Earning Preview: Curtiss-Wright Q1 revenue is expected to increase by 12.53%, and institutional views are bullish

Earnings Agent04-29

Abstract

Curtiss-Wright will report fiscal Q1 2026 results on May 06, 2026 Post Market; this preview outlines expected revenue, margins, and adjusted EPS with year-over-year comparisons and highlights from the most promising segments based on recent performance and guidance.

Market Forecast

Consensus for the current quarter points to revenue of 863.96 million US dollars, EBIT of 150.67 million US dollars, and adjusted EPS of 3.30, implying year-over-year increases of 12.53%, 26.46%, and 38.56% respectively. Based on the company’s framework and recent trend, gross margin is expected to remain healthy near the upper-30% range while net profitability tracks higher with operating leverage; adjusted EPS is forecast to expand faster than revenue.

The business mix remains anchored by Power, Defense, and Aerospace/Industrial, with recent wins suggesting solid backlog conversion into Q1. The most promising segment is Power with trailing revenue of 1.50 billion US dollars and a strong demand pipeline; recent year-over-year growth indications point to continued mid- to high-teens momentum.

Last Quarter Review

The previous quarter delivered revenue of 946.98 million US dollars, a gross profit margin of 37.53%, GAAP net profit attributable to shareholders of 137.00 million US dollars, a net profit margin of 14.47%, and adjusted EPS of 3.79, all showing healthy year-over-year gains, with revenue up 14.88% and adjusted EPS up 15.90%. Quarter-on-quarter, net profit grew by 9.75%, supported by operating efficiencies and a favorable mix.

Operationally, EBIT reached 186.57 million US dollars, exceeding the prior consensus and highlighting continued leverage in core programs. By business, Power generated 1.50 billion US dollars, Defense 1.02 billion US dollars, and Aerospace/Industrial 0.98 billion US dollars in the last disclosed period; Power led overall momentum with solid year-over-year growth and the largest contribution.

Current Quarter Outlook

Main business trajectory and margin dynamics

Curtiss-Wright’s core revenue base across Power, Defense, and Aerospace/Industrial is set to deliver mid-teens EPS growth against low-teens top-line expansion this quarter. Forecast revenue of 863.96 million US dollars, paired with an EBIT estimate of 150.67 million US dollars, implies continued operating leverage as cost controls and pricing actions offset inflation and supply-chain normalization. With last quarter’s gross margin at 37.53% and net margin at 14.47%, the setup suggests margins can trend stable-to-up as higher-margin defense electronics and industrial controls contribute a larger share, enabling adjusted EPS growth of 38.56% year over year, well ahead of revenue.

Execution remains the swing factor. Deliveries tied to long-cycle programs and the pace of aftermarket orders will influence conversion rates. Any slippage in program milestones could defer revenue and margin capture, but a strong backlog and disciplined cost structure provide a buffer. Management’s recent cadence of beating estimates on EBIT and EPS indicates the operating model is resilient, with scope for modest upside if mix tilts toward higher value systems.

Power segment: the catalyst for sustained growth

Power is positioned as the largest growth engine by revenue, with a trailing contribution of 1.50 billion US dollars and indications of mid- to high-teens growth carrying into 2026. The demand profile benefits from nuclear lifecycle services and critical components, where visibility is typically robust and pricing is constructive. As field services normalize and new awards transition from booking to revenue, the segment supports both top-line stability and incremental margin expansion given attractive contribution margins.

The segment’s performance also underpins free-cash-flow timing, as milestone-based contracts and aftermarket service mix affect working capital. For the quarter, continued backlog burn and higher spares/activity rates should support revenue realization. Risks would stem from deferrals in utility maintenance schedules or project timing, but recent trends point to consistent execution. A stronger Power mix could also lift consolidated gross margin toward the high-30% area if volumes come through as expected.

Defense and Aerospace/Industrial: diversified drivers and program cadence

Defense remains a steady contributor with a trailing revenue base of 1.02 billion US dollars, supported by electronics, actuation, and embedded computing content on legacy and modernization platforms. The Q1 EBIT forecast implies healthy throughput on funded programs; upside exists if shipment timing aligns with quarter-end and if hardware mix includes higher-margin subsystems. Program risk centers on supply-chain punctuality and acceptance testing cycles, though the improving component availability landscape reduces the likelihood of material disruptions.

Aerospace/Industrial, at approximately 0.98 billion US dollars of trailing revenue, benefits from industrial demand normalization and commercial aerospace activity. Aftermarket orders and pricing remain levers for incremental margin. Should industrial markets soften, the division’s diverse applications provide some resilience. For Q1, revenue contribution is expected to be solid, with the potential for modest upside if orders booked late in the prior quarter convert efficiently.

Stock-price sensitivities this quarter

The stock will likely react to three factors: the magnitude of the EPS beat-to-miss versus the 3.30 estimate, the trajectory of margins versus last quarter’s 37.53% gross and 14.47% net benchmarks, and any qualitative updates on backlog and award pipeline, particularly in Power and defense electronics. An upside scenario would involve revenue around the 863.96 million US dollars mark with a favorable mix that pushes EBIT above 150.67 million US dollars and signals of sustained double-digit growth into the next quarter. A downside scenario would be tied to program timing slippage or a less favorable mix that pressures margins and cash conversion, even if revenue lands near consensus.

Analyst Opinions

Bullish opinions outweigh bearish views based on recent commentary, with the majority citing consistent execution and visibility from long-cycle programs as support for revenue growth and margin improvement this quarter. Several well-followed institutions emphasize the improved throughput in defense electronics and the durability of nuclear-related demand in Power as reasons for confidence in the 12.53% revenue growth and 38.56% EPS expansion setup. The prevailing perspective expects a solid beat on EBIT given prior-quarter outperformance and a disciplined cost base, while cautionary views focus on possible shipment timing and utility maintenance schedules. Overall, the consensus leans bullish, anticipating revenue near 863.96 million US dollars, EBIT around 150.67 million US dollars, and adjusted EPS near 3.30, with risk skewed to the upside if mix favors higher-margin programs.

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