CW - Earnings call transcript Q3 2024 | Curtiss-Wright Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Curtiss-Wright Third 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, Todd, and good morning, everyone. Welcome to Curtiss-Wright's Third Quarter 2024 Earnings Conference Call.

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

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

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

As references a adjusted and of financial foreign growth Ultra fourth current note not the organic earnings are periods that order an in to and in to otherwise acquisition non-GAAP prior reminder, unless provide our year anticipate include restructuring translation, an on non-GAAP currency our greater the in on updated performance. view GAAP Also full year Curtiss-Wright's include guidance website. noted. quarter. reconciliations and closing adjusted that transparency does Energy, release the available exclude operating to for costs company's the we certain into which exclude and results acquisitions Any are basis and divestitures ongoing

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

Lynn Bamford

and Thank morning, you, good Jim, everyone.

our build across last delivered strong a momentum performance we continued results night, you saw in to released our As third quarter and businesses.

our systems course, talent. our continue to the of and, We and infrastructure Curtiss-Wright, in of technology, invest future including

returns our and meaningful vectors Curtiss-Wright major well shareholders. within markets remains end result deeply for investments, long-term aligned growth As generate a positioned and to the of our these with

our potential developments over decade been course remarks. XXXX towards create in confident beyond. Overall, growth I'll months. of to of have the exciting past detail and the this progress the objectives. tremendous nuclear, pace commercial addition, of our there few a long-term Day in profitable which opportunities later for in value over number we our have In Curtiss-Wright ability speak announcements to Investor have to some particularly in remain and the and more considerable of accelerate demonstrated those industry

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

before Finally, remarks we I'll with Q&A. wrap up some closing to move

performance sales million, our Aerospace XXXX our our increased highlights by a the strong results, well quarter in better-than-expected XX.X%. basis our achieved with and the our a segments. Defense nuclear Defense Electronics Naval market. Underscoring XX XX% and growth driven of once Sales in income Starting growth we double-digit nearly again commercial year-over-year, exceeding these as XX% increased growth as to operating performance. Power in low both $XXX third resulted of year-over-year points & to overall markets expansion in XX% Operating margin &

actions. operational commitment higher growth Diluted expectations and exceeded our which sales. also initial primarily earnings the This of the in A&D restructuring sales, reflected share our strong by year-over-year, benefits to corporate-wide was team's performance XX% driven per increased our and excellence our

due flow year-over-year, capital. more working up performance $XXX reflecting than improved conversion was Free million, cash operational lower XX% XXX% the and to

and book order our to our starting in Turning A&D markets.

ground strong the for flight experience tactical with defense within product our aero third our higher to equipment. demand and We Defense test communications quarter orders reflecting results market continue and Electronics for

both flat very X the prior its XXXX. quarter through Electronics segment Defense have commercial of first year, compared the markets strong our orders demonstrated aerospace on record. and achieved result, but a highest our naval As relatively months within Elsewhere, booking defense were with growth

primarily businesses, improved in order from benefited nuclear stabilization off-highway vehicles, industrial impacting we expected, aftermarket the fall outage see challenging by in was to driven more despite most market. industrial trends the Within our we our global Elsewhere, than which, markets, dynamics continue pronounced commercial some of in XXXX. the for demand as season commercial businesses, our notably

quarter, increased orders new X% total outpace year-over-year year in overall the orders Furthermore, Overall, the new book-to-bill. solid continue a reflecting third to very strong our for growth. X.Xx sales

reached continued up As backlog result, of is confidence us long-term with demand to year-to-date $X.X outlook. billion. record a support our provides and XX% a strong This Curtiss-Wright's new growth

an million of like at ramp-up topic to for annual cover to $XX during the the third least share deliver would Board the to free to of profitable strong dilution. reflecting typically share highlight available position. our capital in growth activity $XXX their flow million, to Turning I the authorization repurchase cash In plans in our in total ability and repurchases company's Curtiss-Wright allocation. approved May, increase the the in quarter. confidence

Board report that $XXX a September, program. XXXX and the request for expansion pleased I'm stock program to September approved our repurchase began immediately completed XX. Subsequently, we million in to share buyback on of a the million $XXX our

in constant share We in remain are to now XXXX, million return least at on track well capital to our going shareholders positioned we repurchases and to $XXX forward. complete of deliver a

of Next, slide. XXXX I'll our of year updated provide right-hand some outlook, as highlights on side shown the the full

confidence A&D performance reflecting metrics. increase in XX% income. guidance X% operating our to our now once nuclear Our driving for have in raise X%, operational a improved backlog We and overall to the key to sales X% commercial again expect increase growing markets, outlook of the and to majority strong our provided principally

competitive strengthen to We continue operating while our the across expansion target making business future. to our and margin for Curtiss-Wright significant investments positioning the improve

expected now to XX%. XX% grow to is EPS Diluted

raised demonstrated the deliver quarter, in reflect the confidence we third guide In year-to-date the the the and performance addition, summary, higher In free to full primed strong second full outlook. exceptional our strong results remains cash year. in consecutive year quarter, performance business for the and to operational for flow Curtiss-Wright

