Why Has Curtiss-Wright (CW) Increased by 1.4% Following Its Most Recent Earnings Announcement?

Curtiss-Wright's Recent Earnings and Stock Performance

About a month has passed since Curtiss-Wright's latest earnings announcement, during which its shares have risen by approximately 1.4%, outpacing the S&P 500 index.

Investors may be curious whether this upward momentum will persist as the next earnings report approaches, or if a correction is on the horizon. To better understand the company's current trajectory, let's review the latest financial results and examine recent analyst and investor reactions.

Highlights from Curtiss-Wright's Fourth Quarter Results

Curtiss-Wright posted adjusted earnings per share of $3.79, surpassing the Zacks Consensus Estimate of $3.66 by 3.6%. This figure also represents an improvement over last year's $3.27 per share. GAAP earnings reached $3.69 per share, marking a 19.4% increase compared to the previous year.

The boost in GAAP earnings was largely driven by higher sales and increased operating income. For 2025, adjusted earnings climbed to $13.23 per share, up 21.4% from $10.90 in the prior year.

Operational Performance Overview

Net sales for the quarter totaled $947 million, a 14.9% year-over-year increase and 6.4% above consensus expectations. Annual revenues for 2025 were $3.50 billion, up from $3.12 billion in 2024.

Adjusted operating income reached $181.8 million, rising 17.4% year over year, while the adjusted operating margin was 19.7%, a slight decrease of 10 basis points. The company's backlog at year-end stood at $4.1 billion. New orders amounted to $1.1 billion, up 18%, fueled by robust demand in commercial nuclear and naval defense sectors.

Segment Performance Breakdown

• Aerospace & Industrial: Segment sales grew 5% to $262 million. Adjusted operating income fell 2% to $53 million, and the operating margin narrowed by 120 basis points to 20.1%.
• Defense Electronics: Sales increased 17% to $267 million. Adjusted operating income jumped 25% to $69 million, with the margin expanding by 160 basis points to 25.9%.
• Naval & Power: Sales rose 21% to $417 million. Adjusted operating income improved 13% to $75 million, while the margin contracted by 120 basis points to 17.9%.

Financial Position

As of December 31, 2025, Curtiss-Wright held $371.4 million in cash and equivalents, down from $385 million a year earlier. Long-term debt decreased to $0.76 billion from $0.96 billion. Operating cash flow for 2025 was $643.4 million, compared to $544.3 million in the previous year. Free cash flow reached $315 million, up from $278 million at the end of 2024.

2026 Outlook

The company anticipates adjusted earnings per share between $14.70 and $15.15. The consensus estimate stands at $14.89, slightly below the midpoint of guidance. Expected sales are projected between $3.71 and $3.77 billion, with consensus at $3.75 billion, above the midpoint. Free cash flow is forecasted to range from $575 to $595 million.

Estimate Trends

Over the past month, analyst estimates for Curtiss-Wright have moved higher, with the consensus estimate increasing by 11.49%.

VGM Scores

Currently, Curtiss-Wright boasts a Growth Score of A, but its Momentum Score is a C. The stock's Value Score is D, placing it in the lower 40% for this investment approach. The overall VGM Score is C, which may be most relevant for investors not focused on a single strategy.

Future Prospects

Upward revisions in estimates suggest a positive outlook for the stock. Curtiss-Wright holds a Zacks Rank #3 (Hold), indicating expectations for performance in line with the broader market over the coming months.

Industry Comparison

Curtiss-Wright is part of the Zacks Aerospace - Defense Equipment sector. Mercury Systems (MRCY), another company in this industry, has seen its shares rise 1.5% in the past month. Mercury Systems reported quarterly revenues of $232.87 million, up 4.4% year over year, and earnings per share of $0.16, compared to $0.07 a year earlier.

For the current quarter, Mercury Systems is expected to earn $0.06 per share, unchanged from the previous year. Over the past 30 days, the consensus estimate has decreased by 41.7%. Mercury Systems also holds a Zacks Rank #3 (Hold) and a VGM Score of C.

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