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 $3.46, up 29%; all segments contributed to growth and margin expansion.

• New orders increased 16% to $1.2 billion, resulting in a 1.3x book-to-bill ratio and a record $4.3 billion backlog.

• Strategic investments in R&D, infrastructure, and restructuring initiatives supported innovation, operational excellence, and future organic growth.

• All three business segments delivered margin expansion and strong operational execution.

Financial highlights

• Q1 2026 sales were $914 million, up from $806 million in Q1 2025, with gross profit of $331 million and gross margin of 36.3%.

• Operating margin improved to 17.6% (adjusted), up 100 basis points year-over-year; reported margin was 17.5%.

• Diluted EPS grew 23% to $3.48; net earnings rose 26% to $128 million.

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

• Cash and cash equivalents at quarter-end were $343 million.

Outlook and guidance

• Full-year 2026 sales expected to grow 7–8%, with operating income growth of 9–12% and margin of 19.0–19.2%.

• Diluted EPS guidance raised 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.