寇蒂斯萊特公司，第1頁
第99.1展示文本 | |||||
寇蒂斯萊特報告2024年第三季度財務業績，並提高2024年全年指引
北卡羅來納州戴維森 – 2024年10月30日 – 寇蒂斯萊特公司（紐交所：CW）發佈了截至2024年9月30日第三季度的財務報告。
Third Quarter 2024 Highlights:
•報告銷售額爲79900萬美元，增長 10%;
•報告營業收入爲14500萬美元，營業利潤率爲18.1%，每股收益(EPS)爲2.89美元；
•調整後的營業收入爲14900萬美元，增長11%;
•調整後的營業利潤率爲18.7%，上升了20個點子；
•調整後的攤薄後每股收益爲2.97美元，增長17%；
•新訂單爲86000萬美元，增長2%，反映出由我軍工股市場內強勁需求推動的訂單與賬單比爲1.1x；
•未處理的事項達到33億美元，年初至今增長16%；和
•自由現金流（FCF）爲$16300萬，產生142%的調整後自由現金流轉換率。
提高全年 2024年調整後的財務指引：
•銷售額增長至7%至9%的新區間（之前是6%至8%），主要受強勁推動 我們軍工市場增長較快；
•營業收入增加至新的7%到10%的增長區間（之前爲6%到9%）;
•與上年相比，保持在17.4%至17.6%的營業利潤率區間，與去年相比持平至上升20個點子;
•攤薄後每股收益增至新區間$10.55至$10.75，增長12%至15%（之前爲$10.40至$10.65，增長11%至14%）；並
•自由現金流增加至新區間$430到$45000萬，增長4%至9%（先前爲$425到$44500萬，增長3%至8%），並繼續反映超過105%的自由現金流轉換率。
寇蒂斯萊特 已實現 第三季度業績強勁，特點是 在我們的軍工股終端市場中實現了兩位數的營業收入增長， 我們的軍工股電子部門運營業績高於預期，攤薄後每股收益同比增長17%。，"寇蒂斯萊特公司的董事長兼首席執行官林恩·M·班福德表示。"我們繼續展現出可觀的訂單活動，季度整體訂單到賬比爲 1.1x ，特點是 在我們的軍工股電子部門實現了創紀錄的季度訂單。我們還實現了可觀的現金生成，導致自由現金流轉換率異常高達142%。 基於強勁的
表現和我們在執行"增長轉型"策略上持續保持的勢頭，我們再次提升了2024財年的銷售業績、攤薄後每股收益和自由現金流預期。 今年迄今爲止的交付總量 基於強勁的
表現和我們在執行"增長轉型"策略上持續保持的勢頭，我們再次提升了2024財年的銷售業績、攤薄後每股收益和自由現金流預期。
我們繼續利用我們強大的資產負債表，支持我們嚴格的資本配置戰略。這包括我們承諾的向股東提供穩定回報，我們在本季度完成了最近宣佈的10000萬美元的2024年股票回購計劃擴張。此外，我們繼續專注於通過符合我們嚴格財務標準的、高質量的戰略性收購來補充我們的有機增長，以推動長期股東價值。
寇蒂斯萊特股份有限公司，第2頁
2024 年第三季度經營業績
| （以百萬計） | Q3-2024 | Q3-2023 | 變更 | ||||||||
| 報告 | |||||||||||
| 銷售 | $ | 799 | $ | 724 | 10 | % | |||||
| 營業利潤 | $ | 145 | $ | 133 | 9 | % | |||||
| 營業利潤率 | 18.1 | % | 18.3 | % | （20 點子） | ||||||
調整後 (1) | |||||||||||
| 銷售 | $ | 799 | $ | 724 | 10 | % | |||||
| 營業利潤 | $ | 149 | $ | 134 | 11 | % | |||||
| 營業利潤率 | 18.7 | % | 18.5 | % | 20 點子 | ||||||
(1)報告與調整後運營結果的對賬可在附錄中找到。
•銷售額爲$79900萬，較去年增長10%；
•總的A&D市場銷售額增長了15%，我們在軍工股市場經歷了強勁增長，主要是由於防禦電子產品需求增加，海軍防禦領域的潛艇和航空母艦收入增加，以及商用航空航天市場的OEm銷售增加；
•商用市場總銷售額持平，反映了 動力和工藝市場實現了穩健增長，主要受到商業核產品銷售額的增加驅動，而一部分被 普通工業市場銷售額下降抵消；以及幫助孩子們跟蹤他們夏季口腔衛生習慣的材料。
•調整後的營業收入爲14900萬美元，增長了11%，而調整後的營業利潤率提高了20個點子，至18.7%，主要受到所有三個板塊收入增加而造成的有利間接費用分攤的影響，部分抵消的 產品組合不利。
寇蒂斯萊特股份有限公司，第3頁
2024年第三季度業績表現
航空航天與工業
