CW

Curtiss-Wright Corporation

Humanoid '25: Actuator Hardware Modern Warfare '26: Defense Electronics & Components Modern Warfare '26: Submarines Renewable Energy '24: Nuclear Space Supply Chain '26: Aerospace Actuators, Thrust & Fluid Control Space Supply Chain '26: Space & Satellite Components & Subsystems Space Supply Chain '26: Space-Grade Chips & Electronics

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Overview

Curtiss-Wright provides specialized parts for aircraft safety, naval ships, and nuclear plants. Revenue comes from Naval & Power (45%), Aerospace & Industrial (

Curtiss-Wright provides specialized parts for aircraft safety, naval ships, and nuclear plants. Revenue comes from Naval & Power (45%), Aerospace & Industrial (30%), and Defense Electronics (25%). They sell pumps, valves, and flight controls to the U.S. Navy, Westinghouse, Boeing, and Airbus. The company also supplies major defense contractors like Lockheed Martin to support military and energy systems.

What They Do (Plain English & Analogies): Curtiss-Wright is essentially the 'high-performance nervous system and muscle' for machines that cannot afford to fail. They build the ruggedized computers (the brain), sensors (the nerves), and actuators (the muscles) for fighter jets, nuclear submarines, and power plants. Analogy: If Boeing or the U.S. Navy builds the 'body' of a vehicle, Curtiss-Wright builds the specialized internal organs—like a heart (nuclear pump) or a nervous system (embedded flight computers)—that allow it to function in extreme environments like the bottom of the ocean or the edge of space.
Very Brief History: Founded in 1929 through the merger of companies started by aviation pioneers Glenn Curtiss and the Wright brothers, Curtiss-Wright was once the largest aircraft manufacturer in the U.S. Over the decades, it evolved from building full aircraft to becoming a specialized Tier 1 and Tier 2 supplier of highly engineered components. In recent years, it has executed a 'Pivot to Growth' strategy, shifting from a fragmented collection of industrial businesses into a focused aerospace, defense, and nuclear technology powerhouse.
"Street Stereotype": The 'Steady-Eddy' Compounder. CW is generally perceived as a high-quality, high-moat defensive stock with exceptional free cash flow. Historically viewed as a 'boring' industrial, it is now increasingly seen as a high-tech play on the 'Nuclear Renaissance' and the modernization of military electronics, though some analysts remain wary of the 'lumpy' nature of large-scale nuclear and naval contracts.
Subsidiaries On Linked In*: Curtiss-Wright Defense Solutions, Curtiss-Wright Surface Technologies, Curtiss-Wright Nuclear, I&C Solutions, Exlar Automation, Williams Controls, Penny & Giles, Dy4 Systems, Pacific Scientific Energetic Materials.
Customer Sectors & Example Clients: Primary sectors include Naval Defense, Aerospace Defense, Commercial Nuclear Power, Commercial Aerospace, and General Industrial. Key clients include the U.S. Navy (sole-source for many nuclear propulsion components), Westinghouse (AP1000 partner), Boeing, Airbus, Lockheed Martin, Raytheon, Northrop Grumman, and Rheinmetall (international ground vehicles).
New Customers / Segments They'Re Targeting: CW is aggressively targeting Small Modular Reactor (SMR) developers like X-energy, TerraPower, and Rolls-Royce. They are also 'gunning for' the tactical edge computing market by integrating NVIDIA Blackwell GPUs into ruggedized military hardware and partnering with Microsoft Azure for cloud-to-edge defense applications. Additionally, they are expanding their reach into NATO and allied countries (Poland, Bulgaria, Canada) as these nations ramp up defense and nuclear energy spending.
How Key Themes May Help/Hurt: CW is a major beneficiary of the 'Motion Control' and 'Humanoid/Robotics' hardware build-out. Their shift from hydraulic to electro-mechanical (EM) actuation is a core growth driver in ground defense (IFPC program) and aerospace. While they don't build humanoids, their high-torque, precision EM actuators are the exact 'muscle' technology required for heavy-duty robotic systems. The 'Nuclear Renaissance' theme is also a massive tailwind, as CW has 2-3x more content on new AP1000 plants than legacy designs.

