Research · Sep 3, 2026
[CW] Curtiss-Wright Thesis 2026: Nuclear Renaissance Extends Defense Compounding
Curtiss-Wright (CW) FY25 (Dec 2025) revenue $3.498B (+12.1%); op margin 18.6% (+170bp); op income $638M (+20.7%); net income $484.2M (+19.6%); EPS $12.87 (+22%); FCF $553.7M (+14.5%); total debt $1.315B; buybacks $464.9M (+86%). Order book $4.1B (+10%); book-to-bill consistently >1.0x. Segments: Aerospace & Industrial (sales +5%, margin ~20%); Defense Electronics (C5ISR — Q4 +17% organic, margin 25.9%); Enablement Power / Naval & Power (Q4 sales +21% on submarines + nuclear). Ultra Energy acquisition closed Dec 2024; I&C Solutions acquired FY25. FY26 guide: organic sales +6-8%; EPS $14.70-$15.15 (+11-15%); FCF $575-595M; op margin 18.9-19.2%. By segment: Aerospace Defense +9-11%; Ground Defense -4 to -6%; Naval Defense +5-7%; Commercial Aerospace +10-12%; Power & Process +12-14%; General Industrial flat. Commercial nuclear: sole-source AP1000 reactor coolant pumps; SMR development pipeline; DOE programs. Naval nuclear propulsion (Virginia-class, Columbia-class). Pivot to Growth margin strategy. 8+ consecutive dividend increases; share count declining ~3-4%/yr from buybacks. Risks: CR/defense budget timing, supply chain (memory/rare earths), AP1000 order timing, tariff exposure (~20% supply chain), acquisition integration.