增加；
•商用市场总销售额持平，反映了 动力和工艺市场实现了稳健增长，主要受到商业核产品销售额的增加驱动，而一部分被 普通工业市场销售额下降抵消；以及帮助孩子们跟踪他们夏季口腔卫生习惯的材料。
•调整后的营业收入为14900万美元，增长了11%，而调整后的营业利润率提高了20个基点，至18.7%，主要受到所有三个板块收入增加而造成的有利间接费用分摊的影响，部分抵消的 产品组合不利。
寇蒂斯莱特股份有限公司，第3页
2024年第三季度业绩表现
航空航天与工业
| （以百万计） | Q3-2024 | Q3-2023 | 变更 | ||||||||
| 报告 | |||||||||||
| 销售 | $ | 229 | $ | 220 | 4 | % | |||||
| 营业利润 | $ | 37 | $ | 39 | (4 | %) | |||||
| 营业利润率 | 16.4 | % | 17.7 | % | (130 基点) | ||||||
调整后 (1) | |||||||||||
| 销售 | $ | 229 | $ | 220 | 4 | % | |||||
| 营业利润 | $ | 39 | $ | 39 | 1 | % | |||||
| 营业利润率 | 17.2 | % | 17.7 | % | (50 个基点) | ||||||
(1)报告与调整后运营结果的对账可在附录中找到。
•销售额为2.29亿美元，增长800万美元，或 4%;
•商用航空市场营业收入增长反映出传感器产品和狭体和宽体平台上的表面处理服务的强劲需求和更高OEM销售。狭体和宽体平台上传感器产品和表面处理服务的营业收入增长。
•航空军工股市场的营业收入增加，反映了我们在各种战斗机项目中执行设备销售时机。
•一般工业市场营业收入下降主要是由于工业车辆产品销量减少所致 到场外车辆平台的工业车辆产品销量减少以及工业自动化产品和服务销量 减少；以及帮助孩子们跟踪他们夏季口腔卫生习惯的材料。
•调整后的营业收入为3900万美元，比上年同期增长1%，而调整后的营业利润率下降了50个基点至17.2%，因为较高销售额的有利吸收以及我们重组计划的好处被产品组合的不利因素所抵消。
寇蒂斯莱特公司，第4页
军工电子
| （以百万计） | Q3-2024 | Q3-2023 | 改变 | ||||||||
| 已举报 | |||||||||||
| 销售 | $ | 243 | $ | 216 | 12 | % | |||||
| 营业收入 | $ | 64 | $ | 56 | 13 | % | |||||
| 营业利润率 | 26.2 | % | 26.0 | % | 20 个基点 | ||||||
调整后 (1) | |||||||||||
| 销售 | $ | 243 | $ | 216 | 12 | % | |||||
| 营业收入 | $ | 64 | $ | 56 | 15 | % | |||||
| 营业利润率 | 26.5 | % | 26.0 | % | 50 个基点 | ||||||
(1)报告与调整后运营结果的对账可在附录中找到。
•销售额为24300万美元，增长2700万美元，增长12%；
•军工股市场营业收入增加主要是由国内外直升机项目中嵌入式计算设备销量的增加推动的 我们嵌入式计算设备在国内外各种直升机项目中的销售，部分被飞行测试设备销售时间的偏移所抵消；
•地面防御市场的营业收入强劲增长主要反映了战术战场通信设备销售增加；
•更高的商用航空航天市场 营业收入主要反映了航空电子设备和电子产品在各种平台上的OEM销售增加;并 OEM销售的飞机电子设备和电子产品在各种平台上增加；并
•调整后的营业收入为6400万美元，比上一年增长15％，而调整后的营业利润率提高了50个基点，达到26.5％， 主要是由于较高的军火和国防收入产生了有利的吸收作用。
寇蒂斯莱特公司，第5页
海军 权力
| （以百万计） | Q3-2024 | Q3-2023 | 变更 | ||||||||
| 报告 | |||||||||||
| 销售 | $ | 327 | $ | 288 | 14 | % | |||||
| 营业利润 | $ | 53 | $ | 48 | 11 | % | |||||
| 营业利润率 | 16.2 | % | 16.6 | % | (40个基点) | ||||||
调整后 (1) | |||||||||||
| 销售 | $ | 327 | $ | 288 | 14 | % | |||||
| 营业利润 | $ | 54 | $ | 49 | 10 | % | |||||
| 营业利润率 | 16.4 | % | 17.0 | % | (60个基点) | ||||||
(1)报告与调整后运营结果的对账可在附录中找到。
•电池销售 电池电芯 32700万美元，增长 3900万美元，或14%
•海军军工领域营业收入大幅增长主要反映出对弗吉尼亚级潜艇、哥伦比亚级潜艇和CVN-81航母计划的需求增加，以及各种下一代潜艇开发计划的增长。
•Higher power & process market revenues mainly reflected increased commercial nuclear aftermarket sales supporting the maintenance of U.S. operating reactors; and
•Adjusted operating income was $54 million, up 10% from the prior year, while Adjusted operating margin decreased 60 basis points to 16.4%, as favorable absorption on higher revenues was partially offset by an unfavorable mix of products and the timing of development programs.