3 Main Long-Term Bull Details

Nuclear Super-cycle: Massive revenue potential from the global build-out of Westinghouse AP1000 reactors and the transition of SMRs from design to prototype/production. 2) Naval Dominance: Unrivaled position on the Virginia and Columbia-class submarine programs and Ford-class carriers, supported by increased U.S. Navy industrial base funding. 3) Tech Leadership: First-mover advantage in bringing commercial-grade AI (NVIDIA) and cloud (Azure) computing to ruggedized, 'tactical edge' military environments.

3 Main Long-Term Bear Details

Budgetary & Political Risk: Exposure to U.S. government 'Continuing Resolutions' and shutdowns can cause significant timing delays in Defense Electronics orders. 2) Nuclear Lumpiness: Large nuclear orders (like AP1000) are binary and difficult to predict, leading to potential revenue gaps if international projects slip. 3) Industrial Sensitivity: The General Industrial segment remains tied to macro cycles and industrial vehicle demand, which can act as a drag during economic downturns.

Competitors And Differentiation: Competitors include Moog (actuation), Mercury Systems (defense electronics), BWX Technologies (nuclear components), and Crane (aerospace). CW differentiates itself through its 'sole-source' positions on critical U.S. Navy programs and its unique ability to cross-pollinate technology—for example, taking flight-control actuation tech and applying it to nuclear valve controls or ground vehicle turret stabilization.
Recent Performance & What The Market'S Focused On: CW delivered record 2025 results with 15% Q4 sales growth and record FCF. The market is currently laser-focused on the timing of a major AP1000 reactor coolant pump order expected in 2026 and the recovery of the Defense Electronics book-to-bill ratio, which was temporarily suppressed by the 2025 government shutdown. Investors are also cheering the 'Pivot to Growth' execution, which has seen R&D spending outpace sales growth while still expanding margins.
Brands And Revenue Segments: Segments: 1) Naval & Power (~45% of revenue): Includes nuclear propulsion and commercial nuclear valves/pumps. 2) Aerospace & Industrial (~30%): Includes sensors, EM actuation, and surface technologies. 3) Defense Electronics (~25%): Includes embedded computing, tactical comms, and flight test instrumentation. Key Brands: Curtiss-Wright, Target Rock, Scientech, and Indal.

Bull / Bear Details

Curtiss-Wright is a top-quartile industrial compounder benefiting from a generational super-cycle in nuclear power and naval defense. As of February 15, 2026, t

Thesis

Curtiss-Wright is a top-quartile industrial compounder benefiting from a generational super-cycle in nuclear power and naval defense. As of February 15, 2026, the case is bolstered by a record $4.1 billion backlog and the transition of SMR designs to high-margin prototype stages. While temporary government budget delays impacted Defense Electronics in late 2025, the release of $100 million in pushed orders and massive U.S. nuclear fiscal support provide high visibility for sustained double-digit EPS growth.

Bull case

Massive tailwinds in commercial nuclear are driven by an $80 billion U.S. commitment for AP1000 reactors and a national goal to quadruple capacity. CW is transitioning SMR projects like Xenergy from development to prototype stages, with a major AP1000 reactor coolant pump order expected in 2026. This provides a multi-decade growth runway with content per plant expanding 2-3x compared to historical levels.
CW is uniquely positioned to capture spend from the $1 trillion U.S. defense budget and NATO's shift toward 5% GDP spending. The company is integrating NVIDIA Blackwell GPUs and Microsoft Azure into ruggedized tactical edge computing solutions. Record backlog and the recovery of $100 million in delayed orders, evidenced by the recent C-17 award, support strong Defense Electronics growth and margin expansion.
Exceptional execution is driving margins toward a record 19.2% while maintaining >100% free cash flow conversion. Management is successfully negotiating customer advances to drive working capital to a record low 18% of sales. This robust cash generation supports aggressive shareholder returns, including record share repurchases and a ninth consecutive year of dividend increases, even as CapEx rises 25% to support future capacity.

