CW - Earnings call transcript Q2 2024 | Curtiss-Wright Corporation

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Operator

Welcome to the Curtiss-Wright Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Jim Ryan, Vice President of Investor Relations.

James Ryan

Thank you, David, and good morning, everyone. Welcome to Curtiss-Wright Second Quarter 2024 Earnings Conference Call.

call Vice Chair Officer, President the Officer, Chief Chris on Bamford; Lynn and me today and are Executive Farkas. Joining Chief Financial

release company copy also on today well through is this the call is webcast section webcast can curtisswright.com. download the Our the of A Relations our of being available for found as at website. today's of press a Investor financial website presentation be and as replay

that will the of of include expectations as certain statements are Please are note risks our statements Securities Act forward-looking not future filings in and Reform based today's those forward-looking detail XXXX. in public and Private the guarantees SEC. discussion We and are current defined associated projections uncertainties our statements with performance. on Litigation management's These with

to a basis prior in Curtiss-Wright's and to current website. and As certain operating performance. foreign for our excludes and an the divestitures transparency available include reconciliations into greater references non-GAAP noted. acquisitions, and unless on results growth reminder, translation, otherwise view financial ongoing periods adjusted that the non-GAAP company's organic restructuring earnings GAAP are order in and on provide an to release adjusted year costs currency Any exclude

over Now started. call like I'd to get turn to things to Lynn the

Lynn Bamford

Investor Thank XXXX Day. you, Jim, following and good morning, everyone. Today call our marks our May first earnings

across support technologies strategy, event a X-year our and critical appreciated key we with had and new our showcase opportunity We some great everyone's feedback. of investors an to The event, leaders recap our turnout, provided of the I of growth a the X of and targets. value business During years overview and prior several Curtiss-Wright. financial our journey our to pivot

start. will see great off today, you a are in As to we results our

flow free on future end growth to of expansion strong in the the to and profitable building the ahead. emphasizes pace we confident across along performance focus I our markets margin dedication am years operational generation. organic are long-term our excellence, cash growth momentum Our of sustained with accelerating all compound team's

turn I'll outlook. performance, provide a call and by I'll I'll of begin our XXXX Chris over our financial the turn review our that, provide With presentation. to few the a more highlights to comments second updated of Then today's regarding quarter we'll covering in-depth financials. to

and I'll by we Finally, to recently up wrap remarks the acquisition some before Energy Ultra announced of Q&A. closing discussing move

of in the better-than-expected Underscoring the with driven Starting highlights growth mid- quarter the $XXX high revenues of teens and we year-over-year, in the Aerospace XXXX achieved markets. our Sales across all timing & increased of performance Power Defense Naval our to and strong segment Electronics by XX% performance, second segment. performance. million Defense this

year-over-year, operating Diluted increased basis per reflecting with increased due year, expectations, our in of XXX% expansion. and at to primarily the exceeding million $X.XX year-over-year XX% in XX% share Operating of margin sales sales. and nearly the income resulted flow was line XX overall $XXX Free also cash prior points strong growth and conversion. earnings our higher exceeded

growth, excess and for the to strong record supports second visibility to markets, half of great strong reach This within provides us level backlog, book, billion, XXXX in again $X enabled quarter. particularly X.Xx overall year-over-year outlook. demand our our order once which with orders or long-term a now $X.X XX% A&D the nearly us in experience second of of new Regarding billion we book-to-bill continue driving up our to

military aircraft and defense Within direct orders submarine businesses as demand in well from order increased carrier supporting our U.S. both book, naval experienced customers. our as we equipment robust aircraft foreign and programs A&D handling the

have industrial commercial order in industrial demand now improved and increases were year-over-year. in more essentially trends positive markets. specifically, and stabilized also are businesses The our where notable We within seeing our most orders vehicles

Next our XXXX to guidance. some highlights of full

strong target the to provided increase key book guidance development. continue of significant diluted confidence half increase incremental to and track metrics. externally growing our to making double-digit our performance, X%, for and both operating growth firmly us overall order to our overall majority X% expansion in margin puts sales funded Our first research This investments We year. internally deliver with along now to while we this EPS on in expect and

outlook. addition, Overall, free to exceptional XXXX. reflect cash well flow to positioned full the increased in already guide our confidence deliver results we In strong in we higher are year

growth efficiency. to launched restructuring quarter improve we a several operational our our corporate-wide future and overall and Finally, support in the second program initiatives cost-saving

X We and expect restructuring XXXX through approximately savings affect approximately the in annualized XXXX. in $XX We $XX income anticipate segment. actions A&I operating to in impact in million costs all these segments, mainly but million

addition, In savings updated within embedded our recognize segment, to these of portion the expect year in we a is which this A&I guidance.

at the Additionally, some U.K. we provide the had of Investor discussed program in completed Day. additional on later our and reinvest entity benefits support operating our additional Overall, the color consolidation business. into the We'll back EPS funding of Chris this pursuit expansion structure, prepared to remarks. more specific of initially ongoing legal and which initiatives growth by our these X savings margin generated will generate

position. to contribute free We also strong expect already flow them our to cash

shareholder in momentum to remain deliver confident through to Growth our In to build of the Pivot summary, strategy, our and execution value. long-term ability we Curtiss-Wright continues