Curtiss-Wright Corporation, Page 6
Free Cash Flow
| (In millions) | Q3-2024 | Q3-2023 | Change | ||||||||
| Net cash provided by operating activities | $ | 177 | $ | 146 | 21 | % | |||||
| Capital expenditures | (15) | (9) | 56 | % | |||||||
| Reported free cash flow | $ | 163 | $ | 137 | 19 | % | |||||
Adjusted free cash flow (1) | $ | 163 | $ | 137 | 19 | % | |||||
(1)A reconciliation of Reported to Adjusted free cash flow is available in the Appendix.
•Reported free cash flow of $163 million increased $26 million year over year, primarily driven by higher cash earnings and lower working capital;
•Adjusted free cash flow of $163 million; and
•Capital expenditures increased $5 million compared with the prior year period, due to growth investments within the Aerospace & Industrial and Defense Electronics segments.
New Orders and Backlog
•New orders of $860 million increased 2% compared with the prior year and generated an overall book-to-bill of approximately 1.1x, principally driven by continued strong demand for defense electronics products within our A&D markets; and
•Backlog of $3.3 billion, up 16% from December 31, 2023, reflecting higher demand in both our A&D and Commercial markets.
Share Repurchase and Dividends
•During the third quarter, the Company repurchased 355,578 shares of its common stock for approximately $113 million and remains on track to repurchase a total of $150 million in shares in 2024; and
•The Company declared a quarterly dividend of $0.21 a share.
Curtiss-Wright Corporation, Page 7
Full-Year 2024 Guidance
The Company is updating its full-year 2024 Adjusted financial guidance(1) as follows:
| ($ in millions, except EPS) | 2024 Adjusted Non-GAAP Guidance (Prior) | 2024 Adjusted Non-GAAP Guidance (Current) | Change vs 2023 Adjusted (Current) | ||||||||
| Total Sales | $3,010 - $3,060 | $3,050 - $3,095 | Up 7% - 9% | ||||||||
| Operating Income | $525 - $539 | $531 - $545 | Up 7% - 10% | ||||||||
| Operating Margin | 17.4% - 17.6% | 17.4% - 17.6% | Up 0 - 20 bps | ||||||||
| Diluted EPS | $10.40 - $10.65 | $10.55 - $10.75 | Up 12% - 15% | ||||||||
| Free Cash Flow | $425 - $445 | $430 - $450 | Up 4% - 9% | ||||||||
(1)Reconciliations of Reported to Adjusted 2023 operating results and 2024 financial guidance are available in the Appendix.
**********
A more detailed breakdown of the Company’s 2024 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted Non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.
Conference Call & Webcast Information
The Company will host a conference call to discuss its third quarter 2024 financial results and updates to 2024 guidance at 10:00 a.m. ET on Thursday, October 31, 2024. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.
