Analysts expect Curtiss-Wright (CW to report solid revenue growth and earnings per share (EPS) for Q1 2025. The company's strong performance in recent quarters, driven by defense contracts and strategic acquisitions, has raised expectations for continued success. Key areas of focus include the impact of the Naval Air Systems Command contract on revenue and the progress of Curtiss-Wright's nuclear power initiatives.

Revenue Projections for Q1 2025#

Analysts estimate that Curtiss-Wright's (CW revenue for Q1 2025 will be in the range of $800 million to $850 million, representing a growth of 8% to 12% compared to the same period last year. This growth is expected to be driven by increased defense spending and demand for the company's high-speed data acquisition systems and tactical communications technology. The Naval Air Systems Command contract is anticipated to contribute significantly to revenue growth in the coming quarters.

Investors will also be paying close attention to Curtiss-Wright's (CW earnings per share (EPS) for Q1 2025. Analysts estimate that EPS will be in the range of $2.50 to $2.70, representing a growth of 10% to 15% compared to the same period last year. This growth is expected to be driven by higher revenue and improved operating margins. The company's ability to manage costs and maintain profitability will be critical to achieving these earnings targets.

The $50 Million Naval Air Systems Command Contract: A Deep Dive#

In March 2025, Curtiss-Wright (CW was awarded an approximately $50 million firm-fixed-price Indefinite Delivery, Indefinite Quantity (IDIQ) contract by Naval Air Systems Command. This contract involves providing high-speed data acquisition systems hardware and associated repair services in support of the Naval Air Systems Command Special Flight Test Instrumentation Pool. The contract is scheduled to run through January 2030.

The Naval Air Systems Command contract is a significant win for Curtiss-Wright (CW, as it provides revenue visibility and stability in the medium term. The contract supports platforms including F-35, F-18, CH-53K, E-2D, EA-18, and C-130, reinforcing Curtiss-Wright's position in critical naval aviation programs. This contract is a renewal of a relationship that has been in use for over 15 years, which financial analysts view as a positive continuation of an established revenue stream.

Impact on Naval Air Systems Command Contract on Revenue#

The $50 million Naval Air Systems Command contract is expected to have a positive impact on Curtiss-Wright's (CW revenue and earnings over the next five years. While the precise impact is difficult to quantify without detailed delivery schedules, analysts estimate that the contract will contribute approximately $8 million to $10 million in revenue per year. This revenue will be recognized over the life of the contract, providing a steady stream of income for Curtiss-Wright.

In addition to the direct revenue impact, the Naval Air Systems Command contract is expected to have a positive impact on Curtiss-Wright's (CW backlog and future order forecasts. The contract demonstrates the company's expertise in high-speed data acquisition systems and its ability to provide reliable support services. This is likely to lead to additional contract opportunities with Naval Air Systems Command and other defense agencies.

Curtiss-Wright's Nuclear Ambitions: TerraPower and the SMR Market#

Curtiss-Wright (CW is strategically expanding into the nuclear power sector, demonstrated by contracts with TerraPower to develop training simulators and distributed control systems for the Natrium reactor project. This expansion diversifies Curtiss-Wright's revenue streams and reduces its reliance on defense contracts. The Natrium reactor in Kemmerer, Wyoming, is expected to be operational by 2030.

The small modular reactor (SMR) market is expected to grow from $0.27 billion in 2024 to $0.67 billion in 2025, representing a CAGR of 152.1%. By 2029, the market is forecast to reach $2.71 billion, with a CAGR of 41.7%. This growth provides significant long-term potential for Curtiss-Wright, as the company is well-positioned to provide critical technologies and solutions for the SMR market.

Competitive Landscape in the SMR Market#

Curtiss-Wright (CW faces competition from Framatome and Westinghouse in the nuclear control systems market. However, Curtiss-Wright's expanding role across multiple Natrium systems suggests a competitive advantage in integrating these critical technologies. The company's successful integration of technologies in the Natrium project enhances its competitive positioning and increases its chances of winning additional contracts in the SMR market.

Curtiss-Wright's (CW Nuclear division generated approximately 30% of its $2.8 billion total 2024 revenue. The company's contracts with TerraPower and the acquisition of Ultra Energy demonstrate its commitment to expanding its presence in the nuclear power sector. This expansion is likely to drive revenue growth and increase Curtiss-Wright's market share in the coming years.

Defense Spending and CW's Stock: Analyzing the Correlation#

Defense spending significantly influences Curtiss-Wright's (CW revenue. In 2017, approximately 33% of the company's total net sales were derived from or related to U.S. defense programs. Increased defense spending is generally correlated with higher stock prices for defense contractors like Curtiss-Wright. However, pinpointing a precise historical correlation requires detailed analysis of specific defense spending bills and CW's stock performance during those periods.

Major defense spending bills typically lead to increased investor confidence and higher stock prices for CW. Monitoring government defense budget discussions and approvals can provide insights into potential stock movements. Wars and conflicts on financial markets on companies associated with the defense sector. Curtiss-Wright's stock outlook is strong with defense initiatives and a cash-positive trajectory by 2026.

Historical Defense Spending and CW Stock Price#

The following table illustrates the historical relationship between U.S. defense spending and Curtiss-Wright's (CW stock price:

Year	U.S. Defense Spending (Billions)	CW Stock Price (Average)
2020	700	120
2021	750	140
2022	800	160
2023	850	180
2024	900	200

Note: This is a hypothetical table for illustrative purposes only.

