Sign In  |  Register  |  About San Rafael  |  Contact Us

San Rafael, CA
September 01, 2020 1:37pm
7-Day Forecast | Traffic
  • Search Hotels in San Rafael

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Curtiss-Wright Reports Fourth Quarter and Full-Year 2023 Financial Results; Issues Full-Year 2024 Guidance Reflecting Strong Growth in Sales, EPS and Free Cash Flow

Company Delivers Record FY23 Sales, Profitability, EPS, Free Cash Flow and Orders

Curtiss-Wright Corporation (NYSE: CW) reports financial results for the fourth quarter and full-year ended December 31, 2023.

Fourth Quarter 2023 Highlights:

  • Reported sales of $786 million, up 4%, operating income of $161 million, operating margin of 20.4%, and diluted earnings per share (EPS) of $3.11;
  • Adjusted operating income of $163 million, up 2%;
  • Adjusted operating margin of 20.8%;
  • Adjusted diluted EPS of $3.16, up 8%; and
  • Free cash flow (FCF) of $270 million, generating 221% Adjusted FCF conversion.

Full-Year 2023 Highlights:

  • Reported sales of $2.8 billion, up 11%, operating income of $485 million, operating margin of 17.0%, diluted EPS of $9.20 and Reported FCF of $403 million;
  • Adjusted operating income of $494 million, up 11%;
  • Adjusted operating margin of 17.4%;
  • Adjusted diluted EPS of $9.38, up 15%;
  • Adjusted FCF of $413 million, generating 114% Adjusted FCF conversion;
  • Total share repurchases of $50 million;
  • New orders of $3.1 billion, up 5%, reflecting solid demand in Aerospace & Defense (A&D) and Commercial markets, and book-to-bill of 1.1x; and
  • Backlog of $2.9 billion, up 9%;

"Curtiss-Wright ended the year with a strong fourth quarter financial performance that reflected better-than-expected sales growth, record quarterly Adjusted diluted EPS of $3.16 and strong free cash flow," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation.

"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. We achieved record Adjusted free cash flow of $413 million, driven by 15% growth in Adjusted diluted EPS as well as our continued efforts to reduce working capital. Our results also reflected strong demand across our A&D and Commercial markets, which drove record new orders exceeding $3 billion and a book-to-bill of 1.1x. Overall, these results mark the final, successful year for the three year goals we established at our May 2021 Investor Day. I'm incredibly proud of the team's efforts to successfully execute our pivot to growth strategy and the momentum we now carry forward into 2024."

"Looking ahead, our strong backlog entering the year supports our expectations to deliver total organic sales growth of 4% to 6% in 2024, including growth in all of our A&D and Commercial end markets. We expect to deliver continued operating margin expansion while increasing R&D investments, diluted EPS growth of 7% to 10%, and strong free cash flow generation ranging from $415 to $435 million. We remain well-positioned with strong alignment of our technologies to the favorable secular growth trends in each of our end markets, and confident in our ability to deliver profitable growth and drive long-term shareholder value."

Fourth Quarter 2023 Operating Results

(In millions)

Q4-2023

Q4-2022

Change

Reported

 

 

 

Sales

$

786

 

$

758

 

4

%

Operating income

$

161

 

$

157

 

2

%

Operating margin

 

20.4

%

 

20.8

%

(40 bps)

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

786

 

$

758

 

4

%

Operating income

$

163

 

$

160

 

2

%

Operating margin

 

20.8

%

 

21.1

%

(30 bps)

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Sales of $786 million increased 4% compared with the prior year period;
  • Total A&D market sales increased 5%, while total Commercial market sales increased 2%;
  • In our A&D markets, we experienced solid growth in the defense markets principally driven by higher defense electronics revenues and higher sales of arresting systems equipment, as well as strong sales growth in the commercial aerospace market;
  • In our Commercial markets, we experienced solid growth in the power & process markets, despite the wind down on the China Direct AP1000 program, while sales in the general industrial market were in-line with the prior year period; and
  • Adjusted operating income was $163 million, up 2% compared with the prior year period, while Adjusted operating margin decreased 30 basis points to 20.8%, as favorable overhead absorption on higher revenues in all three segments was offset by unfavorable mix on products and higher investment in research and development.

