On August 6, Curtiss-Wright (NYSE:CW) held its second quarter 2026 earnings call and reported that the company's sales climbed 5% year-over-year to $924 million, but the real story was underneath. Operating income grew 12%, more than double the pace of revenue, pushing margins up 110 basis points, and free cash flow jumped 37% to $160 million. Management liked what it saw enough to raise full-year guidance across the board, and that raise is worth digging into.
Bull Case: A Growth Engine Running Hot Across Every Market
Orders are the clearest signal here. Second quarter bookings rose 8%, giving Curtiss-Wright a book-to-bill above 1.1x, and year-to-date orders are up 12% against 9% sales growth, a book-to-bill above 1.2x, usually a preview of what revenue looks like a few quarters out. Defense Electronics led the charge, with orders up nearly 50% year-over-year in the quarter and more than 30% year-to-date, fueled by turret drive stabilization systems for international ground vehicles and tactical communications gear for the US Army, Marine Corps and Air Force.
The Aerospace & Industrial segment stood out, with sales up 12%, operating income up 25% and margin expansion of 180 basis points, helped by demand for actuation equipment on the Army's IFPC program. Naval & Power is leaning on submarine production timing and the CVN-81 carrier program, with full-year sales guidance there raised to 7% to 9% growth.
