Curtiss-Wright Corp (CW) Reports Record Financial Results for FY23
Sales: Reported sales increased by 11% to $2.8 billion in FY23.
Operating Income: Adjusted operating income rose by 11% to $494 million.
Diluted EPS: Adjusted diluted EPS grew by 15% to $9.38.
Free Cash Flow: Adjusted free cash flow reached a record $413 million.
New Orders: New orders totaled $3.1 billion, a 5% increase, with a book-to-bill ratio of 1.1x.
Backlog: Backlog grew by 9% to $2.9 billion, indicating strong demand.
2024 Guidance: Projected sales growth of 4-6%, EPS increase of 7-10%, and free cash flow between $415 to $435 million.
On February 14, 2024, Curtiss-Wright Corp (NYSE:CW) released its 8-K filing, announcing a robust financial performance for the fourth quarter and full-year ended December 31, 2023. The company, known for its engineered products and services in the commercial, defense, power generation, and industrial markets, reported record sales, profitability, EPS, free cash flow, and orders for FY23.
Curtiss-Wright Corp (NYSE:CW) operates through three segments: Naval & Power, Aerospace & Industrial, and Defense Electronics. The Naval & Power segment, which generates the majority of revenue, provides critical components and systems for various high-performance platforms.
Financial Performance and Challenges
The company's financial achievements underscore its robust position in the Aerospace & Defense industry. The 11% increase in sales to $2.8 billion and the 15% rise in adjusted diluted EPS to $9.38 reflect strong operational performance and organic growth. These metrics are particularly significant as they demonstrate the company's ability to grow its core businesses and deliver shareholder value.
Despite these successes, Curtiss-Wright Corp (NYSE:CW) faced challenges, including a competitive marketplace and the need to continuously invest in research and development to maintain its technological edge. The company's ability to navigate these challenges is crucial for sustaining growth and profitability.
Income Statement and Balance Sheet Highlights
Key financial details from the income statement and balance sheet include:
"Our full-year 2023 results were highlighted by another year of strong operational performance, as we delivered record high sales and operating income driven by 10% organic growth, and improved profitability while continuing to ramp up our investments in research and development across the portfolio."
Adjusted operating income for FY23 was $494 million, an 11% increase, and the adjusted operating margin stood at 17.4%. The company's focus on reducing working capital contributed to a record adjusted free cash flow of $413 million, marking a significant achievement for the company's financial health and its ability to invest in future growth.
Segment Performance and Future Outlook
The Aerospace & Industrial segment saw a 7% increase in sales, while the Defense Electronics segment experienced a modest 1% growth. The Naval & Power segment reported a 3% increase in sales. Adjusted operating income and margins in these segments reflected the impact of product mix and increased R&D investments.
Looking ahead to 2024, Curtiss-Wright Corp (NYSE:CW) anticipates continued growth across all A&D and Commercial end markets, with projected organic sales growth of 4-6%. The company expects to deliver further operating margin expansion, diluted EPS growth of 7-10%, and strong free cash flow generation ranging from $415 to $435 million.
For detailed financial tables and further information on Curtiss-Wright Corp (NYSE:CW)'s performance, readers are encouraged to view the full 8-K filing.
Investors and stakeholders can look forward to a conference call and webcast on February 15, 2024, to discuss the company's financial results and expectations for the upcoming year.
For more in-depth analysis and updates on Curtiss-Wright Corp (NYSE:CW) and the Aerospace & Defense industry, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Curtiss-Wright Corp for further details.
This article first appeared on GuruFocus.