Bear case

Despite a strong pipeline, Defense Electronics remains sensitive to U.S. government fiscal cycles. The late 2025 continuing resolution and shutdown delayed $100 million in orders, resulting in a sub-1.0x book-to-bill for the segment. Continued political volatility or further delays in the FY2026/2027 budget process could lead to lumpy revenue recognition and pressure near-term organic growth targets, particularly in the Ground Defense market.
The transition from SMR design to prototype fabrication introduces technical and margin risks. These early-stage projects often carry higher R&D costs and lower initial profitability compared to mature production programs. Furthermore, the timing of the anticipated 2026 AP1000 order remains outside of management's direct control; any slippage in Westinghouse's global deployment or licensing timelines could temper the long-term bullish nuclear narrative and revenue ramp.
While Aerospace and Defense are surging, the General Industrial segment remains a laggard, with sales projected to be flat again in 2026. Exposure to industrial vehicle markets and broader global macro weakness could offset gains in high-growth segments. Additionally, the 25% increase in CapEx to support naval and nuclear capacity expansion could pressure free cash flow if the targeted working capital improvements fail to materialize.

Bull / Bear Case

Bear Case: Despite the record backlog, Curtiss-Wright remains highly susceptible to U.S. government fiscal volatility and procurement delays. The late 2025 continuing resolution and shutdown delayed approximately $100 million in Defense Electronics orders, resulting in a sub-1.0x book-to-bill for the segment and a projected 4-6% decline in Ground Defense for 2026. Continued political gridlock could lead to further lumpy revenue recognition. Additionally, the transition from SMR design to prototype fabrication introduces significant technical and margin risks; these early-stage projects often carry higher R&D costs and lower initial profitability than mature programs. The timing of the critical AP1000 order remains outside CW's direct control, and any slippage in Westinghouse's deployment schedule would deflate the nuclear bull narrative. Finally, the General Industrial segment remains stagnant, and a 25% increase in CapEx could pressure free cash flow if the ambitious 18% working capital target is not achieved.
Bull Case: Curtiss-Wright is entering a generational "super-cycle" driven by global nuclear resurgence and naval defense expansion. The company's record $4.1 billion backlog (up 18% year-over-year) provides immense visibility into 2026 and beyond. Key growth catalysts include the transition of Small Modular Reactor (SMR) designs to the prototype stage and the anticipated 2026 order for Westinghouse AP1000 reactor coolant pumps, supported by a massive $80 billion U.S. government commitment to nuclear dominance. Furthermore, CW is successfully migrating high-end commercial AI (NVIDIA Blackwell/Thor) into ruggedized defense electronics, positioning it as a leader in tactical edge computing. With operating margins reaching record levels (19%+) and consistent >100% free cash flow conversion, the "Pivot to Growth" strategy is delivering top-quartile performance. Aggressive capital allocation, including record share repurchases, further amplifies the double-digit earnings-per-share growth trajectory.
More Compelling & Why: Bull. CW's ~4.2% forward FCF yield (based on the $585M midpoint) is highly attractive for a company compounding EPS at 15% with a record $4.1B backlog. The strongest argument is the "coiled spring" in Defense Electronics; the $100M in delayed orders represents a significant 2026 tailwind as budget cycles normalize, evidenced by the early Q1 C-17 award. While nuclear timing is lumpy, the $80B U.S. commitment provides a structural floor for valuation. I would flip to Bear if the AP1000 order is deferred to 2027 or if DE book-to-bill remains below 1.0x through Q2 2026.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
