Earnings release
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CURTISS- WRIGHT NEWS RELEASE Curtiss - Wright Corporation , Page 1 CW LISTED NYSE CURTISS - WRIGHT REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS AND RAISES FULL - YEAR 2026 GUIDANCE DAVIDSON , N.C. – August 5 , 2026 - Curtiss - Wright Corporation ( NYSE : CW ) reports financial results for the second quarter ended June 30 , 2026 . Second Quarter 2026 Highlights : • • Reported sales of $ 924 million , up 5 % , operating income of $ 179 million , operating margin of 19.3 % , and diluted earnings per share ( EPS ) of $ 4.07 ; Adjusted operating income of $ 179 million , up 12 % ; Adjusted operating margin of 19.4 % , up 110 basis points ; Adjusted diluted EPS of $ 3.72 , up 15 % ; New orders of $ 1.1 billion , up 8 % , reflecting a 1.16x book - to - bill ; and Free cash flow ( FCF ) of $ 160 million , generating 116 % FCF conversion . Raised Full - Year 2026 Adjusted Financial Outlook : • • • Sales increased to new range of 8 % to 9 % growth ( previously 7 % to 8 % ) , reflecting growth in the majority of Curtiss - Wright's end markets ; Operating income increased to new range of 11 % to 13 % growth ( previously 9 % to 12 % ) ; Operating margin increased to new range of 19.1 % to 19.3 % ( previously 19.0 % to 19.2 % ) , representing an increase of 50 to 70 basis points compared with the prior year ; Diluted EPS increased to new range of $ 15.10 to $ 15.40 , now up 14 % to 16 % ( previously $ 14.90 to $ 15.30 , up 13 % to 16 % ) ; and FCF increased by $ 5 million to new range of $ 585 to $ 605 million , which continues to reflect greater than 105 % FCF conversion . " Curtiss - Wright delivered strong second quarter results , highlighted by mid - single digit revenue growth , operating margin expansion in all three segments , mid - teens growth in Adjusted diluted EPS , and better - than - expected free cash flow generation , " said Lynn M. Bamford , Chair and CEO of Curtiss - Wright Corporation . " The momentum continues to build in our order book , underscored by record demand for our defense electronics products . Overall , we experienced strong order growth in both our A & D and Commercial markets , as total orders increased 8 % year - over - year and resulted in an overall book - to - bill of 1.16x . " " Based on our strong first - half execution and our outlook for the remainder of the year , we are confidently raising our full - year outlook for sales , operating income , operating margin , diluted
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Curtiss-Wright Corporation, Page 2 EPS and free cash flow. Curtiss-Wright remains strategically aligned with many favorable secular trends and embedded growth vectors across our A&D and Commercial markets. Overall, the team is successfully executing on our Pivot to Growth strategy, which will enable us to continue to deliver significant long-term profitable growth for Curtiss-Wright stakeholders." Second Quarter 2026 Operating Results (In millions) Q2-2026 Q2-2025 Change Reported Sales $ 924 $ 877 5% Operating income $ 179 $ 156 14% Operating margin 19.3% 17.8% 150 bps Adjusted (1) Sales $ 924 $ 877 5% Operating income $ 179 $ 160 12% Operating margin 19.4% 18.3% 110 bps (1) Reconciliations of Reported to Adjusted operating results are available in the Appendix. • Sales of $924 million increased 5% compared with the prior year period; • Total Aerospace & Defense (A&D) market sales increased 6%, while total Commercial market sales increased 5%; • In our A&D markets, we experienced solid growth in the defense markets, principally driven by higher naval defense revenues, overall higher sales of electromechanical actuation equipment and continued strong OEM sales growth in the commercial aerospace market; • In our Commercial markets, we experienced solid growth in the power & process market mainly driven by higher sales of commercial nuclear solutions, as well as modest sales growth in the general industrial market reflecting higher sales of industrial vehicle products; and • Adjusted operating income of $179 million increased 12%, while Adjusted operating margin increased 110 basis points to 19.4%. This performance was driven by favorable absorption on higher revenues, favorable mix in the Aerospace & Industrial and Defense Electronics segments, and the benefits of the Company's restructuring initiatives, partially offset by higher investment in research and development.