(Tables to Follow)
Curtiss-Wright Corporation, Page 8
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | |||||||||||||||||||||||
| ($'s in thousands, except per share data) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Product sales | $ | 684,216 | $ | 613,915 | $ | 1,941,327 | $ | 1,721,832 | |||||||||||||||
| Service sales | 114,702 | 110,411 | 355,549 | 337,750 | |||||||||||||||||||
| Total net sales | 798,918 | 724,326 | 2,296,876 | 2,059,582 | |||||||||||||||||||
| Cost of product sales | 434,370 | 380,163 | 1,252,773 | 1,093,469 | |||||||||||||||||||
| Cost of service sales | 66,285 | 62,695 | 207,984 | 203,664 | |||||||||||||||||||
| Total cost of sales | 500,655 | 442,858 | 1,460,757 | 1,297,133 | |||||||||||||||||||
| Gross profit | 298,263 | 281,468 | 836,119 | 762,449 | |||||||||||||||||||
| Research and development expenses | 20,734 | 23,464 | 65,866 | 65,698 | |||||||||||||||||||
| Selling expenses | 37,311 | 34,084 | 109,202 | 100,782 | |||||||||||||||||||
| General and administrative expenses | 92,035 | 91,401 | 281,092 | 272,060 | |||||||||||||||||||
| Restructuring expenses | 3,280 | — | 6,198 | — | |||||||||||||||||||
| Operating income | 144,903 | 132,519 | 373,761 | 323,909 | |||||||||||||||||||
| Interest expense | 11,408 | 12,496 | 33,194 | 40,432 | |||||||||||||||||||
| Other income, net | 10,126 | 7,023 | 28,294 | 22,744 | |||||||||||||||||||
| Earnings before income taxes | 143,621 | 127,046 | 368,861 | 306,221 | |||||||||||||||||||
| Provision for income taxes | (32,461) | (30,268) | (81,735) | (71,598) | |||||||||||||||||||
| Net earnings | $ | 111,160 | $ | 96,778 | $ | 287,126 | $ | 234,623 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic earnings per share | $ | 2.91 | $ | 2.53 | $ | 7.51 | $ | 6.13 | |||||||||||||||
| Diluted earnings per share | $ | 2.89 | $ | 2.51 | $ | 7.47 | $ | 6.09 | |||||||||||||||
| Dividends per share | $ | 0.21 | $ | 0.20 | $ | 0.62 | $ | 0.59 | |||||||||||||||
| Weighted-average shares outstanding: | |||||||||||||||||||||||
| Basic | 38,208 | 38,285 | 38,245 | 38,301 | |||||||||||||||||||
| Diluted | 38,451 | 38,558 | 38,451 | 38,538 | |||||||||||||||||||
Curtiss-Wright Corporation, Page 9
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||||
| ($'s in thousands, except par value) | |||||||||||
| September 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 443,850 | $ | 406,867 | |||||||
| Receivables, net | 857,614 | 732,678 | |||||||||
| Inventories, net | 582,584 | 510,033 | |||||||||
| Other current assets | 68,035 | 67,502 | |||||||||
| Total current assets | 1,952,083 | 1,717,080 | |||||||||
| Property, plant, and equipment, net | 330,292 | 332,796 | |||||||||
| Goodwill | 1,583,448 | 1,558,826 | |||||||||
| Other intangible assets, net | 532,397 | 557,612 | |||||||||
| Operating lease right-of-use assets, net | 156,613 | 141,435 | |||||||||
| Prepaid pension asset | 279,212 | 261,869 | |||||||||
| Other assets | 51,693 | 51,351 | |||||||||
| Total assets | $ | 4,885,738 | $ | 4,620,969 | |||||||
| Liabilities | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | 90,000 | $ | — | |||||||
| Accounts payable | 222,542 | 243,833 | |||||||||
| Accrued expenses | 194,414 | 188,039 | |||||||||
| Deferred revenue | 392,330 | 303,872 | |||||||||
| Other current liabilities | 87,369 | 70,800 | |||||||||
| Total current liabilities | 986,655 | 806,544 | |||||||||
| Long-term debt | 959,302 | 1,050,362 | |||||||||
| Deferred tax liabilities, net | 124,186 | 132,319 | |||||||||
| Accrued pension and other postretirement benefit costs | 68,159 | 66,875 | |||||||||
| Long-term operating lease liability | 134,866 | 118,611 | |||||||||
| Long-term portion of environmental reserves | 14,661 | 12,784 | |||||||||
| Other liabilities | 107,490 | 105,061 | |||||||||
| Total liabilities | $ | 2,395,319 | $ | 2,292,556 | |||||||
| Stockholders' equity | |||||||||||
| Common stock, $1 par value | $ | 49,187 | $ | 49,187 | |||||||
| Additional paid in capital | 144,394 | 140,182 | |||||||||
| Retained earnings | 3,751,183 | 3,487,751 | |||||||||
| Accumulated other comprehensive loss | (203,428) | (213,223) | |||||||||
| Less: cost of treasury stock | (1,250,917) | (1,135,484) | |||||||||
| Total stockholders' equity | $ | 2,490,419 | $ | 2,328,413 | |||||||
| Total liabilities and stockholders' equity | $ | 4,885,738 | $ | 4,620,969 | |||||||
Curtiss-Wright Corporation, Page 10
Use and Definitions of Non-GAAP Financial Information (Unaudited)
The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright’s ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliations of “Reported” GAAP amounts to “Adjusted” non-GAAP amounts are furnished within this release.
