Business Wire | May 5, 2021 04:15PM EDT

Curtiss-Wright Reports First Quarter 2021 Financial Results; Raises Full-Year 2021 Guidance for Sales, Operating Income, Operating Margin and Diluted EPS

May 05, 2021

DAVIDSON, N.C.--(BUSINESS WIRE)--May 05, 2021--Curtiss-Wright Corporation (NYSE: CW) reports financial results for the first quarter ended March 31, 2021.

First Quarter2021 Highlights:

* Reported results include sales of $597 million, operating income of $85 million, operating margin of 14.2% and diluted earnings per share (EPS) of $1.45; * Adjusted diluted EPS of $1.51, up 18%; * Adjusted net sales of $590 million, up 2%, led by strong 8% growth in our Aerospace & Defense markets; * Adjusted operating income of $89 million, up 15%; * Adjusted operating margin of 15.0%, up 160 basis points, principally reflecting savings generated by our prior year restructuring initiatives; * New orders of $571 million, up 3%, led by a strong 1.2x book to bill in our commercial markets; * Reported free cash flow (FCF) up 83%; Adjusted FCF up 34%; and * Share repurchases of approximately $12 million.

Full-Year2021 Business Outlook (compared with Adjusted full-year 2020 results):

* Increased Adjusted sales guidance to new range of 7 to 9% growth (previously 6 to 8%) and Adjusted operating income guidance to new range of 9 to 11% growth (previously 7 to 10%); * Increased Adjusted operating margin guidance to new range of 16.6% to 16.7%, up 30 to 40 basis points compared with the prior year (previously 16.5% to 16.6%, up 20 to 30 basis points); and * Increased Adjusted diluted EPS guidance by $0.10 to new range of $7.10 to $7.30, up 8 to 11%, mainly due to expectations for higher sales and profitability in the Defense Electronics segment and stronger profitability in the Naval & Power segment.

"We delivered a strong start to the year, which has positioned us to increase our full-year Adjusted guidance for sales, operating income, operating margin and diluted EPS," said Lynn M. Bamford, President and CEO of Curtiss-Wright Corporation. "First quarter Adjusted diluted EPS of $1.51 exceeded expectations, as we delivered strong organic defense market sales and improved profitability in the Defense Electronics and Naval & Power segments. In addition, our solid financial performance reflects the continued execution of our cost containment efforts and savings generated by our restructuring actions, as well as investments in strategic research and development projects to drive long-term organic growth."

"Looking ahead to the remainder of 2021, we anticipate that our second quarter results will be in line with the first quarter, followed by a steady, sequential improvement in sales, operating margin, diluted EPS and free cash flow through the second half of the year. We continue to execute on our long-term strategy to deliver top-quartile financial performance and significant value for our shareholders. We look forward to communicating our new vision, strategy and long-term financial targets at our upcoming May 26th investor day."

First Quarter 2021 Operating Results

* Please note that the Company's results and guidance reflect the segment realignment announced earlier in 2021, whereby the Corporation is operating under the following three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power.

(In millions) Q1-2021 Q1-2020 Change

Sales $ 597.1 $ 601.2 (1 %)

Adjustments ^(1) (7.1 ) (25.6 )

Adjusted sales ^(1) $ 590.0 $ 575.7 2 %

Reported operating income $ 85.1 $ 72.4 17 %

Adjustments ^(1) 3.7 4.5

Adjusted operating income ^(1) $ 88.8 $ 76.9 15 %

Adjusted operating margin ^(1) 15.0 % 13.4 % 160 bps

Amounts may not add due to rounding.

(1) Adjusted results exclude our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited and our German valves business which was classified as held for sale, both in the fourth quarter of 2020 impacting both periods; first year purchase accounting costs associated with acquisitionsin both periods; and one-time costs associated with the relocation of our DRG business in the Naval & Power segment and restructuring costs, both in the prior year period.

* Adjusted sales of $590 million, up $14 million, or 2%; * Sales to the Aerospace & Defense markets increased 8%, led by strong organic growth in aerospace and naval defense, as well as the contribution of the PacStar acquisition in ground defense, which more than offset lower commercial aerospace revenues. Commercial sales decreased 7%, principally due to reduced demand in the power and process markets, partially offset by higher general industrial sales. Please refer to the accompanying tables for an overall breakdown of sales by end market; * Adjusted operating income was $89 million, up 15%, while Adjusted operating margin increased 160 basis points to 15.0%, reflecting solid organic revenue growth and the contribution from PacStar in the Defense Electronics segment and increased profitability in the Naval & Power segment, partially offset by unfavorable overhead absorption on lower revenues in the Aerospace & Industrial segment; * In addition, our results reflect the benefits of our 2020 company-wide restructuring initiatives, as well as higher research and development costs; and * Non-segment expenses of $9 million decreased by $3 million compared to the prior year, primarily due to lower foreign currency transactional losses.