I'd Chris Now the to like our to call continue prepared turn remarks. to with over

K. Farkas

with I'll in segment. our Slide by drivers second growth On X% XXXX Aerospace Thank our where quarter you, the & Lynn. performance key expectations. sales begin of in Industrial, overall I'll was review line X, of

commercial across segment's production strong wide-body and the growth in sales narrow-body ramp-up continued platforms. aerospace supporting low-teens OEM the Within experienced we market,

newly market, sensors general were on experienced reduced aerospace and sales on reflect actions. sales in restructuring partially in sales well due actuation timing And our small the turning due increases industrial solid higher by timing absorption launched as defense both market, our as the segment's XXXX Within to equipment favorable the to to profitability, a the offset various principally of we growth orders. segment's Those vehicle industrial contribution production from the programs. results of

was of ahead to of due an direct both conversion ground expectations in to customers. by we and market, the was equipment segment, XX% performance Across tactical from the driven and our for this sales better-than-expected part second this in of market the the revenues our strong This continues to demand modestly communication into timing Next benefit defense from military within growth [indiscernible] business benefit domestic backlog. Defense growth accelerated of Electronics deliveries foreign quarter. the increase in continue as

Black programs, in few. experienced to aerospace we and Within again embedded number including across helicopter sales a programs, Hawk Seahawk once the growth strong a name computing of defense, CXISR

and Regarding operating a programs XXX year-over-year, a CXISR strong we up tactical towards higher-margin the on equipment. performance, mix shift basis points absorption in segment's delivered communications margin, XX.X% reflecting and higher principally revenues operating

exceeded is Turning key defense to of partly strength the due expectations. a carrier. and XX% platforms, CVN-XX the revenues naval This aircraft including Naval of to and production Power growth our segment, few the sales & timing on ramps

addition, submarine well revenues, production results on our reflected program. as as Virginia the In the including SSN(X) higher and on Columbia class development class programs

market, increased U.S. military arresting results defense supporting equipment, aerospace segment's reflected aircraft the bases. of principally sales Within our systems

continued U.S. including higher reflected process revenues. market ongoing the our growth supporting In reactors, pump results of the in along market, subsea development the operating process market, demand modest commercial strong maintenance power and in with nuclear the

XX efforts recent proceeding development technological pump with July our indicated achieved We pathway a press well. we are [indiscernible] readiness commercialization. release, milestone to pursue recently As our for the and development subsea significant in continue towards

nuclear mix process and and both unfavorable segment's and expected, our as the an our operating performance, of reflected concentration results to Turning defense, across development commercial programs naval increased markets.

up expansion. solid performance in stronger-than-expected year-over-year second sum absorption Curtiss-Wright XX our margin overall, we points resulting quarter, basis To operating in generated top on line

total year end to X%, Slide market A&D sales X% across begin I'll X driven outlook, to guidance. grow by XXXX upward to our sales we X%, our full now sales growth on to X% expect an most turning of of revision markets. our Next, where with organic with

expect actuation jet F-XX. X% outlook an aerospace various the programs, growth to driven sales sales sensors X% supporting fighter full of we now in Starting including equipment and by year improved for defense,

a In the year. addition, expect the computing remainder various over to and continue revenues programs we revenue ramp these are embedded of sequential equipment supporting projecting strong CXISR in

XX% XX% Within demonstrated growth to half market, for timing continue and in ground experience our the very demand outlook equipment. our partly remains sales we strong first unchanged. to to In solid this growth defense, overall of due for the communications tactical year,

half we in the as of now of services expect of based This aircraft year defense, we revenues military updated quarter. naval for our to second foreign supporting guidance as second In fleet handling sales the expectation on received X% well look for includes systems to higher strong this grow mainly customers the year. to X% as increased orders aftermarket full volume sales

growth our provides aerospace, to our half to of a Turning performance with us XX%. first year XX% to particularly services commercial a for sales new treatment to confidence range strong raise surface full

We up Wrapping to expect higher in now view, aircraft our and production continue total a increase relates wide-body program. as to X% and to conservative aerospace on markets, while MAX specifically expect maintaining the defense narrow-body to we XXXX. XXX OEM XX% it sales

for pump power a X% the we our remains year continue process nuclear market, year market, Moving growth sales driven in principally commercial unchanged. full markets. outlook growth Within to our commercial to rate, our to higher process the driven expect and X% subsea by a on In rate aftermarket revenues. development market, single-digit full strong by high revenues, expect while we growth low-single-digit

year on industrial vehicle off-highway markets, full our the industrial for on- the expectations we've market. first weaker based market, this reduced to flat In and half serving general sales

of an full with trends total provides year, in to market. up with treatment second half the order cycle this looking X%. activity are along markets, confidence of the remainder us to sales our Lynn the X% positive earlier surface Wrapping our highlighted that performance However, services targeting commercial now year shorter the for improved improved we growth generally in

outlook Aerospace aerospace in is X%. first our with market. commercial within improved driven X. full strong increasing on Slide our Moving on to in & X% to expectations and by begin guidance by segment where year Industrial, growth along are sales revenue aerospace the our This defense principally we half I'll to outlook

our profitability, XX prior to operating Regarding basis margin range points a is expect income points expansion XX to basis the XX% X% above we and XX new XX.X% now of of expectations. which of XX.X%, segment's growth operating to to

