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Jun 30, 2022
Curtiss-Wright Q2 2022 Earnings Report
Curtiss-Wright reported solid second quarter results with sales in line with expectations and operating margin expansion of 50 basis points. Adjusted diluted EPS exceeded expectations, and strong order activity led to a book-to-bill of 1.27.
Key Takeaways
Curtiss-Wright's Q2 2022 results showed sales of $609 million, an operating income of $98 million, and EPS of $1.83. The company experienced strong order activity, with new orders up 13% year over year, resulting in a book-to-bill ratio of 1.27.
Reported sales of $609 million, operating income of $98 million, operating margin of 16.1%, and diluted earnings per share (EPS) of $1.83.
Adjusted operating margin of 16.1%, up 50 basis points.
New orders of $776 million, up 13%, reflecting strong Aerospace & Defense (A&D) market demand, and book-to-bill of 1.27.
Share repurchases of approximately $12 million.
Curtiss-Wright
Curtiss-Wright
Curtiss-Wright Revenue by Segment
Revenue by Segment
Aerospace & Industrial Revenue
CapyFin.comDefense Electronics Revenue
CapyFin.comNaval & Power Revenue
CapyFin.comProduct Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
The company raised its full-year 2022 guidance for total sales growth to a new range of 4% to 6% to reflect the contribution of the recently completed SAA acquisition, and we continue to anticipate solid organic growth of 3% to 5% in our A&D and Commercial markets. We also expect continued operating margin expansion and double-digit Adjusted diluted EPS growth of 10% to 13%, as we successfully execute on our Pivot to Growth strategy to drive long-term shareholder value.
Positive Outlook
- Updated full-year 2022 guidance to include the acquisition of the Safran aerospace arresting systems business (SAA).
- Sales increased to new range of 4% to 6% growth (previously 3% to 5%).
- Adjusted operating income increased to new range of 5% to 7% growth (previously 3% to 6%) to reflect organic improvements and the contribution from SAA.
- Maintained Adjusted operating margin range of 17.1% to 17.3%, up 10 to 30 basis points compared with the prior year.
- Adjusted diluted EPS increased by $0.05 to new range of $8.10 to $8.30, up 10% to 13%.
Challenges Ahead
- Near-term headwinds from ongoing supply chain disruption continue to impact the timing of revenue within our defense markets.
- Total A&D market sales decreased 3%.
- Defense Electronics operating margin decreased 250 bps.
- Reported free cash flow decreased $43 million.
- Lower aerospace defense market revenue principally reflected reduced sales of actuation and sensors products on various fighter jet programs
Revenue & Expenses
Visualization of income flow from segment revenue to net income