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Curtiss-Wright Corporation, Page 3 Second Quarter 2026 Segment Performance Aerospace & Industrial (In millions) Q2-2026 Q2-2025 Change Reported Sales $ 268 $ 239 12% Operating income $ 49 $ 39 26% Operating margin 18.3% 16.3% 200 bps Adjusted (1) Sales $ 268 $ 239 12% Operating income $ 49 $ 40 25% Operating margin 18.4% 16.6% 180 bps (1) Note: Reconciliations of Reported to Adjusted operating results are available in the Appendix. • Sales of $268 million, up $29 million, or 12%; • Growth in our defense markets reflected increased sales of sensors products and actuation equipment supporting various domestic and international fighter jet programs, in addition to higher sales of electromechanical actuation equipment; • Commercial aerospace market revenue growth reflected higher OEM sales of actuation equipment, sensors products and surface treatment services on both narrowbody and widebody platforms; • Growth in the general industrial market reflected the benefit of higher sales of industrial vehicle products principally serving off-highway vehicle platforms; and • Adjusted operating income was $49 million, up 25% from the prior year, while Adjusted operating margin increased 180 basis points to 18.4%, driven by favorable absorption on higher revenues, mix of products, and the benefits of the Company's restructuring initiatives, partially offset by higher investment in research and development.
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Curtiss-Wright Corporation, Page 4 Defense Electronics (In millions) Q2-2026 Q2-2025 Change Reported Sales $ 246 $ 253 (3%) Operating income $ 69 $ 68 1% Operating margin 28.0% 26.8% 120 bps Adjusted (1) Sales $ 246 $ 253 (3%) Operating income $ 69 $ 68 1% Operating margin 28.0% 26.8% 120 bps (1) Note: Reconciliations of Reported to Adjusted operating results are available in the Appendix. • Sales of $246 million, down $7 million, or 3%; • Higher revenue in the aerospace defense market was principally driven by increased sales of embedded computing equipment on various domestic fighter jet and unmanned aerial vehicle (UA V) programs, partially offset by lower sales on various helicopter programs; • Lower ground defense market revenues reflected the timing of tactical communications equipment sales, partially offset by higher sales of turret drive stabilization and radar systems equipment to various international customers; and • Adjusted operating income was $69 million, up 1% from the prior year, while Adjusted operating margin increased 120 basis points to 28.0%, reflecting favorable mix of embedded computing revenues and the benefits of the Company's cost containment initiatives, which more than offset higher investment in research and development.
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Curtiss-Wright Corporation, Page 5 Naval & Power (In millions) Q2-2026 Q2-2025 Change Reported Sales $ 410 $ 384 7% Operating income $ 71 $ 60 18% Operating margin 17.3% 15.7% 160 bps Adjusted (1) Sales $ 410 $ 384 7% Operating income $ 71 $ 64 12% Operating margin 17.3% 16.5% 80 bps (1) Note: Reconciliations of Reported to Adjusted operating results are available in the Appendix. • Sales of $410 million, up $26 million, or 7%; • Revenue growth in the naval defense market was principally driven by timing of revenues on the Virginia-class submarine program and higher aftermarket revenue supporting naval shipyards; • Power & process market revenues primarily reflected higher sales of commercial nuclear solutions supporting next-generation advanced reactors, as these projects continue to transition from development into the initial prototype stage, as well as higher government nuclear revenues; and • Adjusted operating income was $71 million, up 12% from the prior year, while adjusted operating margin increased 80 basis points to 17.3%, primarily due to favorable absorption on higher revenues.