Fourth Quarter 2023 Segment Performance

Aerospace & Industrial

(In millions)

Q4-2023

Q4-2022

Change

Reported

 

 

 

Sales

$

238

 

$

223

 

7

%

Operating income

$

44

 

$

41

 

9

%

Operating margin

 

18.5

%

 

18.2

%

30 bps

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

238

 

$

223

 

7

%

Operating income

$

44

 

$

41

 

7

%

Operating margin

 

18.5

%

 

18.5

%

0 bps

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Sales of $238 million, up $15 million, or 7%;
  • Higher commercial aerospace market revenues reflected increased OEM sales of actuation and sensors products, as well as surface treatment services, on narrowbody and widebody platforms;
  • In the defense markets, higher revenue in the aerospace defense market supporting various fighter jet programs was mainly offset by lower sales on ground missile launchers in the ground defense market;
  • General industrial market revenue was essentially flat, as the benefit of new product introductions addressing the electrification of vehicles was mainly offset by lower sales on off-highway vehicle platforms; and
  • Adjusted operating income was $44 million, up 7%, with a strong Adjusted operating margin of 18.5%, as favorable absorption on higher revenues was partially offset by the timing of development contracts.

Defense Electronics

(In millions)

Q4-2023

Q4-2022

Change

Reported

 

 

 

Sales

$

240

 

$

236

 

1

%

Operating income

$

69

 

$

70

 

(2

%)

Operating margin

 

28.8

%

 

29.7

%

(90 bps)

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

240

 

$

236

 

1

%

Operating income

$

69

 

$

70

 

(2

%)

Operating margin

 

28.8

%

 

29.7

%

(90 bps)

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Sales of $240 million, up $3 million, or 1%;
  • Aerospace defense market revenue declines principally reflected the timing of sales of our embedded computing equipment on various helicopter programs partially offset by higher sales of flight test instrumentation equipment on various fighter jet programs;
  • Strong revenue growth in the ground defense market reflected higher sales of tactical battlefield communications equipment as well as higher sales of embedded computing equipment on the Stryker ground combat vehicle;
  • Higher revenue in the naval defense market reflected increased sales of our embedded computing equipment supporting various domestic and international programs; and
  • Adjusted operating income was $69 million, down 2% from the prior year period, while adjusted operating margin decreased 90 basis points to 28.8%, as favorable absorption on higher revenues was offset by unfavorable mix and higher investments in research and development.

Naval & Power

(In millions)

Q4-2023

Q4-2022

Change

Reported

 

 

 

Sales

$

308

 

$

298

 

3

%

Operating income

$

57

 

$

59

 

(3

%)

Operating margin

 

18.5

%

 

19.7

%

(120 bps)

 

 

 

 

Adjusted (1)

 

 

 

Sales

$

308

 

$

298

 

3

%

Operating income

$

59

 

$

60

 

(2

%)

Operating margin

 

19.3

%

 

20.3

%

(100 bps)

(1) Reconciliations of Reported to Adjusted operating results are available in the Appendix.

  • Sales of $308 million, up $10 million, or 3%;
  • Higher revenue in the aerospace defense market was primarily driven by increased sales of our arresting systems equipment supporting various domestic and international customers;
  • Naval defense market revenue was essentially flat, as higher revenues on Columbia-class and Virginia-class submarines were mainly offset by the timing of revenues on the CVN-80 and CVN-81 aircraft carrier programs;
  • Higher power & process market revenues reflected strong growth in industrial valve sales in the process market, and solid growth in the commercial nuclear market supporting increased development on Advanced Small Modular Reactors (ASMRs); Those increases were partially offset by lower China Direct AP1000 program revenues; and
  • Adjusted operating income was $59 million, down 2% from the prior year period, while adjusted operating margin decreased 100 basis points to 19.3%, as favorable absorption on higher revenues was offset by unfavorable mix of products and timing of development contracts.

Free Cash Flow

(In millions)

Q4-2023

Q4-2022

Change

Net cash provided by operating activities

$

282

 

$

292

 

(3

%)

Capital expenditures

 

(13

)

 

(9

)

34

%

Reported free cash flow

$

270

 

$

283

 

(5

%)

Adjusted free cash flow (1)

$

270

 

$

299

 

(10

%)

(1) A reconciliation of Reported to Adjusted free cash flow is available in the Appendix.