For then on of margin to we our sales favorable timing segment operations. of along expect benefits to your We largely sales absorption reflecting improvement quarter results finish ongoing quarter third par and income a the the to European within second with strong operating the with year, our mix modeling to the and expect purposes, the due be deliver initiatives.

anticipate the driven sales we expect grow half book A&D to in X% over of order sales to our to year. and be remaining Next and stronger Electronics, continue across the back Defense a XX%, the to markets demand split evenly by

profitability, segment's the operating and project XX Regarding to points XX from to growth margin range we income of XX.X%. continue basis XX% to in to XX% to increase operating XX%

As are both of basis investments, $X in our a reminder, includes million half an profitability incremental segment's the to internally point or headwind results. a R&D XX funded second also which expected impact

Naval raised following have we And order for robust Power, in in to defense, growth & revenues first activity and strong new X% half to revenue our range growth of X%. expectations the a in naval

segment's range of to to X%. we guidance new income profitability, Regarding raised operating down a the our slightly flat

your Of the anticipate to to programs slightly with due accelerated to naval maintained development pressures second expect sales, below we defense revenues Power. revenues. our third While the for results, higher mix Naval be purposes, and timing quarter quarter margin to and stronger-than-anticipated due on outlook segment's the prior primarily across we this of in ramp-up continue primarily unfavorable & margin associated note modeling we favorable absorption

anticipate a the experience move contract recognize However, course we second more mix of naval of over we the as year, impact first excellence of the and favorable the initiatives. past improved the the benefits quarter profitability of half operational our adjustment,

increase operating of to overall, XX.X% and we spending. including range summarize So million margin XX.X%, income total continue from to expect to more now expect total engineering a than to our in X% $XX X% to to outlook, Curtiss-Wright year-over-year grow operating

Slide outlook financial on X. our with Continuing

to Curtiss-Wright our to of both reduction mentioned tax is added This consolidation. our facilitate outlined cash Investor million May rate I XXX of Day, impacting earlier XX.X%. driver and and free drive have expense Lynn to main a flow. tax legal initiative facilitate study As $X to in entity and in to in looking at in the cash effective nominal savings repatriation tax beyond. Curtiss-Wright as the has savings cost case tax executed point pursue note, and benefit generating recurring opportunities actively This basis additional the XXXX efficiency at targeted efficient we annual approximately will Of are a the continue and

expect range XX%, guidance. double-digit EPS with up our Investor $XX.XX, XX% to full Next for $XX.XX We to target to diluted EPS to year from now Day growth. aligns XXXX our which

As quarter par on XXXX half our to a the the EPS of with our second we second this to look third year. be followed expect ahead quarter results we relatively finish year, strong to by

new a which million. X% free rate of in flow solid with cash growth $XXX This And to strong of year-to-date flow. XXX%, is a to on earnings Based our free performance, consolidations range the we've our U.K. to long-term lastly, and $XXX projections of excess turning reflects to cash tax million line outlook cash benefits improved free targets. conversion our raised for from flow outlook our and project, our in X%

over Now I'd Lynn. the to back like call to turn

Lynn Bamford

And the and temperature maintains few They're and U.K. of and team, has business XX strong the minutes pressure of the is complementary with the back than a management sensors systems, to of and nuclear reactor as the the announced legacy great safe a diversified radiation an neutron XXXXs the focused backed to Energy, Thank and it generation to of X the to you, other provides the from more experienced I'd in Texas. support today dating by principally in customer engineers commercial is business all This protection Energy X. next core operations critical recently Ultra Chris. reactors facilities, spend leading Slide that monitoring a across on X reactor reviewing long globe, room. acquisition turning like control X which a and and control well Curtiss-Wright. Ultra to which plants operating systems. relations, led fit make by power as supplier

services for aging of it to nuclear Curtiss-Wright's plants. commercial advance extensions add the further aftermarket, and will life In products plant support modernization projects and

defense extend our the leading addition, of Ultra well as designers the in acquisition In by designs. support current next-generation and small providing legacy market both nuclear fleet Europe. will the reactors, modular presence as the U.K. serves with and domestically to submarine also

XX-months for approximately million Ultra financials, key than EBITDA. paid the Regarding less we $XXX next at XXx

contribute sight our expect be deal to this year to ownership, business for margin in of profitability long-term We operating the line overall the operating Curtiss-Wright dilutive first overall have to of but expansion. to and margin

aligns and and a much acquisition criteria, strategic very its gaining market for fit, business a Curtiss-Wright's The both long-term financial strong with opportunities as position profitable growth.

not transaction presence acquisition guidance to are the and Ultra across end in We is our strength expect balance close time. this our markets. third the sheet quarter global an example that Curtiss-Wright's of this of within therefore this and exciting our another at Energy including key Overall, expands

result summarize we to to remarks today, and X Slide to positioned our Turning a are deliver strong prepared well XXXX. in