The following definitions are provided:
Adjusted Operating Income, Operating Margin, Net Earnings and Diluted EPS
These Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) costs associated with the Company's 2024 Restructuring Program; and (iii) the sale or divestiture of a business or product line, as applicable.
Curtiss-Wright Corporation, Page 11
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||
| ($'s in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2024 | September 30, 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Adjusted | As Reported | Adjustments | Adjusted | As Reported | Adjusted | ||||||||||||||||||||||||||||||||||||||||
| Sales: | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | $ | 228,659 | $ | — | $ | 228,659 | $ | 220,297 | $ | — | $ | 220,297 | 4 | % | 4 | % | |||||||||||||||||||||||||||||||
| Defense Electronics | 243,029 | — | 243,029 | 216,285 | — | 216,285 | 12 | % | 12 | % | |||||||||||||||||||||||||||||||||||||
| Naval & Power | 327,230 | — | 327,230 | 287,744 | — | 287,744 | 14 | % | 14 | % | |||||||||||||||||||||||||||||||||||||
| Total sales | $ | 798,918 | $ | — | $ | 798,918 | $ | 724,326 | $ | — | $ | 724,326 | 10 | % | 10 | % | |||||||||||||||||||||||||||||||
| Operating income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||
Aerospace & Industrial(2) | $ | 37,435 | $ | 1,926 | $ | 39,361 | $ | 39,014 | $ | — | $ | 39,014 | (4) | % | 1 | % | |||||||||||||||||||||||||||||||
Defense Electronics(2) | 63,639 | 819 | 64,458 | 56,212 | — | 56,212 | 13 | % | 15 | % | |||||||||||||||||||||||||||||||||||||
Naval & Power(1)(2) | 53,039 | 759 | 53,798 | 47,663 | 1,333 | 48,996 | 11 | % | 10 | % | |||||||||||||||||||||||||||||||||||||
| Total segments | $ | 154,113 | $ | 3,504 | $ | 157,617 | $ | 142,889 | $ | 1,333 | $ | 144,222 | 8 | % | 9 | % | |||||||||||||||||||||||||||||||
Corporate and other(2) | (9,210) | 660 | (8,550) | (10,370) | — | (10,370) | 11 | % | 18 | % | |||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 144,903 | $ | 4,164 | $ | 149,067 | $ | 132,519 | $ | 1,333 | $ | 133,852 | 9 | % | 11 | % | |||||||||||||||||||||||||||||||
| Operating margins: | As Reported | Adjusted | As Reported | Adjusted | As Reported | Adjusted | |||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | 16.4 | % | 17.2 | % | 17.7 | % | 17.7 | % | (130 bps) | (50 bps) | |||||||||||||||||||||||||||||||||||||
| Defense Electronics | 26.2 | % | 26.5 | % | 26.0 | % | 26.0 | % | 20 bps | 50 bps | |||||||||||||||||||||||||||||||||||||
| Naval & Power | 16.2 | % | 16.4 | % | 16.6 | % | 17.0 | % | (40 bps) | (60 bps) | |||||||||||||||||||||||||||||||||||||
| Total Curtiss-Wright | 18.1 | % | 18.7 | % | 18.3 | % | 18.5 | % | (20 bps) | 20 bps | |||||||||||||||||||||||||||||||||||||
| Segment margins | 19.3 | % | 19.7 | % | 19.7 | % | 19.9 | % | (40 bps) | (20 bps) | |||||||||||||||||||||||||||||||||||||
(1) Excludes first year purchase accounting adjustments in both the current and prior year periods. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Excludes costs associated with the Company's 2024 Restructuring Program in the current period. | |||||||||||||||||||||||||||||||||||||||||||||||
Curtiss-Wright Corporation, Page 12
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||
| ($'s in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2024 | September 30, 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Adjusted | As Reported | Adjustments | Adjusted | As Reported | Adjusted | ||||||||||||||||||||||||||||||||||||||||
| Sales: | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | $ | 681,216 | $ | — | $ | 681,216 | $ | 649,004 | $ | — | $ | 649,004 | 5 | % | 5 | % | |||||||||||||||||||||||||||||||
