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Why Is Curtiss-Wright (CW) Down 20.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Curtiss-Wright (CW - Free Report) . Shares have lost about 20.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Curtiss-Wright due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Curtiss-Wright Corporation before we dive into how investors and analysts have reacted as of late.
CW Q2 Earnings Top Estimates on Margin Gains, Sales Miss
Curtiss-Wright Corporation reported adjusted earnings of $3.72 per share for the second quarter of 2026, beating the Zacks Consensus Estimate of $3.62 by 2.8%. The bottom line increased 15% year over year, aided by stronger operating profitability across all three segments.
CW’s Q2 Sales Discussion
Sales of $924 million rose 5% year over year but missed the Zacks Consensus Estimate of $931 million by 0.7%. New orders increased 8% to $1.1 billion, while backlog reached $4.5 billion, up 10% from Dec. 31, 2025.
CW's Operating Performance
Adjusted operating income increased 12% year over year to $179 million. Adjusted operating margin expanded 110 basis points to 19.4%, reflecting favorable absorption on higher revenues, favorable mix and benefits from restructuring initiatives.
Total Aerospace & Defense market sales advanced 6%, while Commercial market sales increased 5%. Within the end markets, naval defense sales rose 10%, commercial aerospace increased 11%, power & process advanced 6% and general industrial improved 2%. Ground defense sales declined 8%.
CW’s Segmental Performance
Aerospace & Industrial sales increased 12% year over year to $268 million. Growth reflected higher defense sales of sensors and actuation equipment, stronger commercial aerospace OEM demand on narrowbody and widebody platforms, and increased industrial vehicle sales.
Defense Electronics sales declined 3% year over year to $246 million. Higher embedded computing sales tied to domestic fighter jet and unmanned aerial vehicle programs were more than offset by timing-related weakness in tactical communications and lower sales on certain helicopter programs.
Naval & Power sales advanced 7% year over year to $410 million. Naval defense benefited from timing on the Virginia-class submarine program and higher aftermarket revenues, while power & process gained from commercial nuclear solutions and government nuclear projects.
CW's Cash Flow and Balance Sheet
Net cash provided by operating activities was $181 million in the quarter, up 33% from $137 million a year earlier. Free cash flow increased 37% to $160 million, helped by higher cash earnings, lower working capital and lower tax payments.
Cash and cash equivalents totaled $477.1 million as of June 30, 2026, compared with $371.3 million at year-end 2025. Long-term debt was $757.4 million versus $757.9 million at Dec. 31, 2025.
CW's Updated 2026 Outlook
CW raised its 2026 adjusted sales outlook to $3.768-$3.813 billion, implying growth of 8-9%. The prior range was $3.740-$3.795 billion. Adjusted operating income is now projected at $720-$736 million, up 11-13% year over year.
The company also lifted adjusted diluted earnings guidance to $15.10-$15.40 per share from $14.90-$15.30. Adjusted operating margin is now expected at 19.1-19.3%, while free cash flow guidance increased to $585-$605 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Curtiss-Wright has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Curtiss-Wright has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Curtiss-Wright (CW) Down 20.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Curtiss-Wright (CW - Free Report) . Shares have lost about 20.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Curtiss-Wright due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Curtiss-Wright Corporation before we dive into how investors and analysts have reacted as of late.
CW Q2 Earnings Top Estimates on Margin Gains, Sales Miss
Curtiss-Wright Corporation reported adjusted earnings of $3.72 per share for the second quarter of 2026, beating the Zacks Consensus Estimate of $3.62 by 2.8%. The bottom line increased 15% year over year, aided by stronger operating profitability across all three segments.
CW’s Q2 Sales Discussion
Sales of $924 million rose 5% year over year but missed the Zacks Consensus Estimate of $931 million by 0.7%. New orders increased 8% to $1.1 billion, while backlog reached $4.5 billion, up 10% from Dec. 31, 2025.
CW's Operating Performance
Adjusted operating income increased 12% year over year to $179 million. Adjusted operating margin expanded 110 basis points to 19.4%, reflecting favorable absorption on higher revenues, favorable mix and benefits from restructuring initiatives.
Total Aerospace & Defense market sales advanced 6%, while Commercial market sales increased 5%. Within the end markets, naval defense sales rose 10%, commercial aerospace increased 11%, power & process advanced 6% and general industrial improved 2%. Ground defense sales declined 8%.
CW’s Segmental Performance
Aerospace & Industrial sales increased 12% year over year to $268 million. Growth reflected higher defense sales of sensors and actuation equipment, stronger commercial aerospace OEM demand on narrowbody and widebody platforms, and increased industrial vehicle sales.
Defense Electronics sales declined 3% year over year to $246 million. Higher embedded computing sales tied to domestic fighter jet and unmanned aerial vehicle programs were more than offset by timing-related weakness in tactical communications and lower sales on certain helicopter programs.
Naval & Power sales advanced 7% year over year to $410 million. Naval defense benefited from timing on the Virginia-class submarine program and higher aftermarket revenues, while power & process gained from commercial nuclear solutions and government nuclear projects.
CW's Cash Flow and Balance Sheet
Net cash provided by operating activities was $181 million in the quarter, up 33% from $137 million a year earlier. Free cash flow increased 37% to $160 million, helped by higher cash earnings, lower working capital and lower tax payments.
Cash and cash equivalents totaled $477.1 million as of June 30, 2026, compared with $371.3 million at year-end 2025. Long-term debt was $757.4 million versus $757.9 million at Dec. 31, 2025.
CW's Updated 2026 Outlook
CW raised its 2026 adjusted sales outlook to $3.768-$3.813 billion, implying growth of 8-9%. The prior range was $3.740-$3.795 billion. Adjusted operating income is now projected at $720-$736 million, up 11-13% year over year.
The company also lifted adjusted diluted earnings guidance to $15.10-$15.40 per share from $14.90-$15.30. Adjusted operating margin is now expected at 19.1-19.3%, while free cash flow guidance increased to $585-$605 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Curtiss-Wright has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Curtiss-Wright has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.