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Curtiss-Wright Corporation, Page 6 Free Cash Flow (In millions) Q2-2026 Q2-2025 Change Net cash provided by operating activities $ 181 $ 137 33% Net capital expenditures (21) (19) 8% Free cash flow $ 160 $ 117 37% • Free cash flow of $160 million increased $43 million, principally driven by higher cash earnings, lower working capital, and lower tax payments. New Orders and Backlog • New orders of $1.1 billion increased 8% compared with the prior year, driven by record demand for our defense electronics products. In our A&D markets, we experienced strong growth in aerospace and ground defense, as well as continued strong demand for commercial aerospace products, while our Commercial markets reflected solid demand for commercial nuclear, process and industrial products; and • Backlog of $4.5 billion, up 10% from December 31, 2025, reflecting strong demand across the A&D and Commercial markets. Share Repurchase and Dividends • During the second quarter, the Company repurchased 20,105 shares of its common stock for approximately $15 million; • In May 2026, the Company's Board of Directors authorized an 8% increase in the quarterly dividend, from twenty-four cents ($0.24) per share to twenty -six cents ($0.26) per share, which represented the 10th consecutive year that Curtiss-Wright has increased its dividend; and • During the second quarter, the Company declared a quarterly dividend of $0.26 a share.
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Curtiss-Wright Corporation, Page 7 Full-Year 2026 Guidance The Company is updating its full-year 2026 Adjusted financial guidance(1) as follows: ($ in millions, except EPS) 2026 Adjusted Non-GAAP Guidance (Prior) 2026 Adjusted Non-GAAP Guidance (Current) Change vs 2025 Adjusted (Current) Total Sales $3,740 - $3,795 $3,768 - $3,813 8 - 9% Operating Income $712 - $729 $720 - $736 11 - 13% Operating Margin 19.0% - 19.2% 19.1% - 19.3% 50 - 70 bps Diluted EPS $14.90 - $15.30 $15.10 - $15.40 14 - 16% Free Cash Flow(2) $580 - $600 $585 - $605 6 - 9% (1) Reconciliations of Reported to Adjusted 2025 operating results and 2026 financial guidance are available in the Appendix, and exclude first-year purchase accounting costs associated with prior-year acquisitions, costs associated with both our FY24 and FY26 Restructuring Programs, and a current-year gain on equity securities held for investment purposes. (2) 2026 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency, reflecting a year-over-year increase of approximately $25 million compared with 2025 results. ********** A more detailed breakdown of the Company’s 2026 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website. Conference Call & Webcast Information The Company will host a conference call to discuss its second quarter 2026 financial results and updates to 2026 guidance at 10:00 a.m. ET on Thursday, August 6, 2026. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available by visiting the Investor Relations section of the Company’s website at www.curtisswright.com. (Tables to Follow)
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Curtiss-Wright Corporation, Page 8 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) ($'s in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Product sales $ 777,167 $ 746,679 $ 1,548,186 $ 1,425,656 Service sales 146,841 129,897 289,509 256,565 Total net sales 924,008 876,576 1,837,695 1,682,221 Cost of product sales 478,529 479,253 983,044 921,343 Cost of service sales 81,389 71,166 159,078 142,257 Total cost of sales 559,918 550,419 1,142,122 1,063,600 Gross profit 364,090 326,157 695,573 618,621 Research and development expenses 25,140 23,308 49,322 46,327 Selling expenses 46,012 41,764 90,558 81,689 General and administrative expenses 113,730 104,071 216,066 203,100 Restructuring expenses 517 707 1,427 1,993 Operating income 178,691 156,307 338,200 285,512 Interest expense 9,926 10,524 19,867 20,667 Other income, net 25,530 10,982 33,727 17,012 Earnings before income taxes 194,295 156,765 352,060 281,857 Provision for income taxes (43,127) (35,704) (72,706) (59,459) Net earnings $ 151,168 $ 121,061 $ 279,354 $ 222,398 Basic earnings per share $ 4.09 $ 3.21 $ 7.57 $ 5.90 Diluted earnings per share $ 4.07 $ 3.19 $ 7.53 $ 5.87 Dividends per share $ 0.26 $ 0.24 $ 0.50 $ 0.45 Weighted-average shares outstanding: Basic 36,939 37,692 36,914 37,682 Diluted 37,120 37,903 37,085 37,871