SMR Prototype Transition (Xenergy/Rolls-Royce)	CW is transitioning from 'development' (R&D) to 'initial prototype' stage for Small Modular Reactors (SMRs). This shift moves projects from cost-centers to revenue-generators and solidifies CW's position as the primary hardware supplier for the next generation of nuclear power.	Specific hardware orders for Xenergy's 'helium circulator' or 'reactivity control and shutdown systems.' Watch for progress on the Rolls-Royce SMR design certification in the UK.	Bullish: Announcement of first 'prototype hardware' delivery or fabrication contract for Xenergy or TerraPower. Bearish: Delays in SMR design finalization or loss of 'preferred supplier' status.	Company Press Releases; X-energy.com news; UK Office for Nuclear Regulation (ONR) reports for Rolls-Royce SMR progress.	Google Trends: 'X-energy SMR', 'Rolls-Royce SMR'; Department of Energy (DOE) Office of Nuclear Energy project updates.	Thinknum: Tracking engineering job growth in CW's 'Nuclear' and 'SMR' divisions.
Defense Electronics (DE) Book-to-Bill Recovery	DE is CW's highest-margin segment (~27.5%). A 0.96 book-to-bill in Q4 2025 due to government shutdown delays created a 'conservative' 2026 guide. Recovering this ~$100M in delayed orders is critical for hitting the high end of EPS guidance.	Release of delayed tactical communications and embedded computing orders. The Q1 2026 C-17 order was the first sign; watch for similar large awards for 'Golden Dome' or 'IFPC' programs.	Bullish: Book-to-bill ratio >1.10x in Q1 or Q2 2026. Bearish: Book-to-bill remaining below 1.0x for two consecutive quarters.	Quarterly 10-Q filings (Segment Performance section); USASpending.gov for prime contract flow-downs to Curtiss-Wright.	USASpending.gov: Search 'Curtiss-Wright' + 'Defense Electronics' or 'Tactical Communications' for new obligations >$10M.	Forecast International: Tracking procurement cycles for embedded computing in major platforms like F-35 or XM30.
NATO/Direct Foreign Military Sales (FMS) Acceleration	NATO's commitment to move toward 5% of GDP spending by 2035 is a massive tailwind. CW's direct FMS (Foreign Military Sales) has seen mid-teens growth; specifically, the Rheinmetall ground vehicle partnership offers a 'thousands of vehicles' opportunity.	New orders for turret drive stabilization systems for international ground vehicles (e.g., Boxer, Lynx). Watch for NATO member state budget approvals for 'Golden Dome' style air defense systems.	Bullish: Direct FMS revenue growth >15% YoY in quarterly reports. Bearish: Slowdown in international ground vehicle orders or loss of content on Rheinmetall platforms.	Quarterly Earnings Presentations (End Market Sales Outlook slides); Rheinmetall AG Investor Relations (for vehicle production ramps).	NATO.int: Press releases on 'Defense Investment Pledge' updates; Defense News: Tracking European ground vehicle procurement.	Janes: Tracking global armored vehicle production and component requirements.
Working Capital Efficiency (18% Sales Target)	CW is targeting a record-low working capital level of 18% of sales in 2026 (down from 19.2%). Achieving this is the primary lever for hitting the record $575M-$595M Free Cash Flow target while simultaneously increasing CapEx by 25%.	Days Sales Outstanding (DSO) and Inventory Turns in quarterly filings. Watch for 'Deferred Income' increases, which signal successful negotiation of customer advances/milestone payments.	Bullish: Working capital as a % of sales <18.5% by mid-year 2026. Bearish: Working capital >20% of sales, indicating supply chain bloat or poor collection timing.	Quarterly 10-Q filings (Balance Sheet and Cash Flow Statement).	None applicable.	Bloomberg Terminal: 'CW US Equity WCAP' function to track historical vs. current working capital intensity.
Westinghouse AP1000 Reactor Coolant Pump (RCP) Order	Management explicitly excluded a major AP1000 order from 2026 guidance despite 'strong expectations' of receiving it. A single order for RCPs (historically ~$28M+ per pump) and associated hardware represents a massive multi-year revenue catalyst and validates the $80B U.S. nuclear commitment.	Official contract announcement from Westinghouse or Curtiss-Wright regarding RCP orders for Poland, Bulgaria, or U.S. domestic sites (e.g., Vogtle expansion or new builds). Watch for 'Long-Lead Material' (LLTM) authorizations exceeding $100M.	Bullish: Any binding order for AP1000 RCPs in 2026. Bearish: Official deferral of European or U.S. AP1000 procurement timelines into 2027 or beyond.	Company Press Releases; Westinghouse Newsroom; SEC Form 8-K filings; Quarterly Earnings Calls (next update expected May 2026).	IAEA Power Reactor Information System (PRIS): Tracking status of planned reactors in Poland/Bulgaria; Google News: 'Westinghouse AP1000 contract'.	Govini: Tracking Department of Energy (DOE) nuclear grant flow-downs; Thinknum: Monitoring job postings for 'Nuclear Engineer' or 'RCP Technician' at CW's Cheswick, PA facility.