We incremental we investments organic remain operating margin X% development to performance. half research a while accelerate to our anticipate strategic continue are second We and to in total in committed our and maintaining growth expansion generate ability X% as we to long-term growth. sales year strong this confident delivering

cash generate strong XXXX We XXX%. to a in excess conversion yet with EPS expect and flow double-digit rate growth again in solid of free

efficiency our Regarding operations. business restructuring culture that what ingrained improving growth been we'll the have ourselves within overall program, we for of across is positioned do and XXXX continue has our future to the Curtiss-Wright

these takeaways a exciting to today's are from confidence we driving Finally, our our the growth Throughout course achieving Investor Many our to long-term future outlook drivers growth XXXX. X% through some call, will our I'd at targets. second like the opportunities growth sales CAGR number grow in most our and that reemphasize than of key a greater remain support of of underpinned year-to-date strategic and and results. organic discussed important Day organic of our of quarter investments that

For of and the well includes note, are this the well the example, U.S. elevated to and in importance and this starting communications critical as most allies shipbuilding aligned as support Navy's support Of technologies tactical U.S. defense programs. CXISR our the equipment with environment. threat of our in

up ship construction capabilities to customers. further overall to aftermarket of need that, industrial our the current opportunity grow shore and naval the and affords base our us state Beyond the the the support

have strong military that have and our sales Outside defense of growth, direct each end to experienced continue we foreign driving U.S., markets. international the increased of benefit should

In we wide-body strong commercial aerospace, leverage remain in situated the our support ideally and anticipated backlog to ramp-up and and growing production. narrow-body

are A&D Curtiss-Wright's which Day targets of well more business by on Overall, represent growth. I'm note of sales markets, our that demand high-single-digit supported overall strong to to enable X/X that mid- pleased Investor to these us will deliver than

momentum the next-generation as particularly of support, signing received new markets, for of it nuclear the developments restore support for with decades. note, significant strengthen continued support Act X advantage to nuclear the to the help was such The large, further almost in in one ongoing bipartisan commercial at the Of recent our Curtiss-Wright's [indiscernible] that many expected its strong has legislation growth continues approval the this industry driving piece in nation's regulatory new energy are Within first reactor designs. commercial developments is reactors. streamlines the commercial market. of This end nuclear advanced process and competitive passed efforts

intently impacting the navigate our portfolio changing as dynamics Curtiss-Wright's We we on businesses. some managing market industrial are also consolidated of and focused process

we capture for addressing are to our that growth opportunities the addition long-term and medium- In Curtiss-Wright's today, discussed business future we're Day. secular that Investor at driving to proactively also the investing trends

support of future. the and through potential incremental the this small with initiatives the to decade of submarine. into in subsea many than or few the a the spending They of underway drive millions SSN(X) growth end well of to additional projects dollars development R&D to hundreds represent We in such have as but pumps, $XX future reactors million more modular committed this critical year

flexible Lastly, track addressing drive margin with shareholders. are an strong we continued navigating expansion conditions. record has agile us This enabled of and for efficiency challenging proactively successfully to and a our returns business business market and

closing, momentum In off we're the and a continues. to start great

are industry core as of needs well and trends well Our with and technologies, aligned expertise the incredibly portfolio our our customer markets. solutions as growth in

ability well We on in long-term confident and deliver we are remain profitable in deliver strong our guidance. our growth to positioned XXXX, to

at like conference And questions. for would this up time, you. call today's I to Thank open

Operator

Stanley. [Operator Liwag Instructions] Our coming with question is Kristine from first Morgan

Kristine Liwag

has constraints are more chain you deliveries on have now, of been you Electronics with Lynn shortages receipts been it quarters. easing. Can and seeing provide and that where we're where in sales the for few Defense you when like a to headwind level color the But chain supply seems Chris, on past now you'd acceleration in expect are material set? and supply catch-up

Lynn Bamford

Sure.

true would disruptions the stability haven't are supply largely we is of chain, our us, but it definitely chain. off say that behind we So eye our see major and I good supply across taken

the of continue of our in practices manage put we around in to different back supply some in tools engaging on. best the And place with supply base chain various XXXX ways

any pockets lot be Defense be that XX new times more they're lines processes to stuck And which specifically that across variety continue just from So to are the real change to we've seems a the successful. I area in weeks. in would of a for going that come and But to We how anticipate lead weeks issues, components, of prove the little legacy don't of have just where broadly, think really seem of norm those our notable XX those products, the built in. those. engage where to is older over I and in Electronics, there forward. have down And maybe lead we times we down improved say come components. that

of supply seeing doesn't It just pleased very We 'XX, end the am minor but incremental, there's price that they're in to been at sure for have prices really also chain. started that in stable say price 'XX, incremental I no and the increases. mean increases, but traditional continues.