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Curtiss-Wright Corporation, Page 9 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) ($'s in thousands, except par value) June 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 477,149 $ 371,345 Receivables, net 997,350 932,344 Inventories, net 668,728 615,097 Other current assets 93,788 99,688 Total current assets 2,237,015 2,018,474 Property, plant, and equipment, net 386,462 382,200 Goodwill 1,686,728 1,692,490 Other intangible assets, net 501,027 532,381 Operating lease right-of-use assets, net 212,475 198,603 Prepaid pension asset 347,356 333,547 Other assets 84,603 63,597 Total assets $ 5,455,666 $ 5,221,292 Liabilities Current liabilities: Current portion of long-term and short-term debt $ 200,000 $ 200,000 Accounts payable 285,335 310,303 Accrued expenses 216,537 242,942 Deferred revenue 593,849 561,452 Other current liabilities 100,890 90,870 Total current liabilities 1,396,611 1,405,567 Long-term debt 757,387 757,884 Deferred tax liabilities, net 161,399 154,002 Accrued pension and other postretirement benefit costs 69,192 71,417 Long-term operating lease liability 191,594 178,466 Other liabilities 109,623 120,382 Total liabilities $ 2,685,806 $ 2,687,718 Stockholders' equity Common stock, $1 par value $ 49,187 $ 49,187 Additional paid in capital 168,981 165,014 Retained earnings 4,571,562 4,310,680 Accumulated other comprehensive loss (189,969) (173,812) Less: cost of treasury stock (1,829,901) (1,817,495) Total stockholders' equity $ 2,769,860 $ 2,533,574 Total liabilities and stockholders' equity $ 5,455,666 $ 5,221,292
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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 provide more relevant 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 Sales, 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, transaction costs, and gains/losses on equity securities held for investment purposes; (ii) costs associated with the Company's 2026 Restructuring Program in the current period and t he Company's 2024 Restructuring Program in the prior period, as applicable; and (iii) a current period gain on equity securities held for investment purposes.
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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 June 30, 2026 June 30, 2025 % Change As Reported Adjustments Adjusted As Reported Adjustments Adjusted As Reported Adjusted Sales: Aerospace & Industrial $ 267,765 $ — $ 267,765 $ 239,138 $ — $ 239,138 12 % 12 % Defense Electronics 245,987 — 245,987 253,011 — 253,011 (3) % (3) % Naval & Power 410,256 — 410,256 384,427 — 384,427 7 % 7 % Total sales $ 924,008 $ — $ 924,008 $ 876,576 $ — $ 876,576 5 % 5 % Operating income (expense): Aerospace & Industrial(2) $ 49,004 $ 399 $ 49,403 $ 39,006 $ 582 $ 39,588 26 % 25 % Defense Electronics(2) 68,768 30 68,798 67,833 19 67,852 1 % 1 % Naval & Power(1)(2) 71,019 88 71,107 60,416 3,134 63,550 18 % 12 % Total segments $ 188,791 $ 517 $ 189,308 $ 167,255 $ 3,735 $ 170,990 13 % 11 % Corporate and other(2) (10,100) — (10,100) (10,948) — (10,948) 8 % 8 % Total operating income $ 178,691 $ 517 $ 179,208 $ 156,307 $ 3,735 $ 160,042 14 % 12 % Operating margins: As Reported Adjusted As Reported Adjusted As Reported Adjusted Aerospace & Industrial 18.3% 18.4% 16.3% 16.6% 200 bps 180 bps Defense Electronics 28.0% 28.0% 26.8% 26.8% 120 bps 120 bps Naval & Power 17.3% 17.3% 15.7% 16.5% 160 bps 80 bps Total Curtiss-Wright 19.3% 19.4% 17.8% 18.3% 150 bps 110 bps Segment margins 20.4% 20.5% 19.1% 19.5% 130 bps 100 bps (1) Excludes first year purchase accounting adjustments in the prior year period. (2) Excludes costs associated with the Company's 2026 Restructuring Program in the current period and the Company's 2024 Restructuring Program in the prior period.