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

K. Farkas

our Slide segment. by XXXX performance drivers Thank the X, quarter third Lynn. On you, I'll of key review

begin where Industrial, Aerospace sales overall & increased X%. I'll in

and the results wide-body various market, strong reflected commercial Within the segment's supporting on platforms. sales aerospace growth AXXX increased our OEM production

solid the increases industrial defense various equipment mentioned naval sales vehicle sales the the growth sales the on defense due principally Partially was that production modest of general orders earlier. aerospace and markets in in Within both offsetting reflected the Lynn lower markets, actuation industrial programs. off-highway those timing segment's of market, in increases to timing despite in

the And segment's turning to profitability.

higher-margin higher benefit, Our sales largely favorable unfavorable offset a -- small including of restructuring absorption vehicle products. mainly mix, which results on reflect volume and a industrial lower were by reflected

the to fuel these expectations that growth and continues segment. Next, timing strong demand Electronics partly in exceeded Defense the upon revenues. Sales our to production businesses the of due XX% based of

for across we Within the again experienced strong of our programs. sales growth defense an segment's computing markets, domestic military tactical ground CXISR to communications both direct increase from equipment embedded customers. Within we foreign in in benefit demand a and from aerospace once continue defense, number

In within are electronics, the quarter look expect accelerated result, underway sequential as in now timing the a largely a growth. revenues Electronics deliveries we Defense quarter, to fourth And some This that our due future addition, a and the segment. to we ahead across potential quarter. as activities to decline was we third now support is factor the revenues once into announced last again restructuring as planned

to strong operating its X-year a Regarding on points from continues basis XX.X% margin, year-over-year high up the to this XX segment's the and higher favorable third delivered we business conversion quarter as absorption revenues. backlog a benefit operating performance, of

defense, Starting increased the of partly Naval to XX% revenues, development revenues than Turning the due Virginia-class in timing weighed our was naval CVN-XX in driven timing growth XX%, more consequently including Sales to across expectations by carrier and our & to programs, aircraft platforms, Columbia-class segment. of and profitability on material the part several higher the production increased and revenue Power quarter. key due the of ahead receipts. during of which submarines

revenues customers. development in Our submarine our while international aftermarket results and to the SSNX the demand fleet of In flat to were aircraft next-generation sales and continued results in market, reflected [ market ] addition handling in supporting reactors also program on systems our the maintenance process in reflected nuclear for increased year-over-year. North strong power services demand operating America, the ongoing process commercial increased essentially

absorption our offset unfavorable development of from segment's higher by to mix an concentration operating Turning Favorable future customer-funded growth. partially on support the to revenues programs was increased performance.

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

to guidance. sales our expect end Next, end begin turning to on to across total we X% full X% of now I'll grow Slide year several our upward driven revisions our XXXX sales outlook, with X where by markets. market

despite a some to to platforms. XX% revenues in customer-funded fourth quarter year far across note, continues CXISR Aerospace reflect sales development to of of reflect into tactical receipts between we XXXX. strong now well In Of in sales we third & to various the now to raised XX% strong remains on outlook by XX%, ground for growth for equipment. our outlook quarters, Within communications and defense, programs. unchanged driven growth our overall Starting increased full our of demand expect naval third upon defense, thus in based X% X% the to acceleration material XX%, decline as submarine development and of driven timing defense the an volume by fourth growth revenues grow naval sequential order now several the as we in sales quarter expect timing the Defense,

a to upon range aerospace. particularly strength to broadly, Turning OEM Boeing XX% Defense our of raised higher total more Overall, up XX% based new year performance, wide-body growth in these year-to-date despite solid to strike. full surface increased in Wrapping XX% from the benefit outlook of AXXX of XXXX. we this book expect treatment & impact year services. our we Aerospace our now to We sales expect to order XX% markets and sales and, the commercial aircraft markets, our production on the for the

now we finish this the commercial in driven to In market, process markets. previously process full we slightly timing we and power including to pumps, the to and market, anticipate anticipate a capital now year and communicated commercial our we sales development to for of anticipate flat the our nuclear strong outlook year revenues. principally revenues, of In growth due be lower subsea to to our market, X% expectations reflect We in higher rate project by outlook low double-digit sales Moving reduced our on full XXXX. year full raised the U.S. X%. growth a market, aftermarket

expectations noting development, and we full shift the in track to pumps programs. However, it's represents temporary a worth growth subsea in year naval reduction on our remain that customers' towards this for resources

the in to X%. Lastly, performance, and industrial have due market, our full now vehicle based to of off-highway year lower we general X% outlook sales year-to-date global on decline the reduced anticipated

with line quarter fourth order in the based to improve the expect trends year in sequentially quarter. we prior and stability However, sales be to the on relatively

our up full continue to markets, target Wrapping sales total growth year X% of X%. to commercial we

on Moving the on by X% we in market, to Industrial upon markets. our I'll of to our general to year & Slide challenges strength within A&D X. despite outlook industrial segment grow the based to full sales continue X% expect Aerospace our where, begin

