NYSE:CW
CURTISS WRIGHT CORP
A premier global innovator of high-performance systems for aerospace, defense, and building sectors, delivering critical components that drive industry efficiency and safety.
Key Metrics
Investment Thesis
Bull Case
Investors should consider CW as a defensive growth play within the industrial sector, supported by consistent revenue expansion and a widening profit margin trajectory from 11.5% in 2022 to 13.8% in 2025. The company's aggressive capital return program, demonstrated by $464.9M in share repurchases alongside a healthy dividend payout of $34.7M, signals confidence in its long-term value creation potential. Strong free cash flow generation allows for strategic M&A or further buybacks, enhancing per-share metrics while diversifying against broader economic downturns.
Bear Case
Skeptics may point to the company's elevated debt levels and significant accumulated other comprehensive losses of $-173.8M as indicators of potential balance sheet stress under prolonged market volatility. The substantial reduction in cash reserves from $385.0M to $371.3M, coupled with large revolver repayments of $475.1M, could constrain future investment capabilities if growth capital needs intensify. Additionally, the concentration risk in the aerospace sector remains a headwind, as any regulatory or supply chain disruption could disproportionately affect this high-value segment.
About CURTISS WRIGHT CORP
CURTISS WRIGHT CORP (CW) is a leading global provider of high-performance systems and solutions for the aerospace, defense, building, and transportation industries. The company leverages its advanced materials expertise and engineering capabilities to deliver critical components such as actuators, thermal management systems, and specialized composites to major original equipment manufacturers. With a diversified revenue base spanning aviation, industrial markets, and infrastructure, CW serves customers who require reliability and innovation in complex environments.
Analysis
Management Discussion
Management successfully navigated recent market dynamics to drive revenue growth from $2.56B in 2022 to $3.50B in 2025, while net income expanded from $294.3M to $484.2M over the same period. Despite significant cash outflows for financing ($-578.3M) and investing activities ($-90.1M), including substantial share repurchases of $464.9M, the company maintained robust operating cash flow of $643.4M, indicating strong earnings quality. The increase in inventory by $63.5M suggests proactive supply chain positioning ahead of anticipated demand spikes, balancing working capital needs with growth opportunities.
Industry Overview
The global industrial systems and materials market is characterized by high barriers to entry due to stringent safety regulations and the need for specialized engineering expertise. Key sectors like commercial aviation and defense are currently experiencing robust demand, driven by fleet modernization programs and increased focus on sustainable manufacturing technologies. Consolidation trends favor established players with proven track records, allowing companies like CW to capture market share from smaller, less agile competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.56B | $2.85B | $3.12B | $3.50B |
| Cost of Revenue | $1.60B | $1.78B | $1.97B | $2.20B |
| Gross Profit | $954.6M | $1.07B | $1.15B | $1.30B |
| Operating Expenses | $531.2M | $582.6M | $625.0M | $668.0M |
| Operating Income | $423.4M | $484.6M | $528.6M | $633.5M |
| R&D | $80.8M | $85.8M | $91.6M | $95.2M |
| G&A | $324.1M | $359.7M | $373.5M | $399.6M |
| Stock-Based Comp | $15.4M | $16.8M | $18.9M | $21.5M |
| D&A | $112.0M | $116.2M | $107.7M | $124.8M |
| Depreciation | $51.0M | $51.0M | $50.0M | $53.0M |
| Amortization | $61.0M | $65.0M | $57.0M | $72.0M |
| Other OpEx | $126.2M | $137.1M | $159.8M | $173.2M |
| Non-Operating Income | $-34.2M | $-21.5M | $-6.5M | $-13.5M |
| Interest Expense | $47.0M | $51.4M | — | — |
| Pre-Tax Income | $389.2M | $463.1M | $522.1M | $620.0M |
| Income Tax | $94.8M | $108.6M | $117.1M | $135.8M |