| Defense Electronics | 683,231 | — | 683,231 | 576,161 | — | 576,161 | 19 | % | 19 | % | |||||||||||||||||||||||||||||||||||||
| Naval & Power | 932,429 | — | 932,429 | 834,417 | — | 834,417 | 12 | % | 12 | % | |||||||||||||||||||||||||||||||||||||
| Total sales | $ | 2,296,876 | $ | — | $ | 2,296,876 | $ | 2,059,582 | $ | — | $ | 2,059,582 | 12 | % | 12 | % | |||||||||||||||||||||||||||||||
| Operating income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||
Aerospace & Industrial(2) | $ | 100,147 | $ | 4,546 | $ | 104,693 | $ | 101,224 | $ | — | $ | 101,224 | (1) | % | 3 | % | |||||||||||||||||||||||||||||||
Defense Electronics(2) | 169,964 | 1,342 | 171,306 | 122,760 | — | 122,760 | 38 | % | 40 | % | |||||||||||||||||||||||||||||||||||||
Naval & Power (1)(2) | 134,513 | 1,101 | 135,614 | 132,382 | 6,669 | 139,051 | 2 | % | (2) | % | |||||||||||||||||||||||||||||||||||||
| Total segments | $ | 404,624 | $ | 6,989 | $ | 411,613 | $ | 356,366 | $ | 6,669 | $ | 363,035 | 14 | % | 13 | % | |||||||||||||||||||||||||||||||
Corporate and other(2) | (30,863) | 1,624 | (29,239) | (32,457) | — | (32,457) | 5 | % | 10 | % | |||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 373,761 | $ | 8,613 | $ | 382,374 | $ | 323,909 | $ | 6,669 | $ | 330,578 | 15 | % | 16 | % | |||||||||||||||||||||||||||||||
| Operating margins: | As Reported | Adjusted | As Reported | Adjusted | As Reported | Adjusted | |||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | 14.7 | % | 15.4 | % | 15.6 | % | 15.6 | % | (90 bps) | (20 bps) | |||||||||||||||||||||||||||||||||||||
| Defense Electronics | 24.9 | % | 25.1 | % | 21.3 | % | 21.3 | % | 360 bps | 380 bps | |||||||||||||||||||||||||||||||||||||
| Naval & Power | 14.4 | % | 14.5 | % | 15.9 | % | 16.7 | % | (150 bps) | (220 bps) | |||||||||||||||||||||||||||||||||||||
| Total Curtiss-Wright | 16.3 | % | 16.6 | % | 15.7 | % | 16.1 | % | 60 bps | 50 bps | |||||||||||||||||||||||||||||||||||||
| Segment margins | 17.6 | % | 17.9 | % | 17.3 | % | 17.6 | % | 30 bps | 30 bps | |||||||||||||||||||||||||||||||||||||
(1) Excludes first year purchase accounting adjustments in both the current and prior year periods. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Excludes costs associated with the Company's 2024 Restructuring Program in the current period. | |||||||||||||||||||||||||||||||||||||||||||||||
Curtiss-Wright Corporation, Page 13
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | ||||||||||||||||||||
| SALES BY END MARKET (UNAUDITED) | ||||||||||||||||||||
| ($'s in thousands) | ||||||||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||||||||
| September 30, 2024 | September 30, 2023 | % Change | ||||||||||||||||||
| Aerospace & Defense markets: | ||||||||||||||||||||
| Aerospace Defense | $ | 158,980 | $ | 148,023 | 7 | % | ||||||||||||||
| Ground Defense | 92,973 | 83,185 | 12 | % | ||||||||||||||||
| Naval Defense | 217,510 | 179,862 | 21 | % | ||||||||||||||||
| Commercial Aerospace | 96,677 | 79,703 | 21 | % | ||||||||||||||||
| Total Aerospace & Defense | $ | 566,140 | $ | 490,773 | 15 | % | ||||||||||||||
| Commercial markets: | ||||||||||||||||||||
| Power & Process | $ | 131,376 | $ | 122,118 | 8 | % | ||||||||||||||
| General Industrial | 101,402 | 111,435 | (9 | %) | ||||||||||||||||
| Total Commercial | $ | 232,778 | $ | 233,553 | 0 | % | ||||||||||||||
| Total Curtiss-Wright | $ | 798,918 | $ | 724,326 | 10 | % | ||||||||||||||
| Nine Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2024 | September 30, 2023 | % Change | ||||||||||||||||||
| Aerospace & Defense markets: | ||||||||||||||||||||
| Aerospace Defense | $ | 445,158 | $ | 380,095 | 17 | % | ||||||||||||||
