CW Q1 Earnings Call: Curtiss-Wright Highlights Aerospace, Defense Growth and Raises Full-Year Outlook

Aerospace and defense company Curtiss-Wright (NYSE:CW) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 13% year on year to $805.6 million. The company’s full-year revenue guidance of $3.39 billion at the midpoint came in 0.9% above analysts’ estimates. Its GAAP profit of $2.68 per share was 13.2% above analysts’ consensus estimates.

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StockStory’s Take

Curtiss-Wright’s first quarter results reflected notable momentum in its Aerospace and Defense end markets, as management pointed to robust demand for naval nuclear propulsion equipment and avionics in its Defense Electronics segment. CEO Lynn Bamford credited the company’s “Pivot to Growth” strategy and operational restructuring, saying, “Our execution during the first quarter is a perfect illustration of how we are focused on managing Curtiss-Wright’s consolidated portfolio.” The company also experienced margin expansion, which management linked to benefits from last year’s restructuring program and ongoing commercial and operational excellence initiatives. The backlog reached a new record, offering increased visibility for future growth.

Looking ahead, Curtiss-Wright’s updated guidance is anchored in a strong order book across its defense and commercial markets, with management noting particular confidence in sustained demand for embedded computing technology and cockpit voice recorder solutions in commercial aerospace. CFO Chris Farkas emphasized the impact of tariff mitigation strategies and ongoing investments in research and development, stating, “We expect to overcome the impact of tariff-related headwinds.” Management also highlighted potential growth from the FAA’s safety mandates and international opportunities in commercial nuclear, suggesting that supportive government policies and new contract wins could further drive top-line growth this year.

Key Insights from Management’s Remarks

Management attributed first quarter outperformance to strong demand in defense electronics, operational efficiencies, and early traction from new aerospace safety mandates.

• Defense electronics demand: Higher sales of embedded computing and avionics equipment, especially for C5ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) programs and helicopter platforms, drove segment growth. Management credited both U.S. and international defense spending priorities for this uptick.
• Operational restructuring benefits: The company cited margin expansion partly due to its restructuring actions launched last year, which included facility consolidations and commercial excellence initiatives. These efforts increased efficiency and supported higher profitability.
• Commercial aerospace safety mandates: New FAA and European Aviation Safety Agency requirements for longer cockpit voice and data recorder capability began translating into orders. Management highlighted the partnership with Honeywell and noted this market is “at the very beginning of what’s going to be a long, steady ramp.”
• Naval and nuclear projects: Curtiss-Wright reported strong execution on submarine programs and aftermarket sales supporting nuclear reactor maintenance. The Ultra Energy acquisition contributed to growth in commercial nuclear and process markets, though it was margin dilutive in its first year.
• Tariff mitigation strategies: Facing new and ongoing tariffs, Curtiss-Wright implemented mitigation steps such as flexible sourcing and targeted price increases, reducing the estimated net tariff impact for the year. Management stressed readiness based on experience from earlier tariff rounds and emphasized ongoing customer collaboration for cost recovery.

Drivers of Future Performance

Curtiss-Wright expects future performance to be shaped by continued defense spending, regulatory-driven aerospace demand, and disciplined cost management.

• Defense and aerospace backlog: Management pointed to a record backlog and high book-to-bill ratios as indicators of sustained demand, particularly in defense electronics and naval programs. The passage of recent U.S. defense budgets and ongoing global security priorities are expected to support steady order flow.
• Commercial aerospace mandate ramp: The FAA’s requirement for extended voice recorder capabilities is anticipated to drive multi-year growth in commercial aerospace revenue. Management emphasized that retrofit and new aircraft installations will extend through the end of the decade, with ongoing efforts to secure certifications across major platforms.
• Tariff and cost headwinds: While Curtiss-Wright expects to mitigate most tariff impacts through operational adjustments and pricing, management acknowledged that tariffs and input cost inflation remain risks. The company’s guidance assumes successful execution of these mitigation plans, but changes in tariff policy or supply chain disruptions could affect margins.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace of commercial aerospace order growth as FAA safety mandates drive new business, (2) progress in capturing international nuclear contracts—particularly in Poland and Bulgaria, and (3) Curtiss-Wright’s ability to sustain margin expansion while mitigating tariff and cost pressures. Execution on defense electronics contracts and certifications for additional aerospace platforms will also be important indicators of ongoing momentum.

Curtiss-Wright currently trades at a forward P/E ratio of 36.4×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it’s free).

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