Free Cash Flow

(In millions) Q1-2021 Q1-2020 Change

Net cash used for operating activities $ (26.6 ) $ (192.6 ) 86 %

Capital expenditures (8.5 ) (18.6 ) 54 %

Reported free cash flow $ (35.1 ) $ (211.2 ) 83 %

Pension payment ^(1) - 150.0 -

Adjustment to capital expenditures (DRG facility - 7.7 - investment) ^(1)

Restructuring ^(1) - 0.7 -

Adjusted free cash flow ^(1) $ (35.1 ) $ (52.9 ) 34 %

Amounts may not add due to rounding.

(1) 2020 Adjusted free cash flow excludes a $150 million voluntary contribution made in January 2020 to the Company's corporate defined benefit pension plan, a capital investment related to the new state-of-the-art naval facility in the Naval & Power segment, and the cash impact from restructuring.

* Reported free cash flow of ($35) million, defined as cash flow from operations less capital expenditures, increased $176 million, or 83%, driven by higher cash earnings and a reduction in capital expenditures, as well as a $150 million voluntary contribution made to the Company's corporate defined benefit pension plan in the prior year period which did not recur; * Capital expenditures decreased $10 million to $9 million compared to the prior year, primarily due to lower capital investments within the Naval & Power segment; and * Adjusted free cash flow improved by $18 million, or 34%, to ($35) million.

New Orders and Backlog

* New orders of $571 million increased 3% compared with the prior year period, driven by solid demand for defense electronics and the contribution from our PacStar acquisition, while book to bill in our commercial markets was approximately 1.2x, led by solid demand for industrial vehicle products; and * Backlog of $2.2 billion improved slightly from December 31, 2020, principally reflecting a rebound in commercial market demand.

Share Repurchase and Dividends

* During the first quarter, the Company repurchased 105,489 shares of its common stock for approximately $12 million; and * The Company also declared a quarterly dividend of $0.17 a share, unchanged from the previous quarter.

Other Items - Business Held for Sale

* During the fourth quarter of 2020, the Company classified its German valves business (previously within its Commercial/Industrial segment) as held for sale and its results have been adjusted from comparisons between our current and prior year results, and full-year financial guidance.

First Quarter 2021 Segment Performance

Aerospace & Industrial

(In millions) Q1-2021 Q1-2020 Change

Sales $ 180.3 $ 226.7 (20 %)

Adjustments ^(1) (2.6 ) (18.7 )

Adjusted sales ^(1) $ 177.7 $ 208.0 (15 %)

Reported operating income $ 19.0 $ 32.1 (41 %)

Adjustments ^(1) (0.5 ) (3.7 )

Adjusted operating income ^(1) $ 18.5 $ 28.4 (35 %)

Adjusted operating margin ^(1) 10.4 % 13.7 % (330 bps)

Amounts may not add due to rounding.

(1) Adjusted results exclude our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited in the fourth quarter of 2020 impacting both periods and restructuring costs in the prior year period.

* Reported results include sales of $180 million, operating income of $19 million and operating margin of 10.6%; * Adjusted sales of $178 million, down $30 million, or 15%; * Commercial aerospace market revenue declines reflect reduced OEM sales of actuation and sensors equipment, as well as surface treatment services, due to customer-driven production slowdowns impacting several widebody platforms; * General industrial market revenue increases were led by solid industrial vehicle demand for on- and off-highway platforms, partially offset by lower industrial automation and services revenue; and * Adjusted operating income was $19 million, down 35% from the prior year, while Adjusted operating margin decreased 330 basis points to 10.4%, primarily reflecting reduced absorption on lower commercial aerospace market sales and higher research and development costs, partially offset by the benefits of our cost containment and restructuring initiatives.

Defense Electronics

(In millions) Q1-2021 Q1-2020 Change

Sales $ 181.2 $ 139.6 30 %

Adjustments ^(1) 1.1 -

Adjusted sales ^(1) $ 182.3 $ 139.6 31 %

Reported operating income $ 36.6 $ 24.1 52 %

Adjustments ^(1) 1.6 2.8

Adjusted operating income ^(1) $ 38.2 $ 26.8 42 %

Adjusted operating margin ^(1) 20.9 % 19.2 % 170 bps

Amounts may not add due to rounding.

(1) Adjusted results exclude first year purchase accounting costs associated with acquisitionsin both periods and restructuring costs in the prior year period.

