Curtiss-Wright Corp (CW) Reports 15% Increase in Q3 2023 Sales and Raises Full-Year Guidance
Q3 2023 sales reached $724 million, a 15% increase from the previous year
Adjusted operating income rose by 17% to $134 million
Backlog grew by 12% year-to-date, reaching $2.9 billion
Full-year 2023 guidance raised, reflecting growth in all Aerospace & Defense and Commercial end markets
On November 2, 2023, Curtiss-Wright Corp (NYSE:CW) released its third quarter 2023 financial results, reporting a 15% increase in sales to $724 million. The company also raised its full-year 2023 guidance, reflecting growth in all Aerospace & Defense (A&D) and Commercial end markets.
Financial Highlights
The company reported operating income of $133 million, an operating margin of 18.3%, and diluted earnings per share (EPS) of $2.51. Adjusted operating income was $134 million, up 17%, with an adjusted operating margin of 18.5%, up 30 basis points. Adjusted diluted EPS was $2.54, up 23%. New orders totaled $846 million, up 3%, reflecting solid A&D and Commercial market demand, and a book-to-bill of 1.2. The company also generated free cash flow (FCF) of $137 million, resulting in a 140% Adjusted FCF conversion.
Curtiss-Wright delivered strong third quarter results, as Adjusted diluted EPS of $2.54 exceeded our expectations driven by sales growth in all of our A&D and Commercial end markets and a better-than-expected operational performance in our Defense Electronics segment," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.
Segment Performance
The Aerospace & Industrial segment reported sales of $220 million, up 3%, while the Defense Electronics segment reported a 34% increase in sales to $216 million. The Naval & Power segment reported a 12% increase in sales to $288 million.
Full-Year 2023 Guidance
The company has raised its full-year 2023 adjusted financial guidance. Sales are expected to grow by 8% to 10%, operating income is expected to grow by 8% to 11%, and diluted EPS is expected to be in the range of $9.00 to $9.20, up 11% to 13%. Free cash flow is expected to be in the range of $380 to $400 million.
Share Repurchase and Dividends
During the third quarter, the company repurchased 63,614 shares of its common stock for approximately $13 million and declared a quarterly dividend of $0.20 a share.
For more detailed information, please visit the Investor Relations section of Curtiss-Wrights website.
Explore the complete 8-K earnings release (here) from Curtiss-Wright Corp for further details.
This article first appeared on GuruFocus.