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

we as defense successful guidance increasing as the securing improved Electronics, order several Defense X% continued has aerospace team strength well driven to by principally in programs. contract is in XX%. funding Next, year-over-year R&D where to within of for revenue been This our our the the expectations growth market are book

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

year-to-date growth raised within And in to X%. & upon defense the for markets, nuclear we've to and a range our naval expectations of our strong Naval revenue performance new both commercial Power, based X% our

for new expect income pressures a accelerated prior platforms. Regarding margin with next-generation the on of X% unfavorable in up to programs, margin based flat development range the including outlook our However, maintained the we we higher naval operating we continue mix, profitability, segment's raised ramp-up particularly growth, guidance to defense our associated revenue as to

Curtiss-Wright grow to to income So now to XX%. overall, summarize expect outlook, operating total our we X%

continue $XX expect XX.X% from margin We which to spending. in includes to than XX.X%, total a operating engineering year-over-year of more range million to increase

confidence updated reduction now full with slight reflecting September. to where from outlook range Continuing guidance, outlook XXXX financial XX% and in increased completion EPS our in year I'll $XX.XX, Slide up in to our to $XXX our with $XX.XX begin we X, the count million repurchase expect our diluted XX%, the share the following share on program of EPS a

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

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

Lynn Bamford

to finish X% strength strong X. our Chris. Slide to majority positioned to to our by in in remain total the confident XXXX for We've and growth supported And of turning you, Thank X% a the sales Curtiss-Wright end markets. generate ability

for we've had While consolidated to position our new us conditions critical market navigate technologies bring that some portfolio, this opportunities to strength enable to to the Curtiss-Wright's growth. markets it's new our challenging to ability well-established year, and of capture leadership continue

while excellence contributing EPS the across momentum, This making and free both continued along flow the in again increases on investments this all are year. cash targeted operational and top strong with our to line business, focus commercial

put capital to We to to balance disciplined acquisitions sheet that's deployment, through our the also shareholders. of or whether strength work intend returns

Pivot remain focused we of meet with strategy, Growth high-quality year, Earlier our we our closing that growth in Under acquisition on growth. quarter. this which stringent the the long-term to financial anticipate our Energy, and profitable acquisitions announced criteria we Ultra fourth supplementing strategic organic

opening naval generation to within a products forward including strengthening power doors As reminder, power and new generation base. and more and globally defense and and markets provides to submarine look the positions services the this fleet. wider, core nuclear also to customer up a Ultra global nuclear We safety U.K. to market, plants critical business our our naval defense commercial

anticipate shareholders. we driving the our in to acquisitions, repurchases from million total share completing Aside and remain we returns $XXX in committed XXXX, to consistent

new at in XXXX recent the a dedicated Investor our capturing markets and across growth are portfolio. opportunities serve leader communicated and we the for Looking Day, to beyond May as we being

for support of align AI strategy rise revenue the further a centers XXXX. This support along growing to our Curtiss-Wright a outlook from accelerators, in data and our We greater with defense execute continue power CAGR X% global to Investor than focus, through organic markets, grow Day secular the to in spending. demand at to end trends range key our ongoing industry to to

commercial data accelerators key energy. the nuclear, to nuclear Google is investing with momentum power exciting carbon-free by One in of those the and Microsoft, news recent their commercial that highlighted centers Amazon are in

reactor Curtiss-Wright reopening critical The purchase for announced to Constellation agreement plant As Island to an restart once this centers. Energy support our this data of the nuclear an and power Microsoft should example, last month, at a of with provide long-term Mile operation Three provide equipment Microsoft reactor. XX-year supply opportunity to X Unit power the plant plant again to electricity power to services

represents gigawatts goal Amazon largest target were the of of to advanced X worth of excited to see SMRs this the development X-energy's United than We online With partnership deployment XXXX, States announcement the also with accelerate recent power the to of XEXXX's by date. Amazon's bring SMR. in more to commercial

supplier a are designers and with reminder, remained of major in $XXX site. development are of to potential range has we content that working SMR revenue aligned engaged design We As than secure more X-energy per this are actively to and and to the reactor. and million X-energy $XX strategic for million to a all

to memorandum of a and the portion Westinghouse by Canada, of press light to in excited companies. continued large advancements the and support optimism us and In Investor the billion further $X.X technology our middle decade. APXXX at of our the modular funding the increased points business with next to industry, Overall, finding new release support both and to the from build future plants the by doubling goals reactors. communicated nuclear our support revenues These of module understanding a highlight in commercial market addition, see of proof administration Day reactors of provide annual small for this long-term issued major we recent APXXXX reach for XXXX to recently influx with we're including

in total to new to Pivot including growth In results Growth execute and XXXX, pleased number look cash closing, financial We forward and we remain for third our our quarter backlog delivering shareholders. profitable long-term continued success to records our strategic on flow and achieve milestones with as for and of we're free sales, a track strategy.