Ground Defense | 268,672 | 220,317 | 22 | % | ||||||||||||||||
| Naval Defense | 605,004 | 532,773 | 14 | % | ||||||||||||||||
| Commercial Aerospace | 279,768 | 232,226 | 20 | % | ||||||||||||||||
| Total Aerospace & Defense | $ | 1,598,602 | $ | 1,365,411 | 17 | % | ||||||||||||||
| Commercial markets: | ||||||||||||||||||||
| Power & Process | $ | 394,016 | $ | 373,457 | 6 | % | ||||||||||||||
| General Industrial | 304,258 | 320,714 | (5 | %) | ||||||||||||||||
| Total Commercial | $ | 698,274 | $ | 694,171 | 1 | % | ||||||||||||||
| Total Curtiss-Wright | $ | 2,296,876 | $ | 2,059,582 | 12 | % | ||||||||||||||
Curtiss-Wright Corporation, Page 14
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||
| RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Diluted earnings per share - As Reported | $ | 2.89 | $ | 2.51 | $ | 7.47 | $ | 6.09 | |||||||||||||||
First year purchase accounting adjustments | 0.02 | 0.03 | 0.02 | 0.13 | |||||||||||||||||||
Restructuring costs | 0.06 | — | 0.15 | — | |||||||||||||||||||
Diluted earnings per share - Adjusted (1) | $ | 2.97 | $ | 2.54 | $ | 7.64 | $ | 6.22 | |||||||||||||||
(1) All adjustments are presented net of income taxes. | |||||||||||||||||||||||
Curtiss-Wright Corporation, Page 15
Organic Sales and Organic Operating Income
The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions and results of operations from divested businesses or product lines during the last twelve months, costs associated with the Company's 2024 Restructuring Program, and foreign currency fluctuations.
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 vs. 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | Defense Electronics | Naval & Power | Total Curtiss-Wright | ||||||||||||||||||||||||||||||||||||||||||||
| Sales | Operating income | Sales | Operating income | Sales | Operating income | Sales | Operating income | ||||||||||||||||||||||||||||||||||||||||
| As Reported | 4% | (4%) | 12% | 13% | 14% | 11% | 10% | 9% | |||||||||||||||||||||||||||||||||||||||
| Less: Acquisitions | 0% | 0% | 0% | 0% | (1%) | 0% | 0% | 0% | |||||||||||||||||||||||||||||||||||||||
| Restructuring | 0% | 5% | 0% | 1% | 0% | 0% | 0% | 3% | |||||||||||||||||||||||||||||||||||||||
| Foreign Currency | (1%) | (2%) | 0% | 0% | 0% | 0% | 0% | (1%) | |||||||||||||||||||||||||||||||||||||||
| Organic | 3% | (1%) | 12% | 14% | 13% | 11% | 10% | 11% | |||||||||||||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 vs. 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | Defense Electronics | Naval & Power | Total Curtiss-Wright | ||||||||||||||||||||||||||||||||||||||||||||
| Sales | Operating income | Sales | Operating income | Sales | Operating income | Sales | Operating income | ||||||||||||||||||||||||||||||||||||||||
| As Reported | 5% | (1%) | 19% | 38% | 12% | 2% | 12% | 15% | |||||||||||||||||||||||||||||||||||||||
| Less: Acquisitions | 0% | 0% | 0% | 0% | (1%) | 0% | 0% | 0% | |||||||||||||||||||||||||||||||||||||||
| Restructuring | 0% | 4% | 0% | 1% | 0% | 0% | 0% | 2% | |||||||||||||||||||||||||||||||||||||||
| Foreign Currency | 0% | 0% | (1%) | 0% | 0% | 0% | (1%) | 1% | |||||||||||||||||||||||||||||||||||||||
| Organic | 5% | 3% | 18% | 39% | 11% | 2% | 11% | 18% | |||||||||||||||||||||||||||||||||||||||
Curtiss-Wright Corporation, Page 16
Free Cash Flow and Free Cash Flow Conversion
The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Adjusted free cash flow excludes payments associated with the Westinghouse legal settlement in the prior year period. The Corporation discloses adjusted free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as adjusted free cash flow divided by adjusted net earnings.
