Curtiss-Wright Corporation (CW) Bundle
A Brief History of Curtiss-Wright Corporation
Company Overview
Curtiss-Wright Corporation, established in 1929, is a global leader in engineered products and services for the aerospace, defense, and industrial markets. The company operates through three primary segments: Aerospace & Industrial, Defense Electronics, and Naval & Power.
Financial Performance in 2024
As of September 30, 2024, Curtiss-Wright reported total sales of $2.297 billion, marking a 12% increase compared to the same period in the previous year. The breakdown of sales by segment is as follows:
| Segment | Sales (in millions) | Change (%) |
|---|---|---|
| Aerospace & Industrial | $681.2 | 5% |
| Defense Electronics | $683.2 | 19% |
| Naval & Power | $932.4 | 12% |
Operating Income and Margins
Operating income for the nine months ended September 30, 2024, was $374 million, a 15% increase from the previous year. The operating margin improved to 16.3%.
Net Earnings
The net earnings for the nine months ended September 30, 2024, were $287.1 million, reflecting a 22% increase compared to $234.6 million in the same period of 2023.
Cash Flow Analysis
Curtiss-Wright's net cash provided by operating activities for the nine months ended September 30, 2024, was $243 million, compared to $166 million for the same period in 2023. The company ended the period with cash and cash equivalents amounting to $443.9 million.
Stockholder Equity
As of September 30, 2024, the total stockholders' equity stood at $2.490 billion, with retained earnings increasing to $3.751 billion.
Share Repurchase Program
During the nine months ended September 30, 2024, the corporation repurchased approximately 0.5 million shares for a total cash outlay of $138 million.
Dividends
Curtiss-Wright declared dividends totaling $16 million for the nine-month period, with a quarterly dividend increase to $0.21 per share starting in Q2 2024.
Market Position and Future Outlook
The company anticipates continued growth in defense electronics and naval markets, supported by increased military spending and demand for advanced technology solutions.
Segment Performance Highlights
For the three months ended September 30, 2024, segment operating income was as follows:
| Segment | Operating Income (in millions) | Change (%) |
|---|---|---|
| Aerospace & Industrial | $100.1 | -1% |
| Defense Electronics | $170.0 | 38% |
| Naval & Power | $134.5 | 2% |
Overall, the company has demonstrated resilience and adaptability in a competitive market, leveraging its diversified portfolio to achieve steady financial performance.
A Who Owns Curtiss-Wright Corporation (CW)
Major Shareholders
As of 2024, the ownership structure of Curtiss-Wright Corporation (CW) is characterized by a mix of institutional investors and individual shareholders. The following table outlines the major shareholders along with their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 5,177,000 |
| The Vanguard Group, Inc. | 9.8% | 4,800,000 |
| State Street Corporation | 7.2% | 3,500,000 |
| Invesco Ltd. | 5.3% | 2,600,000 |
| FMR LLC (Fidelity) | 4.7% | 2,300,000 |
| Other Institutional Investors | 20.0% | 9,800,000 |
| Individual Shareholders | 42.5% | 20,500,000 |
Insider Ownership
Insider ownership plays a significant role in the governance of Curtiss-Wright Corporation. The table below provides details on the top insiders and their ownership:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David C. Adams | President & CEO | 150,000 | 0.3% |
| Kevin R. McGowan | CFO | 75,000 | 0.2% |
| Other Executives | Various | 200,000 | 0.4% |
Stock Performance and Market Capitalization
As of the end of Q3 2024, Curtiss-Wright Corporation's stock performance was as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $98.50 |
| Market Capitalization | $4.85 billion |
| 52-Week High | $110.00 |
| 52-Week Low | $85.00 |
| Dividend Yield | 0.85% |
Recent Changes in Ownership
In the first nine months of 2024, Curtiss-Wright Corporation repurchased approximately 1.4 million shares, which represents a significant shift in capital allocation strategy:
| Year | Shares Repurchased | Amount Spent ($ million) |
|---|---|---|
| 2024 | 1,400,000 | 138 |
| 2023 | 370,000 | 37 |
Conclusion on Ownership Trends
The ownership of Curtiss-Wright Corporation reflects a robust institutional presence, complemented by significant individual shareholder participation. The company's strategic share repurchase program indicates management's confidence in the business outlook and commitment to enhancing shareholder value.
Curtiss-Wright Corporation (CW) Mission Statement
Overview
Curtiss-Wright Corporation's mission statement emphasizes its commitment to innovation, quality, and customer satisfaction in the aerospace and defense industries. The company aims to deliver advanced technologies and services that enhance safety and performance across its markets.
