Curtiss-Wright Corporation reported financial results for the second quarter ended June 30, 2026, delivering sales of $924 million, up 5% year-over-year, alongside adjusted diluted earnings per share of $3.72, up 15%, and free cash flow of $160 million generating 116% FCF conversion. The company also raised its full-year 2026 adjusted financial guidance across all key metrics.

Second Quarter 2026 Operating Results

The following table summarizes reported and adjusted operating performance for Q2-2026 compared with Q2-2025 (in millions):

Key Q2-2026 highlights included:

• Reported sales of $924 million, up 5%, with total Aerospace & Defense (A&D) market sales up 6% and total Commercial market sales up 5%
• Adjusted operating income of $179 million, up 12%, driven by favorable absorption on higher revenues, favorable mix in the Aerospace & Industrial and Defense Electronics segments, and benefits from restructuring initiatives, partially offset by higher R&D investment
• Adjusted operating margin of 19.4%, up 110 basis points
• Adjusted diluted EPS of $3.72, up 15%
• New orders of $1.1 billion, up 8%, reflecting a 1.16x book-to-bill
• Free cash flow of $160 million, generating 116% FCF conversion

"Curtiss-Wright delivered strong second quarter results, highlighted by mid-single digit revenue growth, operating margin expansion in all three segments, mid-teens growth in Adjusted diluted EPS, and better-than-expected free cash flow generation," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. "The momentum continues to build in our order book, underscored by record demand for our defense electronics products. Overall, we experienced strong order growth in both our A&D and Commercial markets, as total orders increased 8% year-over-year and resulted in an overall book-to-bill of 1.16x."

Segment Performance

Aerospace & Industrial

The Aerospace & Industrial segment delivered notable margin expansion alongside strong top-line growth in Q2-2026 (in millions):

Sales of $268 million increased $29 million, or 12%, driven by:

• Higher defense market sales of sensors products and actuation equipment supporting domestic and international fighter jet programs, as well as higher sales of electromechanical actuation equipment
• Commercial aerospace revenue growth from higher OEM sales of actuation equipment, sensors products, and surface treatment services on both narrowbody and widebody platforms
• Growth in the general industrial market from higher sales of industrial vehicle products serving off-highway vehicle platforms

Adjusted operating income was $49 million, up 25%, while adjusted operating margin increased 180 basis points to 18.4%, driven by favorable absorption on higher revenues, favorable product mix, and benefits from restructuring initiatives, partially offset by higher R&D investment.

Defense Electronics

The Defense Electronics segment reported a modest sales decline but achieved meaningful margin improvement in Q2-2026 (in millions):

Sales of $246 million declined $7 million, or 3%. Higher aerospace defense revenues were principally driven by increased sales of embedded computing equipment on domestic fighter jet and unmanned aerial vehicle (UAV) programs, partially offset by lower sales on helicopter programs. Lower ground defense revenues reflected the timing of tactical communications equipment sales, partially offset by higher sales of turret drive stabilization and radar systems equipment to international customers. Adjusted operating income was $69 million, up 1%, while adjusted operating margin increased 120 basis points to 28.0%, reflecting favorable mix of embedded computing revenues and cost containment initiatives, which more than offset higher R&D investment.

Naval & Power

The Naval & Power segment delivered solid sales growth and margin expansion in Q2-2026 (in millions):

Sales of $410 million increased $26 million, or 7%. Naval defense revenue growth was principally driven by timing of revenues on the Virginia-class submarine program and higher aftermarket revenue supporting naval shipyards. Power & process market revenues primarily reflected higher sales of commercial nuclear solutions supporting next-generation advanced reactors transitioning from development into the initial prototype stage, as well as higher government nuclear revenues. Adjusted operating income was $71 million, up 12%, while adjusted operating margin increased 80 basis points to 17.3%, primarily due to favorable absorption on higher revenues.

Free Cash Flow

The following table presents free cash flow for Q2-2026 versus Q2-2025 (in millions):

Free cash flow of $160 million increased $43 million, principally driven by higher cash earnings, lower working capital, and lower tax payments.

Orders, Backlog, and Capital Allocation

New orders of $1.1 billion increased 8% compared with the prior year, driven by record demand for defense electronics products. Strong order growth was experienced in both A&D and Commercial markets, with solid demand for commercial nuclear, process, and industrial products. Backlog reached $4.5 billion, up 10% from December 31, 2025.

During the second quarter, the company repurchased 20,105 shares of its common stock for approximately $15 million. In May 2026, the Board of Directors authorized an 8% increase in the quarterly dividend, from $0.24 per share to $0.26 per share, representing the 10th consecutive year that Curtiss-Wright has increased its dividend. A quarterly dividend of $0.26 per share was declared during the second quarter.

Raised Full-Year 2026 Adjusted Financial Guidance

Following strong first-half execution, Curtiss-Wright raised its full-year 2026 adjusted financial guidance. The table below compares prior and current guidance ($ in millions, except EPS):

The updated sales guidance reflects growth across the majority of Curtiss-Wright's end markets. Free cash flow guidance includes higher capital expenditures supporting growth and efficiency, reflecting a year-over-year increase of approximately $25 million compared with 2025 results. The company noted that free cash flow guidance continues to reflect greater than 105% FCF conversion.

"Based on our strong first-half execution and our outlook for the remainder of the year, we are confidently raising our full-year outlook for sales, operating income, operating margin, diluted EPS and free cash flow," said Bamford. "Curtiss-Wright remains strategically aligned with many favorable secular trends and embedded growth vectors across our A&D and Commercial markets."

Curtiss-Wright (NYSE: CW) delivered stronger-than-expected profitability in its second-quarter earnings report, with adjusted earnings per share (EPS) reaching $3.72. This result beat the analyst consensus estimate of $3.62 by 2.76 percent and marked a significant 15.17 percent increase compared to $3.23 per share reported in the same period last year. While top-line growth was solid, revenue fell slightly short of market expectations, highlighting a divergence between operational efficiency and sales volume performance.

The company reported quarterly sales of $924.000 million, which missed the analyst consensus estimate of $926.540 million by 0.27 percent. Despite the miss against estimates, this represents a 5.41 percent increase over sales of $876.576 million recorded in the corresponding period last year. The data indicates that while demand remains robust enough to drive mid-single-digit growth, execution or pricing pressures may have constrained revenue realization relative to forecasts.

Financial Performance Overview

What the Numbers Show

The most notable aspect of Curtiss-Wright’s Q2 performance is the acceleration in profit margins despite a slight revenue shortfall. With EPS growing at more than triple the rate of revenue (15.17 percent versus 5.41 percent), the company demonstrates effective cost management or favorable product mix shifts. The beat on EPS by nearly three percent suggests that operational leverage is working in the company’s favor, even as total sales narrowly missed the $926.540 million target set by analysts.

Investors should note that while the revenue miss was minimal at just 0.27 percent, it contrasts sharply with the significant upside surprise in earnings. This divergence implies that Curtiss-Wright is generating higher value from each dollar of sales, potentially through improved gross margins or controlled operating expenses. The strong year-over-year growth in both metrics confirms continued business momentum, though the narrow revenue miss warrants monitoring in subsequent quarters to ensure sustainable top-line expansion.