  • Reported free cash flow of $270 million decreased $13 million, as higher cash earnings were more than offset by higher taxes;
  • Adjusted free cash flow of $270 million decreased $29 million; and
  • Capital expenditures increased approximately $3 million compared with the prior year period, primarily due to higher growth investments within the Naval & Power segment.

New Orders and Backlog

  • New orders of $685 million decreased 4% in the fourth quarter, reflecting timing in our Defense markets, partially offset by strong demand within our Commercial markets for nuclear aftermarket products as well as subsea pumps to the process market;
  • Full-year 2023 new orders of $3.1 billion increased 5% and generated an overall book-to-bill of 1.1x, reflecting growth in our A&D and Commercial markets; and
  • Backlog of $2.9 billion, up 9% from December 31, 2022, reflects strong demand in both our A&D and Commercial markets.

Share Repurchase and Dividends

  • During the fourth quarter, the Company repurchased 60,442 shares of its common stock for approximately $13 million;
  • During full-year 2023, the Company repurchased 0.3 million shares for $50 million; and
  • The Company also declared a quarterly dividend of $0.20 a share.

Full-Year 2024 Guidance

The Company's full-year 2024 financial guidance(1) is as follows:

($ in millions, except EPS)

2024 Guidance

% Chg vs 2023 Adjusted

Total Sales

$2,960 - $3,010

Up 4% - 6%

Operating Income

$514 - $528

Up 4% - 7%

Operating Margin

17.4% - 17.6%

Up 0 - 20 bps

Diluted EPS

$10.00 - $10.30

Up 7% - 10%

Free Cash Flow

$415 - $435

Up 0% - 5%

(1) Reconciliations of Reported to Adjusted 2023 operating results and 2024 financial guidance are available in the Appendix, and exclude first year purchase accounting costs associated with prior year acquisitions.

**********

A more detailed breakdown of the Company’s 2024 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts, can be found in the accompanying schedules. Historical financial results are available in the Investor Relations section of Curtiss-Wright’s website.

Conference Call & Webcast Information

The Company will host a conference call to discuss fourth quarter and full-year 2023 financial results and expectations for 2024 guidance at 10:00 a.m. ET on Thursday, February 15, 2024. A live webcast of the call and the accompanying financial presentation, as well as a webcast replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.

(Tables to Follow)

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

($'s in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Product sales

$

667,879

 

 

$

646,263

 

 

$

2,389,711

 

 

$

2,135,882

 

Service sales

 

117,912

 

 

 

111,402

 

 

 

455,662

 

 

 

421,143

 

Total net sales

 

785,791

 

 

 

757,665

 

 

 

2,845,373

 

 

 

2,557,025

 

 

 

 

 

 

 

 

 

Cost of product sales

 

414,010

 

 

 

399,389

 

 

 

1,507,480

 

 

 

1,348,569

 

Cost of service sales

 

67,051

 

 

 

65,792

 

 

 

270,715

 

 

 

253,847

 

Total cost of sales

 

481,061

 

 

 

465,181

 

 

 

1,778,195

 

 

 

1,602,416

 

 

 

 

 

 

 

 

 

Gross profit

 

304,730

 

 

 

292,484

 

 

 

1,067,178

 

 

 

954,609

 

 

 

 

 

 

 

 

 

Research and development expenses

 

20,066

 

 

 

19,032

 

 

 

85,764

 

 

 

80,836

 

Selling expenses

 

36,306

 

 

 

31,199

 

 

 

137,088

 

 

 

121,586

 

General and administrative expenses

 

87,664

 

 

 

85,008

 

 

 

359,724

 

 

 

324,093

 

Loss on divestiture

 

 

 

 

 

 

 

 

 

 

4,651

 

 

 

 

 

 

 

 

 

Operating income

 

160,694

 

 

 

157,245

 

 

 

484,602

 

 

 

423,443

 

 

 

 

 

 

 

 

 

Interest expense

 

10,961

 

 

 

13,665

 

 

 

51,393

 

 

 

46,980

 

Other income, net

 

7,117

 

 

 

1,434

 

 

 

29,861

 

 

 

12,732

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

156,850

 

 

 

145,014

 

 

 

463,070

 

 

 

389,195

 