* Reported results include sales of $181 million, operating income of $37 million and operating margin of 20.2%; * Adjusted sales of $182 million, up $43 million, or 31%; * Higher aerospace defense market revenues were driven by increased sales of embedded computing equipment on various helicopter and Unmanned Aerial Vehicle (UAV) platforms, including the Blackhawk and Global Hawk, respectively; * Strong ground defense market revenue growth reflected the contribution from the PacStar acquisition for tactical battlefield communications equipment; and * Adjusted operating income was $38 million, up 42% from the prior year, while Adjusted operating margin increased 170 basis points to 20.9%, reflecting higher absorption and favorable mix on strong defense electronics sales and the benefits of our cost containment initiatives, which more than offset higher research and development costs as we continue to reinvest for long-term growth.

Naval & Power

(In millions) Q1-2021 Q1-2020 Change

Sales $ 235.5 $ 234.9 0 %

Adjustments ^(1) (5.6 ) (6.9 )

Adjusted sales ^(1) $ 229.9 $ 228.0 1 %

Reported operating income $ 38.1 $ 28.1 35 %

Adjustments ^(1) 2.6 5.4

Adjusted operating income ^(1) $ 40.6 $ 33.5 21 %

Adjusted operating margin ^(1) 17.7 % 14.7 % 300 bps

Amounts may not add due to rounding.

(1) Adjusted results exclude our German valves business which was classified as held for sale in the fourth quarter of 2020 impacting both periods; and first year purchase accounting costs associated with acquisitions, one-time costs associated with the relocation of our DRG business and restructuring costs in the prior year period.

* Reported results include sales of $236 million, operating income of $38 million and operating margin of 16.2%; * Adjusted sales of $230 million, up $2 million, or 1%; * Strong naval defense market revenue growth reflected higher production revenues on the Virginia class submarine and CVN-81 aircraft carrier programs, as well as higher spares and service center sales; * Reduced power & process market revenues reflect lower domestic nuclear aftermarket revenues supporting the maintenance of existing operating reactors as well as lower industrial valve revenues principally within the oil and gas market; and * Adjusted operating income was $41 million, up 21%, while Adjusted operating margin increased 300 basis points to 17.7%, driven by improved mix in naval defense related to the timing of fleet spares and service center revenues, as well as the benefits of our prior year restructuring initiatives.

Full-Year 2021 Guidance

The Company is updating its full-year 2021 Adjusted financial guidance as follows:

2021 Adjusted Changes 2021 Adjusted 2021 Adjusted(In millions, except Non-GAAP to Non-GAAP ChgEPS) Guidance Adjusted Guidance vs 2020 (Prior) Guidance (Current) Restated

Total Sales $2,445 - $5 $2,450 - Up 7% - 9% $2,495 $2,500

Operating Income $404 - $414 $4 $408 - $418 Up 9% - 11%

Operating Margin 16.5% - 16.6% 10 bps 16.6% - 16.7% Up 30 - 40 bps

Diluted EPS $7.00 - $7.20 $0.10 $7.10 - $7.30 Up 8% - 11%

Diluted Shares 41.4 (0.1) 41.3 Outstanding

Free Cash Flow $330 - $360 - $330 - $360

Avg. FCF Conversion ~117% - ~116%

(1) 2021 Adjusted financial guidance used in comparisons to 2020 financial results excludes first year purchase accounting costs associated with acquisitions, as well as our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited and our German valves business which was classified as held for sale, both in the fourth quarter of 2020.

New Segment / End Market Structure and Realignment:

* Beginning in the first quarter of 2021, the Corporation realigned its segments, as follows: The Aerospace & Industrial segment is comprised of actuation and sensors products and surface treatment services serving the defense and commercial aerospace markets, as well as electronic components and systems, industrial automation and surface treatment services serving the general industrial market; The Defense Electronics segment is comprised primarily of the electronics businesses serving the aerospace and defense markets; and The Naval & Power segment is comprised of major naval propulsion equipment serving the naval defense market, as well as process and energy solutions serving both the nuclear and process markets.

* The Corporation also realigned its end market structure, as follows: Aerospace & Defense markets represent approximately two-thirds of total 2021 estimated revenue, and includes all Defense market revenues (aerospace, ground, naval) and all Commercial Aerospace market revenues; and Commercial markets represent approximately one-third of total 2021 estimated revenue and is comprised of two major end markets: Power & Process and General Industrial.

A more detailed breakdown of the Company's 2021 financial guidance by segment and by market, as well as all reconciliations of Reported GAAP amounts to Adjusted non-GAAP amounts can be found in the accompanying schedules. Historical financial results in the new segment structure for 2020 and 2019 periods are available in the Investor Relations section of Curtiss-Wright's website.