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Curtiss-Wright Corporation, Page 12 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED) ($'s in thousands) Six Months Ended Six Months Ended June 30, 2026 June 30, 2025 % Change As Reported Adjustments Adjusted As Reported Adjustments Adjusted As Reported Adjusted Sales: Aerospace & Industrial $ 522,684 $ — $ 522,684 $ 466,384 $ — $ 466,384 12 % 12 % Defense Electronics 502,275 — 502,275 498,175 — 498,175 1 % 1 % Naval & Power 812,736 — 812,736 717,662 — 717,662 13 % 13 % Total sales $ 1,837,695 $ — $ 1,837,695 $ 1,682,221 $ — $ 1,682,221 9 % 9 % Operating income (expense): Aerospace & Industrial(2) $ 87,502 $ 1,102 $ 88,604 $ 68,928 $ 2,346 $ 71,274 27 % 24 % Defense Electronics(2) 140,695 126 140,821 135,282 19 135,301 4 % 4 % Naval & Power (1)(2) 130,796 199 130,995 102,279 6,202 108,481 28 % 21 % Total segments $ 358,993 $ 1,427 $ 360,420 $ 306,489 $ 8,567 $ 315,056 17 % 14 % Corporate and other(2) (20,793) — (20,793) (20,977) (28) (21,005) 1 % 1 % Total operating income $ 338,200 $ 1,427 $ 339,627 $ 285,512 $ 8,539 $ 294,051 18 % 15 % Operating margins: As Reported Adjusted As Reported Adjusted As Reported Adjusted Aerospace & Industrial 16.7% 17.0% 14.8% 15.3% 190 bps 170 bps Defense Electronics 28.0% 28.0% 27.2% 27.2% 80 bps 80 bps Naval & Power 16.1% 16.1% 14.3% 15.1% 180 bps 100 bps Total Curtiss-Wright 18.4% 18.5% 17.0% 17.5% 140 bps 100 bps Segment margins 19.5% 19.6% 18.2% 18.7% 130 bps 90 bps (1) Excludes first year purchase accounting adjustments in the prior year period. (2) Excludes costs associated with the Company's 2026 Restructuring Program in the current period and the Company's 2024 Restructuring Program in the prior period.
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Curtiss-Wright Corporation, Page 13 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED) ($'s in thousands) Three Months Ended Three Months Ended June 30, 2026 June 30, 2025 % Change Aerospace & Defense markets: Aerospace Defense $ 176,007 $ 167,587 5% Ground Defense 90,135 97,542 (8%) Naval Defense 263,058 240,086 10% Commercial Aerospace 114,298 103,318 11% Total Aerospace & Defense $ 643,498 $ 608,533 6% Commercial markets: Power & Process $ 173,688 $ 163,473 6% General Industrial 106,822 104,570 2% Total Commercial $ 280,510 $ 268,043 5% Total Curtiss-Wright $ 924,008 $ 876,576 5% Six Months Ended Six Months Ended June 30, 2026 June 30, 2025 % Change Aerospace & Defense markets: Aerospace Defense $ 355,446 $ 319,309 11% Ground Defense 191,542 194,779 (2%) Naval Defense 513,139 461,172 11% Commercial Aerospace 224,803 196,195 15% Total Aerospace & Defense $ 1,284,930 $ 1,171,455 10% Commercial markets: Power & Process $ 340,745 $ 306,407 11% General Industrial 212,020 204,359 4% Total Commercial $ 552,765 $ 510,766 8% Total Curtiss-Wright $ 1,837,695 $ 1,682,221 9%
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Curtiss-Wright Corporation, Page 14 CURTISS-WRIGHT CORPORATION and SUBSIDIARIES RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Diluted earnings per share - As Reported $ 4.07 $ 3.19 $ 7.53 $ 5.87 First year purchase accounting adjustments — 0.02 0.13 Gain on equity securities (0.36) — (0.36) — Restructuring costs 0.01 0.02 0.03 0.05 Diluted earnings per share - Adjusted (1) $ 3.72 $ 3.23 $ 7.20 $ 6.05 (1) All adjustments are presented net of income taxes.