Key Reported Metrics3 rows

Metric	Why It Matters	Last Period
Naval & Power Segment Revenue Growth	This segment captures massive tailwinds from naval shipbuilding and the commercial nuclear 'super-cycle.' Markets are focused on the transition of SMR designs to the prototype stage and the timing of a major AP1000 reactor coolant pump order, which are key to long-term revenue targets.	21%
Defense Electronics Segment Revenue Growth	As Curtiss-Wright's highest-margin segment, Defense Electronics is the primary indicator of recovery from 2025 government budget delays. Investors are monitoring the release of approximately $100 million in pushed-out orders to confirm the segment's return to its historical growth trajectory and validate 2026 guidance.	17%
Free Cash Flow Growth	Curtiss-Wright's investment thesis relies on its ability to generate cash in excess of earnings. Sustaining growth in free cash flow while significantly increasing capital expenditures by 25% for nuclear and naval capacity is vital for supporting ongoing record-level share repurchases and dividend increases.	13%

Key Questions

Will the Defense Electronics segment's book-to-bill ratio recover above 1.1x in the first half of 2026, confirming that the ~$100 million in orders delayed by t

Will the Defense Electronics segment's book-to-bill ratio recover above 1.1x in the first half of 2026, confirming that the ~$100 million in orders delayed by the government shutdown are being released as signaled by the recent C-17 award?

Question 2: Can Curtiss-Wright secure the highly anticipated AP1000 reactor coolant pump order in 2026, and will the transition of SMR projects from development to the prototype stage create near-term margin pressure in the Naval & Power segment?
Question 3: Will the company successfully drive working capital to a record-low 18% of sales to sustain a 105% free cash flow conversion rate while simultaneously increasing capital expenditures by 25% to support naval and nuclear growth?

Earnings Transcript Summary2 rows

2026-02-11 · 2025Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Pivot to Growth Strategy Execution: Management is focused on exceeding the three-year financial targets set at the 2024 Investor Day, highlighting record 2025 performance in sales, margins (18.6%), and free cash flow. 2. Commercial Nuclear Expansion: Capitalizing on the 'tremendous uplift' from U.S. government support for AP1000 reactors ($80B commitment) and transitioning Small Modular Reactor (SMR) designs from development to the prototype stage. 3. Defense Modernization Alignment: Ensuring the portfolio is positioned to capture spend from the $1 trillion U.S. defense budget and increased NATO commitments (targeting up to 5% of GDP), specifically in embedded computing, naval propulsion, and international ground vehicles.	The takeaway is that Curtiss-Wright is entering a high-growth phase driven by a 'super-cycle' in nuclear power and naval defense, with a record $4 billion backlog providing high visibility. Despite temporary timing headwinds in Defense Electronics due to U.S. budget delays, the company is outperforming its long-term growth and margin targets. The tone was highly confident and optimistic, with management emphasizing that they are 'firmly entrenched' as a top-quartile margin performer.	Aerospace & Industrial: +8% Y/Y; Defense Electronics: +4% Y/Y; Naval & Power: +12% Y/Y	1. AP1000 Order Timing and Financial Impact: Analysts questioned the specifics of the expected 2026 reactor coolant pump order. Management responded that while not in the current guidance, they strongly expect an order in 2026 from Westinghouse (for Poland, Bulgaria, or the U.S.), with revenue following a five-year bell curve and initial labor costs incurred upfront. 2. Defense Electronics Bookings and Ground Defense Outlook: Analysts asked about the 0.96 book-to-bill and the projected 4-6% decline in Ground Defense for 2026. Management explained this was a timing issue caused by the government's continuing resolution and shutdown, which delayed ~$100M in orders, but noted that the recent C-17 order in Q1 2026 signals a recovery. 3. Free Cash Flow and Working Capital Sustainability: Analysts pressed on how CW maintains high FCF conversion (105% target) despite a 25% increase in CapEx. Management credited 'commercial excellence' in negotiating better contract terms (advances) and improved internal systems to drive working capital to a record low 18% of sales.	Aerospace & Industrial: +5% Y/Y; Defense Electronics: +17% Y/Y; Naval & Power: +21% Y/Y