So that's very good.

known. point we we some commercial our is good with we we guess, where think -- industrial conscious we and MAX work of most customers about set that where place businesses, at tend destocking, things, this ask X can And we're how specifically our color I broadly that month, look And are and orders. producing with about the which we're view people producing And watching this at time. around to across we very level taking XXX around are talk in our added customers, Chris is I we is think places tied aerospace. the closely we a to Boeing XX it, with some watch but broadly things the As lot our per other what caution there. is

to those and increases from And in We things as compared anywhere of the producing multiyear are think our with something us Airbus of in slightly one not kind gets that leads we spares and variety in with we ranges layer an -- the type But XX to given those we're really us we've content that a XX we comfortable month price of do. wide litmus of we're situation. they're use this it work don't where is a we in look track that, look for and some production overstocking which quarter test markets. also mixed feel rates, how if our in but and makes current several we the some how analyze line, rates even XX or production year behind just really to in and Boeing we you believe over months, past largely the period

Hopefully, that you things the answered about. were wondering

Kristine Liwag

to on because it at now? about supply where restructuring That's more could entail margins, gears done? your not it's potentially to like chain. can details Yes. to a implement seems margins operating you're what and provide you plans you And of great color team. Can talk and the initiatives really exactly margins peak on strong the levels, And the switching testament record performance the are rationale

Lynn Bamford

growing OI our than Investor in faster sales Day. we're So obviously, XXXX again to committed

of the broad, that look the that, drive tackle to doesn't a businesses achieve we'll analyze and we are we we're done. prepared a support don't to as continue mean we're have great our overall diverse are can we're performing increases for businesses job the long-term inside and So the to we doing performance to that proud volume see we of the we're that don't some it And also in time. business. And teams believe we're proud to really growth. as and better I'd the business, at of and is it's But current where profitable of align and and how note restructuring areas that doing efficiency ourselves those much regardless

structures, pleased is as So we of tend think to say very also to to taking but I'm out restructuring support cost increases. some restructuring of this volume the

So order that specifics it's chatter we action. this try to look any part it's within I I and businesses overall of not how proactive. -- as of back really just heightened X trends the prepared And think, week, and segments. down we're numbers. have manage through in this the not the the a look be this. think bit. to those really and We business feel we that were But at units don't give addressed increase just, business. good or We across real up about recession proactive We And really, action all all

Operator

our Securities. Michael next take with from question We'll Truist Ciarmoli

Michael Ciarmoli

Lynn, or be lines? give of specific it us anything necessary you you kind kind you but bogey on more the of Are Are ongoing or But restructuring a know of can't answered that kind cutting this this product or that trimming to no didn't substance, have segments, bringing was heads meat just all said may of you quartile Or is Investor margin know you I kind this but restructuring? footprint? in I give at you across And additive? is any detail? Day. is top -- this,

Lynn Bamford

color he see put take can and a it. at that little Chris more have I'll shot if a on

K. Farkas

can. definitely I

Mike. in the question, said, a the spent about in is, it's for way really are we've think to the whether at continue Investor your the moves Day, our business. efficiency I the And we many about I'll line answer emphasized we question organization. future times as you've done organization, footprint product we're look talking the And optimize across rationalization, and to time it's to at just growth I had of looking across We've the what And constantly lot past, things positioning across But past echo Lynn labor mentioned at all it that first. operations. So ourselves of constantly appreciate last this that separations. that looking the

going we both the to case, A&I And majority be are segment. across this restructuring on spend is growth heavily in of efficiency. focused achieving the the of and benefit areas So and

I think and those set as you in certainly rationalization But & future segments. focused growth Naval other looking might the footprint towards look Electronics that bit across you're one and focused to that Power, little segments it movements a across is Defense of at more be the are up activities support of each growth.

that's cash. that It's that from that do of and And remove guidance when but things footprint total look flow about going be that affect as of spend, expense, noncash. not our to it's it. like So I the to around, that you could happy raise the at it's is cash million $X And results. cash. we mean, in important just that, $XX million here impairments have to note moving and about that we're million it's $XX your you're $X is But to million we

the of So it organization really happening speaks to what's in [indiscernible] the and cash.

Michael Ciarmoli

grew half but high probably down really to in you going revenues, year, at Got -- at had on this XX-XX you a anything end. you quarter And previously like if see of I I raised, XX%, you growth I split. of the the XX%, you're just look step the really especially cadence mean, know a out it. earnings. it. unusual? But first X% kind had then even here, strong Got just called

think I revenues see -- be anything you've low are don't first of done kind honing there specifically guess again, And there is there ever half I market -- in, guidance on unusual revenues we for, just any second just this where before, down Is for assume or would end and defense, the of anything of that defense, year? your nuance half. versus kind

K. Farkas

flat. I relatively you aerospace a right, mean And unusual. very would the increase back I this is defense, slight in and are say somewhat are we of half year. we Yes. are projecting across the Mike,

I bit businesses health improvement earlier of within of effect, some on think dramatic ground a that, our Lynn and markets. defense hit and Kristine particularly in the of that this have kind pretty a supply upon chain little has the we had the

on that timing, as QX year product, into that support market We're our the revenue conservatism with the beat upon doing really restructuring. and defense, the that supply recovery right? market taking Naval Power, this you of and that very aerospace some is that But ground some conservative was So of call relative mentioned So a half our our the good remaining the the go the sequential helped here on things still across QX, to has taking look also in & we'll in quarter. second to quarter, contribute a the half the from defense ramp. expecting and see saw chain, we're first how the strong of slide timing of year. and and we're we a little of some view to the of to that at movement in bit regard. I things based that

cautiously. we of that a very had but we continue Within commercial strong approach aerospace, first the very, half year, to

Airbus felt was So approach. conservative we that this and lies have these take projected it in at look Boeing that both hopeful that that point XXXX to opportunity prudent time, I'm But as ramps for at a ahead. we there's

Michael Ciarmoli

And broader to sequential the industrial, know tougher mean got think are where the the guidance. out growth big just with half but we in called one a you've sounded up in but had vehicle. then I nuance last on the in it uptick you again, get flat. in step don't you orders the really macro, Okay. XX% I I And to second the

of sounds there, those out So sight line called got presumably, challenges, got visibility good some It there. you've you've of it pretty like and you like looks stabilization.

