Curtiss-Wright (CW) beats Q3 2026 estimates and raises full-year guidance

Curtiss-Wright reported adjusted earnings per share of $3.94 for the third quarter of 2026, beating expectations against a consensus estimate of roughly $3.76. Revenue came in at $952.59 million, also ahead of the $935.10 million that analysts had expected, and up 9.6% from a year earlier. The beat was broad across line items.

The growth was powered by defense demand across multiple programs. Aerospace defense sales rose 16%, lifted by fighter jet and helicopter work, while naval defense climbed 10% on Columbia-class and Virginia-class submarine production. Naval and Power was the standout segment on profitability, with adjusted operating margin expanding 200 basis points to 18.6%.

Orders jumped 15% year over year to roughly $1.10 billion, and the total backlog swelled 12% to about $4.60 billion. That order momentum gave management enough conviction to raise every major full-year metric. The company now targets adjusted diluted EPS of $15.40 to $15.60, representing growth of 16% to 18%, and free cash flow of $595 million to $615 million. Full-year sales guidance was lifted to $3,795 to $3,840 million, up 8% to 10%.

The quarter also marked a leadership transition. COO Kevin Rayment is set to become President and CEO on January 1, 2027, succeeding Lynn M. Bamford. Rayment steps into the role with a $4.60 billion backlog already in place and full-year guidance already raised, giving him a running start.

On the capital return front, the board authorized an additional $510 million for future share repurchases in September 2026, bringing total available authorization to $700 million. The company repurchased roughly 538,000 shares for about $352 million in the third quarter alone and said it expects approximately $460 million in total 2026 buybacks. A quarterly dividend of $0.26 per share was also declared during the quarter.

One note of nuance: the reported adjusted EPS of $3.94 excludes a loss on equity securities of $0.14 per share and restructuring costs of $0.03 per share. GAAP diluted EPS for the quarter was $3.77. The company also flagged that Defense Electronics margins faced pressure from unfavorable product mix and higher research and development spending, a dynamic worth monitoring as that segment matures.