The raised guidance across all key metrics (sales, EPS, operating margin, FCF) is a strong positive signal that should outweigh the slight Q2 miss on EPS vs consensus. Traders should watch the Q3 earnings call for continued execution on the record backlog and any further guidance raises, particularly around the accelerating naval defense and commercial nuclear programs.
Price Chart
Executive Summary
Curtiss-Wright reported Q2 2026 adjusted EPS of $3.72, a 3.2% miss vs. the $3.84 consensus, though revenue of $924M was slightly below the $935.8M estimate. The company raised its full-year 2026 guidance for sales, operating income, operating margin, EPS, and free cash flow, driven by strong first-half execution and record backlog. The combination of a headline EPS miss with raised guidance creates a mixed signal, but the upward revision to the outlook is the dominant factor for the stock.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS of $3.72, up 15% YoY but missed consensus of $3.84.
- Reported sales of $924M, up 5% YoY, slightly below the $935.8M consensus.
- Raised full-year 2026 adjusted EPS guidance to $15.10-$15.40 (from $14.90-$15.30), representing 14-16% YoY growth.
- Raised full-year 2026 sales guidance to 8-9% growth (from 7-8%), with a new range of $3.768B-$3.813B.
- Adjusted operating margin expanded 110 bps to 19.4%, with margin expansion in all three segments.
- Free cash flow of $160M in Q2, up 37% YoY, with 116% conversion.
- New orders of $1.1B, up 8% YoY, with a 1.16x book-to-bill ratio; backlog of $4.5B, up 10% from Dec 2025.
- Dividend increased 8% to $0.26 per share, the 10th consecutive annual increase.
Financial Impact
Raised FY2026 EPS guidance by $0.20 at the midpoint ($15.25 vs prior $15.10), implying ~$7.4M in incremental net earnings at the midpoint of the range.
Risk Factors
- Defense Electronics segment sales declined 3% YoY due to timing of ground defense revenues, which could persist.
- Execution risk on the record backlog and the transition of SMR projects from development to prototype stages.
- Geopolitical risks and potential impacts from tariffs on raw materials and supply chains.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-053847 |
| Exhibit: ex992_cwxq226.htm | 0001628280-26-053847 |
| Document: cw-20260805.htm | 0001628280-26-053847 |
| Document: 0001628280-26-053847-index-headers.html | 0001628280-26-053847 |
| Document: 0001628280-26-053847-index.html | 0001628280-26-053847 |
| Document: 0001628280-26-053847.txt | 0001628280-26-053847 |
| 8-K Data (Synthetic) | 0001628280-26-053847 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 8-K | $551.21 $568.02 | ▲ +3.05% | ▲ +2.94% | $545.64 (−1.01%) |
Aug 31, 2026 4w ago | Insider Cluster | $582.53 $572.71 | ▼ −1.69% | ▼ −1.54% | $545.64 (−6.33%) |
Aug 19, 2026 6w ago | 8-K | $673.34 $619.46 | ▼ −8.00% | ▼ −7.61% | $545.64 (−18.97%) |
Aug 14, 2026 7w ago | Institutional Cluster | $699.31 $634.99 | ▼ −9.20% | ▼ −7.83% | $545.64 (−21.97%) |
Aug 11, 2026 7w ago | 8-K | $705.96 $695.67 | ▼ −1.46% | ▼ −1.05% | $545.64 (−22.71%) |
Aug 6, 2026 8w ago | 8-K | $714.04 $688.83 | ▼ −3.53% | ▼ −4.74% | $545.64 (−23.58%) |
Jun 15, 2026 15w ago | Insider Cluster | $764.61 $765.13 | ▲ +0.07% | ▲ +2.30% | $545.64 (−28.64%) |
May 20, 2026 19w ago | 8-K | $726.88 $747.61 | ▲ +2.85% | ▲ +1.00% | $545.64 (−24.93%) |
May 7, 2026 21w ago | 8-K | $724.43 $751.00 | ▲ +3.67% | ▲ +2.16% | $545.64 (−24.68%) |
Mar 17, 2026 28w ago | Insider Cluster | $679.35 $700.57 | ▼ −3.12% | ▼ −5.78% | $545.64 (+19.68%) |
US Market Status
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