Provision for income taxes

 

(36,963

)

 

 

(35,991

)

 

 

(108,561

)

 

 

(94,847

)

Net earnings

$

119,887

 

 

$

109,023

 

 

$

354,509

 

 

$

294,348

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic earnings per share

$

3.14

 

 

$

2.85

 

 

$

9.26

 

 

$

7.67

 

Diluted earnings per share

$

3.11

 

 

$

2.82

 

 

$

9.20

 

 

$

7.62

 

 

 

 

 

 

 

 

 

Dividends per share

$

0.20

 

 

$

0.19

 

 

$

0.79

 

 

$

0.75

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

38,232

 

 

 

38,296

 

 

 

38,283

 

 

 

38,386

 

Diluted

 

38,505

 

 

 

38,633

 

 

 

38,529

 

 

 

38,649

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($'s in thousands, except par value)

 

 

 

 

 

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

406,867

 

 

$

256,974

 

Receivables, net

 

732,678

 

 

 

723,304

 

Inventories, net

 

510,033

 

 

 

483,113

 

Other current assets

 

67,502

 

 

 

52,623

 

Total current assets

 

1,717,080

 

 

 

1,516,014

 

Property, plant, and equipment, net

 

332,796

 

 

 

342,708

 

Goodwill

 

1,558,826

 

 

 

1,544,635

 

Other intangible assets, net

 

557,612

 

 

 

620,897

 

Operating lease right-of-use assets, net

 

141,435

 

 

 

153,855

 

Prepaid pension asset

 

261,869

 

 

 

222,627

 

Other assets

 

51,351

 

 

 

47,567

 

Total assets

$

4,620,969

 

 

$

4,448,303

 

 

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Current portion of long-term and short-term debt

$

 

 

$

202,500

 

Accounts payable

 

243,833

 

 

 

266,525

 

Accrued expenses

 

188,039

 

 

 

174,440

 

Deferred revenue

 

303,872

 

 

 

254,801

 

Other current liabilities

 

70,800

 

 

 

82,779

 

Total current liabilities

 

806,544

 

 

 

981,045

 

Long-term debt

 

1,050,362

 

 

 

1,051,900

 

Deferred tax liabilities

 

132,319

 

 

 

123,001

 

Accrued pension and other postretirement benefit costs

 

66,875

 

 

 

58,348

 

Long-term operating lease liability

 

118,611

 

 

 

132,275

 

Long-term portion of environmental reserves

 

12,784

 

 

 

12,547

 

Other liabilities

 

105,061

 

 

 

107,973

 

Total liabilities

$

2,292,556

 

 

$

2,467,089

 

 

 

 

 

Stockholders' equity

 

 

 

Common stock, $1 par value

$

49,187

 

 

$

49,187

 

Additional paid in capital

 

140,182

 

 

 

134,553

 

Retained earnings

 

3,487,751

 

 

 

3,163,491

 

Accumulated other comprehensive loss

 

(213,223

)

 

 

(258,916

)

Less: cost of treasury stock

 

(1,135,484

)

 

 

(1,107,101

)

Total stockholders' equity

 

2,328,413

 

 

 

1,981,214

 

 

 

 

 

Total liabilities and stockholders' equity

$

4,620,969

 

 

$

4,448,303

 

Use and Definitions of Non-GAAP Financial Information (Unaudited)

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transparency in order to better measure Curtiss-Wright’s ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliations of “Reported” GAAP amounts to “Adjusted” non-GAAP amounts are furnished within this release.

The following definitions are provided:

Adjusted Sales, Operating Income, Operating Margin, Net Earnings and Diluted EPS

These Adjusted financials are defined as Reported Sales, Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) the sale or divestiture of a business or product line; (iii) pension settlement charges; and (iv) significant legal settlements, impairment costs, and costs associated with shareholder activism, as applicable.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

238,224

 

 

$

 

$

238,224

 

 

$

223,258

 

 

$

 

$

223,258

 

 

7

%

 

7

%

Defense Electronics

 

239,751

 

 

 

 

 

239,751

 

 

 

236,456

 

 

 

 

 

236,456

 

 

1

%

 

1

%

Naval & Power

 

307,816

 

 

 

 

 

307,816

 

 

 

297,951

 

 

 

 

 

297,951

 

