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Can Rising Aerospace and Defense Demand Drive Curtiss-Wright's Growth?
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Key Takeaways
Curtiss-Wright raised 2026 Naval Defense growth outlook to 7-9% and Aerospace Defense to 12-14%.
Defense Electronics orders rose 8% to $1.1B, while companywide book-to-bill reached 1.16 in Q2.
CW's backlog hit $4.5B, up 10% from December 2025, providing visibility as orders convert to sales.
Curtiss-Wright (CW - Free Report) continues to benefit from strong demand across naval defense, aerospace and defense electronics. In the second quarter of 2026, Naval & Power sales increased 7% year over year, driven by higher naval defense revenues from submarine program activity and increased aftermarket demand. The company raised its 2026 Naval Defense sales growth outlook to 7-9% and expects Naval & Power sales to grow 10-11%.
Aerospace is another key growth driver. Aerospace & Industrial sales rose 12% year over year in the second quarter, supported by higher demand for actuation equipment and stronger commercial aerospace activity across narrowbody and widebody aircraft. Curtiss-Wright raised its 2026 Aerospace Defense sales growth outlook to 12-14% while maintaining its Commercial Aerospace outlook at 10-12%.
Defense Electronics also remains strong, with orders rising 8% year over year in the second quarter to $1.1 billion. Demand was supported by embedded computing, tactical communications, turret stabilization and radar systems. Companywide book-to-bill was 1.16, while backlog reached $4.5 billion, up 10% from December 2025.
The strong order pipeline provides revenue visibility as Curtiss-Wright converts backlog into sales. Its exposure to submarines, fighter jets, UAVs and commercial aircraft, along with sustained defense and aerospace demand, could support growth beyond 2026.
Aerospace and Defense Stocks to Keep on the Radar
Continued demand across defense, aerospace and electronics could also benefit other companies with diversified exposure to these markets.
RTX Corporation (RTX - Free Report) : RTX benefits from demand for missile systems, air defense, aircraft engines and avionics. Its Collins Aerospace business also supports commercial and military aircraft through actuation, sensors and other mission-critical systems.
TransDigm Group (TDG - Free Report) : TransDigm benefits from strong commercial and defense aerospace demand through its broad portfolio of proprietary aircraft components. Its aftermarket business provides recurring revenues as airlines and defense customers maintain and upgrade existing fleet.
The Zacks Rundown for CW
Shares of CW have gained 3.5% in the past year against the industry’s 5.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, CW is currently trading at a forward 12-month sales multiple of 5.00X, a discount when stacked up with the industry average of 7.29X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CW’s 2026 and 2027 earnings has moved north over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Rising Aerospace and Defense Demand Drive Curtiss-Wright's Growth?
Key Takeaways
Curtiss-Wright (CW - Free Report) continues to benefit from strong demand across naval defense, aerospace and defense electronics. In the second quarter of 2026, Naval & Power sales increased 7% year over year, driven by higher naval defense revenues from submarine program activity and increased aftermarket demand. The company raised its 2026 Naval Defense sales growth outlook to 7-9% and expects Naval & Power sales to grow 10-11%.
Aerospace is another key growth driver. Aerospace & Industrial sales rose 12% year over year in the second quarter, supported by higher demand for actuation equipment and stronger commercial aerospace activity across narrowbody and widebody aircraft. Curtiss-Wright raised its 2026 Aerospace Defense sales growth outlook to 12-14% while maintaining its Commercial Aerospace outlook at 10-12%.
Defense Electronics also remains strong, with orders rising 8% year over year in the second quarter to $1.1 billion. Demand was supported by embedded computing, tactical communications, turret stabilization and radar systems. Companywide book-to-bill was 1.16, while backlog reached $4.5 billion, up 10% from December 2025.
The strong order pipeline provides revenue visibility as Curtiss-Wright converts backlog into sales. Its exposure to submarines, fighter jets, UAVs and commercial aircraft, along with sustained defense and aerospace demand, could support growth beyond 2026.
Aerospace and Defense Stocks to Keep on the Radar
Continued demand across defense, aerospace and electronics could also benefit other companies with diversified exposure to these markets.
RTX Corporation (RTX - Free Report) : RTX benefits from demand for missile systems, air defense, aircraft engines and avionics. Its Collins Aerospace business also supports commercial and military aircraft through actuation, sensors and other mission-critical systems.
TransDigm Group (TDG - Free Report) : TransDigm benefits from strong commercial and defense aerospace demand through its broad portfolio of proprietary aircraft components. Its aftermarket business provides recurring revenues as airlines and defense customers maintain and upgrade existing fleet.
The Zacks Rundown for CW
Shares of CW have gained 3.5% in the past year against the industry’s 5.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, CW is currently trading at a forward 12-month sales multiple of 5.00X, a discount when stacked up with the industry average of 7.29X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CW’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
CW stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.