Aerospace and defense company Curtiss-Wright (NYSE: CW) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 14.9% year on year to $947 million. The company’s full-year revenue guidance of $3.74 billion at the midpoint came in 1.2% above analysts’ estimates. Its non-GAAP profit of $3.79 per share was 2.8% above analysts’ consensus estimates.

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StockStory’s Take

Curtiss-Wright’s Q4 results drew a positive market response, reflecting robust sales momentum in both aerospace and defense, as well as commercial nuclear markets. Management attributed the outperformance to organic growth in defense segments, accelerated international and NATO-related demand, and successful integration of recent acquisitions. CEO Lynn Bamford noted, “Our performance reflects the critical positioning of our technologies across our A&D and commercial markets, our ongoing pursuit of operational and commercial excellence, and our commitment to delivering exceptional results for our shareholders.” Investments in research and development and operational efficiency initiatives were also key contributors.

Looking ahead, management expects continued growth in 2026, grounded in a strong backlog across defense and commercial nuclear sectors and ongoing investments in advanced technologies. The forward outlook is shaped by anticipated increases in U.S. and NATO defense spending, as well as the global expansion of nuclear energy. CEO Lynn Bamford emphasized, “Curtiss-Wright is extremely well positioned to capitalize on the expected surge in demand and future growth in this industry, providing us with increased confidence in our ability to deliver on our growth targets in commercial nuclear.” Management also highlighted the transition of small modular reactor (SMR) programs from development to prototyping as a new growth vector.

Key Insights from Management’s Remarks

Management pointed to strong organic growth, expansion in defense and commercial nuclear markets, and operational efficiency as drivers behind the quarter’s performance and upward guidance revisions.

• Aerospace and defense momentum: The company’s aerospace and defense markets delivered double-digit year-over-year growth, supported by U.S. military modernization priorities and increased NATO and allied funding. Management highlighted an accelerated pace of ground and naval defense revenues, reflecting alignment with major government programs and international demand.
• Commercial nuclear growth: Commercial nuclear markets saw significant expansion, driven by aftermarket equipment sales for plant outages and restarts, as well as progress in small modular reactor (SMR) development and new build projects, particularly in the United States, Canada, and South Korea. Management expects these trends to continue as global energy policy supports nuclear capacity growth.
• Operational excellence initiatives: Curtiss-Wright’s operational growth platform, which includes supply chain optimization, pricing strategies, and integration of robotics, contributed to margin stability. Management reported ongoing benefits from restructuring and continued efficiency improvements across all segments.
• Research & development investments: The company increased R&D spending faster than sales growth, focusing on new technologies in embedded computing, ruggedized servers, and defense electronics. Notable partnerships, such as with NVIDIA and Microsoft Azure, are enabling Curtiss-Wright to support next-generation military and aerospace applications.
• Order book and backlog expansion: New orders rose 18% in Q4, resulting in a record-high backlog that provides visibility for future revenue. Management attributed this to consistent demand in naval defense and commercial nuclear, as well as improved market conditions in process industries and international markets.

Drivers of Future Performance

Curtiss-Wright’s 2026 outlook is anchored by defense and nuclear tailwinds, ongoing technology investment, and operational discipline, though management noted certain timing-related headwinds in specific end markets.

• Defense and aerospace demand: Management expects increased U.S. and NATO defense budgets to sustain demand for embedded computing, actuation, and stabilization systems. However, order delays in the ground defense sector due to government funding timing may temper short-term growth before normalizing later in the year.
• Nuclear and process market expansion: The commercial nuclear segment is poised for growth as plant restarts and new SMR projects move from development to prototype phases. Management highlighted ongoing government support and customer partnerships as key factors, especially with anticipated orders for AP1000 reactors and international new builds.
• Operational efficiency and margin focus: Continued emphasis on operational excellence—including supply chain management, pricing, and restructuring—remains central to margin expansion. Management anticipates that these initiatives will offset increased R&D investments and capital expenditures required to support growth initiatives in 2026.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be monitoring (1) the timing and scale of AP1000 reactor orders and SMR program transitions, (2) the pace of recovery in ground defense bookings as government funding normalizes, and (3) sustained execution of operational excellence initiatives to support margin expansion. Additional focus will be placed on new product partnerships and advancements in embedded computing technologies.

Curtiss-Wright currently trades at $683.90, up from $634.25 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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