K. Farkas

work that customers It's area with stabilizing orders quarter saw things to were industrial encouraged communication that were talked we about we an we that when see -- in the we the our talked call, last definitely starting that on we the of signs and have ahead Yes. but first to being where general the and you through us. down,

year-to-date, business Here XXXX, been quarter. big flattened those quarter orders, actually strong but quarter, of been we've for highs that's actually we very in have they've the a after had achievement and since out second -- because we decreasing this have

had very I that monitoring past highest our say, doesn't industrial XX general encouraging. this year months. closely month month had and very by stabilization So then we order we're is X but in the we stretch, And a the as in any here will make

of here saw the strength some late in year. will of we signs So and very that convert

So question. good

Operator

next We'll question take Nathan Stifel. Jones with our from

Nathan Jones

Maybe mute. a and of around on commercializing with still process had was I start the folks Day on you pretty there couple subsea Analyst pump were that project that the questions of with I'll apologies, I display announcement, it. about the that at involved the excited in guys My know are it.

I think you've over sized opportunity a that pretty is material next the years. XX

years the X from time next any and commentary you frame to product business? opportunity that see the XX over around for on commercializing that maybe So that the discussion any

Lynn Bamford

Yes.

is more we're definitely can -- this on clear there So for commercial to it that is the definitely that products. that demand kind just bring that what the becomes area in dependent market have, of strong grades visibility much as we reliability is of we the see can of we an market

that our and a and great future enabled crossover and for take core products another take this so where There's we and now holds And continue investment us. the market feel exploring. technology we're about and we're things other it the first to example what who we building proud to commercial it's some nuclear knows even of

have think we But potential about you know sure the major was we've X great press that we this orders on by I'm a $XXX our that end in releases Petrobras engagements back I with project develop to pump. them there's decade. We million off deploy And customers with of that 'XX. to start. mentioned with. a announced had in talked of the And is and February a that, contract a signed

for some time. a It the deployment, subsea pumping to system quite We and back able to year. we're of our talked ready this first goes development be while, be track on about Shell deliver and for by end our

really that. And so we're with pleased

Total figure milestone waiting for X qualification press which to is release that We're into been named it there is and then of very completion for some that know going how the on about sure that and obviously out potential operations. Petrobras really And major, to we customers, process, was have work they're Saipan the publicly. their

things in of grow we technology, million open customers, doubling we I $XXX to decade. will And with orders lot of decade on number continue to the $XXX million forward. So that by as only by the see next just in go going middle think great a as that stand that market. more with doors We to end over this the the of

Nathan Jones

know And the into bit rates increasing lumpiness that's the Great. on significantly order book-to-bills. rates, the second revenue orders. have as How more question were growth the confidence and quarter I little the where XXXX? revenue on and order but rates. seeing in you're order a on first profile business we up high maybe A in color very head those your about strength can you much some of and some

K. Farkas

aerospace businesses and Sure. X.Xx. Nathan. very I'll quarter take side book-to-bill another we start businesses. across we for always strong overall things, had towards defense weighted onetime X.Xx certainly that about across second had relevant and about quarter book-to-bill of had sales, was heavier when a commercial defense and And a the for and book-to-bill our our think that's our But one, very -- you book-to-bill. talking I the We a

down slug and that through it orders break And you saw amount be to of did have know as good on naval towards business outward business can sign quarter, As have for and a what the and a we come orders, good we of lumpy, this the looking it's we support sub-platforms. and existing just but large orders a still we're continuing in content key carrier of we what defense. kind the

really businesses foreign quarter, that's wins was to had I customers. see handling we here And good a naval number encouraged business. across in to direct military the of systems But our also

at bit received that that to We we things aftermarket, that, little of talked a in another growing. fleet we life. thing some support are Day. some Investor services signs then the And So orders about about talked Day, that at beyond the Investor

more see So and in starting it's to activity encouraging. those areas some

Operator

next Arment with Peter Baird. from our take question We'll

Peter Arment

talk Nathan's Chris, Lynn, question results. nice about it or Maybe on about a orders. to up just maybe follow

like lumpy, talk Defense differences. at versus is -- but we whether know Electronics, your to the there seeing, I you domestic they growth build-out Just it quarter, is? X% really little those differences XX% FMS? you kind look XX%, still when internationally? about the maybe like in it's is a of could strong we you're a how the FMS bit sustainable need And innings are for year, particularly And notoriously Maybe talk early growth. obviously of about the for just just had what

Lynn Bamford

So when activity, things, on thanks -- the go with whole straight like would that's try metrics a for steady the forward opportunities, that not is the growth we're team that look to something board, total of across we bidding be very it and a the if or through it we understand feel a it say, variety the at feels And all with I a is question. rate. the to that does pipeline, something going not I actively this we're, or And pull engaged bubble sustained.