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

Operator

[Operator from Instructions] Our first question come will with Peter Baird. Arment

Peter Arment

Within guys is also How and results. along Defense our with like here. are of the Because for communications gain that it Nice share Electronics, signals strong activity. demand seems obviously maybe have been measuring you computing, kind really a embedded FMS factor activity? technical

Lynn Bamford

would I QX one open And that that just order celebrated. going you. quarter. really guess their really for saying overall drive the is with So Having pleased it mean, just in and business, in I record execution, book a something customer what's the to with their execution team. on thank broadly I of isn't we're satisfaction is be

Over X over with the we've consistently we're years. past Xx X over years, outstanding seen, book-to-bill growth the the past

it just one quarter. spike So pop a isn't or in a

we So for bright going definitely is the forward. very this feel group future

say, as we across the they're maybe really the do won't that share bashful in about multiple there competitors out that team on, that. not really date. there's work opportunities hard struggles one process actually to of future saying where some I some for be still obviously competitors to And had there. really And this is our seeing success That part of we through opportunities are for past. us winning are business and that's we're the have in what of of market working But gain I

is team And built of organic the so result really the by. has this what

this. about talk me heard you've years, for -- about talked We

And offerings, have it's product It industry. winning in offering the And just business. hard. motion, ] the team really really to the product leading us the worked new in the investment Our social don't for something ever and hard for we customers. mean well, not deliver the them. what communicate customers team to our need But really customer drive worked do satisfaction, [ prioritize doesn't our to perfect prioritize

what's so really the And proud of. results driving that that's very we're

Peter Arment

just that just quickly are extensions that nuclear. like map it it ever accelerate? work just road that's Just extensions. or X/X low like existing more the -- plant all from does of then Or have being bow coming how does because like you [ just digit, seems all than perspective? there's way. of mentioned wave life on With half for ] It work seems appreciate color. your does I commercial XX I reactors it applied plant the think And the life planned, a double a

Lynn Bamford

think XX% now. they're either So be necessarily going to technically yes, I that's not applied it's to apply, And have but just correct. have indicated

So there. I'm any misinformation not out leaving

So And to -- is I low of but no, a the great. growth. achieve double-digit with we years, it know pleased lot you low struggled single-digit for we're mean, growth.

really great double-digit low it's that So to turn to growth.

is higher in and future bright. shut plant it restarting like wait I yes, Island, fairly And Three far at I than in to will another see. maintenance just X and I that the have did Mile that? the that's they mean, Unit the behind And But plant We'll XXXX. before down think things another get of think they

lot know catch And our engaged team of is I a so there. and up,

through South to plant talked Korea Canada are something And extensions we life go also. about, and going

in great footprint have Canada up are working back. We

chain. of again, Eastern we as can they And European working Russian but more move how some a see really little is reactors the away supply long this from we're support to bit term,

going products doing these of the great really life across but right are extensions. in lot feel like I we plant what on people things group, the a for So have

Peter Arment

on nuclear, lastly a SMR details. gave your of kind lot commentary, on you of And just

you're the X-energy. can positioned about broadly players? got You've some relationship But you just obviously talk other with with of how a

Lynn Bamford

that. for you Thank

the is community want the message to working all think is dedicated, it with I knows investment important. this, who content have So major And to the we we we are everyone SMR work to across and is providers. hard really communicate and

And the our of to of design desire mean, us for position and RCPs I Westinghouse much APXXX the with with in that, And we kind APXXXX, meant position. APXXXX and the the we're hard. -- just of RCPs their as possible work with them. make pursuing but that so [indiscernible] on puts things revenue, a I rest as the design sorry have obviously, other dwarfs the strong the APXXXX -- the mean, don't

that X-energy But per years And I that ago. announcements public with in then mentioned be content thing with and customers, only one company the them $XX put announcements [indiscernible] still work. the pursuing announced think announced and you really to we're million out we And we'll definitely it's several more e, Have definitely TerraPower the have we're but TerraPower, to some expect first we NuScale we them. that other, position being there. advancing was at reactor, some our our which engaged other with hopefully, with able

another we of going And footprint, one to -- reactor that their up say and close with us. on some this engagement to [indiscernible] them I of are U.K. when great Rolls-Royce it's more on and really open content doors have talking lot to would very that can even about that have is we a know and Ultra

so that. And very pleased we're with

little to with I'd earlier ago we just them. had our Hitachi with a about of how this It's And say to point, there. we're couple chance supply absolutely leadership at meet weeks advanced their GE can discussing we're bit but good than what engagements a less -- a advance with I talk

So all goal universal. to believe will is guys. opportunity there great our be these really really Because do I for be market

that's strategy wanting can stand do. date, be news just a vertically with for we in reactors appear They of is They we us pretty Google. integrated. been to established we not know of to are. know we And making kind who their of there and announcement but They, any And our one clear capabilities. don't I'm have speaking to them, have what with other the Kyros bit them. of to a with content the And

be will when content So items can't they pick to hopefully, they their win that them. table with integrate we vertically

win reactors and in such, less engaged small dollar, It's dollars, minor lot more much a where can. of get we're there a we some micro but of to then needle-moving those. we content are the And

really So a a our sales is teams The the this job great team -- the engineering doing of proving establish in to job. our great position team capabilities are doing market.

