Aerospace and defense company Curtiss-Wright (NYSE: CW) announced better-than-expected revenue in Q1 CY2026, with sales up 13.4% year on year to $913.7 million. The company expects the full year’s revenue to be around $3.77 billion, close to analysts’ estimates. Its non-GAAP profit of $3.48 per share was 5.3% above analysts’ consensus estimates.
Is now the time to buy CW? Find out in our full research report (it’s free for active Edge members).
Curtiss-Wright (CW) Q1 CY2026 Highlights:
- Revenue: $913.7 million vs analyst estimates of $869.1 million (13.4% year-on-year growth, 5.1% beat)
- Adjusted EPS: $3.48 vs analyst estimates of $3.30 (5.3% beat)
- Adjusted EBITDA: $159.5 million vs analyst estimates of $182.1 million (17.5% margin, 12.5% miss)
- The company slightly lifted its revenue guidance for the full year to $3.77 billion at the midpoint from $3.74 billion
- Management raised its full-year Adjusted EPS guidance to $15.10 at the midpoint, a 1.2% increase
- Operating Margin: 17.5%, up from 16% in the same quarter last year
- Market Capitalization: $27.42 billion
StockStory’s Take
Curtiss-Wright’s first quarter saw revenue and adjusted profit both surpass Wall Street expectations, yet the market responded negatively, likely due to a shortfall in adjusted EBITDA relative to consensus. The company’s leadership attributed the strong top-line growth to robust demand across all three of its segments, emphasizing notable wins in defense electronics, naval, and power markets. CEO Lynn Bamford cited “higher sales of actuation and sensors equipment supporting various U.S. and European fighter jet programs” and improvements in commercial nuclear aftermarket demand as central drivers for the results.
Looking ahead, Curtiss-Wright’s guidance is underpinned by a growing order book, momentum in both defense and commercial nuclear sectors, and continued operational investments. Management highlighted expectations for improved sales in defense and commercial nuclear, increased profitability through cost control, and ongoing execution of restructuring initiatives. CEO Lynn Bamford stated, “We are ramping up our investments in people, systems and capacity to drive increased throughput across our naval businesses and also in anticipation of future commercial nuclear awards,” pointing to a focus on scaling for sustained long-term growth.
Key Insights from Management’s Remarks
Management attributed the strong quarter to heightened defense demand, record order intake, and operational improvements, while noting that adjusted EBITDA lagged expectations due to investment ramp-up and mix effects.
-
Defense order momentum: The company reported its highest order intake since late 2024, with a 1.3x book-to-bill ratio, driven by increased demand for mission computer upgrades, next-generation helicopter programs, and tactical communications. Management pointed to alignment with U.S. and allied military priorities as a key factor.
-
Naval and nuclear strength: Curtiss-Wright highlighted sustained robust demand for nuclear propulsion equipment in U.S. Navy submarine programs and growth in commercial nuclear aftermarket products. The company reached a new order book high of nearly $4.3 billion, providing strong visibility for future sales.
-
Operational margin expansion: Margin improvements in the quarter were attributed to higher absorption from increased revenues, restructuring savings, and a favorable product mix, particularly in the Aerospace & Industrial segment. These operational changes helped drive a 100 basis point expansion in operating margin.
-
SMR development ramp-up: Management discussed the transition from design to prototype manufacturing for small modular reactor (SMR) systems, with SMR-related revenue expected to grow and represent a larger share of the commercial nuclear segment. Executive Vice President Chris Farkas noted that SMR revenue is projected to increase from 10% to 12% of commercial nuclear revenue this year.
-
Supply chain management: The company emphasized its proactive approach to mitigating semiconductor and rare earth mineral shortages, including working with customers and suppliers to secure critical components and qualify alternative sources. This strategy has enabled Curtiss-Wright to avoid major disruptions and maintain its growth trajectory.
Drivers of Future Performance
Curtiss-Wright's outlook for the year is shaped by record backlog, rising defense and nuclear demand, and ongoing margin initiatives amid lingering supply chain and budget risks.
-
Defense spending and backlog: Management expects continued growth in defense sales, supported by a record order backlog and alignment with U.S. and NATO priorities. The company anticipates increased production in aerospace, ground, and naval defense programs, with direct foreign military sales projected to rise by 10% this year.
-
Margin expansion focus: Leadership is targeting further operating margin gains through operational excellence, restructuring benefits, and disciplined investment in R&D and infrastructure. They emphasized that operating income growth should continue to outpace sales growth, with margin expansion expected across all major segments.
-
Risks from budget delays and supply chain: Management flagged potential risks from delayed government budgets and supply chain constraints, particularly in Defense Electronics. However, they believe short-cycle business and proactive supply management will help convert backlog into revenue and mitigate delays.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will monitor (1) the pace of defense order conversion into revenue, especially in short-cycle businesses; (2) the impact of SMR and AP1000 nuclear project timelines on the commercial nuclear segment; and (3) the company’s ability to achieve further margin expansion through operational initiatives. Developments in U.S. and NATO defense budgets and supply chain stability will also be critical markers of execution.
Curtiss-Wright currently trades at $728.47, down from $742.62 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
Stocks That Trumped Tariffs
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
