Curtiss-Wright Soars: Q3 Net Earnings Up 12.3%, Backlog Hits $3.9B

TL;DR

**CW is flying high with strong defense demand and a massive backlog, making it a solid long-term play despite cash burn on buybacks.**

AI Summary

Curtiss-Wright Corporation reported robust financial performance for the three and nine months ended September 30, 2025. Total net sales increased by 8.8% to $869.17 million for the three-month period, up from $798.92 million in the prior year, and by 11.1% to $2.55 billion for the nine-month period, compared to $2.30 billion in 2024. Net earnings saw a significant rise, reaching $124.83 million for the quarter, an 12.3% increase from $111.16 million, and $347.23 million for the nine months, a 20.9% jump from $287.13 million. Diluted earnings per share also improved to $3.31 for the quarter and $9.19 for the nine months. The Aerospace & Defense segment was a key driver, with total sales growing to $617.71 million for the quarter and $1.79 billion for the nine months, primarily fueled by Naval Defense and Commercial Aerospace. The company's backlog stood strong at approximately $3.9 billion as of September 30, 2025, with 90% expected to be recognized as net sales within the next 36 months. Cash and cash equivalents decreased to $225.43 million from $385.04 million at December 31, 2024, largely due to significant common stock repurchases totaling $325.11 million during the nine-month period.

Why It Matters

This strong performance, particularly in the Aerospace & Defense sector, signals continued demand for Curtiss-Wright's specialized products and services, which is crucial for investors seeking stability in defense-related industries. The substantial $3.9 billion backlog provides excellent revenue visibility for the next three years, offering a competitive edge against peers with shorter-term contract cycles. For employees, this growth suggests job security and potential expansion opportunities. Customers benefit from a financially healthy supplier capable of sustained innovation. The broader market sees a resilient industrial player, reinforcing confidence in the defense and critical technology sectors amidst global uncertainties.

Risk Assessment

Risk Level: medium — While Curtiss-Wright shows strong operational performance, the significant decrease in cash and cash equivalents from $385.04 million to $225.43 million, coupled with $325.11 million in common stock repurchases during the nine months ended September 30, 2025, indicates aggressive capital allocation that could strain liquidity if market conditions shift. Additionally, the company's reliance on government contracts, particularly in Naval Defense, exposes it to potential budget fluctuations and policy changes.

Analyst Insight

Investors should consider Curtiss-Wright's strong backlog and consistent earnings growth as indicators of fundamental strength. However, monitor cash flow statements closely for future periods to ensure capital allocation, especially share repurchases, remains sustainable without jeopardizing operational liquidity or future investment capacity.

Financial Highlights

debt To Equity

N/A

revenue

$2.55B

operating Margin

17.7%

total Assets

$N/A

total Debt

$N/A

net Income

$347.23M

eps

$9.19

gross Margin

37.1%

cash Position

$225.43M

revenue Growth

+11.1%

Revenue Breakdown

Key Numbers

• $869.17M — Total Net Sales (Q3 2025) (Increased 8.8% from $798.92M in Q3 2024)
• $2.55B — Total Net Sales (YTD 2025) (Increased 11.1% from $2.30B in YTD 2024)
• $124.83M — Net Earnings (Q3 2025) (Increased 12.3% from $111.16M in Q3 2024)
• $347.23M — Net Earnings (YTD 2025) (Increased 20.9% from $287.13M in YTD 2024)
• $3.31 — Diluted EPS (Q3 2025) (Increased from $2.89 in Q3 2024)
• $9.19 — Diluted EPS (YTD 2025) (Increased from $7.47 in YTD 2024)
• $3.9B — Total Backlog (As of September 30, 2025, with 90% expected in next 36 months)
• $325.11M — Common Stock Repurchases (For the nine months ended September 30, 2025)
• $225.43M — Cash and Cash Equivalents (As of September 30, 2025, down from $385.04M at Dec 31, 2024)
• 36,874,638 — Shares Outstanding (As of October 31, 2025)

Key Players & Entities

• CURTISS-WRIGHT CORPORATION (company) — Registrant in 10-Q filing
• SEC (regulator) — U.S. Securities and Exchange Commission
• $869,170 (dollar_amount) — Total net sales for three months ended September 30, 2025
• $124,832 (dollar_amount) — Net earnings for three months ended September 30, 2025
• $3.9 billion (dollar_amount) — Total contract backlog as of September 30, 2025
• $325,112 (dollar_amount) — Common stock repurchases for nine months ended September 30, 2025
• $225,427 (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• New York Stock Exchange (company) — Exchange where CW Common Stock is registered
• FASB (regulator) — Financial Accounting Standards Board
• Bloomberg (company) — Financial news organization

FAQ

Risk Factors

• Supply Chain Disruptions [medium — market]: The company is subject to risks associated with global supply chain disruptions, which could impact the availability and cost of raw materials and components. This could lead to production delays and affect the ability to meet customer demand.
• Government Contract Compliance [high — regulatory]: A significant portion of revenue is derived from government contracts, particularly in the Aerospace & Defense segment. Non-compliance with government regulations, contract terms, or ethical standards could result in penalties, contract termination, or debarment.
• Integration of Acquisitions [medium — operational]: The company has a history of strategic acquisitions. The failure to successfully integrate acquired businesses, technologies, or personnel could disrupt operations, dilute shareholder value, and prevent the realization of expected synergies.
• Interest Rate Fluctuations [low — financial]: While interest expense has decreased, the company is exposed to interest rate risk. Changes in interest rates could affect the cost of borrowing and the valuation of financial instruments.
• Competition [medium — market]: Curtiss-Wright operates in competitive markets. Intense competition from domestic and international players could pressure pricing, market share, and profitability.
• Cybersecurity Threats [medium — operational]: The increasing reliance on digital systems and interconnectedness exposes the company to cybersecurity risks. A breach could compromise sensitive data, disrupt operations, and damage reputation.

