Curtiss-Wright (CW) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $924 million, up 5% year-over-year, with operating income of $179 million, and diluted EPS up to $4.07; strong performance driven by Aerospace & Industrial and Naval & Power, while Defense Electronics saw a slight sales decline but record orders and margin expansion.

• Free cash flow was $160 million, up 37% year-over-year, with a 116% conversion rate; new orders reached $1.1 billion, up 8%, and backlog rose to $4.5 billion.

• Margin expansion and operational efficiency were achieved across all segments, supported by the Pivot to Growth strategy and restructuring benefits.

• Net earnings for Q2 were $151 million, up 25% year-over-year, aided by higher operating income and increased other income.

• Full-year 2026 guidance was raised for sales, earnings, and free cash flow, reflecting robust demand in A&D, commercial, and nuclear markets.

Financial highlights

• Q2 2026 sales: $924 million (+5% YoY); operating income: $179 million (+14% YoY); operating margin: 19.3%–19.4% (+110–150 bps YoY); gross profit: $364 million (39.4% margin).

• Diluted EPS: $4.07 (+28% YoY); adjusted EPS: $3.72 (+15% YoY); net earnings: $151 million (+25% YoY).

• Free cash flow: $160 million (+37% YoY), with 116% conversion; operating cash flow for six months: $176 million.

• New orders: $1.1 billion (+8% YoY); book-to-bill: 1.16x; backlog: $4.5 billion, up 10% from year-end 2025.

• Dividend per share increased to $0.26, marking the 10th consecutive annual increase.

Outlook and guidance

• Full-year 2026 sales growth guidance raised to 8–9%, with operating income growth of 11–13% and margin expansion to 19.1–19.3%.

• Diluted EPS guidance raised to $15.10–$15.40, up 14–16% year-over-year.

• Free cash flow guidance increased to $585–$605 million, with conversion rate above 105%.

• Segment sales growth guidance: Aerospace & Industrial 8–10%, Defense Electronics 4–6%, Naval & Power 10–11%.

• Minimum $60 million share repurchase planned for 2026 to offset dilution.