Curtiss-Wright Q2 2022 Earnings Report
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
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