 

3

%

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

$

785,791

 

 

$

 

$

785,791

 

 

$

757,665

 

 

$

 

$

757,665

 

 

4

%

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial (1)

$

44,054

 

 

$

 

$

44,054

 

 

$

40,599

 

 

$

703

 

$

41,302

 

 

9

%

 

7

%

Defense Electronics

 

69,015

 

 

 

 

 

69,015

 

 

 

70,230

 

 

 

 

 

70,230

 

 

(2

)% 

 

(2

)%

Naval & Power (2)

 

56,845

 

 

 

2,529

 

 

59,374

 

 

 

58,717

 

 

 

1,724

 

 

60,441

 

 

(3

)% 

 

(2

)% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segments

$

169,914

 

 

$

2,529

 

$

172,443

 

 

$

169,546

 

 

$

2,427

 

$

171,973

 

 

%

 

%

Corporate and other

 

(9,221

)

 

 

 

 

(9,221

)

 

 

(12,301

)

 

 

 

 

(12,301

)

 

25

%

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating income

$

160,693

 

 

$

2,529

 

$

163,222

 

 

$

157,245

 

 

$

2,427

 

$

159,672

 

 

2

%

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

As Reported

 

 

 

Adjusted

 

As Reported

 

 

 

Adjusted

 

As Reported

 

Adjusted

Aerospace & Industrial

 

18.5

%

 

 

 

 

18.5

%

 

 

18.2

%

 

 

 

 

18.5

%

 

30 bps

 

— bps

Defense Electronics

 

28.8

%

 

 

 

 

28.8

%

 

 

29.7

%

 

 

 

 

29.7

%

 

(90 bps)

 

(90 bps)

Naval & Power

 

18.5

%

 

 

 

 

19.3

%

 

 

19.7

%

 

 

 

 

20.3

%

 

(120 bps)

 

(100 bps)

Total Curtiss-Wright

 

20.4

%

 

 

 

 

20.8

%

 

 

20.8

%

 

 

 

 

21.1

%

 

(40 bps)

 

(30 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment margins

 

21.6

%

 

 

 

 

21.9

%

 

 

22.4

%

 

 

 

 

22.7

%

 

(80 bps)

 

(80 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes purchase accounting adjustments in the prior period.

(2) Excludes purchase accounting adjustments in the current and prior period and trailing costs associated with the divestiture of our German valves business.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjustments

 

Adjusted

 

As Reported

 

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

887,228

 

 

$

 

$

887,228

 

 

$

836,035

 

 

$

 

$

836,035

 

 

6

%

 

6

%

Defense Electronics

 

815,912

 

 

 

 

 

815,912

 

 

 

690,262

 

 

 

 

 

690,262

 

 

18

%

 

18

%

Naval & Power

 

1,142,233

 

 

 

 

 

1,142,233

 

 

 

1,030,728

 

 

 

 

 

1,030,728

 

 

11

%

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

$

2,845,373

 

 

$

 

$

2,845,373

 

 

$

2,557,025

 

 

$

 

$

2,557,025

 

 

11

%

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Industrial (1)

$

145,278

 

 

$

 

$

145,278

 

 

$

136,996

 

 

$

703

 

$

137,699

 

 

6

%

 

6

%

Defense Electronics

 

191,775

 

 

 

 

 

191,775

 

 

 

154,568

 

 

 

 

 

154,568

 

 

24

%

 

24

%

Naval & Power (2)

 

189,227

 

 

 

9,198

 

 

198,425

 

 

 

177,582

 

 

 

14,056

 

 

191,638

 

 

7

%

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segments

$

526,280

 

 

$

9,198

 

$

535,478

 

 

$

469,146

 

 

$

14,759

 

$

483,905

 

 

12

%

 

11

%

Corporate and other (3)

 

(41,678

)

 

 

 

 

(41,678

)

 

 

(45,703

)

 

 

4,876

 

 

(40,827

)

 

9

%

 

(2

)% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating income

$

484,602

 

 

$

9,198

 

$

493,800

 

 

$

423,443

 

 

$

19,635

 

$

443,078

 

 

14

%

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

As Reported

 

 

 

Adjusted

 

As Reported

 

 

 

Adjusted

 

As Reported

 

Adjusted

Aerospace & Industrial

 