R&D and Innovation at Curtiss-Wright: Investing in the Future#

Curtiss-Wright (CW continued to ramp up investments in research and development across the portfolio. Adjusted operating income for Naval and Power segment was up 22% and favorable absorption on higher revenues and the benefits of restructuring and cost containment initiatives were partially offset by higher investment in research and development. Also adjusted operating income was $66 million, up 11% from the prior year period, while Adjusted operating margin decreased 20 basis points to 19.1%, as favorable absorption on higher revenues was partially offset by unfavorable mix of products and higher investment in research and development.

Technical barriers to entry remain substantial in aerospace component manufacturing. The average R&D investment is $285 million annually. Increased R&D spending signals a commitment to innovation, which can drive future growth. Comparing CW's R&D spending to its competitors can reveal its relative focus on innovation.

R&D Spending as a Percentage of Revenue#

The following table illustrates Curtiss-Wright's (CW R&D spending as a percentage of revenue over the last five years:

Year	Revenue (Millions)	R&D Spending (Millions)	R&D as % of Revenue
2020	2500	250	10.0%
2021	2600	260	10.0%
2022	2700	270	10.0%
2023	2800	280	10.0%
2024	2900	290	10.0%

Note: This is a hypothetical table for illustrative purposes only.

Balancing Debt and Growth: Curtiss-Wright's Acquisition Strategy#

Curtiss-Wright's (CW debt-to-equity ratio and long-term debt levels are important metrics for assessing its financial health, especially considering its growth strategy, which may involve acquisitions. Curtiss-Wright's debt-to-equity ratio for the fiscal year that ended in Dec. 2024 is calculated as 0.50. The company had total debt of $787.7 million and shareholders' equity of $1,456.3 million. The company's debt-to-equity and leverage ratio trend analyses indicate a healthy long-term financial position, with decreasing long-term debt. Curtiss-Wright repurchased approximately 766,000 shares of its common stock for $250 million in 2024.

Monitoring CW's debt levels and debt-to-equity ratio is crucial for assessing its financial risk. Acquisitions can increase debt but also drive revenue growth, so balancing debt and growth is important. Citi's analysts predict that increased production rates for new aircraft will likely enhance Aerospace & Industrial aftermarket revenues. Curtiss-Wright is becoming net cash positive by 2026 due to a consistent pattern of reducing debt on its balance sheet.

Impact of Acquisitions on Debt-to-Equity Ratio#

The following table illustrates the impact of acquisitions on Curtiss-Wright's (CW debt-to-equity ratio:

Year	Acquisitions (Millions)	Long-Term Debt (Millions)	Debt-to-Equity Ratio
2020	100	500	0.60
2021	150	550	0.65
2022	200	600	0.70
2023	250	650	0.75
2024	300	700	0.80

Note: This is a hypothetical table for illustrative purposes only.

Market Outlook: What Analysts are Saying About Curtiss-Wright#

Analysts have a positive outlook on Curtiss-Wright (CW, citing the company's strong growth potential, strategic expansion into the nuclear power market, and consistent earnings surprises. The company's recent $50 million IDIQ contract from the Naval Air Systems Command and $18 million contract for tactical communications highlight its strong position in the defense sector.

Citi's analysts predict that increased production rates for new aircraft will likely enhance Aerospace & Industrial aftermarket revenues. Curtiss-Wright is becoming net cash positive by 2026 due to a consistent pattern of reducing debt on its balance sheet. The company's positive outlook reflects confidence in its financial strategies and market position within the defense sector.

Analyst Ratings and Price Targets#

The following table summarizes analyst ratings and price targets for Curtiss-Wright (CW:

Analyst	Rating	Price Target
Citi	Buy	320
Goldman Sachs	Neutral	300
Morgan Stanley	Overweight	330
JP Morgan	Buy	340
Bank of America	Neutral	310

Note: This is a hypothetical table for illustrative purposes only.

Potential Risks and Challenges for Curtiss-Wright#

Curtiss-Wright (CW faces several potential risks and challenges that could impact its financial performance and stock price. Geopolitical risks, such as wars and conflicts, can affect defense spending and demand for the company's products and services. Supply chain disruptions and rising raw material costs can also negatively impact Curtiss-Wright's profitability.

The company also faces competition in the aerospace, defense, and nuclear power markets. Integration challenges related to acquisitions can also pose risks to Curtiss-Wright's growth strategy. It is important for investors to be aware of these potential risks and challenges when evaluating Curtiss-Wright's stock.

Geopolitical Risks and Supply Chain Challenges#

Geopolitical risks, such as wars and conflicts, can affect defense spending and demand for Curtiss-Wright's (CW products and services. Supply chain disruptions and rising raw material costs can also negatively impact Curtiss-Wright's profitability. The following table illustrates the potential impact of these risks on Curtiss-Wright's financial performance:

Risk	Potential Impact on Revenue	Potential Impact on Earnings
Geopolitical Risks	-5%	-10%
Supply Chain Disruptions	-3%	-5%
Rising Raw Material Costs	-2%	-3%

Note: This is a hypothetical table for illustrative purposes only.

Curtiss-Wright: A Strategic Outlook for the Future#

Curtiss-Wright (CW is well-positioned for continued growth and success in the aerospace and defense industry. The company's strategic focus on innovation, acquisitions, and key defense contracts, along with its expansion into the nuclear power market, provides a solid foundation for future growth. While the company faces potential risks and challenges, its strong financial position and experienced management team should enable it to navigate these challenges successfully.

Investors should continue to monitor Curtiss-Wright's financial performance, key defense contracts, and progress in the nuclear power market. The company's upcoming Q1 2025 earnings announcement will provide valuable insights into its current financial health and future prospects. Curtiss-Wright's stock remains a compelling investment opportunity for long-term growth investors.