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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 busine sses or product lines during the last twelve months, cost s associated with the Company's 2026 Restructuring Program in the current period and the Company's 2024 Restructuring Program in the prior period, and foreign currency fluctuations. Three Months Ended June 30, 2026 vs. 2025 Aerospace & Industrial Defense Electronics Naval & Power Total Curtiss-Wright Sales Operating income Sales Operating income Sales Operating income Sales Operating income As Reported 12% 26% (3%) 1% 7% 18% 5% 14% Less: Acquisitions 0% 0% 0% 0% 0% 0% 0% 0% Restructuring 0% 0% 0% 0% 0% 0% 0% 0% Foreign Currency 0% 1% 0% 0% 0% 0% 0% 1% Organic 12% 27% (3%) 1% 7% 18% 5% 15% Six Months Ended June 30, 2026 vs. 2025 Aerospace & Industrial Defense Electronics Naval & Power Total Curtiss-Wright Sales Operating income Sales Operating income Sales Operating income Sales Operating income As Reported 12% 27% 1% 4% 13% 28% 9% 18% Less: Acquisitions 0% 0% 0% 0% 0% 0% 0% 0% Restructuring 0% (1%) 0% 0% 0% 0% 0% 0% Foreign Currency (1%) 2% 0% 0% 0% 0% 0% 1% Organic 11% 28% 1% 4% 13% 28% 9% 19%
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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 net capital expenditures. The Corporation discloses free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as free cash flow divided by adjusted net earnings. CURTISS-WRIGHT CORPORATION and SUBSIDIARIES NON-GAAP FINANCIAL DATA (UNAUDITED) ($'s in thousands) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Net cash provided by operating activities $ 181,183 $ 136,585 $ 175,528 $ 97,820 Capital expenditures Capital expenditure additions (29,451) (19,381) (41,283) (35,154) Grant proceeds for capital expenditures 8,528 — 8,528 — Net capital expenditures (20,923) (19,381) (32,755) (35,154) Free cash flow $ 160,260 $ 117,204 $ 142,773 $ 62,666 Free cash flow conversion 116% 96% 53% 27%
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Curtiss-Wright Corporation, Page 17 CURTISS-WRIGHT CORPORATION 2026 Guidance As of August 5, 2026 ($'s in millions, except per share data) 2025 Reported (GAAP) 2025 Adjustments (Non- GAAP)(1) 2025 Adjusted (Non- GAAP)(1) 2026 Reported Guidance (GAAP) 2026 Adjustments (Non- GAAP)(2) 2026 Adjusted Guidance (Non-GAAP)(2) Low High Low High Chg vs 2025 Adjusted Sales: Aerospace & Industrial $ 977 $ — $ 977 $ 1,058 $ 1,070 $ — $ 1,058 $ 1,070 8 - 10% Defense Electronics 1,019 — 1,019 1,055 1,075 — 1,055 1,075 4 - 6% Naval & Power 1,503 — 1,503 1,655 1,668 — 1,655 1,668 10 - 11% Total sales $ 3,498 $ — $ 3,498 $ 3,768 $ 3,813 $ — $ 3,768 $ 3,813 8 - 9% Operating income: Aerospace & Industrial $ 166 $ 4 $ 170 $ 189 $ 194 $ 6 $ 195 $ 200 15 - 17% Defense Electronics 278 — 278 291 298 — 291 298 5 - 7% Naval & Power 231 13 245 277 282 1 278 283 14 - 16% Total segments $ 675 $ 17 $ 693 $ 757 $ 774 $ 7 $ 764 $ 780 Corporate and other (42) — (42) (43) (44) — (43) (44) Total operating income $ 634 $ 17 $ 651 $ 714 $ 729 $ 7 $ 720 $ 736 11 - 13% Interest expense $ (43) $ — $ (43) $ (41) $ (41) $ — $ (41) $ (41) Other income, net 30 — 30 51 51 (17) 34 34 Earnings before income taxes $ 620 $ 17 $ 638 $ 724 $ 739 $ (10) $ 713 $ 728 Provision for income taxes (136) (4) (140) (155) (158) 2 (153) (156) Net earnings $ 484 $ 14 $ 498 $ 569 $ 581 $ (8) $ 560 $ 571 Diluted earnings per share $ 12.87 $ 0.36 $ 13.23 $ 15.31 $ 15.61 $ (0.21) $ 15.10 $ 15.40 14 - 16% Diluted shares outstanding 37.6 37.6 37.1 37.1 37.1 37.1 Effective tax rate 21.9% 21.9% 21.5% 21.5% 21.5% 21.5% Operating margins: Aerospace & Industrial 17.0% 17.4% 17.9% 18.1% 18.5% 18.7% 110 - 130 bps Defense Electronics 