2a0c32d57ae3e2d0fbb90d948936d505a55d74bb8be4db05a4b9fe1cbcd0d63d

Aerospace & Industrial

- Product Sales

- Service Sales

Defense Electronics

Naval & Power

Total Revenue

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Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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Cash and cash equivalents (USD, thousands)

Receivables, net (USD, thousands)

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Goodwill (USD, thousands)

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Operating lease right-of-use assets, net (USD, thousands)

Prepaid pension asset (USD, thousands)

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Total assets (USD, thousands)

Current portion of long-term and short-term debt (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses (USD, thousands)

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Long-term debt (USD, thousands)

Deferred tax liabilities (USD, thousands)

Accrued pension and other postretirement benefit costs (USD, thousands)

Long-term operating lease liability (USD, thousands)

Other liabilities (USD, thousands)

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Common stock (USD, thousands)

Additional paid in capital (USD, thousands)

Retained earnings (USD, thousands)

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Common treasury stock, at cost (USD, thousands)

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Total liabilities and stockholders' equity (USD, thousands)

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The noticeable jump in cash in Q1 2024—when comparing **$130,659** in Q1 2023 to **$338,034** in Q1 2024—was mainly driven by a combination of improved operating performance and much lower financing outflows. In Q1 2024, net cash used in operating activities improved significantly from **–$91,599** to **–$45,633**, and financing activities recorded an outflow of only **–$7,006** versus **–$31,729** in the previous year. While investing activities and adverse exchange‐rate effects did contribute negative impacts, the improvements in these other areas largely drove the jump in cash in Q1 2024.  **[0000026324-24-000012_cw-20240331.htm:20]** 

What drove the jump in cash in Q1 2024?

The noticeable drop in long-term debt in Q1 2024 is due to the **reclassification of $90,000 thousand** from long-term debt to its current portion. This adjustment was made to reflect the upcoming maturity of the **3.85% Senior Notes due 2025**.  **[0000026324-24-000012_cw-20240331.htm:3]** **[0000026324-24-000012_cw-20240331.htm:10]** 

Why did long-term debt drop noticeably in Q1 2024?

The documents indicate that in Q1 2024 the current portion of long‑term debt was recorded as **$90,000 thousand**—notably, this value was **$0 thousand** as of December 31, 2023.  **[0000026324-24-000012_cw-20240331.htm:3]**  This reclassification reflects that a portion of debt previously classified as long‑term is now due within the next year, which is a common occurrence when debt approaches its maturity date. However, the documents do not provide a **specific explanation** for the sharp reduction compared to earlier periods or why this reclassification led to a lower current portion of debt. In essence, while the reclassification is noted, a detailed cause behind the reduction is not provided in the available information.  **[0000026324-24-000012_cw-20240331.htm:3]** 

What caused the sharp reduction in the current portion of debt in Q1 2024?

The **Total current liabilities** were significantly higher in Q4 2024 primarily because of several factors: **deferred revenue** increased by **$155,549 thousand** (from **$303,872 thousand** to **$459,421 thousand**), a new liability of **$90,000 thousand** was added under the current portion of long-term and short-term debt, and there were increases in both **accrued expenses** (up by **$31,015 thousand** from **$188,039 thousand** to **$219,054 thousand**) and **other current liabilities** (up by **$9,488 thousand** from **$70,800 thousand** to **$80,288 thousand**).  **[0000026324-25-000015_cw-20241231.htm:71]** 

Why were total current liabilities significantly higher in Q4 2024?

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The significant jump in net earnings for Q1 2024 was driven by several key factors. **Strong sales growth** was at the forefront, with sales increasing by **13% year-over-year** to **$713 million**, marked by notable performance in the Defense Electronics segment (up **31%**) and strong growth in Aerospace and Defense markets (up **32%** in Aerospace Defense and **37%** in Ground Defense).  **[0000026324-24-000009_ex992_cwxq124.htm:0]** **[0000026324-24-000009_ex991_cwxq124xearnings.htm:1]** **[0000026324-24-000009_ex992_cwxq124.htm:5]**  Moreover, **operating income** rose by **23% year-over-year** to **$100 million**, underpinned by favorable overhead absorption and a better mix on higher revenues, especially within the Defense Electronics segment which saw a **106% increase in operating income** and an **830 basis point margin expansion**.  **[0000026324-24-000009_ex991_cwxq124xearnings.htm:1]** **[0000026324-24-000009_ex992_cwxq124.htm:1]**  Additionally, **improved operating margins**, a **30% increase in diluted EPS** to **$1.99**, robust order growth with new orders increasing by **26%** to **$901 million** (resulting in a book-to-bill ratio of **1.26x**), and effective management of a **$10 million headwind** in the Naval & Power segment collectively contributed to the overall improvement.  **[0000026324-24-000009_ex992_cwxq124.htm:0]** **[0000026324-24-000009_ex991_cwxq124xearnings.htm:0]** **[CW_3382375_1]** **[CW_3382375_3]** 

