Curtiss-Wright Exceeds Market Expectations with Robust Q4 Results, Stock Surges

Revenue Surpasses Estimates

Curtiss-Wright (NYSE:CW) reported Q4 CY2024 revenue of $824.3 million, surpassing analyst projections by 5.9%. This 4.9% year-over-year growth exceeded consensus estimates of $778.2 million.

Strong Earnings and Guidance

GAAP profit reached $3.09 per share, a 2.6% beat over analysts' estimates of $3.01. The midpoint of the company's 2025 full-year revenue guidance of $3.36 billion exceeds analyst estimates by 1.7% and implies a 7.7% growth rate. EPS guidance for 2025 is $12.25 at the midpoint, a 5.5% increase compared to expectations.

Financial Health

Curtiss-Wright maintains a strong financial position, with an operating margin of 18.8% and a free cash flow margin of 33.7%. Its market capitalization currently stands at $13.31 billion.

Accelerating Growth

While Curtiss-Wright's long-term sales growth rate of 4.6% falls slightly below the industry benchmark, its recent performance shows promising signs. Its annualized revenue growth of 10.5% over the last two years suggests accelerating demand.

Segment Performance

Product revenue (aerospace and defense technology) grew by an average of 11.6% year-over-year over the last two years, while Services revenue (testing, maintenance, consulting) grew by an average of 7%.

Profitability and Earnings

Curtiss-Wright's operating margin has increased by 4.9 percentage points over the last five years. Its EPS has also grown at a compound annual rate of 8.1% over the same period. The combination of improved profitability and share buybacks has contributed to EPS growth outpacing revenue growth.

Analyst Projections

Sell-side analysts forecast a 3.4% revenue growth for the next 12 months, indicating potential demand headwinds. EPS is projected to increase by 11.9% for the full year 2025.

Key Takeaway and Research Report

Curtiss-Wright's strong Q4 performance and positive guidance suggest continued growth prospects. However, longer-term business quality and valuation must be considered for investment decisions. A full research report with actionable insights is available for free here.