Curtiss-Wright (CW) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $914 million, up 13% year-over-year, with operating income of $160 million, up 23%, and diluted EPS of $3.48, up 23–29%, driven by strong performance across all segments.

• Operating margin expanded to 17.5–17.6%, up 100–150 basis points, with all segments delivering margin expansion and strong operational execution.

• New orders grew 16% to $1.2 billion, with a 1.3x book-to-bill ratio and a record $4.3 billion order book.

• Net earnings rose 26% to $128 million, and gross profit increased to $331 million.

• All three business segments contributed to growth, supported by strong demand in defense, commercial nuclear, and industrial markets.

Financial highlights

• Q1 2026 sales were $914 million, up from $806 million in Q1 2025, with gross margin at 36.3%.

• Diluted EPS was $3.46–$3.48, up from $2.68 in Q1 2025.

• Free cash flow guidance for FY2026 raised to $580–$600 million, with >105% conversion.

• Backlog grew to $4.3 billion, up 5% from year-end 2025.

• Declared a quarterly dividend of $0.24 per share and repurchased 21,865–22,000 shares for $14 million.

Outlook and guidance

• Full-year 2026 sales growth guidance raised to 7–8%, with operating margin targeted at 19.0–19.2%.

• Diluted EPS guidance increased to $14.90–$15.30, up 13–16% year-over-year.

• Free cash flow guidance raised to $580–$600 million, reflecting >105% FCF conversion.

• Segment guidance: Aerospace & Industrial sales up 6–8%, Defense Electronics up 4–6%, Naval & Power up 9–11%.

• Capital expenditures for 2026 projected at $110–$120 million, with ~30% YOY increase for growth investments.