Curtiss-Wright secures $27 million Navy contract

DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE:CW), a defense contractor with a market capitalization of $13.92 billion and impressive year-over-year revenue growth of 9.42%, has secured a $27 million contract to supply the U.S. Navy with its Aircraft Ship Integrated Securing and Traversing (ASIST) systems, the company announced today. The systems will be used on the Constellation Class Frigates (FFG-62), with the work being carried out at Curtiss-Wright's facility in Mississauga, Ontario, Canada. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.98, indicating robust operational capability.

This contract is part of a larger five-year indefinite delivery, indefinite quantity (IDIQ) agreement that could be worth close to $100 million. The ASIST system, designed to facilitate safe helicopter landings on ships in extreme sea conditions, is a key component of the U.S. Naval Air Warfare Center's operations.

Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation, expressed pride in the company's selection by the Canadian Commercial Corporation ( CCC (WA:CCCP)) to continue providing their expertise in shipboard helicopter handling systems. The company's strong market position is reflected in its impressive 65.17% stock price return over the past year. Diane Montambault, Vice President of Contract Management and Operations at CCC, highlighted the significance of Canadian innovation in aerospace safety and technology, reinforcing Curtiss-Wright's standing as a global leader in this field.

Curtiss-Wright has a long history of manufacturing naval helicopter handling systems and has been involved in defense contracts worldwide, including collaborations with navies in Australia, Canada, Chile, India, Singapore, Spain, Turkey, and the United States. The company's ASIST system is known for enabling helicopter landings with minimal human intervention even under challenging sea conditions.

The contract represents a continuation of the longstanding partnership between Curtiss-Wright and CCC, which spans over 40 years, providing various hardware components, equipment, and systems to the U.S. military, including the RAST shipboard system for helicopters.

Curtiss-Wright, which employs approximately 8,800 people, is recognized for its highly engineered products, solutions, and services primarily in the Aerospace & Defense markets, with a history rooted in the legacies of Glenn Curtiss and the Wright brothers.

This press release statement contains forward-looking statements under the Safe Harbor provisions, and the company cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. InvestingPro analysis indicates that while Curtiss-Wright maintains excellent financial health with an overall score of "GREAT," the stock appears to be trading above its Fair Value. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers this and over 1,400 other US equities with detailed analysis and actionable intelligence.

In other recent news, Curtiss-Wright Corporation demonstrated impressive financial results, with a 10% year-over-year sales increase to nearly $800 million in the third quarter of 2024. This growth was primarily fueled by the Defense Electronics and Naval & Power segments. As a result, the company has raised its full-year 2024 guidance, now expecting sales growth of 7% to 9% and diluted EPS growth of 12% to 15%.

In line with these developments, Curtiss-Wright has completed the acquisition of Ultra Energy for $200 million, a move anticipated to enhance its global commercial nuclear portfolio and be accretive to the company's adjusted diluted earnings per share in the first full year.

On the analyst front, Deutsche Bank (ETR:DBKGn) and Citi have initiated coverage on Curtiss-Wright with a Buy rating. Deutsche Bank set a price target of $452.00, while Citi set a target of $410.00. Both firms highlighted the company's strong market position and potential for growth in the defense sector.

Moreover, Curtiss-Wright has announced two new stock repurchase plans set to commence in 2025, with a total budget of $160 million, reflecting its confidence in its future financial performance. The company also declared a quarterly dividend of $0.21 per share, underlining its commitment to its investors.

Lastly, Citi's analysis suggests that Curtiss-Wright will become net cash positive by 2026 due to a consistent pattern of reducing debt on its balance sheet, supported by an expected 13% earnings growth through 2027 and consistent cash conversion rates.

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