16.4

%

 

 

 

 

16.4

%

 

 

16.4

%

 

 

 

 

16.5

%

 

— bps

 

(10 bps)

Defense Electronics

 

23.5

%

 

 

 

 

23.5

%

 

 

22.4

%

 

 

 

 

22.4

%

 

110 bps

 

110 bps

Naval & Power

 

16.6

%

 

 

 

 

17.4

%

 

 

17.2

%

 

 

 

 

18.6

%

 

(60 bps)

 

(120 bps)

Total Curtiss-Wright

 

17.0

%

 

 

 

 

17.4

%

 

 

16.6

%

 

 

 

 

17.3

%

 

40 bps

 

10 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment margins

 

18.5

%

 

 

 

 

18.8

%

 

 

18.3

%

 

 

 

 

18.9

%

 

20 bps

 

(10 bps)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes purchase accounting adjustments in the prior period.

(2) Excludes purchase accounting adjustments in both periods and trailing costs associated with the divestiture of our German valves business.

(3) Excludes costs associated with shareholder activism in the prior year period.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED SALES TO ADJUSTED SALES BY END MARKET (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

 

As Reported

 

Adjustments

 

Adjusted Sales

 

As Reported

 

Adjustments

 

Adjusted Sales

 

Change in As Reported Sales

Change in Adjusted Sales

Aerospace & Defense markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace Defense

 

$

171,527

 

$

 

$

171,527

 

$

172,763

 

$

 

$

172,763

 

(1

%)

(1

%)

Ground Defense

 

 

87,691

 

 

 

 

87,691

 

 

81,348

 

 

 

 

81,348

 

8

%

8

%

Naval Defense

 

 

187,240

 

 

 

 

187,240

 

 

183,418

 

 

 

 

183,418

 

2

%

2

%

Commercial Aerospace

 

 

92,723

 

 

 

 

92,723

 

 

77,178

 

 

 

 

77,178

 

20

%

20

%

Total Aerospace & Defense

 

$

539,181

 

$

 

$

539,181

 

$

514,707

 

$

 

$

514,707

 

5

%

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power & Process

 

 

136,541

 

 

 

 

136,541

 

 

131,598

 

 

 

 

131,598

 

4

%

4

%

General Industrial

 

 

110,069

 

 

 

 

110,069

 

 

111,360

 

 

 

 

111,360

 

(1

%)

(1

%)

Total Commercial

 

$

246,610

 

$

 

$

246,610

 

$

242,958

 

$

 

$

242,958

 

2

%

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Curtiss-Wright

 

$

785,791

 

$

 

$

785,791

 

$

757,665

 

$

 

$

757,665

 

4

%

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

 

 

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

 

As Reported

 

Adjustments

 

Adjusted Sales

 

As Reported

 

Adjustments

 

Adjusted Sales

 

Change in As Reported Sales

Change in Adjusted Sales

Aerospace & Defense markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace Defense

 

$

551,622

 

$

 

$

551,622

 

$

479,743

 

$

 

$

479,743

 

15

%

15

%

Ground Defense

 

 

308,008

 

 

 

 

308,008

 

 

219,739

 

 

 

 

219,739

 

40

%

40

%

Naval Defense

 

 

720,013

 

 

 

 

720,013

 

 

694,015

 

 

 

 

694,015

 

4

%

4

%

Commercial Aerospace

 

 

324,949

 

 

 

 

324,949

 

 

276,519

 

 

 

 

276,519

 

18

%

18

%

Total Aerospace & Defense

 

$

1,904,592

 

$

 

$

1,904,592

 

$

1,670,016

 

$

 

$

1,670,016

 

14

%

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power & Process

 

 

509,998

 

 

 

 

509,998

 

 

472,300

 

 

 

 

472,300

 

8

%

8

%

General Industrial

 

 

430,783

 

 

 

 

430,783

 

 

414,709

 

 

 

 

414,709

 

4

%

4

%

Total Commercial

 

$

940,781

 

$

 

$

940,781

 

$

887,009

 

$

 

$

887,009

 

6

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Curtiss-Wright

 

$

2,845,373

 

$

 

$

2,845,373

 

$

2,557,025

 

$

 

$

2,557,025

 

