Curtiss-Wright secures $26M Belgian Air Force deal

DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE:CW) has been awarded a $26 million contract to modernize the Belgian Air Force's aircraft arresting systems, the company announced today. This multi-year agreement will support Belgium's transition to the F-35 aircraft by upgrading cable systems and providing comprehensive services at three airbases.

The contract encompasses new installations and a range of aftercare services, including spare parts, repairs, and overhauls to maintain operational readiness. The work aims to standardize the arresting system configurations across the main and parallel runways at Florennes, Kleine-Brogel, and Bevauchain Air Bases.

Lynn M. Bamford, Chair and CEO of Curtiss-Wright, emphasized the significance of this partnership, stating that it strengthens the company's relationship with the Belgian Air Force and showcases the increasing demand for Curtiss-Wright's technologies among NATO defense allies.

The company's EMS division, part of the Naval & Power segment, will execute the work. Manufacturing of the energy absorbers and BAK-12 mobile systems will occur at the Aston, Pennsylvania facility, while retractable hook cable systems will be produced in Merpins, France. The Merpins site, with a history of supporting NATO's European customers, will also handle a 10-year maintenance contract.

Curtiss-Wright's SmartArrest® system, a computerized version of the ESCO BAK-12 energy absorber, will be a key component of the upgrade. It is designed to automatically manage the arrestment of various fighter jet models, enhancing the safety and efficiency of emergency operations.

The company, leveraging a workforce of approximately 8,600 employees, specializes in highly engineered products and services for the Aerospace & Defense sectors, as well as critical technologies for Commercial Power, Process, and Industrial markets. Building on the legacy of aviation pioneers Glenn Curtiss and the Wright brothers, Curtiss-Wright continues to forge strong customer relationships with innovative solutions.

This announcement is based on a press release statement and contains forward-looking information subject to risks and uncertainties that could affect the company's actual results.

In other recent news, Curtiss-Wright Corporation has demonstrated a strong financial performance, with robust second-quarter results exceeding consensus expectations. The company reported an 11% increase in sales to $785 million, a 16% rise in operating income, and a 24% growth in diluted earnings per share to $2.67. Analysts at Baird have responded to these developments by raising the price target for Curtiss-Wright shares to $312 from $300, while maintaining an Outperform rating.

The company's Defense Electronics margins notably surpassed market expectations by around 300 basis points, supported by high single-digit growth in the commercial nuclear sector, which is projected to double by 2028. Curtiss-Wright's Aerospace and Defense markets also saw mid-teens growth, contributing to a record backlog of over $3.2 billion, with an 18% increase in the company's order book.

In addition to these recent developments, Curtiss-Wright has raised its full-year guidance and announced a corporate-wide restructuring program to improve efficiency. The acquisition of Ultra Energy is another strategic move expected to drive future success. According to Baird, the company's strategic investments and strong performance in key sectors position Curtiss-Wright favorably against its peers over a multi-year investment horizon.

InvestingPro Insights

Curtiss-Wright Corporation (NYSE:CW) has shown a commitment to consistent shareholder returns, having raised its dividend for seven consecutive years. This demonstrates the company's confidence in its financial stability and future earnings potential. According to InvestingPro, the company has also maintained dividend payments for an impressive 51 consecutive years, further underscoring its long-term reliability for income-focused investors.

In terms of valuation, Curtiss-Wright is currently trading at a Price/Earnings (P/E) ratio of 29.77, which is considered high relative to near-term earnings growth. This suggests that the market has high expectations for the company's future earnings or that the stock may be overvalued compared to its peers. Investors looking at the company's book value will note a Price/Book (P/B) ratio of 4.72, indicating that the stock is also trading at a high valuation when measured against the company's net asset value.

Despite recent analyst concerns, with three analysts having revised their earnings estimates downwards for the upcoming period, Curtiss-Wright has displayed strong financial performance over the last twelve months. The company boasts a solid revenue growth of 10.45% for the last twelve months as of Q2 2024, reflecting its ability to increase sales and potentially expand its market share.

For those interested in further in-depth analysis, InvestingPro offers additional InvestingPro Tips for Curtiss-Wright, which can be accessed at https://www.investing.com/pro/CW. These tips provide a more comprehensive look at the company's financial health, future prospects, and investment potential.

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