DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE:CW) has completed the acquisition of Ultra Nuclear Limited and Weed Instrument Co., Inc., collectively known as Ultra Energy, a provider of critical measurement and control systems for the Commercial Nuclear and Aerospace & Defense markets. The $200 million cash transaction is expected to enhance Curtiss-Wright’s global commercial nuclear portfolio and support its long-term financial objectives.
Ultra Energy, which reported sales of about $65 million in 2023, offers products including reactor protection systems, neutron monitoring systems, and temperature and pressure sensors. These technologies are essential for the safe operation of commercial nuclear reactors and other power generation plants. Additionally, the company supports the UK’s legacy nuclear submarine fleet and next-generation ship designs. Curtiss-Wright’s solid financial position, with a current ratio of 1.98 and revenue growth of 9.42% in the last twelve months, positions it well for this strategic acquisition.
The acquisition aligns with Curtiss-Wright’s strategic priorities to expand its measurement and control solutions, aiding in the life extension and modernization of aging power plants. It also increases the company’s involvement with designers of small modular reactors in the U.S. and Europe. With a P/E ratio of 33.4, the stock trades at a premium valuation, reflecting market confidence in its growth strategy. For detailed valuation analysis and more insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
Ultra Energy is anticipated to be accretive to Curtiss-Wright’s adjusted diluted earnings per share in the first full year, excluding initial purchase accounting costs, and is expected to generate a free cash flow conversion rate exceeding 100%. The newly acquired business will be integrated into Curtiss-Wright’s Naval & Power segment.
With roots dating back to the 1950s and 1960s, Ultra Energy has a history of innovation in neutron monitoring and manufacturing temperature and pressure sensors. It employs approximately 300 people and operates primarily out of Wimborne, UK, and Round Rock, TX.
Curtiss-Wright, with a workforce of around 8,600, provides engineered products, solutions, and services mainly to the Aerospace & Defense markets, as well as Commercial Power, Process, and Industrial markets. The information is based on a press release statement.
In other recent news, Curtiss-Wright Corporation has announced a series of significant financial developments. The company reported a 10% year-over-year sales increase to nearly $800 million in the third quarter of 2024, primarily fueled by growth in the Defense Electronics and Naval & Power segments. This performance led to the company raising its full-year 2024 guidance, now expecting sales growth of 7% to 9% and diluted EPS growth of 12% to 15%. Deutsche Bank (ETR:DBKGn) initiated coverage on Curtiss-Wright stock with a Buy rating, highlighting potential returns from various factors including the company’s base case earnings per share (EPS) growth and opportunities in defense electronics.
Curtiss-Wright also announced two new stock repurchase plans set to commence in 2025, with a total budget of $160 million. This is part of the company’s ongoing initiative to return value to shareholders, demonstrating its confidence in its future financial performance. In addition, the company declared a quarterly dividend of $0.21 per share, reflecting its financial health and commitment to its investors.
Stifel and Truist Securities have both increased their price targets for Curtiss-Wright, maintaining their respective ratings. These adjustments came in response to the company’s robust market position and strong financial performance. These recent developments reflect the company’s strategic investments and partnerships, particularly in the commercial nuclear and defense sectors, which are driving its growth.
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