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Sep 30, 2022

Curtiss-Wright Q3 2022 Earnings Report

Reported solid third quarter results driven by combined portfolio strength and operational excellence, resulting in stronger profitability and double-digit EPS growth.

Key Takeaways

Curtiss-Wright reported Q3 2022 sales of $631 million, a 2% increase year-over-year. Operating income was $108 million, up 10%, with an operating margin of 17.1%. Diluted EPS was $1.91, while adjusted diluted EPS reached $2.07, a 10% increase. New orders increased by 32% to $818 million, resulting in a book-to-bill ratio of 1.30.

Reported sales of $631 million, operating income of $108 million, and diluted EPS of $1.91.

Adjusted operating income increased by 6% to $114 million; adjusted operating margin increased 70 basis points to 18.2%.

New orders increased 32% to $818 million, with a book-to-bill of 1.30.

Company is revising full-year 2022 guidance to reflect the ongoing global supply chain disruption.

Total Revenue
$631M
Previous year: $621M
+1.6%
EPS
$2.07
Previous year: $1.88
+10.1%
Operating Margin
17.1%
Previous year: 15.7%
+8.9%
Book-to-Bill
1.3
New Orders
$818M
Gross Profit
$232M
Previous year: $237M
-2.0%
Cash and Equivalents
$114M
Previous year: $234M
-51.6%
Free Cash Flow
$86M
Previous year: $97.2M
-11.5%
Total Assets
$4.34B
Previous year: $4.08B
+6.3%

Curtiss-Wright

Curtiss-Wright

Curtiss-Wright Revenue by Segment

Forward Guidance

The Company is updating its full-year 2022 Adjusted financial guidance to Total Sales Up 2% - 4%, Operating Income Up 3% - 6%, Operating Margin 17.1% - 17.3%, Diluted EPS Up 10% - 12%, and Free Cash Flow Down 9% - 21%.

Positive Outlook

  • Total Sales Up 2% - 4%
  • Operating Income Up 3% - 6%
  • Operating Margin 17.1% - 17.3%
  • Diluted EPS Up 10% - 12%
  • Sales include the contribution from the arresting systems acquisition to the Company's second half 2022 performance.

Challenges Ahead

  • Free Cash Flow Down 9% - 21%
  • Ongoing global supply chain disruption continues to impact the timing of production, deliveries and free cash flow within our Defense Electronics segment.
  • Conditions are not easing as quickly as anticipated.
  • Challenges are delaying the recognition of our strong order book.
  • Revised Adjusted free cash flow reflects the timing of defense revenues, as well as the expected delay in receipt of a significant cash payment upon the final delivery of our CAP1000 reactor coolant pumps to China, which has likely pushed to 2023, to align with our customer’s project schedule.

Revenue & Expenses

Visualization of income flow from segment revenue to net income