| CURTISS-WRIGHT CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||
| NON-GAAP FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||
| ($'s in thousands) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 177,274 | $ | 146,364 | $ | 242,976 | $ | 165,717 | |||||||||||||||
| Capital expenditures | (14,584) | (9,373) | (37,703) | (32,037) | |||||||||||||||||||
| Free cash flow | $ | 162,690 | $ | 136,991 | $ | 205,273 | $ | 133,680 | |||||||||||||||
| Westinghouse legal settlement | — | — | — | 10,000 | |||||||||||||||||||
| Adjusted free cash flow | $ | 162,690 | $ | 136,991 | $ | 205,273 | $ | 143,680 | |||||||||||||||
| Adjusted free cash flow conversion | 142 | % | 140 | % | 70 | % | 60 | % | |||||||||||||||
Curtiss-Wright Corporation, Page 17
| CURTISS-WRIGHT CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 Guidance | |||||||||||||||||||||||||||||||||||||||||||||||
| As of October 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| ($'s in millions, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
| 2023 Reported (GAAP) | 2023 Adjustments (Non-GAAP)(1,2) | 2023 Adjusted (Non-GAAP)(1,2) | 2024 Reported Guidance (GAAP) | 2024 Adjustments (Non-GAAP)(3) | 2024 Adjusted Guidance (Non-GAAP)(3) | ||||||||||||||||||||||||||||||||||||||||||
| Low | High | Low | High | 2024 Chg vs 2023 Adjusted | |||||||||||||||||||||||||||||||||||||||||||
| Sales: | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | $ | 887 | $ | — | $ | 887 | $ | 925 | $ | 940 | $ | — | $ | 925 | $ | 940 | 4 - 6% | ||||||||||||||||||||||||||||||
| Defense Electronics | 816 | — | 816 | 892 | 907 | — | 892 | 907 | 9 - 11% | ||||||||||||||||||||||||||||||||||||||
| Naval & Power | 1,142 | — | 1,142 | 1,233 | 1,248 | — | 1,233 | 1,248 | 8 - 9% | ||||||||||||||||||||||||||||||||||||||
| Total sales | $ | 2,845 | $ | — | $ | 2,845 | $ | 3,050 | $ | 3,095 | $ | — | $ | 3,050 | $ | 3,095 | 7 - 9% | ||||||||||||||||||||||||||||||
| Operating income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | $ | 145 | $ | — | $ | 145 | $ | 148 | $ | 152 | $ | 9 | $ | 157 | $ | 161 | 8 - 11% | ||||||||||||||||||||||||||||||
| Defense Electronics | 192 | — | 192 | 213 | 218 | 3 | 216 | 221 | 13 - 15% | ||||||||||||||||||||||||||||||||||||||
| Naval & Power | 189 | 9 | 198 | 197 | 202 | 1 | 198 | 203 | 0 - 2% | ||||||||||||||||||||||||||||||||||||||
| Total segments | $ | 526 | $ | 9 | $ | 535 | $ | 557 | $ | 572 | $ | 13 | $ | 570 | $ | 585 | |||||||||||||||||||||||||||||||
| Corporate and other | (42) | — | (42) | (41) | (42) | 2 | (39) | (40) | |||||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 485 | $ | 9 | $ | 494 | $ | 516 | $ | 530 | $ | 15 | $ | 531 | $ | 545 | 7 - 10% | ||||||||||||||||||||||||||||||
| Interest expense | $ | (51) | $ | — | $ | (51) | $ | (44) | $ | (45) | $ | — | $ | (44) | $ | (45) | |||||||||||||||||||||||||||||||
| Other income, net | 30 | — | 30 | 35 | 35 | — | 35 | 35 | |||||||||||||||||||||||||||||||||||||||
| Earnings before income taxes | 463 | 9 | 472 | 507 | 519 | 15 | 522 | 534 | |||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | (109) | (2) | (111) | (114) | (117) | (3) | (117) | (120) | |||||||||||||||||||||||||||||||||||||||