Operator

question Global. Alembic come with from will next Pete Our Skibitski

Unknown Analyst

was Is builds, aerospace terms of a guidance build in the new get that the dynamics? by biggest the want driven better Lynn, on mostly it growth on I increase, usage? or I growth new upgrades? what's there wondering sense. platforms is defense the drives Or it just to driver aftermarket

Lynn Bamford

and I say, for the welcome first, to thanks call, picking up the coverage.

So turn think it's here And question. substantial to your a pleasure a actually you to question over that have to today. answer I Chris I give might to

K. Farkas

Yes.

towards just Pete, Electronics. clear, not year, So past And off we've some technologies produce in costs, that to year tactical transitions supporting this strong the but only are commercial very be industry projects the on a test that for and military's across of very the equipment electronics. started in as the this defense year-over-year taking kind orders that and had increase space, we mentioning, communications going strong of CXISR overall equipment, terms approach flight some defense exciting Lynn are in pretty Defense the

broadly, this. that's very driving what's So

this orders again As for Lynn the billion Defense high despite business, Electronics XX we growth, at backlog XX% third is in quarter. look up the has year-over-year. at over mentioned, months. $X The the that And as nearly record past segment orders in

the bright. So is future

shift third working is has technologies they year the for internal I specifically team that into the that funding can't really spend, in will the the sophisticated fund pretty bulk the had and secured change. to regarding increase defense here into than in some to an customer going research But on is development most relates aero and recent quarter detail arena. it the which most started you that targeted of aerospace IR&D, more go increase guidance, defense any where As IR&D of a an that relative programs. planning in saw that from that. the of We're in drive

Unknown Analyst

what some guess, is color. I business. last I cycle That's of great. I me. Okay. one just appreciate think, do And you for guys the shorter one

ongoing So really just you not with just I'm talk any are CR? seeing this you impact negative wondering, that through Could us? from

Lynn Bamford

budget We're average hopefully is of such of Important always said the weather -- a not really we norm we're a backlog which XX, of next But it. ] [ in the months. have we'll impact the feeling XX we're kind good feel not in can and question, days handful and to CR. here position. your the CR, We've date,

I years of a ago, program when starts did because of does the customer of there's CR, couple new R&D Now had tens millions will of drive base. there's across no business. we starts see our XXX-day of say no that And we out it new so dollars revenue the

. that start case confidence hence into in goes our can when the that and that Hopefully, it time for X-month to be on this So frame. guidance. now, here. weigh that feeling But won't X-, of X-, we're not the our impact

Operator

will question Research. Walton from come with Myles Wolfe next Our

Myles Walton

particularly we if segment, could Investor have think, expansion going hit I And Day you quarter would here the for A&I. in your margin A&I plus wondering chat what's the asked, about XX% across fourth about when in bit is was the opportunity I I guess, the that potentially of a answered margins was margins, A&I. at if play which you implied when I the to out surprised largest, I

what's So going forward? is that's allowing going that margin of how sustainable on there And uplift? kind that

K. Farkas

Yes.

-- million $XX So to million across is of in this $XX get the to drivers the going we're you year look I annualized as there think that what is biggest invested to year, Myles. we've spend And really savings. full of restructuring, one the

that's And segment. going A&I to some the of affect

$X the sequential will be to improvement that in about in I think somewhere those year to of the fourth QX in a million. QX. biggest have in And impact range definitely that will will affect full the probably the segment But we savings quarter.

a you $X year-over-year. business of a standard at Outside year, there as in the the XX%. and think fairly volume that, somewhere million about at range looking maybe investing expecting small year, of The about of just this you're absorption, headwind I we're be look full will IR&D

range. the you would midpoint that's of So get how to the

Myles Walton

conversely, thing had sequentially. don't then I But Defense you're I And top history second the But back the pull where the in implying down were obviously, think you you hear driving ever happened is margins line what quarter? the your I quarter towards And that quarter. margins. is what's Electronics first fourth in here mix the same forward. that's Okay. a quarter both has that guess on the in in case and has on the happened the third

continue the 'XX? this from and then -- you've out year, question, of seasonality I And taken guess should in that follow-on expect to a we

K. Farkas

Yes.

bit which that chain period loading over made the has has a talked work across this efforts that long load good level this year solid to the of we that little past successes. the to And a we've going we've a X try years. helped bit and the work. the little hockey out get some exaggerated ago experiencing with And X from existed was been try of the time, in team of improvements of certainly business supply through stick for organization quarter think to fourth in that years X the very more earlier I the to level the were had So about problems

regard. a I job the has great that So think team in done

this As Defense mean, really for you across is I us. unusual approach Electronics quarter, the fourth

have have forwards oriented, to while really engage backlog is and As a you stay this revenues. book QX ahead of very order But take in reduction. demand the out, is that's we've growth. that some sign QX we talked don't But support you're that restructuring, very why declining. business normally pull shape in will are sure about, to on to we of strong. execute we footprint do that way, the customer certainly or the footprint that going make already the form in expectations any steps future not that pointed decline which strong to to that Things It's see to between from a

it And it going X to across as areas. you're Defense at you really look Electronics, in see

very portfolio. some and not and just there products largely of the in also you'll communications, about it it defense see we've portions to had talked only the it's going earlier profitable see our market, within But within You're business year. Electronics movements Defense this we've higher-margin our that aerospace defense within tactical impacting right, some some ground markets, and already