2025-11-06 · 2025 Q3 Earnings

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
(1) Commercial nuclear/AP1000 & SMR optionality – ramp in SMR dev work, AP1000 content per plant, confidence in first big AP1000 order around 2026 and long-term path to ~$1.5B nuclear revenue mid-next decade. (2) Defense Electronics growth & tech position – MOSA/SOSA/CMOSS leadership, NVIDIA/Blackwell edge-compute cards, Fabric100 interconnect, managing DoD CR/shutdown noise while keeping backlog and pipeline growing. (3) Capital allocation & Pivot to Growth execution – repeated raises to 2025 guidance, >105% FCF conversion, record >$450M buybacks in 2025, and elevated capex (esp. nuclear/naval) while still targeting strong margins and mid-teens EPS CAGR into 2026.	Strong quarter with all segments growing, margins up to ~19.6% adjusted, FCF conversion ~137% and guidance raised again for sales, margins and EPS. Tone was confident and upbeat, heavily leaning on long-run nuclear and defense electronics upside, while framing DoD shutdown/CR timing as a manageable near-term nuisance rather than a thesis breaker.	Aerospace & Industrial: +3% YoY; Defense Electronics: +11% YoY; Naval & Power: +19% YoY	(1) AP1000 economics & timing – Qs on $ content per plant and U.S./EU timing; mgmt said RCPs last sold just over ~$28M each, historical extra content $10–20M/plant now targeted at 2–3x that, first big order still expected in 2026 (likely Poland/Bulgaria) with U.S. to follow, revenue recognized over a tighter POC curve once long-lead materials arrive. (2) Defense Electronics orders / CR & shutdown risk – Qs on bookings by segment and risk to 2025/26; mgmt flagged >$50M of DE orders pushed by the CR/shutdown but stressed a healthy pipeline, sequential order improvement, DE book-to-bill ~1.0x (would've been ~1.1x without pushouts), backlog up 3%, and assumption shutdown resolves mid-Nov with a 30–45 day lag but no change to 2025 guidance. (3) Flight data recorder retrofit and margins – Qs on how much is retrofit vs OEM and profitability; mgmt said Q3 still mostly staging material with retrofit wave ahead, big incremental opportunity in regional jets and eventual Airbus certification targeted for 1H26; didn't disclose exact shipset or margin, but emphasized it fits DE's high-margin profile.	Aerospace & Industrial: +8% YoY; Defense Electronics: +4% YoY; Naval & Power: +12% YoY

Transcript Tidbits3 rows

2026-02-11

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Expanding into the tactical edge computing market by validating ruggedized servers for the Microsoft Azure ecosystem and integrating NVIDIA Blackwell and Thor GPUs into defense solutions. In nuclear, the market is expanding via an $80 billion U.S. commitment for 10 new AP1000 reactors and a national goal to quadruple nuclear capacity to 400GW by 2050. Internationally, NATO's commitment to increase defense spending toward 5% of GDP by 2035 significantly broadens the addressable market for direct foreign military sales.	Curtiss-Wright positions itself as a leader in defense technology through 'agile contracting' and 'commercial solutions' alignment. The company highlights a unique competitive moat in naval nuclear propulsion due to decades-long relationships and the specific capacity required to support the U.S. Navy's critical platforms, making them a difficult-to-replace supplier.	The defense industry is seeing a 'tremendous acceleration' driven by a record ~$1 trillion U.S. budget and increased NATO commitments. The commercial nuclear industry is undergoing a global resurgence, transitioning from design activities to building prototypes for Small Modular Reactors (SMRs) and accelerating plant life extensions and restarts in the U.S.	For 2026, the company projects 6-8% organic sales growth and 11-15% EPS growth. Strategically, the company is moving SMR projects from development to the initial prototype stage (e.g., Xenergy) and anticipates receiving a major AP1000 order for reactor coolant pumps in 2026. Free cash flow is expected to reach a record $575-$595 million.	Nuclear:	Tactical Edge AI: The migration of enterprise-class AI computing (NVIDIA/Microsoft Azure) into ruggedized, deployable military hardware. Energy Security as Defense: The explicit link between U.S. nuclear energy dominance and national strategic priorities, backed by massive fiscal commitments.	“Backlog increased 18% in 2025 to reach a new record in excess of $4,000,000,000.”; “We have line of sight to exceed the three year financial targets.”; “The momentum continues to build.”; “Commercial nuclear orders alone was up 50% year over year.”	“Within Ground Defense, we anticipate sales to decline 4% to 6%.”; “Delays resulting from the continuing resolution government shutdown.”; “General industrial market... anticipate sales to be flat once again in 2026.”