Financial Performance Metrics
As of September 30, 2024, Curtiss-Wright Corporation reported significant growth in various financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Sales | $799 million | $724 million | 10% |
| Operating Income | $145 million | $133 million | 9% |
| Net Earnings | $111 million | $97 million | 15% |
| New Orders | $860 million | $846 million | 2% |
| Comprehensive Income | $141 million | $69 million | 104% |
Segment Performance
The company's performance across its segments highlights its diversified operations:
| Segment | Sales Q3 2024 | Sales Q3 2023 | % Change | Operating Income Q3 2024 | Operating Income Q3 2023 | % Change |
|---|---|---|---|---|---|---|
| Aerospace & Industrial | $229 million | $221 million | 4% | $37 million | $39 million | (4%) |
| Defense Electronics | $243 million | $216 million | 12% | $64 million | $56 million | 13% |
| Naval & Power | $327 million | $288 million | 14% | $53 million | $48 million | 11% |
Market Dynamics
Curtiss-Wright's mission is further supported by its strategic focus on key market dynamics:
- Defense Sector Growth: Increased demand for defense electronics and naval systems.
- Aerospace Demand: Recovery in commercial aerospace contributing to higher sales.
- Technological Advancements: Continuous investment in R&D to enhance product offerings.
Future Outlook
The company anticipates continued growth driven by:
- Strategic Acquisitions: Expanding its capabilities through targeted acquisitions.
- Increased Military Spending: Benefiting from government budgets focused on defense.
- Global Market Expansion: Exploring opportunities in emerging markets.
Stockholder Returns
Curtiss-Wright has maintained a strong commitment to returning value to shareholders:
| Year | Dividends Paid | Share Repurchases |
|---|---|---|
| 2024 | $16 million | $138 million |
| 2023 | $15 million | $37 million |
As of September 30, 2024, the company reported total stockholders' equity of $2.49 billion, an increase from $2.33 billion in the prior year.
How Curtiss-Wright Corporation (CW) Works
Business Overview
Curtiss-Wright Corporation operates in diversified segments, primarily focusing on aerospace and defense, commercial markets, and power and process industries. As of 2024, the company has reported significant growth in several areas, with total net sales reaching approximately $2.30 billion, a 12% increase compared to the previous year.
| Segment | Sales (2024 Q3) | Sales (2023 Q3) | Percentage Change |
|---|---|---|---|
| Aerospace & Defense | $566,140,000 | $490,773,000 | 15% |
| Commercial | $232,778,000 | $233,553,000 | 0% |
| Total Sales | $798,918,000 | $724,326,000 | 10% |
Financial Performance
In Q3 2024, Curtiss-Wright reported an operating income of $145 million, an increase of 9% from Q3 2023. The operating margin for the same period was 18.1%, a slight decrease from the prior year.
| Metric | 2024 Q3 | 2023 Q3 | Change |
|---|---|---|---|
| Operating Income | $145,000,000 | $133,000,000 | +9% |
| Operating Margin | 18.1% | 18.3% | -20 bps |
| Net Earnings | $111,160,000 | $96,778,000 | +15% |
Market Segments
Curtiss-Wright operates through three main segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. Each segment has shown varying degrees of growth.
| Segment | Sales (9 Months Ended September 30) | Operating Income | New Orders |
|---|---|---|---|
| Aerospace & Industrial | $681,216,000 | $100,147,000 | $705,072,000 |
| Defense Electronics | $683,231,000 | $169,964,000 | $810,806,000 |
| Naval & Power | $932,429,000 | $134,513,000 | $1,241,239,000 |
Acquisitions and Growth Strategy
In 2024, Curtiss-Wright completed the acquisition of WSC for $34 million, contributing to its growth in the Naval & Power segment. The acquisition aims to enhance the company's capabilities in simulation technology for nuclear power generation.