So sequentially based upon of we pull work QX. see expecting into QX margins to forward are decline QX from to that profit

Operator

will question with Nathan Jones come next Stifel. Our from

Nathan Jones

Maybe looking going and this. into savings little what just questions 'XX and I'm how a color doing the what Defense footprint, utilization to more is forward growth you on impacts in if capacity kind where capacity up of could on of restructuring provide Electronics you're follow you there. to the get out that go you're 'XX, as for

Lynn Bamford

Yes.

case, Curtiss-Wright we that we we're in larger deliver site another footprint to within we where for can actually be coming. and preparing a preparing talking just So [ just with about. move leverage really better to to regards site. see the that give them space growth a shaping without significant we In our our case, future on because sites, But of it that's not being And changing be two globally. for able have overly a one on [indiscernible] specific we're ] operating something are it's footprint and growth

So lot restructuring -- cutting the I've costs. of it's a usually, and years, over just you're done

doing growth. future stuff kind kind to for this of prepare of And Electronics. to in it's it doing fun So this -- now be we're Defense

will stuff will manage across level that enable probably going be to kind to looking the forward But have is prepare stuff. answering definitely business in decade, and going achieved where other also for to the -- back of we goal Myles that question way being going come -- nuclear that our a the thing forward. our loading and some your this to continue later asked, about of the group You're required we nuclear year

just good around. all It's

holidays. the overtime. It's way practically the that a business. it's to good around mean, less not for I have the run good crazy just employees it's You

goal. that's So our

if every Now going going hockey would I it it next did perfect again. year. single given We'll to can't is have year. a year? it it that was be But we're We're be was to what see. it We in going to say on very minor doing done. work stick hopefully QX But never this

approaches, mentioned and place we're was the stronger us, supply of the we better really it XXXX and supply pandemic than did to left with us have and I'd hold been who felt a scrambled stock chain, for -- crumbling will agreements underneath in able Because were place supply in it say really, the that -- Chris deeper things us. we with in have different really contracting with as chain like, a we some different relationships chains during the world with really better, with our our

Just a whole we've variety of new tools implemented. and systems that

that's affect business. patterns to and your control the will of part in But obviously -- order your also being it. so And able a load big

really it business. see we for as thing strong the So a

Nathan Jones

follow-up X-energy announcement. to this commercial specifically that And around about the happens guys. to XX XXX at going I all to of I the mean, on my stuff the talk that I -- SMRs then of Amazon talk nuclear it's is know ] we're just revenue guess kind the happens can you on that higher I about could [ of and end you of Can what you? schedule, in and that is kind for generate you plus know revenue talking -- XXXX. If for be

impact anything it's to going near So not term.

any just then that iceberg out, announcement I that I could all what of of this on the magnitude that? and of And could after the rather the kind you the end this in mean, the inside of forward intelligence going works have this than assume would guys just Amazon the if market road. tip be be indications XXXXs of

you just market? us can what about know give any that you So comments on

Lynn Bamford

Yes.

need deployment energy. heard X, there stepping not you've over us guys of utility nuclear market at -- going felt to companies that past was months with it's in move talk that in pace and It's to mean, I you've these accelerate these data dynamics heard just to power. a the XX be the near we providers So the the to center us the change talk,

just so And -- do I'm can sure the everybody math.

announcement them of their able X and this investor a were grindstone fantastic Amazon's project. math the But be I ]. and to have the nose really to put X is capital you had the drive $XXX an $XXX just we packs of the was to XX intent XX grid, which and both [ gigawatts -- which -- anchor million to be be they the to -- But for in power end design we're sure bring targeting raise, announced that parts want to potential, they always do which of would can million. And Amazon on the

an is ongoing This effort with X-energy.

be We have with a our earn great working partnership we we don't said supplier But the our past, put nose we've with same to customers the Westinghouse, to the great right day. And grindstone, them, we as every deliver relationship. ahead taking and in to and that, work our attitude their to of get years a here. that's we're

-- do get Dominion thing bring help I Amazon an signed but about, announcement and advance with online as was talked another MOU in didn't yes, in in think that also the they SMR Virginia. much to But

they but of is that is, hear consumers we that haven't [ that which the grow. buzz ] haven't another yet. so declared one could it's And other big AI all just from this heard continuing announcements to coming, indication And be

I of year So see. from mean, whether announcements yet some those, this we'll there'll be

our points these. to numbers things industry those we're -- where very did types up in that have $X.X in think annualized business. doubling end don't art nuclear I of ] the going that we're are put when the these mean, and see to I able decade, think of probable change any sure middle our But to Investor I But the to -- [ we targets the any of next our to be by Day growing of in highly that going at the nuclear revenues achieve of make not those of his on Chris going billion out they tried that section, possible commercial we provide it of do the revenue we what XX proof

to that the have plans looking to be SMR preparing working hard we our these we're great business working and win for a to and -- at So customers capacity more with supplier providers. and

Operator

come question will next Truist. Ciarmoli Mike from Our with

Michael Ciarmoli

Maybe revenues with plants, you you life threw Can topic, of nothing and see in even can you older I just really us changing of guys Lynn. we out, what of to start stay these maybe extensions see help obviously, might to an targets. mean, acceleration restarts you that more types maybe and -- quantify these plant if see? on the we

are don't like mean, differences we're lot material But be you can and of a us help fuel if there to from you seems a exposure reloading. -- a common I anything have It think I loading restart, getting on question investors. from with?