Conference Call & Webcast Information

The Company will host a conference call to discuss first quarter 2021 financial results and updates to 2021 guidance at 10:00 a.m. ET on Thursday, May 6, 2021. A live webcast of the call and the accompanying financial presentation, as well as a replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company's website at www.curtisswright.com.

(Tables to Follow)

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

($'s in thousands, except per share data)



Three Months Ended

March 31, Change

2021 2020 $ %



Product sales $ 508,975 $ 497,929 $ 11,046 2%

Service sales 88,084 103,302 (15,218 ) (15%)

Total net sales 597,059 601,231 (4,172 ) (1%)



Cost of product sales 329,454 330,813 (1,359 ) 0%

Cost of service sales 57,848 69,839 (11,991 ) (17%)

Total cost of sales 387,302 400,652 (13,350 ) (3%)



Gross profit 209,757 200,579 9,178 5%



Research and development expenses 21,863 18,307 3,556 19%

Selling expenses 29,596 31,588 (1,992 ) (6%)

General and administrative 73,232 76,658 (3,426 ) (4%)expenses

Restructuring expenses - 1,580 (1,580 ) NM



Operating income 85,066 72,446 12,620 17%



Interest expense 9,959 7,489 2,470 (33%)

Other income, net 4,843 5,532 (689 ) (12%)



Earnings before income taxes 79,950 70,489 9,461 13%

Provision for income taxes (20,481 ) (18,728 ) (1,753 ) (9%)

Net earnings $ 59,469 $ 51,761 $ 7,708 15%



Net earnings per share:

Basic earnings per share $ 1.45 $ 1.22

Diluted earnings per share $ 1.45 $ 1.21



Dividends per share $ 0.17 $ 0.17



Weighted average shares outstanding:

Basic 40,933 42,456

Diluted 41,103 42,770



NM - not meaningful

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($'s in thousands, except par value)



March 31, December 31, Change

2021 2020 %

Assets

Current assets:

Cash and cash equivalents $ 147,069 $ 198,248 (26%)

Receivables, net 617,499 588,718 5%

Inventories, net 446,632 428,879 4%

Assets held for sale 27,055 27,584 (2%)

Other current assets 48,484 57,395 (16%)

Total current assets 1,286,739 1,300,824 (1%)

Property, plant, and equipment, net 369,970 378,200 (2%)

Goodwill 1,465,224 1,455,137 1%

Other intangible assets, net 583,195 609,630 (4%)

Operating lease right-of-use assets, net 143,969 150,898 (5%)

Prepaid pension asset 99,087 92,531 7%

Other assets 32,866 34,114 (4%)

Total assets $ 3,981,050 $ 4,021,334 (1%)



Liabilities

Current liabilities:

Current portion of long-term and $ 100,000 $ 100,000 0%short-term debt

Accounts payable 160,765 201,237 (20%)

Accrued expenses 108,486 140,200 (23%)

Income taxes payable 18,399 6,633 177%

Deferred revenue 238,742 253,411 (6%)

Liabilities held for sale 9,132 10,141 (10%)

Other current liabilities 99,278 98,755 1%

Total current liabilities 734,802 810,377 (9%)

Long-term debt 957,907 958,292 0%

Deferred tax liabilities, net 114,791 115,007 0%

Accrued pension and other postretirement 98,645 98,345 0%benefit costs

Long-term operating lease liability 126,454 133,069 (5%)

Long-term portion of environmental 15,305 15,422 (1%)reserves

Other liabilities 94,982 103,248 (8%)

Total liabilities 2,142,886 2,233,760 (4%)



Stockholders' equity

Common stock, $1 par value 49,187 49,187 0%

Additional paid in capital 119,172 122,535 (3%)

Retained earnings 2,722,829 2,670,328 2%

Accumulated other comprehensive loss (309,216 ) (310,856 ) 1%

Less: cost of treasury stock (743,808 ) (743,620 ) 0%

Total stockholders' equity 1,838,164 1,787,574 3%



Total liabilities and stockholders' equity $ 3,981,050 $ 4,021,334 (1%)



CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

SEGMENT INFORMATION (UNAUDITED)^1

($'s in thousands)





Three Months Ended

March 31,

Change

2021 2020 %

Sales:

Aerospace & Industrial $ 180,331 $ 226,728 (20%)

Defense Electronics 181,212 139,581 30%

Naval & Power 235,516 234,922 0%



Total sales $ 597,059 $ 601,231 (1%)



Operating income (expense):

Aerospace & Industrial $ 19,025 $ 32,140 (41%)

Defense Electronics 36,623 24,063 52%

Naval & Power 38,057 28,110 35%



Total segments $ 93,705 $ 84,313 11%

Corporate and other (8,639 ) (11,867 ) 27%



Total operating income $ 85,066 $ 72,446 17%





Operating margins:

Aerospace & Industrial 10.6 % 14.2 % (360 bps)

Defense Electronics 20.2 % 17.2 % 300 bps

Naval & Power 16.2 % 12.0 % 420 bps

Total Curtiss-Wright 14.2 % 12.0 % 220 bps



Segment margins 15.7 % 14.0 % 170 bps



^1. Amounts reported under realigned segment reporting structure.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

SALES BY END MARKET (UNAUDITED)

($'s in thousands)





Three Months Ended

March 31,

Change

2021 2020 %

Aerospace & Defense markets:

Defense Aerospace $ 111,016 $ 101,827 9%

Defense Ground 55,746 22,657 146%

Defense Naval 177,905 165,693 7%

Commercial Aerospace 57,269 100,680 (43%)

Total Aerospace & Defense $ 401,936 $ 390,857 3 %



Commercial markets:

Power & Process 105,504 123,926 (15%)

General Industrial 89,619 86,448 4%

Total Commercial $ 195,123 $ 210,374 (7 %)



Total Curtiss-Wright $ 597,059 $ 601,231 (1 %)

Use of Non-GAAP Financial Information (Unaudited)

The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these non-GAAP measures provide investors with additional insight into the Company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

The Company's presentation of its financials and guidance includes an Adjusted (non-GAAP) view that excludes (i) the results of a build-to-print actuation product line supporting the Boeing 737 MAX program which we exited and a German valves business classified as held for sale, both in the fourth quarter of 2020; (ii) significant restructuring costs in 2020 associated with its operations, including one-time actions taken in response to COVID-19; (iii) a non-cash impairment of capitalized development costs related to a commercial aerospace program in the prior period; (iv) first year purchase accounting costs associated with its acquisitions in both periods, including one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; and (v) one-time transition and IT security costs, and capital investments, specifically associated with the relocation of the DRG business in the Naval & Power segment in the prior period. Transition costs include relocation of employees and equipment as well as overlapping facility and labor costs associated with the relocation. We believe this Adjusted view will provide improved transparency in order to better measure Curtiss-Wright's ongoing operating and financial performance and better comparisons of our key financial metrics to our peers. Reconciliations of "Reported" GAAP amounts to "Adjusted" non-GAAP amounts are furnished within this release.

The following definitions are provided:

Adjusted Operating Income, Operating Margin, Net Earnings and Diluted EPS

These Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Earnings and Diluted Earnings per Share (EPS) under GAAP excluding: (i) the impact of first year purchase accounting costs associated with acquisitions for current and prior year periods, specifically one-time inventory step-up, backlog amortization, deferred revenue adjustments and transaction costs; (ii) one-time transition and IT security costs associated with the relocation of a business in the prior year period; (iii) the non-cash impairment of capitalized development costs related to a commercial aerospace program in the prior year period; and (iv) significant restructuring costs in 2020 associated with its operations, (v) a build-to-print actuation product line supporting the Boeing 737 MAX program which we exited, and (vi) the results of a German valves business classified as held for sale in the fourth quarter of 2020.

Organic Sales and Organic Operating Income

The Corporation discloses organic sales and organic operating income because the Corporation believes it provides investors with insight as to the Company's ongoing business performance. Organic sales and organic operating income are defined as sales and operating income excluding the impact of restructuring costs, impairment of assets held for sale, foreign currency fluctuations and contributions from acquisitions made during the last twelve months.

Three Months Ended

March 31,

2021 vs. 2020

Aerospace & Defense Naval & Power Total Industrial Electronics Curtiss-Wright

Sales Operating Sales Operating Sales Operating Sales Operating income income income income

Organic (22%) (41%) 4% 43% (1%) 38% (8%) 15%

Acquisitions 0% 0% 25% 16% 1% (1%) 6% 5%

Foreign 2% 0% 1% (7%) 0% (2%) 1% (3%)Currency

Total (20%) (41%) 30% 52% 0% 35% (1%) 17%

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as cash flow provided by operating activities less capital expenditures. Adjusted free cash flow for 2020 excludes: (i) a capital investment in the Naval & Power segment related to the new, state-of-the-art naval facility principally for DRG; (ii) a voluntary contribution to the Company's corporate defined benefit pension plan made in the first quarter of 2020; and (iii) the cash impact from restructuring in 2020. The Corporation discloses free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as free cash flow divided by net earnings from continuing operations. Adjusted free cash flow conversion is defined as Adjusted free cash flow divided by Adjusted net earnings.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NON-GAAP FINANCIAL DATA (UNAUDITED)

($'s in thousands)





Three Months Ended

March 31,

2021 2020



Net cash provided by operating activities $ (26,603 ) $ (192,576 )

Capital expenditures (8,537 ) (18,637 )