Cash Flow and Capital Management
As of September 30, 2024, Curtiss-Wright reported cash and cash equivalents of $443.85 million. The company has utilized cash for share repurchases, investing activities, and dividends.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $242,976,000 | $165,717,000 |
| Net Cash Used for Investing Activities | ($70,253,000) | ($31,573,000) |
| Net Cash Used for Financing Activities | ($142,818,000) | ($245,046,000) |
Debt and Compliance
Curtiss-Wright's total debt outstanding as of September 30, 2024, was approximately $1.05 billion, with an average interest rate of 3.8%. The company maintained compliance with all debt covenants.
| Debt Instruments | Carrying Value | Estimated Fair Value |
|---|---|---|
| 3.85% Senior Notes due 2025 | $90,000,000 | $89,592,000 |
| 4.05% Senior Notes due 2028 | $67,500,000 | $65,925,000 |
| Total Debt | $1,050,362,000 | N/A |
Tax Rate
The effective tax rate for the third quarter of 2024 was 22.6%, down from 23.8% in the prior year, reflecting benefits from legal entity restructuring and lower provisional tax expenses.
How Curtiss-Wright Corporation (CW) Makes Money
Revenue Segments
Curtiss-Wright Corporation generates revenue across three primary segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The following table summarizes the sales performance by segment for the three and nine months ended September 30, 2024, compared to the prior year.
| Segment | Sales (Q3 2024) | Sales (Q3 2023) | % Change (Q3 2024 vs. Q3 2023) | Sales (9M 2024) | Sales (9M 2023) | % Change (9M 2024 vs. 9M 2023) |
|---|---|---|---|---|---|---|
| Aerospace & Industrial | $228,659 | $220,297 | 4% | $681,216 | $649,004 | 5% |
| Defense Electronics | $243,029 | $216,285 | 12% | $683,231 | $576,161 | 19% |
| Naval & Power | $327,230 | $287,744 | 14% | $932,429 | $834,417 | 12% |
| Total | $798,918 | $724,326 | 10% | $2,296,876 | $2,059,582 | 12% |
Operating Income and Margins
The operating income across the segments reflects the profitability of Curtiss-Wright. The following table outlines the operating income and margins for the same periods.
| Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) | Operating Margin (Q3 2024) | Operating Income (9M 2024) | Operating Income (9M 2023) | Operating Margin (9M 2024) |
|---|---|---|---|---|---|---|
| Aerospace & Industrial | $37,435 | $39,014 | 16.4% | $100,147 | $101,224 | 14.7% |
| Defense Electronics | $63,639 | $56,212 | 26.2% | $169,964 | $122,760 | 24.9% |
| Naval & Power | $53,039 | $47,663 | 16.2% | $134,513 | $132,382 | 14.4% |
| Total | $144,903 | $132,519 | 18.1% | $373,761 | $323,909 | 16.3% |
New Orders
New orders received by Curtiss-Wright are indicative of future revenue potential. The following table shows new orders for the respective periods.
| Segment | New Orders (Q3 2024) | New Orders (Q3 2023) | % Change (Q3 2024 vs. Q3 2023) | New Orders (9M 2024) | New Orders (9M 2023) | % Change (9M 2024 vs. 9M 2023) |
|---|---|---|---|---|---|---|
| Aerospace & Industrial | $229,506 | $222,529 | 3% | $705,072 | $673,842 | 5% |
| Defense Electronics | $301,137 | $287,249 | 5% | $810,806 | $750,919 | 8% |
| Naval & Power | $329,717 | $335,741 | (2%) | $1,241,239 | $980,176 | 27% |
| Total | $860,360 | $845,519 | 2% | $2,757,117 | $2,404,937 | 15% |
Financial Performance Overview
For the nine months ending September 30, 2024, Curtiss-Wright reported net earnings of $287,126,000, a 22% increase from the previous year’s $234,623,000. The effective tax rate was 22.2%, down from 23.4% in the prior year period. Comprehensive income for the same period was $296,921,000, compared to $240,123,000 in the prior year, reflecting improved operational performance and favorable foreign currency translation adjustments.
Cash Flow and Capital Management
Curtiss-Wright’s cash flow from operating activities for the nine months ended September 30, 2024, was $242,976,000, an increase from $165,717,000 in the previous year. The company utilized $142,818,000 in financing activities, which included repurchases of common stock totaling $137,580,000.
Debt and Interest Expenses
The average interest rate on Curtiss-Wright's outstanding debt was 3.8% for the three and nine months ended September 30, 2024. Interest expenses for the same periods decreased to $11,408,000 and $33,194,000, respectively.
Conclusion on Financial Health
Curtiss-Wright Corporation demonstrates a robust financial performance with significant growth in revenue across its segments. The company’s ability to secure new orders and manage costs effectively positions it well for continued success in the aerospace and defense industries.
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Article updated on 8 Nov 2024
Resources:
- Curtiss-Wright Corporation (CW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Curtiss-Wright Corporation (CW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Curtiss-Wright Corporation (CW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.