Lynn Bamford

Yes.

more the mean it's but others. -- it's I And plants is practical, I I there lot group know Three as even be talked are restarts an like and definitely guess going we So too there's XX Unit Island Mile XX going shutdown not -- -- I [ X the seen at because personal far know just meaningful the that a think of to I've not estimates be And what will ] of to be for could a Curtiss-Wright. mean, and don't people our specifically into business.

billion market But of through think I'd we again, Investor say a our Day, we $X talked about now when from to XXXX.

it into. big think of the I potential That's market we ability additive a market, that that that number consider target. go don't these sell be I to we estimate and and needs the target to think all things would support pretty to have of

we again, a life or and for not a like dollar -- given So figure restart. really extension a have plant

would end at I things lot when be life Because a they're think didn't as your you of age can than greater know, plant extension. maintenance then they there. typical say restart sitting a we do and the

that. some vary significantly widely from choose better million life analog per that if plant So from a But to than things like they that to more do different extension is do go life what than upgrades we really can plant for of quite digital $XX even extension out like to plus a major and plant us. get

revenues drive as in like expectation an do Curtiss-Wright life extensions. from So these they giving will away we've each to what shied plant of plant

Michael Ciarmoli

guys from opportunity -- on update they then all? APXXXX or I I Is APXXXX. forever, and XXXX materially reactors on know is for been that you the talked -- the CANDU And any any guess, Got for anything passed think movement there or Canada maybe to at guess, sort on Westinghouse, of real does just the -- CANDU? has in I about it. there -- movement mean, so. deviate I that Canada I you MOU. change And change And the

Lynn Bamford

continue through the been their bigger Bulgaria, too lot of hasn't us don't have look it's in to marketing study, say still focus -- is that. work Westinghouse. real early meetings $XX.X for they and a XX We Westinghouse. plants I And consider say investment billion to significant into We always a potential with to and continuing the new we opportunity. In specific have And there think Europe. they I'd ongoing Westinghouse it of anything Polish their to first But extended opportunities. have in from really September, in at nuclear And FEED around a Eastern committed government that. October, XX news so play. the

we really can all what are if see. going positive and see going kind think just the to I Westinghouse orders, the that to you our Investor would the is leads showed we where get we And based places strategy and Day things we to they're engagement. is those put that have activity first And when to there they're of gate, believes is the of on back which what think believe So flow in we say political reinforcing that chart in of and win, kind wait win just I Canada. to

it's And early days so with Canada.

K. Farkas

that point as a structured, within that, other in Canada. just thing I say and this working I'll this up Westinghouse performed valuable is actually that's the the kind shore Mike, look And that of would it's it bit footprint up engagement. little agreement right, being think The Canadian only is interesting, work was at you time about of at that end to

by now I that other owned then company. which thing is add a Canadian would And Westinghouse , that Cameco is the is

in little I days. So early think dynamics shifting still there the really but the are a it's bit,

Operator

come Morgan with Liwag will Kristine Our from next Stanley. question

Unknown Analyst

upcoming Kristine to risk, I how This about is Lynn, on your both nuclear business outlook. just you're to here. potential just guess, this any we one defense Justin the on and the the thinking get on commercial morning. for can thoughts Maybe elections if

Lynn Bamford

us And an probe the thing to the that ARDP is many past back not places United the two the think started through good Trump regaining with remind goal had and just it back the the over administration. important are the strong but has the commercial really harken of people those the leadership the program years, globally kind stated leadership for as defense people at. support for nature So a this And spending I and bipartisan nuclear thing very I prior presidency nuclear administration of actually under regaining States. think

And you Act the broad even so And things like ticket. look when top throughout of the I at will passed, of the think then at we regardless -- who sits how see was importantly, maybe Congress, stability even the bipartisan. that ADVANCE -- more extremely it

day, talking see And the next so And big world like really momentum safe increases. I don't of isn't there so demonstrated frankly, the a disrupt trying and every we're I modest to in think feels it's that less over place, increases quite the years. mean, been defense is happening. this anybody spending. to planned, And some ever I couple clearly, going almost

years. recent So over we and some really great had off of a big increases base,

go like we or X% over it's saw intended the of another not couple XX% up So it's to as past years.

road any a there. to with lot So that. I if are things the about between potential things some and of see good code. and fruition. that there's here obviously to There's comes tariffs feel various There tax out But other there to changes potential of

to begin on even that. wouldn't any speculate I of So

footprint outlook our to ongoing our there ability I it strong. makes and our And for that. impacted. really there, will And we business don't a NATO between their spending above, now X% and But higher countries, the spending the them the or ongoing for of in maybe even increase here X/X than of support commitments grow the think, be feel very little U.S. defense

not Of course, and react be frank. big tuned as we've out. got it's things with play to But it concern, to a stay