What contributed to the significant jump in Net Earnings in Q1 2024?

The lower operating income in Q4 2024 was primarily driven by **segment-specific declines and higher corporate expenses** despite higher net sales. In particular, the **Defense Electronics segment** experienced a **20% decline**, falling from **$69,015 thousand** in Q4 2023 to **$55,362 thousand** in Q4 2024 due to lower defense revenues, an unfavorable mix of products, and increased R&D investments. Additionally, **Corporate and Other Expenses increased by 25%** (from **$9,221 thousand** to **$11,551 thousand**), which further impacted the overall operating income. While some segments like Aerospace & Industrial and Naval & Power saw growth, these positive effects did not fully offset the losses in Defense Electronics and the higher expense burden, resulting in lower operating income overall.  **[0000026324-25-000008_ex991_cwxq424xearningsxpre.htm:7]** 

Why was Operating Income lower in Q4 2024 despite higher net sales?

The restructuring expenses in Q3 2024 were triggered by **Curtiss-Wright Corporation's 2024 Restructuring Program**, which aimed at improving operating efficiency through initiatives such as **workforce reductions, facility consolidations, and legal entity restructuring**. These measures resulted in specific charges including **inventory write-downs, severance and facility-related costs, and impairments of property, plant, equipment, and operating lease right-of-use assets**.  **[0000026324-24-000048_cw-20240930.htm:17]** **[0000026324-24-000048_cw-20240930.htm:16]** 

What triggered the appearance of restructuring expenses in Q3 2024?

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United States

United Kingdom

Canada

Other Foreign Countries

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Net Earnings (USD, thousands)

Depreciation and Amortization (USD, thousands)

Loss on Sale/Disposal of Long-lived Assets (USD, thousands)

Share-Based Compensation (USD, thousands)

Non-Cash Restructuring Charges (USD, thousands)

Net Cash Used for Operating Activities (USD, thousands)

Proceeds from Sale/Disposal of Long-lived Assets (USD, thousands)

Additions to Property, Plant, and Equipment (USD, thousands)

Additional Consideration Paid on Prior Year Acquisitions (USD, thousands)

Net Cash Used For Investing Activities (USD, thousands)

Borrowings Under Revolving Credit Facilities (USD, thousands)

Payment of Revolving Credit Facilities (USD, thousands)

Principal Payments on Debt (USD, thousands)

Repurchases of Common Stock (USD, thousands)

Proceeds from Share-Based Compensation Plans (USD, thousands)

Other Financing Activities, Net (USD, thousands)

Net Cash Provided by (Used for) Financing Activities (USD, thousands)

Effect of Exchange-Rate Changes on Cash (USD, thousands)

Net Increase (Decrease) in Cash and Cash Equivalents (USD, thousands)

Deferred Income Taxes (USD, thousands)

Cash and Cash Equivalents at Beginning of Year (USD, thousands)

Cash and Cash Equivalents at End of Period (USD, thousands)

7233320c9510886f9e51076fe761244086d857d3b36e868c31443dab23560486

Product Sales (USD, thousands)

Service Sales (USD, thousands)

Total Net Sales (USD, thousands)

Cost of Product Sales (USD, thousands)

Cost of Service Sales (USD, thousands)

Total Cost of Sales (USD, thousands)

Gross Profit (USD, thousands)

Research and Development Expenses (USD, thousands)

Selling Expenses (USD, thousands)

General and Administrative Expenses (USD, thousands)

Restructuring Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest Expense (USD, thousands)

Other Income, Net (USD, thousands)

Earnings Before Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

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Curtiss-Wright Corp (CW)

Financials