| Net earnings | $ | 355 | $ | 6 | $ | 361 | $ | 393 | $ | 401 | $ | 12 | $ | 405 | $ | 413 | |||||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 9.20 | $ | 0.18 | $ | 9.38 | $ | 10.23 | $ | 10.44 | $ | 0.32 | $ | 10.55 | $ | 10.75 | 12 - 15% | ||||||||||||||||||||||||||||||
| Diluted shares outstanding | 38.5 | 38.5 | 38.4 | 38.4 | 38.4 | 38.4 | |||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 23.4 | % | 23.4 | % | 22.5 | % | 22.5 | % | 22.5 | % | 22.5 | % | |||||||||||||||||||||||||||||||||||
| Operating margins: | |||||||||||||||||||||||||||||||||||||||||||||||
| Aerospace & Industrial | 16.4 | % | 16.4 | % | 16.0 | % | 16.2 | % | 16.9 | % | 17.1 | % | 50 - 70 bps | ||||||||||||||||||||||||||||||||||
| Defense Electronics | 23.5 | % | 23.5 | % | 23.9 | % | 24.0 | % | 24.2 | % | 24.4 | % | 70 - 90 bps | ||||||||||||||||||||||||||||||||||
| Naval & Power | 16.6 | % | 17.4 | % | 16.0 | % | 16.2 | % | 16.1 | % | 16.3 | % | (110 - 130 bps) | ||||||||||||||||||||||||||||||||||
| Total operating margin | 17.0 | % | 17.4 | % | 16.9 | % | 17.1 | % | 17.4 | % | 17.6 | % | 0 - 20 bps | ||||||||||||||||||||||||||||||||||
| Free cash flow | $ | 403 | $ | 10 | $ | 413 | $ | 430 | $ | 450 | $ | — | $ | 430 | $ | 450 | 4 - 9% | ||||||||||||||||||||||||||||||
| Notes: Full year amounts may not add due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||
(1) 2023 Adjusted financials exclude the impact of first year purchase accounting adjustments. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2023 Adjusted Free Cash Flow excluded a legal settlement payment of $10 million. | |||||||||||||||||||||||||||||||||||||||||||||||
(3) 2024 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2024 Restructuring Program and the impact of first year purchase accounting adjustments. | |||||||||||||||||||||||||||||||||||||||||||||||
Curtiss-Wright Corporation, Page 18
| CURTISS-WRIGHT CORPORATION | |||||||||||||||||
| 2024 Sales Growth Guidance by End Market | |||||||||||||||||
| As of October 30, 2024 | |||||||||||||||||
| 2024 % Change vs. 2023 Adjusted | |||||||||||||||||
| Prior | Current | % Total Sales | |||||||||||||||
| Aerospace & Defense Markets | |||||||||||||||||
| Aerospace Defense | 7 - 9% | 9 - 11% | 20% | ||||||||||||||
| Ground Defense | 10 - 12% | 10 - 12% | 11% | ||||||||||||||
| Naval Defense | 5 - 7% | 9 - 11% | 26% | ||||||||||||||
| Commercial Aerospace | 13 - 15% | 16 - 18% | 12% | ||||||||||||||
| Total Aerospace & Defense | 8 - 10% | 10 - 12% | 69% | ||||||||||||||
| Commercial Markets | |||||||||||||||||
| Power & Process | 4 - 6% | 5 - 7% | 18% | ||||||||||||||
| General Industrial | Flat | (2 - 4%) | 14% | ||||||||||||||
| Total Commercial | 1 - 3% | 1 - 3% | 31% | ||||||||||||||
| Total Curtiss-Wright Sales | 6 - 8% | 7 - 9% | 100% | ||||||||||||||
| Note: Sales percentages may not add due to rounding. | |||||||||||||||||
Curtiss-Wright Corporation, Page 19
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,600 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.
###
Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent reports filed with the Securities and Exchange Commission.
This press release and additional information are available at www.curtisswright.com.
Contact: Jim Ryan
(704) 869-4621
Jim.Ryan@curtisswright.com