Curtiss-Wright Raises Outlook as Profit Outpaces Sales
Backlog reached $4.5 billion, up 10% from the end of 2025.
Curtiss-Wright Corp. (CW), an aerospace and defense manufacturer, raised its 2026 outlook after second-quarter profit outpaced sales as margins widened.
The quarter extended a shift toward stronger profitability even as top-line momentum cooled. Sales growth slowed from 13% in the first quarter, while adjusted operating margin increased 180 basis points sequentially.
Sales rose 5% from a year earlier to $924 million. Adjusted earnings increased 15% to $3.72 a share, while adjusted operating income climbed 12% to $179 million. Reported earnings of $4.07 a share included a $0.36-a-share gain on equity securities.
Adjusted operating margin expanded 110 basis points from a year earlier to 19.4%. Gross margin widened to about 39.4% from 37.2%, helped by service sales that grew about 13% and outpaced product-sales growth.
Aerospace & Industrial led the segments, with sales rising 12% to $268 million and adjusted operating income increasing 25%. Higher defense and commercial-aerospace demand, favorable product mix and restructuring benefits lifted the segment's margin to 18.4%.
Naval & Power sales increased 7% to $410 million as Virginia-class submarine timing, aftermarket demand and advanced-reactor work supported growth. Defense Electronics revenue fell 3% on tactical-communications timing and lower helicopter-program sales, though cost controls and a favorable embedded-computing mix raised its margin to 28.0%.
New orders rose 8% to $1.1 billion, producing a 1.16 book-to-bill ratio, though order growth slowed from 16% in the first quarter. Free cash flow increased 37% to $160 million, with conversion improving to 116% from 96%.
Curtiss-Wright now expects 2026 sales growth of 8% to 9% and adjusted earnings of $15.10 to $15.40 a share, marking the second outlook increase of the year. The company also raised free-cash-flow guidance to $585 million to $605 million, while the board increased the quarterly dividend 8% to $0.26 a share. Ground-defense sales remain projected to decline 4% to 6%.