Curtiss-Wright Raises 2026 Outlook After Faster Sales Growth

The Tip Desk · November 5, 2026 · 4 min read

Third-quarter sales reached $953 million, up 10%, and the company lifted full-year adjusted sales growth to 8% to 10%.

Curtiss-Wright Corporation (CW) reported third-quarter sales of $953 million, up 10% from a year earlier, after 5% growth in the second quarter, and raised its full-year 2026 adjusted sales outlook to 8% to 10% growth from 8% to 9%.

The aerospace and defense products maker also lifted adjusted operating income guidance to 12% to 14% growth from 11% to 13%, operating margin to 19.2% to 19.4% from 19.1% to 19.3%, diluted EPS to $15.40 to $15.60 from $15.10 to $15.40, and free cash flow to $595 million to $615 million from $585 million to $605 million.

Reported operating income was $188 million, or a 19.7% margin. Adjusted operating income was $189 million, up 11%, and the adjusted operating margin was 19.9%. Diluted EPS was $3.77; adjusted diluted EPS was $3.94, up 16%.

Chair and CEO Lynn M. Bamford said the quarter was highlighted by double-digit growth in both revenue and operating income and mid-teens growth in adjusted diluted EPS, and that orders increased 15% year-over-year, primarily driven by continued strong demand in defense electronics and growth across all of the company’s A&D markets.

Aerospace & Industrial was the largest sales contributor among the three reportable segments. Sales were $282 million, up 14%. Adjusted operating income was $55 million, up 19%, and the adjusted operating margin was 19.4%, up 80 basis points. The company said growth in aerospace defense reflected actuation equipment and sensors for fighter jet programs, commercial aerospace reflected higher OEM sensor sales and surface treatment on narrowbody and widebody platforms, and general industrial reflected industrial vehicle products.

Naval & Power sales were $412 million, up 12%. Adjusted operating income was $76 million, up 25%, and the adjusted operating margin was 18.6%, up 200 basis points. The company attributed naval defense growth to the timing of production on Columbia-class and Virginia-class submarine programs and higher aftermarket revenue on aircraft carrier refueling and overhaul projects, aerospace defense growth to arresting systems equipment, and power & process growth to commercial nuclear solutions as several projects moved from development into the initial prototype stage, plus higher government nuclear revenues.

Defense Electronics sales were $259 million, up 2%. Adjusted operating income was $70 million, down 5%, and the adjusted operating margin was 27.0%, down 220 basis points. The company said aerospace defense growth on embedded computing for helicopter and international fighter jet programs was partially offset by the timing of production on unmanned aerial vehicle programs, that ground defense growth came from turret drive stabilization systems while tactical communications were essentially flat, and that lower commercial aerospace revenues reflected the timing of avionics sales to OEM customers. Favorable absorption on higher revenues was more than offset by unfavorable mix of products and higher investment in research and development.

By end market, total Aerospace & Defense sales increased 9% and Commercial sales increased 11%. Aerospace Defense sales were $186.4 million, up 16%; Naval Defense $271.5 million, up 10%; Commercial Aerospace $120.4 million, up 6%; Ground Defense $95.8 million, down 1%; Power & Process $164.7 million, up 10%; and General Industrial $113.8 million, up 12%.

New orders were $1.1 billion, up 15%, with a 1.1x book-to-bill. Backlog was $4.6 billion, up 12% from December 31, 2025. The company said orders were driven by strong demand across all of its defense markets, as well as continued order growth in commercial aerospace and general industrial.

Free cash flow was $157 million, down 11% from a year earlier, with 108% FCF conversion. The company said higher capital investments and higher tax payments more than offset higher cash earnings.

In the third quarter the company repurchased about 538,000 shares for about $352 million and remains on track to repurchase a total of $460 million in shares in 2026. In September the board authorized an additional $510 million for future share repurchases, increasing available authorization to $700 million. Entering 2027, the company expects remaining open repurchase authorization of $600 million. It declared a quarterly dividend of $0.26 a share.

Full-year 2026 Aerospace Defense sales growth guidance was raised to 14% to 16% from 12% to 14%, Naval Defense to 9% to 11% from 7% to 9%, and General Industrial to 3% to 5% from 1% to 3%. Ground Defense guidance was narrowed to a 2% to 4% decline from a 4% to 6% decline.