2026-02-11

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Expanding into the tactical edge computing market by validating ruggedized servers for the Microsoft Azure ecosystem and integrating NVIDIA Blackwell and Thor GPUs into defense solutions. In nuclear, the market is expanding via an $80 billion U.S. commitment for 10 new AP1000 reactors and a national goal to quadruple nuclear capacity to 400GW by 2050. Internationally, NATO's commitment to increase defense spending toward 5% of GDP by 2035 significantly broadens the addressable market for direct foreign military sales.	Curtiss-Wright positions itself as a leader in defense technology through 'agile contracting' and 'commercial solutions' alignment. The company highlights a unique competitive moat in naval nuclear propulsion due to decades-long relationships and the specific capacity required to support the U.S. Navy's critical platforms, making them a difficult-to-replace supplier.	The defense industry is seeing a 'tremendous acceleration' driven by a record ~$1 trillion U.S. budget and increased NATO commitments. The commercial nuclear industry is undergoing a global resurgence, transitioning from design activities to building prototypes for Small Modular Reactors (SMRs) and accelerating plant life extensions and restarts in the U.S.	For 2026, the company projects 6-8% organic sales growth and 11-15% EPS growth. Strategically, the company is moving SMR projects from development to the initial prototype stage (e.g., Xenergy) and anticipates receiving a major AP1000 order for reactor coolant pumps in 2026. Free cash flow is expected to reach a record $575-$595 million.	Nuclear:	Tactical Edge AI: The migration of enterprise-class AI computing (NVIDIA/Microsoft Azure) into ruggedized, deployable military hardware. Energy Security as Defense: The explicit link between U.S. nuclear energy dominance and national strategic priorities, backed by massive fiscal commitments.	“Backlog increased 18% in 2025 to reach a new record in excess of $4,000,000,000.”; “We have line of sight to exceed the three year financial targets.”; “The momentum continues to build.”; “Commercial nuclear orders alone was up 50% year over year.”	“Within Ground Defense, we anticipate sales to decline 4% to 6%.”; “Delays resulting from the continuing resolution government shutdown.”; “General industrial market... anticipate sales to be flat once again in 2026.”

2025-11-06

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Nuclear: AP1000 content per plant moving from RCP-only to much higher full-plant content, plus SMR and DOE-funded government nuclear work; Defense: Golden Dome, XM30, Rheinmetall ground vehicles, NATO fleet upgrades; Commercial aero: 25-hour flight data recorder retrofits and regional jet opportunities; Subsea/LNG: first subsea pump to Shell and broader LNG valve opportunities.	Mgmt positioning DE as having “the strongest MOSA/SOSA/CMOSS aligned offering” with >20 new products, unique CMOSS-based NVIDIA Blackwell processor demo at GTC, Fabric100 interconnect, and Azure-validated edge products; emphasizes differentiation and not overpaying for M&A where prices don't create value.	Defense: US defense budget + reconciliation up ~13%, NATO and allies accelerating spend; Naval: multiyear submarine and carrier programs plus maritime industrial base funding; Nuclear: restart talk (Palisades, TMI) and large reactor builds in Europe/US; Industrial vehicles: still weak but orders inflecting slightly; LNG and offshore subsea capex ramping toward decade-end.	Long runway in defense (shipbuilding, Golden Dome, XM30, NATO vehicles), commercial nuclear (AP1000 plants in Poland/Bulgaria/US, SMRs, restarts), and high-margin DE/avionics; 2026 expected to show growth in all segments and more margin expansion while R&D and capex step up; building to $1.5B+ commercial nuclear revenue by mid-next decade.	Ground	Nuclear + AI: hyperscaler/data center power needs driving faster nuclear push; AP1000 and SMR momentum now aided by AI/data center wave; LNG transition and deepwater subsea pumping as emerging profit pools; industrial vehicle markets possibly bottoming; government maritime industrial base funding as a structural support for US naval suppliers.	“Our backlog… is now up 14% year-to-date, reaching a new record in excess of $3.9 billion.”; “We now anticipate a record of more than $450 million in share repurchases this year.”; “We continue to expect cash flow in excess of earnings and a free cash flow conversion rate of approximately 108%.”; “We see the potential for significant orders supporting AP1000 reactors likely as soon as 2026.”; “We now expect operating margin expansion of 220 to 240 basis points [in Defense Electronics] to a new all-time high range of 27.1% to 27.3%.”	“The most prominent impact within our order book has been in the Defense Electronics segment, where the team has identified over $50 million of orders that have pushed out of Q3 during the CR.”; “In naval defense, while we expect a sequential decline in revenues in the fourth quarter based upon the timing of material receipts…”; “We continue to expect flat sales in 2025 [in general industrial] despite the macro challenges affecting global industrial vehicle markets.”; “I would expect there to be a little bit of pressure on Q1 [2026]… and that will force us to be a little bit more back half weighted.”

