DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE: NYSE:CW), a global provider of highly engineered products and services, announced at its Investor Day in New York City today its financial targets for the next three years, aiming for a minimum of 5% organic revenue compound annual growth rate (CAGR) and more than 10% earnings per share (EPS) CAGR through 2026.
During the event, which commenced at 8:30 a.m. EDT, executives including Chair and CEO Lynn M. Bamford and CFO K. Christopher Farkas outlined the company's "Pivot to Growth" strategy, intended to drive profitable growth. The strategy includes a commitment to operating margin expansion and a free cash flow conversion rate exceeding 105%, based on normalized capital expenditures.
Curtiss-Wright's long-term financial aspirations also emphasize operating income growth surpassing revenue growth, which implies continued margin expansion, and maintaining top quartile margin performance relative to its proxy peer group. These targets are based on 2023 as the base year and do not account for potential AP1000 nuclear reactor orders within this timeframe.
Bamford stated, "Our technologies and portfolio of solutions are incredibly well-aligned with customer and industry needs and growth trends in all our core end markets." She expressed confidence in the company's ability to meet these financial targets and generate significant value for stakeholders.
The company also hosted a panel of commercial nuclear energy experts, underscoring the potential for additional growth from the nuclear sector. Participants included representatives from the Nuclear Energy Institute, Westinghouse Electric Company, and Energy Northwest.
The financial guidance for the full year 2024 was reaffirmed, signaling stability in the company's outlook.
Curtiss-Wright, with a heritage linked to aviation pioneers Glenn Curtiss and the Wright brothers, serves primarily Aerospace & Defense markets, as well as Commercial Power, Process, and Industrial sectors. The company employs approximately 8,600 people and is headquartered in Davidson, North Carolina.
The information is based on a press release statement.
InvestingPro Insights
Amidst the ambitious growth targets set by Curtiss-Wright Corporation, investors are keen to understand the current market sentiment and financial health of the company. According to InvestingPro data, Curtiss-Wright boasts a market capitalization of $10.7 billion, reflecting its substantial presence in the highly engineered products and services sector. The company's commitment to growth is underscored by its Price/Earnings (P/E) ratio of 28.41, suggesting investor confidence in its future earnings potential. Moreover, Curtiss-Wright's revenue has experienced a healthy increase, with an 11.39% growth in the last twelve months as of Q1 2024.
Two InvestingPro Tips that are particularly relevant to the company's financial targets include the fact that Curtiss-Wright has raised its dividend for 7 consecutive years and maintains a strong return over the last year, with a 71.54% one year price total return. These factors indicate not only a reliable return to shareholders but also a robust performance in the market.
For investors seeking deeper insights, InvestingPro offers additional tips, including analysis on earnings revisions, trading multiples, and debt levels. As of now, there are 16 more InvestingPro Tips available, which can provide valuable context to the company's "Pivot to Growth" strategy. Interested readers can access these insights and benefit from a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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