Free cash flow $ (35,140 ) $ (211,213 )

Voluntary pension contribution - 150,000

Adjustment to capital expenditures (DRG facility - 7,677 investment)

Restructuring - 665

Adjusted free cash flow $ (35,140 ) $ (52,871 )

Adjusted free cash flow conversion (58 %) (92 %)

CURTISS-WRIGHT CORPORATION

2021 Segment Reorganization

As of May 5, 2021

($'s in millions, except per share data)

2020 Exiting 2020 2021 Adjusted Division Non-Core Adjusted ^ Adjusted Guidance^ (2,4) (Non-GAAP) Realignment Operations (2,3) (Non-GAAP) (Non-GAAP)

(New (New 2021 Chg (Prior Segment Segment Low High vs Structure) Structure) Structure) 2020 Adjusted

Sales: Sales:

Commercial/ $ 950 $ (144 ) $ (67 ) $ 738 Aerospace & $ 745 $ 760 1 - 3%Industrial IndustrialDefense 736 (125 ) - 611 Defense 745 760 22 - 24% ElectronicsPower 708 269 (26 ) 951 Naval & 960 980 1 - 3% PowerTotal sales $ 2,393 $ - $ (93 ) $ 2,300 Total sales $ 2,450 $ 2,500 7 to 9%



Operating Operating income: income:Commercial/ $ 138 $ (24 ) $ (16 ) $ 98 Aerospace & $ 112 $ 115 14 - 18%Industrial IndustrialDefense 166 (22 ) - 144 Defense 159 164 10 - 13% ElectronicsPower 125 46 - 171 Naval & 174 179 2 - 5% PowerTotal 429 - (16 ) 413 Total 445 458 segments segmentsCorporate (38 ) - - (38 ) Corporate (37 ) (39 ) and other and otherTotal $ 391 $ - $ (16 ) $ 375 Total $ 408 $ 418 9 to 11%operating operatingincome income

Interest $ (36 ) $ - $ - $ (36 ) Interest $ (41 ) $ (42 ) expense expenseOther 21 - - 21 Other 15 17 income, net income, netEarnings 377 - (16 ) 361 Earnings 382 394before before income income taxes taxesProvision (88 ) - 4 (85 ) Provision (90 ) (92 ) for income for incometaxes taxesNet $ 289 $ - $ (12 ) $ 277 Net $ 293 $ 301 earnings earnings

Diluted $ 6.87 $ - $ (0.29 ) $ 6.59 Diluted $ 7.10 $ 7.30 8 to 11%earnings earningsper share per shareDiluted 42.0 42.0 Diluted 41.3 41.3 shares sharesoutstanding outstandingEffective 23.4 % 23.4 % Effective 23.5 % 23.5 % tax rate tax rate

Operating Operating margins: margins:Commercial/ 14.5 % NM NM 13.3 % Aerospace & 15.0 % 15.2 % 170 toIndustrial Industrial 190 bps

22.6 % NM NM 23.6 % Defense 21.3 % 21.5 % (210 toDefense Electronics 230 bps)

17.6 % NM NM 18.0 % Naval & 18.2 % 18.3 % 20 to 30Power Power bps

Total 16.3 % NM NM 16.3 % Total 16.6 % 16.7 % 30 to 40operating operating bpsmargin margin

Free cash $ 394 $ - $ - $ 394 Free cash $ 330 $ 360 flow ^(5) flowNotes:(1) Full year amounts may not add due to rounding(2) The above supplemental financial information by reportable segment for the 2020 and 2021 reporting periods reflects the Corporation's first quarter 2021 segment reorganization.(3) 2020 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding restructuring costs, first year purchase accounting costs, specifically one-time backlog amortization and transaction costs associated with acquisitions, a non-cash impairment of capitalized development costs related to a commercial aerospace program, and one-time transition and IT security costs related to the relocation of the DRG business, as well as a $10 million non-cash currency translation loss (within non-operating income) related to the liquidation of a foreign legal entity. 2020 financial results excludes our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited, as well as our German valves business which was classified as held for sale, both in the fourth quarter of 2020.(4) 2021 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding the first quarter 2021 segment reorganization, our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited, as well as our German valves business which was classified as held for sale, both in the fourth quarter of 2020, first year purchase accounting costs, specifically one-time backlog amortization and transaction costs associated with acquisitions, and a one-time, $3 million pension settlement charge related to the retirement of two former executives (within non-operating income).(5) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2020 Adjusted Free Cash Flow guidance excludes a $150 million voluntary contribution made in January to the Company's corporate defined benefit pension plan, a $20 million cash impact from restructuring, and a $10 million capital investment related to the new, state-of-the-art naval facility principally for DRG.

