Curtiss-Wright Corp.

Q2 performance beat expectations; strong profitability and cash generation - Sales: $924M, +5% YoY - Operating income: +12% YoY, with +110 bps operating margin expansion - EPS (diluted): +15% YoY, slightly ahead of expectations - Free cash flow (FCF): $160M, +37% YoY; FCF conversion rate 115% - Overall operating margin: 19.4% (reflecting margin expansion despite investment levels)

Order book strength is driving raised guidance (but timing matters by subsegment) - New orders: +8% YoY in Q2 - Book-to-bill: >1.1x in Q2; overall 2026 book-to-bill >1.2x (YTD) - Key positive drivers: Defense Electronics surge (orders +~50% YoY in Q2; +30% YTD) and improved pipelines across programs - Surprising/noticeable headwind: Naval & Power Q2 orders down YoY due to submarine program timing (not a demand collapse)

Full-year 2026 guidance raised across EPS and FCF (with margin expansion still the core story) - Sales: now projected +8% to +9% (previously lower) - Operating margin: targeted 19.1% to 19.3%, implying +50 to +70 bps expansion - Diluted EPS: now projected +14% to +16% to $15.10–$15.40 - Free cash flow: raised to a record $585M to $605M, with conversion >105% - Capex expectation: includes ~30% higher capex YoY for growth investments, but expected to be more than offset by earnings + working capital (working capital as % of sales <18%)