Industry Context

Curtiss-Wright operates in the highly specialized Aerospace & Defense and Industrial sectors. The Aerospace & Defense market is characterized by long product cycles, significant R&D investment, and strong reliance on government contracts, with trends towards modernization and increased defense spending. The Industrial segment serves diverse end markets, benefiting from infrastructure investment and automation trends. Competition is intense, requiring continuous innovation and operational efficiency.

Regulatory Implications

The company's significant reliance on government contracts in its Aerospace & Defense segment subjects it to stringent regulatory oversight and compliance requirements. Adherence to defense procurement regulations, quality standards, and ethical conduct is critical to avoid penalties and maintain business relationships. Changes in government spending priorities or defense policies could also impact future revenue streams.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 and Nine-Month Period — Reporting period for the financial results, showing significant sales and earnings growth.
• 2025-10-31: Shares Outstanding Date — Indicates the number of shares outstanding as of this date, relevant for EPS calculations and market capitalization.
• 2024-12-31: Previous Year-End — Reference point for comparing cash and cash equivalents, showing a decrease in the current period.

Glossary

Diluted earnings per share

Net income divided by the weighted-average number of common shares outstanding, assuming all dilutive potential common shares (such as stock options and convertible securities) were exercised. (Indicates the profitability on a per-share basis, reflecting the impact of all potential shares.)

Backlog

The total value of orders received but not yet fulfilled or recognized as revenue. (A key indicator of future revenue and business activity.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its identifiable net assets. (Represents the premium paid for an acquisition, indicating potential future benefits.)

Other intangible assets, net

Assets that lack physical substance but are identifiable and provide future economic benefits, such as patents, trademarks, and customer lists, net of amortization. (Represents value derived from intellectual property and other non-physical assets.)

Comprehensive income

The total change in equity during a period from non-owner sources, including net income and other comprehensive income (OCI) items like foreign currency translation adjustments. (Provides a broader view of the company's performance beyond just net earnings.)

Year-Over-Year Comparison

Curtiss-Wright has demonstrated strong year-over-year growth in both revenue and net earnings for the nine months ended September 30, 2025, with sales up 11.1% and net earnings up 20.9%. This growth has led to an increase in diluted EPS to $9.19 from $7.47 in the prior year. While gross profit and operating income have also seen substantial increases, the company's cash position has decreased significantly from $385.04 million at the end of 2024 to $225.43 million, primarily due to substantial common stock repurchases totaling $325.11 million.

Key Financial Figures

• $1.00 — ticable date. Common Stock, par value $1.00 per share: 36,874,638 shares as of Octo

Filing Documents

• cw-20250930.htm (10-Q) — 1255KB
• exhibit31120250930.htm (EX-31.1) — 9KB
• exhibit31220250930.htm (EX-31.2) — 9KB
• exhibit3220250930.htm (EX-32) — 4KB
• 0001628280-25-050106.txt ( ) — 6298KB
• cw-20250930.xsd (EX-101.SCH) — 35KB
• cw-20250930_cal.xml (EX-101.CAL) — 70KB
• cw-20250930_def.xml (EX-101.DEF) — 134KB
• cw-20250930_lab.xml (EX-101.LAB) — 492KB
• cw-20250930_pre.xml (EX-101.PRE) — 317KB
• cw-20250930_htm.xml (XML) — 1015KB

– FINANCIAL INFORMATION PAGE

PART I – FINANCIAL INFORMATION PAGE

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): Condensed Consolidated Statements of Earnings 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statements of Stockholders' Equity 8 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 32

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 36

Signatures

Signatures 37 Page 3 PART 1- FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CURTISS-WRIGHT CORPORATION and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share data) 2025 2024 2025 2024 Net sales Product sales $ 739,094 $ 684,216 $ 2,164,750 $ 1,941,327 Service sales 130,076 114,702 386,641 355,549 Total net sales 869,170 798,918 2,551,391 2,296,876 Cost of sales Cost of product sales 470,677 434,370 1,392,020 1,252,773 Cost of service sales 71,023 66,285 213,280 207,984 Total cost of sales 541,700 500,655 1,605,300 1,460,757 Gross profit 327,470 298,263 946,091 836,119 Research and development expenses 23,407 20,734 69,734 65,866 Selling expenses 40,559 37,311 122,248 109,202 General and administrative expenses 96,449 92,035 299,549 281,092 Restructuring expenses 804 3,280 2,797 6,198 Operating income 166,251 144,903 451,763 373,761 Interest expense 10,484 11,408 31,151 33,194 Other income, net 5,386 10,126 22,398 28,294 Earnings before income taxes 161,153 143,621 443,010 368,861 Provision for income taxes ( 36,321 ) ( 32,461 ) ( 95,780 ) ( 81,735 ) Net earnings $ 124,832 $ 111,160 $ 347,230 $ 287,126 Basic earnings per share $ 3.34 $ 2.91 $ 9.24 $ 7.51 Diluted earnings per share $ 3.31 $ 2.89 $ 9.19 $ 7.47 Dividends per share 0.24 0.21 0.69 0.62 Weighted-average shares outstanding: Basic 37,430 38,208 37,582 38,245 Diluted 37,663 38,451 37,786 38,451 See notes to condensed consolidated financial statements Page 4 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Net earnings $ 124,832 $ 111,160 $ 347,230 $ 287,126 Other comprehensive income (loss) Foreign currency translation adjustments, net of tax (1) $ ( 13,975 ) $ 30,667 $ 61,869 $ 9,644 Pension and postretirement adjustments, net