Notes:(1) Full year amounts may not add due to rounding(2) The above supplemental financial information by reportable segment for the2020 and 2021 reporting periods reflects the Corporation's first quarter 2021segment reorganization.(3) 2020 Adjusted financials are defined as Reported Operating Income,Operating Margin, Net Income and Diluted EPS under GAAP excluding restructuringcosts, first year purchase accounting costs, specifically one-time backlogamortization and transaction costs associated with acquisitions, a non-cashimpairment of capitalized development costs related to a commercial aerospaceprogram, and one-time transition and IT security costs related to therelocation of the DRG business, as well as a $10 million non-cash currencytranslation loss (within non-operating income) related to the liquidation of aforeign legal entity. 2020 financial results excludes our build-to-printactuation product line supporting the Boeing 737 MAX program which we exited,as well as our German valves business which was classified as held for sale,both in the fourth quarter of 2020.(4) 2021 Adjusted financials are defined as Reported Operating Income,Operating Margin, Net Income and Diluted EPS under GAAP excluding the firstquarter 2021 segment reorganization, our build-to-print actuation product linesupporting the Boeing 737 MAX program which we exited, as well as our Germanvalves business which was classified as held for sale, both in the fourthquarter of 2020, first year purchase accounting costs, specifically one-timebacklog amortization and transaction costs associated with acquisitions, and aone-time, $3 million pension settlement charge related to the retirement of twoformer executives (within non-operating income).(5) Free Cash Flow is defined as cash flow from operations less capitalexpenditures. 2020 Adjusted Free Cash Flow guidance excludes a $150 millionvoluntary contribution made in January to the Company's corporate definedbenefit pension plan, a $20 million cash impact from restructuring, and a $10million capital investment related to the new, state-of-the-art naval facilityprincipally for DRG.

CURTISS-WRIGHT CORPORATION

2021 Guidance (New Segment Structure)

As of May 5, 2021

($'s in millions, except per share data)

2020 2021 Exiting 2021 2021 Adjusted ^ Reported Guidance Non-Core Adjustments Adjusted Guidance^ (2) (1,3) (GAAP) Operations ^(2) (Non-GAAP) (Non-GAAP) (Non-GAAP)

2021 Chg Low High Low High vs 2020 Adjusted

Sales:

Aerospace & $ 738 $ 759 $ 774 $ (14 ) $ - $ 745 $ 760 1 - 3%IndustrialDefense 611 745 760 - - 745 760 22 - 24%ElectronicsNaval & 951 991 1,011 (31 ) - 960 980 1 - 3%PowerTotal sales $ 2,300 $ 2,495 $ 2,545 $ (45 ) $ - $ 2,450 $ 2,500 7 to 9%



Operating income:Aerospace & $ 98 $ 114 $ 117 $ (2 ) $ - $ 112 $ 115 14 - 18%IndustrialDefense 144 153 158 - 6 159 164 10 - 13%ElectronicsNaval & 171 176 181 (2 ) - 174 179 2 - 5%PowerTotal 413 443 456 (4 ) 6 445 458 segmentsCorporate (38 ) (37 ) (39 ) - - (37 ) (39 ) and otherTotal $ 375 $ 406 $ 416 $ (4 ) $ 6 $ 408 $ 418 9 to 11%operatingincome

Interest $ (36 ) $ (41 ) $ (42 ) $ - $ - $ (41 ) $ (42 ) expenseOther 21 12 13 - 3 15 17 income, netEarningsbefore 361 377 388 (4 ) 9 382 394 incometaxesProvision (85 ) (88 ) (91 ) 1 (2 ) (90 ) (92 ) for incometaxesNet $ 277 $ 289 $ 297 $ (3 ) $ 7 $ 293 $ 301 earnings

Diluted $ 6.59 $ 7.00 $ 7.20 $ (0.07 ) $ 0.17 $ 7.10 $ 7.30 8 to 11%earningsper shareDiluted 42.0 41.3 41.3 41.3 41.3 sharesoutstandingEffective 23.4 % 23.5 % 23.5 % 23.5 % 23.5 % tax rate

Operating margins:Aerospace & 13.3 % 15.0 % 15.1 % - 15.0 % 15.2 % 170 toIndustrial +10 bps 190 bps

Defense 23.6 % 20.5 % 20.7 % - 21.3 % 21.5 % (210 toElectronics +80 bps 230 bps)

Naval & 18.0 % 17.8 % 17.9 % - 18.2 % 18.3 % 20 to 30Power +40 bps bps

Total 16.3 % 16.2 % 16.4 % 16.6 % 16.7 % 30 to 40operating +20 bps +20 bps bpsmargin