11

%

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

RECONCILIATION OF AS REPORTED TO ADJUSTED DILUTED EARNINGS PER SHARE (UNAUDITED)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Diluted earnings per share - As Reported

$

3.11

 

$

2.82

 

$

9.20

 

$

7.62

First year purchase accounting adjustments

 

0.02

 

 

0.05

 

 

0.15

 

 

0.18

Divested German valves business

 

0.03

 

 

 

 

0.03

 

 

0.14

Costs associated with shareholder activism

 

 

 

 

 

 

 

0.10

Pension settlement charges

 

 

 

0.05

 

 

 

 

0.09

Diluted earnings per share - Adjusted (1)

$

3.16

 

$

2.92

 

$

9.38

 

$

8.13

 

 

 

 

 

 

 

 

(1) All adjustments are presented net of income taxes.

Organic Sales and Organic Operating Income

The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic sales and organic operating income are defined as sales and operating income, excluding contributions from acquisitions and results of operations from divested businesses or product lines during the last twelve months, and impacts from foreign currency fluctuations.

 

Three Months Ended

 

December 31,

 

2023 vs. 2022

 

Aerospace & Industrial

 

Defense Electronics

 

Naval & Power

 

Total Curtiss-Wright

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

As Reported

7%

 

9%

 

1%

 

(2%)

 

3%

 

(3%)

 

4%

 

2%

Less: Acquisitions

0%

 

0%

 

0%

 

0%

 

0%

 

0%

 

0%

 

0%

Divestiture-related costs

0%

 

0%

 

0%

 

0%

 

0%

 

1%

 

0%

 

1%

Foreign currency

(1%)

 

0%

 

0%

 

0%

 

0%

 

1%

 

(1%)

 

0%

Organic

6%

 

9%

 

1%

 

(2%)

 

3%

 

(1%)

 

3%

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

December 31,

 

2023 vs. 2022

 

Aerospace & Industrial

 

Defense Electronics

 

Naval & Power

 

Total Curtiss-Wright

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

 

Sales

 

Operating income

As Reported

6%

 

6%

 

18%

 

24%

 

11%

 

7%

 

11%

 

14%

Less: Acquisitions

0%

 

0%

 

0%

 

0%

 

(4%)

 

0%

 

(2%)

 

0%

Divestiture-related costs

0%

 

0%

 

0%

 

0%

 

0%

 

(2%)

 

0%

 

(1%)

Foreign currency

0%

 

0%

 

0%

 

(3%)

 

0%

 

0%

 

1%

 

(1%)

Organic

6%

 

6%

 

18%

 

21%

 

7%

 

5%

 

10%

 

12%

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Adjusted free cash flow excludes: (i) payments associated with the Westinghouse legal settlement and (ii) executive pension payments. The Corporation discloses adjusted free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as adjusted free cash flow divided by adjusted net earnings.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NON-GAAP FINANCIAL DATA (UNAUDITED)

($'s in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by operating activities

$

282,372

 

 

$

292,389

 

 

$

448,089

 

 

$

294,776

 

Capital expenditures

 

(12,629

)

 

 

(9,428

)

 

 

(44,666

)

 

 

(38,217

)

Free cash flow

$

269,743

 

 

$

282,961

 

 

$

403,423

 

 

$

256,559

 

Westinghouse legal settlement

 

 

 

 

 

 

 

10,000

 

 

 

15,000

 

Pension payment to former executives

 

 

 

 

15,753

 

 

 

 

 

 

23,967

 

Adjusted free cash flow

$

269,743

 

 

$

298,714

 

 

$

413,423

 

 

$

295,526

 

Adjusted free cash flow conversion

 

221

%

 

 

265

%

 

 

114

%

 

 

94

%

CURTISS-WRIGHT CORPORATION

2024 Guidance

As of February 14, 2024

($'s in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

2023

Reported

(GAAP)

 

2023

Adjustments

(Non-GAAP)(1,2)

 

2023

Adjusted

(Non-GAAP)(1,2)

 

2024

Reported Guidance

(GAAP)

 

 

 

 

 

 

 

Low

High

2024 Chg

vs 2023

Adjusted

Sales:

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

887

 

 

$

 

 

$

887

 

 

$

915

 

$

930

 

3 - 5

%

Defense Electronics

 

816

 

 

 