'XX same sustainable we we're think specifically think at see activity and it vehicle that a really in programs whether And Day, demand Investor in across much Foreign specific given to that's that 'XX, I than war but this early Sales, not seeing lot Now even anticipate starting or they think is of it's start days. we drivers, gave but finally levels, that anticipated. like scenario actually are we're the some some over exact into think Military taken doing. But the I have And start to longer early would targets, what Europe the holds we in 'XX we at I 'XX would the very feel do it And form move to in very Europe. days. at getting guidance on take ground we come in

arresting of still equipment that. tactical and systems the and we ongoing A equipment Chris mentioned, think then of And countries have [indiscernible] activities. our for those we a just with handling I handling to there's engagement communications have that tailwinds lot around lot acquisition our the that aircraft [indiscernible] -- as

really So I just of in think even Electronics obviously Electronics. specifically, are then solid our Sales, Military it's Foreign broadly, Defense outside our -- across Defense things

Peter Arment

were extensions how I -- know and just been ADVANCE business. plant Or get appreciate pull impacted you that Does just grow forward? the where it with the nuclear kind I switching does any going we've going that by follow-up there's laid and Or for this that gears on. at been your color. you line is permitting all And just then -- tracking thinking, aftermarket for the allow in what out that that's substantially? Day what on Is to life business Act? Investor of the the is

Lynn Bamford

effect for but ] and Gen DOE. geared advanced million since $XXX it's plus -- Investor has the a that's notice [ ADVANCE broad, X for fund is Gen more as happened The the [indiscernible], the new something ADVANCE Act Day the to intent an forward So is X Act more modular of at small our there's reactors. else is put both reactors for build, DOE

we nice Congress Act so been it's through some for well but see ADVANCE signed were so it to moving had into actually of time, get aware it, And quite law.

that's So definitely a development. great

-- our our operating of reactors in aftermarket the business, say the broadly XX U.S. would in I in

have barely over X/X are a of X/X we're do that intending life them over, Now to extension. plant of over just they but them declared

us continue put our at the and that to So early business modular small And that The of then nuclear -- but a footprint the in reactors feel days, really aftermarket development acquisition, the of those European And about good with to lot spend our we really our different where to and they that a we numbers want guide inch give up. footprint, forth ways customers. and Day reach total new to Ultra we we're on do the grow. excited. different things growth are continues some of exploring Investor Europe, for inside acquisitions low-double-digit both Europe. And WSC continue the broadening

simulation the reach bringing reach the both didn't recent we capability gives European -- a about didn't in don't really that us that that I and acquisitions global to X a great we So have have. a reach really

us our some don't And and necessarily so the more U.S., capability. business doing about bringing business we relationships, have have. And in nuclear unique feel aftermarket great they Ultra overall in that I things gives the customer

just is so itself. on And everything building

Operator

We'll question next with Research. Wolfe Walton Myles take our from

Gregory Dahlberg

Dahlberg side? LTAs for into go Greg seeing for is still to more just was are as you on on This I renegotiation you what questioning. that, Kind Myles Nathan's orders? need you details pricing on of a any follow-up new I through there on that are new And to if of could the work continuing guess, wondering orders. line the Walton. on

Lynn Bamford

So the maybe Chris LTAs can just talk provide a color about bit little and the little on orders. I'll if a then see more

But it pricing I'll color customers on the more to very much solutions. of we're ongoing have talk be about we any do that work this much still yes, that we working and is expire our year very ongoing activity have win-win just engaged LTAs at in that are This an with but topics LTAs we let to can Chris customers, find so activity, end that there's orders. negotiating. at an And the with is and our

K. Farkas

Yes.

exercise the the I a I captured a talk for areas But didn't the you I sales about. the across mean we constant And we'll touch it a well. upon the and some just up the quarter we're think that think couple quarter, as again, to that book-to-bill. opportunities Electronics and were on Defense they saw for look I is XX%. that Xx business chasing at second mean second LTAs you of and I do were us. Maybe orders for pricing

volume a have be some timing and did they orders see just bit lumpy. across mean the to I lot of of Electronics naval very order strong as these little Defense activity. a naval content orders. we sometimes So that platforms from can impact Year-over-year, well, of

Electronics of encouraged a you as the that think seeing month in July of that year. in Defense the a in to look and the Again, second X business, we're I doesn't We year month saw XX% make But trajectory increase orders half improvement we're with with alone. month. the continued the

happening. So are good things

again, look And step markets, you you book-to-bill. and we were, about power back and across at as process Xx our

turnarounds second half of lot year expecting of But businesses. the that outages has just those do timing being are bigger We not of and both of and businesses, those a performed the the work dramatically. within for with a that's to

So us of second signs order in in has or overall, the real the concerned no weakness book quarter. anything that

Operator

take Funds. [Operator question next Bancroft Instructions] Tony from We'll our with Gabelli

George Bancroft

Lynn and Chris, great team this job to your quarter.