Earnings Results3 rows

Street expected a dip; segment still grew YoY and delivered record ~29.2% margin with backlog up and Q4 set up by timing of tactical comms and other programs.

Metric	Prior Quarter	Rerating Trigger	Actual Reported	Hit Target?	Notes
Defense Electronics revenue growth	'+11% YoY (Q2 2025)	Flat to slight growth YoY, or better than feared, with strong Q4 visibility	'+4% YoY	Yes	Street expected a dip; segment still grew YoY and delivered record ~29.2% margin with backlog up and Q4 set up by timing of tactical comms and other programs.
Naval & Power revenue growth	'+19% YoY (Q2 2025)	Mid-teens or better YoY, with clean Columbia execution and strong nuclear aftermarket	'+12% YoY	PARTIAL	Growth decelerated from Q2 but remained solid double-digit; Columbia and Virginia subs plus nuclear drove strength, and full-year naval guidance was raised to 9–11%. Not quite “mid-teens,” but directionally supportive.
FCF Conversion	~100% conversion, FCF +17% YoY (Q2 2025)	≥100% FCF conversion with no obvious working-cap “help” and visible buyback execution	~137–140% conversion, FCF +8% YoY (Q3 2025)	Yes	Free cash flow of ~$176M with ~140% conversion despite higher capex; company kept full-year FCF guide and accelerated buybacks, comfortably clearing the ≥100% bar.

Notes3 rows

Date	Comment	Comment Type	Comment Sentiment	Link	IS CHANGE	Price Reaction
2025-11-06	CW posted solid Q3 results—9% revenue growth, strong margins, and ~140% FCF conversion—plus major long-term nuclear upside. However, the stock reaction was mixed as ~$50M+ Defense Electronics orders slipped due to the government shutdown, raising near-term visibility concerns. Naval and nuclear remained strong, but timing uncertainty muted the long-term bullish narrative.	Earnings Transcript	Mixed			-1.12% (vs SPY: -1.69%)
2025-08-07	Curtiss-Wright posted +12% sales and +21% EPS on strength in Naval, Nuclear, and Defense Electronics, with record backlog and raised 2025 guidance. Despite margin expansion and strong FCF, shares reacted mixed on Q3 dip in Defense Electronics and timing concerns around naval/nuclear ramp.	Earnings Transcript	Bearish			-7.24% (vs SPY: -7.74%)
2026-02-11	Curtiss-Wright delivered record 2025 results, with Q4 sales up 15% and FY EPS up 21%. Shares surged 7.9% as management resolved concerns over prior Defense Electronics delays, citing a record $4 billion backlog and strong 2026 guidance. Investors cheered the 'Pivot to Growth' execution and significant nuclear upside, including an anticipated AP1000 order not yet in the 2026 outlook, signaling further potential for upward revisions.	Earnings Transcript	Bullish	https://www.curtisswright.com/investors/financial-reporting/earnings-releases/default.aspx	False	+7.88% (vs SPY: +9.36%)