Curtiss-Wright (CW) 19th Annual Global Transportation & Industrials Conference summary

Defense and naval market outlook

• Naval defense business represents over 25% of operations, with strong long-term growth prospects driven by content on platforms like Virginia-class, Columbia-class, and CVN aircraft carriers.

• Government investment in capacity has increased from $15 million to over $60 million, supporting capital improvements and expanded delivery capabilities.

• Additive manufacturing leadership and tech insertions are expected to double or triple content on future SSN(X) submarines, with additional growth from aftermarket and FMS sales.

• Focus on becoming a second source for major ship components, positioning for incremental work and sustained growth into the 2030s.

• Battleship ship set content is anticipated to fall between that of a carrier and a Virginia-class submarine, with early discussions underway.

Defense electronics and order book trends

• Defense Electronics segment saw record-setting order growth, with Q1 orders up 18% year-over-year and April up 46%, supporting confidence in full-year guidance.

• Revenue expected to be flat in Q2, with sequential ramp in Q3 and Q4; short-cycle business model enables rapid response to order flow.

• Margin ceiling not specified due to ongoing reinvestment in growth and technology, aligned with the Pivot to Growth strategy.

• Products aligned with government mandates (MOSA, SOSA) and partnerships (e.g., NVIDIA) support applicability across defense priorities.

International and commercial nuclear business

• International business has grown at a mid-teen pace, now about 10% of total, with FMS outlook raised for 2026 and strong content on major fighter jets and ground vehicles.

• Margin profile for international Defense Electronics is on par with domestic, while Naval & Power segment margins are expected to be accretive.

• Commercial nuclear aftermarket represents 90% of the segment, with growth driven by license renewals and plant life extensions in the U.S., Canada, and Korea.

• AP1000 new build orders expected soon, with each plant representing $150M-$160M in content; U.S. and Poland are leading candidates for initial orders.

• U.S. plans include two separate tranches of 10 plants each, with additional projects possible; revenue impact likely in 2027 and beyond.