A month has gone by since the last earnings report for Curtiss-Wright (CW). Shares have added about 2.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Curtiss-Wright due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Curtiss-Wright Q1 Earnings Outpace Estimates, Revenues Increase Y/Y
Curtiss-Wright reported adjusted earnings per share (EPS) of $3.48, which beat the Zacks Consensus Estimate of $3.32 by 4.8%. The bottom line also came in higher than the year-ago quarter’s earnings of $2.82 per share.
The company reported GAAP earnings of $3.46 per share, up 29.1% from the prior-year period.
CW’s Operational Performance
The company’s net sales of $913.7 million increased 13.4% year over year. The top line beat the Zacks Consensus Estimate of $867 million by 5.4%.
The company reported an adjusted operating income of $160 million, up 19.4% year over year. Its adjusted operating margin was 17.6%, up 100 basis points (bps).
Curtiss-Wright’s total backlog at the end of the first quarter was $4.3 billion.
New orders of $1.2 billion rose 16% year over year, driven by the strong demand in the company’s naval defense, commercial nuclear and industrial end markets.
CW’s Segmental Performance
Aerospace & Industrial: Sales in this segment improved 12% year over year to $255 million.
The adjusted operating income increased 24% to $39 million. Also, the unit’s adjusted operating margin expanded 150 bps to 15.4%.
Defense Electronics: Sales in this segment improved 5% year over year to $256 million.
The unit’s adjusted operating income improved 7% to $72 million. The adjusted operating margin expanded 60 bps to 28.1%.
Naval & Power: Sales in this segment increased 21% year over year to $402 million.
The segment's adjusted operating income increased 33% to $60 million. The adjusted operating margin expanded 140 bps to 14.9%.
Financial Position of CW
CW’s cash and cash equivalents as of March 31, 2026, were $343.4 million compared with $371.3 million as of Dec. 31, 2025.
The long-term debt was $757.6 million compared with $757.9 million as of Dec. 31, 2025.
The net cash outflow from operating activities amounted to $6 million during the first three months of 2026 compared with $39 million in the prior-year period.
The free cash outflow as of March 31, 2026, was $17 million compared with $55 million a year ago.
2026 Guidance of CW
CW expects to generate adjusted earnings in the band of $14.90-$15.30 per share. The Zacks Consensus Estimate for earnings is pegged at $15.08 per share, which lies below the midpoint of the company’s guided range.
Curtiss-Wright expects to generate sales in the range of $3.74-$3.80 billion. The Zacks Consensus Estimate for sales is pegged at $3.75 billion, which lies below the midpoint of the company’s guidance.
The company expects to generate free cash flow in the band of $580-$600 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Curtiss-Wright has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Curtiss-Wright has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Curtiss-Wright is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, ATI (ATI), a stock from the same industry, has gained 11.3%. The company reported its results for the quarter ended March 2026 more than a month ago.
ATI reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +0.6%. EPS of $1.00 for the same period compares with $0.72 a year ago.
ATI is expected to post earnings of $0.99 per share for the current quarter, representing a year-over-year change of +33.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for ATI. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).