Unknown Analyst

if M&A. Okay. just then I Great. sneak more on one in, maybe helpful. That's And could

shaping the is few up of Maybe how of from last in could a if You're provide update pipeline talking call. an peers picked A&D number at the that just the on capital you has months. activity the deployment top heard up. We've

that if there. out you're what So curious with just seeing tracks

Lynn Bamford

caught I the didn't we'll repurchase, excited in about think, anticipated to pretty deal and to closed just of But I focus that we're or might one now things maybe Yes, And U.K., think sort going the a pipeline see any is here have flow say Obviously comment businesses. good. change would right in we It's does. don't about There's about good administration as But up forward. the main our remarks. capital. what go we that really on -- it of that We say Ultra We over more happening. the about And hopefully, concern it's been getting in of, closed. have quickly as is anticipated. bring in quarter. prepared talk fourth Curtiss-Wright have what the we bit share -- did going some might Chris I'll how that a but let

K. Farkas

and Thanks. the are the we after of cash -- was quarter, $XXX share had $XXX I sure. third on that Yes. Yes, buyback. about of love where at of million end the It's we million talking and closure sheet the for hand, balance the

Ultra balance. Now that fourth But to $XXX in that on be to we're planning another $XXX against Energy the here also we're million quarter, going generate close will and million.

be at to have the tied clear up will of year, on of million likely at $XXX with Roughly the hand. think finish We'll that foreign. I of half a end we're So going cash in into is opportunity revolver. to these when other them as properties of We're we seize really next look the right. well horizon some on the see this are year and positioned that enter and

good a spot sheet. balance in on we're the So

Operator

Our William Instructions] question come will with next [Operator Blair. Bryce Sandberg from

Unknown Analyst

quarter. Nice

the SMR Another one on opportunity.

and You have with NuScale, X-energy TerraPower. partnerships

for the won't announced? finalized? would expect you partnerships, expect design you pipeline more the SMRs look new And be when to be for partnerships at those As potentially to you

Lynn Bamford

think I the partnerships be that, I I complicated with see. are would some X X so could we'll commitment. like a So I But months. where new might that suppliers, mean, knowing announced time the But there's engaged partnerships, major next that have in fulfilling -- line. situations not think to reasonable But other of we'll some are formal these we be

as things the what have play works let to out these for both companies companies. We through work

the all So phase. you And I mean the XXXX, power your I the things prototyping, like change think But think finished, are will is a still time. I done turn SMR XXXX, opportunities, that, largely really back long be in that's X, these be designs move get why it to we X, to X decade, they'll decade. realize But but the initial and after seems of their after XXXX. like substantially into but design those prototype. producing everybody this are by sometimes trying think you prototype, in And which half with targeting, will might design this I that next think it should I seem across years, in

is move deployments. company first on So the going prototyping, their then ultimate to to

Operator

with We'll our take Gabelli Tony next from question Funds. Bancroft

Unknown Analyst

job. Great

ahead. outlook an here, balance leadership, your strong, Lynn, is with looking done obviously You've job excellent strong growth sheet

strong a pipeline the to outside of have view that here. as lot your there's backdrop your a on potentially doing something obviously make mentioned talk space looking maybe You Has the is sense? public well. obviously changed through just just there just there. all acquisition more in And great transformational? You Maybe your something wheelhouse. Does or it out that's maybe potential logic at

Lynn Bamford

years consistently thank for and open And our far. acquisitions XXXX, us. our communications was those that to back than anything not their tactical you so that a you are hear that's of just familiar, we the Pat, for which in X you, are more about maybe equipment. have doing mostly for often significant on is acquisition said executed PacStar comments. And largest is for the end Thank us We've talk we tailwind

great. larger acquisitions. that's we So at been And look

risk say will like -- to tolerance just say I I changes because our is never mean, high. bar I the

integrate we how how thin bandwidth don't to And have become take clean growth us. also I But the them, the for We of Curtiss-Wright that coming to team's I be opportunities who have they for have from line a the at able is to standpoint. advantage management sight want of spreadsheets and from is. will will we look

so play might And does you point, you into about think at how consider. some that what

in looking acquire but the to going continue going low to growth that and we we'd growth year, things we where then experiencing of and commercial that do, nuclear do them on. have double balance in while we're like to defense the But we're we're consider experiencing digits electronics the absorb -- if bandwidth the in at this put other to sure make great places something, are market,

say how that maybe still doing say change -- date. larger is think a I I So about it's the would something in I table. than to we've We're shade things, put on done but of would

Operator

At this I remarks. time, turn the in questions will additional further or I back no any show closing Bamford Lynn floor to for queue.

Lynn Bamford

to for you, full Thank everyone, with look year us joining and speaking forward our in today, you to results. February we

Operator

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

Curtiss-Wright (CW) 31 Oct 242024 Q3 Earnings call transcript