competencies, defense, side, the that your of look some on do ground aerospace Maybe sort your now. but nuclear Where sort give or side on of could sort maybe us to core to we the acquisitions more grow? not more you're going defense? where ended are core -- view just you you forward just competencies of specifically done going on You've in up these next? guys other Anything building transformational on

Lynn Bamford

X back-to-back Sure. had potential say that we out a there. bit of properties acquisitions. would unusual There's just lot nuclear a I not

very these, not and overpay. to like did would we So purposeful were that. definitely in I emphasize we

Electronics what priorities that can being to into efficiencies, are just footprint, make the The bring very many -- modeling about just out the whether we their and that them team, group, they we content we product really feel that we products capabilities. do look and there's -- that them much. can Curtiss-Wright. the software we part businesses WSC channel we ruggedization better bringing into complementary that in broadening that a nice great that the always what of bring have market, many so expansion it's as priorities, is within Defense of to manufacturing their and software And we group as in talked of leverage do. We do it's such have chain properties of ways so mind always about get a quite was at of lot really and our strengths have as as we expertise, the a And asked know supply can for well of that great top within we and doesn't business we portfolio integrated

always area an that's we're So looking.

have properties propulsion an many build safety are very Our to we Again, is systems available as but and our footprint portfolio, at, we can where area naval where always that's important not look us. major out to to looking.

And we I so -- markets, we we consider our there's mean, I to any that of never markets. stops want across don't so all in not no hard end look would would something end our say

we for footprint. a to markets priorities. defense the our things specifically, out keep can our continue Defense build across Electronics top keen nuclear And and probably always But we is eye

the thing -- I to your I just transformational didn't really one this. add of more specifically address question. didn't really aspect And to

are larger to transactions. We open

art win it. we're with the money we're do we the I think we'll open dynamics we're And such what but have with something a possible is it's change an the of expensive, financial those, with of on to that, when trajectory. the the targeting, and business. eye can But great to not always growth

tailwinds our coming many building. so with technologies have across end We us markets we're and the that

value mostly I focused have us would the preparing to and doing with have. portfolio on and and before say keep we that the for to shareholders right growth thing the our we EPS really delivering momentum growing the are is double-digit

Operator

next with DiPalma Blair. from William our We'll take question Louie

Louie Dipalma

still has innings Defense You've services R&D like for led transition. the that from of investments your made are in seemingly And early seems this which MOSA in armed Electronics, share significant it side the to market modular gains. MOSA the

vertical million $XXX to implement announced for a I contract last future think Army week the lift. MOSA

of see Defense competitors share well? and you to you share your with see gains market market MOSA more associated in with Electronics also Do as associated that gains migration struggled, do some have the

Lynn Bamford

portfolio. pleased that handful this to of sophistication the products the even our up with again really year the of position year, we our for to yet we're back that yet to half bring over breadth a a well coming actually they're market And in market. going development products of been So and product in be have our will of

that that we for So industry. been cautious say over various market But our customers We in believe positioned. well believe the to the some are past change. it's we the to to we share due very months across XX, hard have think I've I taken trend, dynamics XX --

X, dime So from later, day on be they be X Y. and cannot buying and supplier shipping product change with one months a just supplier

And so there to on transitions. is definitely engagements make going

future it, as it and it's time. this a And off there still and the those but today growth. has over that on is true tailwind we've years, for has to and things for on focused a allow targeting long as that's out potential been be are talked very it dynamic, a us about We but much and

period We're a we for some coming U.S. a in that into budget. relatively the of growth potentially strategies flat defense have to opportunity And be make us.

maintenance have programs continue cycle Investor for they're you the outsourcing engineering being the to life it not have also costs. that same our able they touched solutions control configuration do our to trying through do products, to customers if for that drive has to maintaining support of to and the And some custom Day where product on the And in right ability, as the funding we products.

that doing we the when we're doing growth we're things to assure little compressed. grow right look and industry budgets making where right we but on things, to a drivers sure And latch are the are to growing, the so budgets in

So that the future really team. great for is

Louie Dipalma

Okay.

approach, to here, it as but or it a see slow you so modular And sell transition this very does consistent right? benefit

Lynn Bamford

XXXX maybe been of -- do MOSA, transition releases some maybe we tried we've have press And XXX%. in Oh, misspoke and in The where I in designed to XXXX, over since to way. on on on find We And win can offering. there's there a our of you things compliant based our MOSA that a offering. handful them out having MOSA the website. lot product based of

those and how a endemic and to have, are the viewed being that about primes on based in requirement, cannot but But it's that. as to itself positioned we are nice government the customers, to acquire now got we well frequently, industry most looking a winning and talk have, with not or Just it wins. is in really the business

Operator

And on the Chair there and Chief for the any further Officer, or I'll line to turn are at time. over Bamford, Executive this additional closing questions remarks. floor now no Lynn

Lynn Bamford

the to not, at in you QX thank be great. Thank be we'll And We'll joining if at that want public to for call. on join, to earnings that today. some you us events if have would talk road the QX just say our you everybody you. to I chance

Operator

Please today's have at Curtiss-Wright earnings Thank and concludes line conference your a you. This this wonderful call. disconnect time, day.

Curtiss-Wright (CW) 8 Aug 242024 Q2 Earnings call transcript