Curtiss-Wright Corporation Reports Strong Second Quarter 2025 Results, Raises Full-Year Guidance

Opening

U.S. industrial firm Curtiss-Wright Corporation (NYSE: CW) closed higher following its announcement of robust second-quarter 2025 financial results and an upward revision of its full-year guidance. The positive update signals strong operational performance and an optimistic outlook from management.

The Event in Detail

For the second quarter ended June 30, 2025, Curtiss-Wright reported sales of $877 million, marking a 12% increase year-over-year, including 9% organic growth. This figure surpassed market revenue expectations. Operating income reached $156 million, with an operating margin of 17.8%. Adjusted operating income rose 20% to $160 million, expanding the adjusted operating margin by 130 basis points to 18.3%. Diluted earnings per share (EPS) were $3.19, with adjusted diluted EPS climbing 21% to $3.23, exceeding analyst consensus estimates by 3.3%. New orders for the quarter stood at $1.0 billion, reflecting a 1.14x book-to-bill ratio, while free cash flow (FCF) was $117 million.

Building on this performance, Curtiss-Wright raised its full-year 2025 adjusted financial outlook. Sales guidance was increased to a new range of 9% to 10% growth (previously 8% to 9%). Operating income guidance was adjusted to 15% to 18% growth (previously 13% to 16%), and the operating margin guidance improved by 20 basis points to 18.5% to 18.7%. Diluted EPS guidance now stands at $12.70 to $13.00 (previously $12.45 to $12.80), representing a 16% to 19% increase. FCF guidance was also increased to $520 million to $535 million, maintaining a greater than 105% FCF conversion.

Analysis of Market Reaction

The market's positive response to Curtiss-Wright's announcement can be attributed to the company's consistent outperformance and its confident outlook for sustained growth. The CW stock closed at $530.68 per share on September 29, 2025, reflecting a one-month return of 10.02% and a 52-week gain of 57.51%. This significant appreciation underscores investor confidence in the company's financial health and strategic execution. The strong sales growth was driven by double-digit revenue expansion in both its total aerospace and defense (A&D) and commercial markets, particularly strong in Defense Electronic and Nuclear segments. The improved profitability, evidenced by margin expansion and robust EPS growth, suggests effective management of operational costs and successful implementation of restructuring initiatives.

Broader Context & Implications

Curtiss-Wright's strong performance positions it favorably within the broader industrial and defense sectors. The company operates in critical areas, providing engineered products, solutions, and services to aerospace and defense, commercial power, process, and industrial markets worldwide. The resilience of the defense technology sector, driven by increasing global defense spending and modernization imperatives, provides a supportive backdrop for Curtiss-Wright's continued growth. As noted by TimesSquare Capital Management, CW is a key holding in its U.S. Mid Cap Growth Strategy, with the fund highlighting the company's outperformance. The Russell Midcap® Growth Index, which the fund tracks, returned 18.20% during Q2 2025, indicating a strong growth environment for mid-cap equities. Curtiss-Wright's ability to exceed expectations across all major metrics and raise its guidance for the third time this year speaks to its robust demand and strategic positioning, including mitigation plans for potential tariffs.

Expert Commentary

"Curtiss-Wright delivered a strong second quarter, highlighted by double-digit revenue growth in both our total A&D and Commercial markets, significant operating margin expansion, greater than 20% growth in Adjusted diluted EPS, and better-than-expected free cash flow generation," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. "Our results also reflected the benefits of the Company's ongoing restructuring and operational excellence initiatives, and our dedication to making continued investments that drive profitable growth."

Looking Ahead

The boosted full-year guidance from Curtiss-Wright management suggests continued positive momentum for the remainder of 2025. Investors will be closely watching for sustained growth in key end markets, particularly in aerospace and defense, and the company's ability to manage potential direct impacts from tariffs. The strong book-to-bill ratio of 1.14x indicates a healthy pipeline of future business, providing revenue visibility. With a market capitalization of approximately $19.995 billion, Curtiss-Wright's ability to maintain its operational efficiency and capitalize on resilient sector demand will be crucial for its ongoing performance and investor appeal. The upward trajectory in its guidance, particularly for EPS and FCF, signals a confident outlook that could further solidify its position in the market.