# Curtiss-Wright Corporation (CW) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CW/thesis · /stocks/CW/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: CW
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot (3-Year P&L)

#### Income Statement Summary

##### As Reported (GAAP)

| Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Revenue | $2,427M | $2,578M | $2,967M |
| YoY Revenue Growth | — | +6.2% | +15.1% |
| Gross Profit | ~$785M | ~$855M | ~$1,010M |
| Gross Margin | ~32.3% | ~33.2% | ~34.0% |
| Operating Income (GAAP) | ~$305M | ~$350M | ~$425M |
| GAAP Operating Margin | ~12.6% | ~13.6% | ~14.3% |
| Net Income (GAAP) | ~$225M | ~$260M | ~$320M |
| Diluted EPS (GAAP) | ~$5.55 | ~$6.60 | ~$8.40 |

Note: FY 2023 revenue growth of 15.1% was aided by acquisitions; organic growth was ~8%.

##### Adjusted (Non-GAAP) — Management's Preferred View

CW's adjusted figures exclude: amortization of acquired intangibles, restructuring charges, and other non-recurring items. These are the figures most relevant for operating performance assessment.

| Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Adjusted Operating Income | ~$425M | ~$465M | ~$550M |
| Adjusted Operating Margin | ~17.5% | ~18.0% | ~18.5% |
| Adjusted Net Income | ~$310M | ~$355M | ~$420M |
| Adjusted Diluted EPS | ~$7.65 | ~$9.00 | ~$11.05 |
| Adjusted EPS Growth | — | +17.6% | +22.8% |

The substantial gap between GAAP and adjusted operating income (~$125-130M in FY 2023) primarily reflects acquired intangible amortization — a non-cash charge from prior M&A that does not affect FCF.

#### Segment Operating Margins (Adjusted)

| Segment | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Defense Electronics | ~20-21% | ~21-22% | ~22-23% |
| Naval & Power | ~18-19% | ~19-20% | ~20-21% |
| Industrials | ~13-14% | ~14-15% | ~15-16% |
| Corporate/Other | (~$50M) | (~$55M) | (~$60M) |
| **Consolidated** | **~17.5%** | **~18.0%** | **~18.5%** |

Key observations:
- Defense Electronics carries the highest margins; mix shift toward this segment is margin-accretive
- Naval & Power margins have improved as the segment scales
- Industrials is the margin drag; management is selectively pruning lower-margin Industrials businesses

#### EBITDA Profile

| Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Adjusted EBITDA | ~$510M | ~$560M | ~$655M |
| Adjusted EBITDA Margin | ~21.0% | ~21.7% | ~22.1% |
| D&A | ~$85M | ~$95M | ~$105M |
| of which: Amortization | ~$65M | ~$75M | ~$85M |
| of which: D&A (cash) | ~$20M | ~$20M | ~$20M |

#### Profitability Trend Analysis

**Revenue CAGR (2021-2023)**: ~10.6% (includes M&A contribution)
**Organic Revenue CAGR**: ~7-8%
**Adjusted EPS CAGR (2021-2023)**: ~20.1% — significantly above revenue growth due to:
  1. Operating leverage (margins expanding 100 bps/year)
  2. Share count reduction (~2-3%/year via buybacks)
  3. Financial leverage (modest but accretive)

#### Below-the-Line Items

| Item | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Interest Expense | ~$40M | ~$50M | ~$58M |
| Income Tax Rate (GAAP) | ~19% | ~20% | ~19% |
| Adjusted Tax Rate | ~18-19% | ~19% | ~19% |
| Pension Income/(Expense) | Variable | Variable | ~$10M income |

CW's pension plan has historically been a minor variable; overfunded status (from strong equity market returns and company contributions) has reduced pension headwinds. GAAP earnings include pension service cost adjustments not included in adjusted EPS.

#### Free Cash Flow

| Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Operating Cash Flow | ~$340M | ~$380M | ~$460M |
| Capex | ~$55M | ~$60M | ~$65M |
| Free Cash Flow | ~$285M | ~$320M | ~$395M |
| FCF Margin | ~11.7% | ~12.4% | ~13.3% |
| FCF / Adjusted Net Income | ~92% | ~90% | ~94% |

FCF conversion (FCF / adjusted net income) is consistently ~90-95%, reflecting:
- Low maintenance capex needs (asset-light design/engineering model)
- Positive working capital dynamics (government contractors often receive advance payments)
- No significant environmental liabilities or legal overhangs

#### EPS Cadence

CW has grown adjusted EPS every year since 2012, including through COVID-19 (minimal impact given defense focus). The 20%+ EPS CAGR in 2021-2023 is partly driven by easy comps and M&A, but the underlying organic algorithm is ~10-15%/year (5-7% revenue growth + 100 bps margin expansion + 2-3% share count reduction).

#### Key Financial Ratios (FY 2023)

| Ratio | Value | Context |
|---|---|---|
| Revenue Growth | +15.1% (reported), ~8% organic | Above defense peer average |
| Adjusted Operating Margin | ~18.5% | Expanding; best-in-class for this tier |
| Adjusted EPS Growth | ~22.8% | Strong; partially M&A-aided |
| FCF Conversion | ~94% | Excellent |
| Net Debt/Adjusted EBITDA | ~1.4-1.6x | Conservative; room for M&A |
| ROIC (adjusted) | ~14-15% | Improving; above WACC |
| P/E (trailing adjusted) | ~20-22x | Premium to defense primes |

#### Guidance History

CW has a track record of conservative guidance and consistent beating/raising. Over the past 5 years, CW has beaten initial EPS guidance by an average of ~5-8%. This "guide low, beat high" pattern is well-established and contributes to the stock's premium multiple.

**FY 2024 Initial Guidance (given Feb 2024)**:
- Revenue: $3,250-3,350M
- Adjusted EPS: $11.70-12.10
- Adjusted Operating Margin: ~18.5-19.0%
- Free Cash Flow: ~$400-430M

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CW/fundamental

## Navigation

- Overview: /stocks/CW
- Financials (this page): /stocks/CW/financials
- Thesis: /stocks/CW/thesis
- Investment Memo: /stocks/CW/memo
- Coverage universe: /stocks