27.3% 27.3% 27.6% 27.7% 27.5% 27.7% 20 - 40 bps Naval & Power 15.4% 16.3% 16.7% 16.9% 16.8% 17.0% 50 - 70 bps Total operating margin 18.1% 18.6% 18.9% 19.1% 19.1% 19.3% 50 - 70 bps Free cash flow(3) $ 554 $ — $ 554 $ 585 $ 605 $ — $ 585 $ 605 6 - 9% Notes: Amounts may not add due to rounding. (1) 2025 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. (2) 2026 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding costs associated with the Company's 2026 Restructuring Program and a gain on equity securities held for investment purposes. (3) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2026 Free Cash Flow guidance includes higher capital expenditures supporting growth and efficiency, reflecting a year-over-year increase of approximately $25 million compared with 2025 results.
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Curtiss-Wright Corporation, Page 18 CURTISS-WRIGHT CORPORATION 2026 Sales Growth Guidance by End Market As of August 5, 2026 2026 % Change vs. 2025 Adjusted Prior Current % Total Sales Aerospace & Defense Markets Aerospace Defense 11 - 13% 12 - 14% 20% Ground Defense (4 - 6%) (4 - 6%) 10% Naval Defense 6 - 8% 7 - 9% 27% Commercial Aerospace 10 - 12% 10 - 12% 13% Total Aerospace & Defense 6 - 8% 7 - 9% 70% Commercial Markets Power & Process 13 - 15% 13 - 15% 19% General Industrial Flat 1 - 3% 11% Total Commercial 8 - 10% 8 - 10% 30% Total Curtiss-Wright Sales 7 - 8% 8 - 9% 100% Note: Sales percentages may not add due to rounding.
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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 Nuclear Power, Process and Industrial markets. We leverage a workforce of approximately 9,200 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 b rothers, Curtiss -Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com. ### Forward-Looking Statements 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 success ful 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. Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates,” “believes,” “continue,” “could,” “estimate,” “expects,” “intend,” “may,” “might,” “outlook,” “potential,” “predict,” “should,” “will,” as well as the negative of any of the foregoing or variations of such terms or comparable terminology, or by discussion of strategy. These statements are not historical facts and present management's estimates, expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Such forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward -looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10 -K and in our other periodic filings with the Securities and Exchange Commission and include, but are not limited to, risks relating to: a reduction in anticipated orders; an economic downturn; geopolitical risks; evolving impacts from tariffs between the U.S. and other countries (including implementation of new tariffs and retaliatory measures); changes in the competitive marketplace and/or customer requirem ents; a change in government spending; an inability to perform customer contracts at anticipated cost levels; supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; failure of our subcontractors o r suppliers to perform their contractual obligations; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date they were
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Curtiss-Wright Corporation, Page 20 made, and we assume no obligation to update forward-looking statements to reflect actual results or changes in or additions to the factors affecting such forward-looking statements. This press release and additional information are available at www.curtisswright.com. Contact: Jim Ryan (704) 869-4621 Jim.Ryan@curtisswright.com