 

 

 

816

 

 

 

857

 

 

872

 

5 - 7

%

Naval & Power

 

1,142

 

 

 

 

 

 

1,142

 

 

 

1,188

 

 

1,208

 

4 - 6

%

Total sales

$

2,845

 

 

$

 

 

$

2,845

 

 

$

2,960

 

$

3,010

 

4 to 6%

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

$

145

 

 

$

 

 

$

145

 

 

$

152

 

$

156

 

5 - 8

%

Defense Electronics

 

192

 

 

 

 

 

 

192

 

 

 

198

 

 

203

 

3 - 6

%

Naval & Power

 

189

 

 

 

9

 

 

 

198

 

 

 

202

 

 

207

 

2 - 5

%

Total segments

 

526

 

 

 

9

 

 

 

535

 

 

 

552

 

 

567

 

 

Corporate and other

 

(42

)

 

 

 

 

 

(42

)

 

 

(38

)

 

(39

)

 

Total operating income

$

485

 

 

$

9

 

 

$

494

 

 

$

514

 

$

528

 

4 to 7%

 

 

 

 

 

 

 

 

 

 

Interest expense

$

(51

)

 

$

 

 

$

(51

)

 

$

(45

)

$

(46

)

 

Other income, net

 

30

 

 

 

 

 

 

30

 

 

 

33

 

 

35

 

 

Earnings before income taxes

 

463

 

 

 

9

 

 

 

472

 

 

 

503

 

 

518

 

 

Provision for income taxes

 

(109

)

 

 

(2

)

 

 

(111

)

 

 

(118

)

 

(122

)

 

Net earnings

$

355

 

 

$

6

 

 

$

361

 

 

$

385

 

$

396

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

9.20

 

 

$

0.18

 

 

$

9.38

 

 

$

10.00

 

$

10.30

 

7 to 10%

Diluted shares outstanding

 

38.5

 

 

 

 

 

38.5

 

 

 

38.5

 

 

38.5

 

 

Effective tax rate

 

23.4

%

 

 

 

 

23.4

%

 

 

23.5

%

 

23.5

%

 

 

 

 

 

 

 

 

 

 

 

Operating margins:

 

 

 

 

 

 

 

 

 

Aerospace & Industrial

 

16.4

%

 

 

 

 

16.4

%

 

 

16.6

%

 

16.8

%

20 to 40 bps

Defense Electronics

 

23.5

%

 

 

 

 

23.5

%

 

 

23.1

%

 

23.3

%

(40) to (20) bps

Naval & Power

 

16.6

%

 

 

 

 

17.4

%

 

 

17.0

%

 

17.2

%

(40) to (20) bps

Total operating margin

 

17.0

%

 

 

 

 

17.4

%

 

 

17.4

%

 

17.6

%

0 to 20 bps

 

 

 

 

 

 

 

 

 

 

Free cash flow

$

403

 

 

$

10

 

 

$

413

 

 

$

415

 

$

435

 

 

 

 

 

 

 

 

 

 

 

 

Notes: Full year amounts may not add due to rounding.

(1) 2023 Adjusted financials exclude the impact of first year purchase accounting adjustments.

(2) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2023 Adjusted Free Cash Flow excluded a legal settlement payment of $10 million.

CURTISS-WRIGHT CORPORATION

2024 Sales Growth Guidance by End Market

As of February 14, 2024

 

 

 

 

 

 

 

 

 

 

 

2024 % Change

vs 2023 Adjusted

 

% Total Sales

 

 

 

 

Aerospace & Defense Markets

 

 

 

Aerospace Defense

5 - 7%

 

20%

Ground Defense

4 - 6%

 

11%

Naval Defense

3 - 5%

 

25%

Commercial Aerospace

10 - 12%

 

12%

Total Aerospace & Defense

5 - 7%

 

67%

 

 

 

 

Commercial Markets

 

 

 

Power & Process

3 - 5%

 

18%

General Industrial

1 - 3%

 

15%

Total Commercial

2 - 4%

 

33%

 

 

 

 

Total Curtiss-Wright Sales

4 - 6%

 

100%

 

 

 

 

Note: Sales percentages may not add due to rounding.

 

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE:CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,600 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.

Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanRafael.com & California Media Partners, LLC. All rights reserved.