Curtiss-Wright (CW) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached $914 million, up 13% year-over-year, with operating income of $160 million, up 23%, and diluted EPS of $3.48, up 23–29%; all segments contributed to growth and margin expansion.

• New orders increased 16% to $1.2 billion, with a 1.3x book-to-bill ratio and record $4.3 billion order book.

• Strategic investments in R&D, infrastructure, and restructuring initiatives are accelerating innovation and supporting long-term organic growth.

Financial highlights

• Q1 2026 sales were $914 million, up from $806 million in Q1 2025, with gross profit of $331 million and gross margin of 36.3%.

• Operating income rose to $160 million, with operating margin expanding to 17.5–17.6% (up 100–150 bps year-over-year).

• Diluted EPS was $3.46–$3.48, up 23–29% year-over-year.

• Free cash flow guidance for FY2026 is $580–$600 million, with >105% conversion.

• Backlog grew to $4.3 billion, up 5% from year-end 2025.

Outlook and guidance

• Full-year 2026 sales expected to grow 7–8%, with operating margin targeted at 19.0–19.2% (up 40–60 bps).

• Diluted EPS guidance raised to $14.90–$15.30, up 13–16%.

• Free cash flow guidance raised to $580–$600 million, reflecting >105% FCF conversion.

• Segment guidance: Aerospace & Industrial sales up 6–8%, Defense Electronics up 4–6%, Naval & Power up 9–11%.

• Capital expenditures for 2026 projected at $110–$120 million, with ~30% YOY increase for growth investments.