| Continuing Ops | $294.3M | $354.5M | $405.0M | $484.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $294.3M | $354.5M | $405.0M | $484.2M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $294.3M | $354.5M | $405.0M | $484.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.52B | $1.72B | $1.85B | $2.02B |
| Inventory | $483.1M | $510.0M | $541.4M | $615.1M |
| Other Current Assets | $1.03B | $1.21B | $1.31B | $1.40B |
| Long-Term Assets | $2.93B | $2.90B | $3.14B | $3.20B |
| PP&E (Net) | $342.7M | $332.8M | $339.1M | $382.2M |
| Intangibles | $620.9M | $557.6M | $596.8M | $532.4M |
| Goodwill | $1.54B | $1.56B | $1.68B | $1.69B |
| Operating Leases | $153.9M | $141.4M | $169.3M | $198.6M |
| Other LT Assets | $270.2M | $313.2M | $355.1M | $397.1M |
| Total Assets | $4.45B | $4.62B | $4.99B | $5.22B |
| Current Liabilities | $971.4M | $806.5M | $1.10B | $1.41B |
| Accounts Payable | $266.5M | $243.8M | $247.2M | $310.3M |
| Current Leases | $29.9M | $30.6M | $29.8M | $31.7M |
| Other Current Liab | $497.5M | $344.0M | $599.9M | $820.6M |
| Long-Term Liabilities | $1.49B | $1.49B | $1.44B | $1.28B |
| Long-Term Debt | $1.05B | $1.05B | $958.9M | $757.9M |
| LT Operating Leases | $132.3M | $118.6M | $148.2M | $178.5M |
| Other LT Liab | $301.9M | $317.0M | $332.8M | $345.8M |
| Total Liabilities | $2.46B | $2.29B | $2.54B | $2.69B |
| Shareholders' Equity | $1.99B | $2.33B | $2.45B | $2.53B |
| Retained Earnings | $3.17B | $3.49B | $3.86B | $4.31B |
| AOCI | $-258.9M | $-213.2M | $-243.2M | $-173.8M |
| Treasury Stock | $1.11B | $1.14B | $1.37B | $1.82B |
| Total L&E | $4.45B | $4.62B | $4.99B | $5.22B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $294.3M | $354.5M | $405.0M | $484.2M |
| Non-Cash Adjustments | $-254.7M | $29.4M | $-135.1M | $-117.0M |
| Working Capital Changes | $255.2M | $64.2M | $274.3M | $276.2M |
| Cash from Operations | $294.8M | $448.1M | $544.3M | $643.4M |
| Capital Expenditures | $38.2M | $44.7M | $61.0M | $89.7M |
| Cash from Investing | $-325.9M | $-35.5M | $-283.3M | $-90.1M |
| Share Buybacks | $56.9M | $50.1M | $250.0M | $464.9M |
| Dividends Paid | $28.8M | $30.2M | $31.7M | $34.7M |
| Cash from Financing | $129.4M | $-273.4M | $-271.5M | $-578.3M |
| FX Effect | $-12.4M | $10.7M | $-11.3M | $11.3M |
| Net Change in Cash | $86.0M | $149.9M | $-21.8M | $-13.7M |
| Beginning Cash | $171.0M | $257.0M | $406.9M | $385.0M |
| Ending Cash | $257.0M | $406.9M | $385.0M | $371.3M |
Frequently Asked Questions
How does CURTISS WRIGHT CORP make money?
The company's financial profile reflects four primary revenue streams: Aerospace & Defense, which supplies actuators and thermal management systems to commercial and military aircraft; Building & Infrastructure, providing fire detection, control systems, and insulation solutions; Transportation, offering materials for automotive and heavy truck applications; and Industrial, delivering specialized composites and electronic products for medical, energy, and other sectors.
What are the main risks for CW?
Significant exposure to cyclical fluctuations in the aerospace industry could impact revenue growth if defense or commercial aviation demand slows unexpectedly. Heavy reliance on a few large customers and complex global supply chains poses operational risks, particularly given the company's substantial goodwill of $1.69B that requires monitoring for impairment. Foreign exchange volatility and geopolitical tensions affecting international operations could erode margins, while high levels of long-term debt ($757.9M) limit financial flexibility in a rising interest rate environment.
What is CW's competitive advantage?
CW possesses a deep technical moat built on decades of R&D investment ($95.2M in the latest year), enabling proprietary material science that competitors cannot easily replicate. Its global footprint and long-standing partnerships with top-tier OEMs create high switching costs and stable cash flows, evidenced by strong operating cash flow of $643.4M relative to net income. The company's asset-light manufacturing model and extensive patent portfolio protect its market share against emerging entrants.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.