| （以百萬計） | Q3-2024 | Q3-2023 | 變更 | ||||||||
| 報告 | |||||||||||
| 銷售 | $ | 229 | $ | 220 | 4 | % | |||||
| 營業利潤 | $ | 37 | $ | 39 | (4 | %) | |||||
| 營業利潤率 | 16.4 | % | 17.7 | % | (130 點子) | ||||||
調整後 (1) | |||||||||||
| 銷售 | $ | 229 | $ | 220 | 4 | % | |||||
| 營業利潤 | $ | 39 | $ | 39 | 1 | % | |||||
| 營業利潤率 | 17.2 | % | 17.7 | % | (50 個點子) | ||||||
(1)報告與調整後運營結果的對賬可在附錄中找到。
•銷售額爲2.29億美元，增長800萬美元，或 4%;
•商用航空市場營業收入增長反映出傳感器產品和狹體和寬體平台上的表面處理服務的強勁需求和更高OEM銷售。狹體和寬體平台上傳感器產品和表面處理服務的營業收入增長。
•航空軍工股市場的營業收入增加，反映了我們在各種戰鬥機項目中執行設備銷售時機。
•一般工業市場營業收入下降主要是由於工業車輛產品銷量減少所致 到場外車輛平台的工業車輛產品銷量減少以及工業自動化產品和服務銷量 減少；以及幫助孩子們跟蹤他們夏季口腔衛生習慣的材料。
•調整後的營業收入爲3900萬美元，比上年同期增長1%，而調整後的營業利潤率下降了50個點子至17.2%，因爲較高銷售額的有利吸收以及我們重組計劃的好處被產品組合的不利因素所抵消。
寇蒂斯萊特公司，第4頁
軍工電子
| （以百萬計） | Q3-2024 | Q3-2023 | 改變 | ||||||||
| 已舉報 | |||||||||||
| 銷售 | $ | 243 | $ | 216 | 12 | % | |||||
| 營業收入 | $ | 64 | $ | 56 | 13 | % | |||||
| 營業利潤率 | 26.2 | % | 26.0 | % | 20 個點子 | ||||||
調整後 (1) | |||||||||||
| 銷售 | $ | 243 | $ | 216 | 12 | % | |||||
| 營業收入 | $ | 64 | $ | 56 | 15 | % | |||||
| 營業利潤率 | 26.5 | % | 26.0 | % | 50 個點子 | ||||||
(1)報告與調整後運營結果的對賬可在附錄中找到。
•銷售額爲24300萬美元，增長2700萬美元，增長12%；
•軍工股市場營業收入增加主要是由國內外直升機項目中嵌入式計算設備銷量的增加推動的 我們嵌入式計算設備在國內外各種直升機項目中的銷售，部分被飛行測試設備銷售時間的偏移所抵消；
•地面防禦市場的營業收入強勁增長主要反映了戰術戰場通信設備銷售增加；
•更高的商用航空航天市場 營業收入主要反映了航空電子設備和電子產品在各種平台上的OEM銷售增加;並 OEM銷售的飛機電子設備和電子產品在各種平台上增加；並
•調整後的營業收入爲6400萬美元，比上一年增長15％，而調整後的營業利潤率提高了50個點子，達到26.5％， 主要是由於較高的軍火和國防收入產生了有利的吸收作用。
寇蒂斯萊特公司，第5頁
海軍 權力
| （以百萬計） | Q3-2024 | Q3-2023 | 變更 | ||||||||
| 報告 | |||||||||||
| 銷售 | $ | 327 | $ | 288 | 14 | % | |||||
| 營業利潤 | $ | 53 | $ | 48 | 11 | % | |||||
| 營業利潤率 | 16.2 | % | 16.6 | % | (40個點子) | ||||||
調整後 (1) | |||||||||||
| 銷售 | $ | 327 | $ | 288 | 14 | % | |||||
| 營業利潤 | $ | 54 | $ | 49 | 10 | % | |||||
| 營業利潤率 | 16.4 | % | 17.0 | % | (60個點子) | ||||||
(1)報告與調整後運營結果的對賬可在附錄中找到。
•電池銷售 電池電芯 32700萬美元，增長 3900萬美元，或14%
•海軍軍工領域營業收入大幅增長主要反映出對弗吉尼亞級潛艇、哥倫比亞級潛艇和CVN-81航母計劃的需求增加，以及各種下一代潛艇開發計劃的增長。
•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