Free cash $ 394 $ 330 $ 360 - - $ 330 $ 360 flowNotes: Full year amounts may not add due to rounding. All financial information by reportable segment for the 2020 and 2021 reporting periods reflects the Corporation's first quarter 2021 segment reorganization.(1) 2020 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding restructuring costs, first year purchase accounting costs, specifically one-time backlog amortization and transaction costs associated with acquisitions, a non-cash impairment of capitalized development costs related to a commercial aerospace program, and one-time transition and IT security costs related to the relocation of the DRG business, as well as a $10 million non-cash currency translation loss (within non-operating income) related to the liquidation of a foreign legal entity. 2020 financial results excludes our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited, as well as our German valves business which was classified as held for sale, both in the fourth quarter of 2020.(2) 2021 Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding our build-to-print actuation product line supporting the Boeing 737 MAX program which we exited, as well as our German valves business which was classified as held for sale, both in the fourth quarter of 2020, first year purchase accounting costs, specifically one-time backlog amortization and transaction costs associated with acquisitions, and a one-time, $3 million pension settlement charge related to the retirement of two former executives (within non-operating income).(3) Free Cash Flow is defined as cash flow from operations less capital expenditures. 2020 Adjusted Free Cash Flow guidance excludes a $150 million voluntary contribution made in January to the Company's corporate defined benefit pension plan, a $20 million cash impact from restructuring, and a $10 million capital investment related to the new, state-of-the-art naval facility principally for DRG.Notes: Full year amounts may not add due to rounding. All financialinformation by reportable segment for the 2020 and 2021 reporting periodsreflects the Corporation's first quarter 2021 segment reorganization.(1) 2020 Adjusted financials are defined as Reported Operating Income,Operating Margin, Net Income and Diluted EPS under GAAP excludingrestructuring costs, first year purchase accounting costs, specificallyone-time backlog amortization and transaction costs associated withacquisitions, a non-cash impairment of capitalized development costsrelated to a commercial aerospace program, and one-time transition and ITsecurity costs related to the relocation of the DRG business, as well as a$10 million non-cash currency translation loss (within non-operatingincome) related to the liquidation of a foreign legal entity. 2020financial results excludes our build-to-print actuation product linesupporting the Boeing 737 MAX program which we exited, as well as ourGerman valves business which was classified as held for sale, both in thefourth quarter of 2020.(2) 2021 Adjusted financials are defined as Reported Operating Income,Operating Margin, Net Income and Diluted EPS under GAAP excluding ourbuild-to-print actuation product line supporting the Boeing 737 MAXprogram which we exited, as well as our German valves business which wasclassified as held for sale, both in the fourth quarter of 2020, firstyear purchase accounting costs, specifically one-time backlog amortizationand transaction costs associated with acquisitions, and a one-time, $3million pension settlement charge related to the retirement of two formerexecutives (within non-operating income).(3) Free Cash Flow is defined as cash flow from operations less capitalexpenditures. 2020 Adjusted Free Cash Flow guidance excludes a $150million voluntary contribution made in January to the Company's corporatedefined benefit pension plan, a $20 million cash impact fromrestructuring, and a $10 million capital investment related to the new,state-of-the-art naval facility principally for DRG. CURTISS-WRIGHT CORPORATION2021 Sales Growth Guidance by End MarketAs of May 5, 2021 Aerospace & Defense Markets 2021 % Change vs 2020 % Total Sales

Aerospace Defense 2 - 4% 19%

Ground Defense 100 - 105% 9%

Naval Defense Flat 28%

Commercial Aerospace Flat 10%

Total Aerospace & Defense 7 - 9% 66%



Commercial Markets

Power & Process 3 - 5% 19%

General Industrial 9 - 11% 15%

Total Commercial 6 - 8% 34%



Total Curtiss-Wright Sales 7 - 9% 100%

Notes:(1) This table reflects the Company's new End Market Structure and Realignment effective Q1 2021, with all Commercial Aerospace market revenues shifted into a newly defined Total Aerospace & Defense market.(2) The new Power & Process end market is comprised of a) Nuclear and b) Process, while the new General Industrial end market is comprised of a) Industrial Vehicles and b) Industrial Automation and Services.(3) Based on these changes, all of our general industrial businesses operate within the new Aerospace & Industrial segment, and the majority of the Company's nuclear and process revenues operate within the new Naval & Power segment. About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the Aerospace and Defense markets, and to the Commercial markets including Power, Process and General Industrial. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 8,200 people worldwide. For more information, visitwww.curtisswright.com.

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Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company's acquisitions, future cash flow from operations, and potential impacts of the COVID-19 pandemic are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act") and the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; the impact of a global pandemic or national epidemic, and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505006046/en/

CONTACT: Jim Ryan (704) 869-4621 Jim.Ryan@curtisswright.com