Curtiss-Wright Corporation

Welcome to the Curtis Wright Second Quarter 2025 Earnings Conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. In the interest of time, we ask that you limit yourself to one primary question and one follow-up. Lastly, if you should require operator assistance, please press star 0. I would now like to turn the call over to Jim Ryan, Vice President of Investor Relations.

Thank you, Madison, and good morning, everyone. Welcome to Curtis Wright Second Quarter 2025 Earnings Conference call. Joining me on the call today are Chair and Chief Executive Officer Lynn Bamford, and Vice President and Chief Financial Officer Chris Farkas. A copy of today's financial presentation and the press release are available for download through the Investor Relations section of our website at CurtisWright.com. A replay of this webcast will also be available on the website. Our discussions today include certain projections and forward-looking statements that are based on management's current expectations and are not guarantees of future performance. The use of those risks and uncertainties associated with our forward-looking statements, including the impact of tariffs and our public filings with the SEC. As a reminder, the company's results and guidance include an adjusted non-GAAP view that excludes certain costs in order to provide greater transparency into Curtis Wright's ongoing operating and financial performance. Gapped and non-GAAP reconciliations are available in the earnings release and on our website. Now I'd like to turn the call over to Lynn to get things started.

Thank you, Jim, and good morning, everyone. As you will hear in our discussion today regarding our second quarter performance and the increases to our 2025 guidance we are delivering on our pivot to growth strategy and in turn driving strong results for our shareholders, the team's continued deployment of our operational growth platform is benefiting Curtis Wright in many ways. From internal collaboration on R&D projects to securing positions on meaningful programs and projects across all our end markets, all while driving operation and commercial excellence initiatives throughout the book of business. As a result, we are well positioned to deliver strong financial performance in 2025 and maintain line of sight on the three-year objectives that we provided at last May's investor day. As we look to the next five to ten years and beyond, we see numerous opportunities developing globally that we expect to provide tremendous upside to Curtis Wright's long-term growth. Later in our prepared remarks, I'll spend some time discussing our excitement and alignment with two of those areas of growth, defense and commercial nuclear. With that, I'll turn to the highlights of our second quarter 2025 results. Sales of $877 million represented an increase of 12% year over year, exceeding our expectations and highlighted by strong organic growth of 9%. The primary drivers behind this performance were higher sales in our naval and power segment and continued momentum in defense electronics. Operating income increased 20% year over year, exceeding our sales growth and driving 130 basis points of overall operating margin expansion. Diluted earnings per share increased 21% year over year, which slightly exceeded our expectations based on the higher A&D sales. Pre-cash flow was $117 million as higher cash earnings and improved working capital management drove a year over year improvement of 17%, reflecting nearly 100% cash conversion as we continued to support capital investments across all three segments. We also experienced strong demand in the second quarter as new orders of $1 billion resulted in an overall book to bill in excess of 1.1 times. Starting with our A&D markets, while orders were down slightly year over year, mainly due to the timing of naval defense orders in the prior year, we experienced strong demand within our commercial aerospace market, supporting the anticipated ramp up in OEM production as well as modestly higher demand for our embedded computing equipment in defense electronics. As a result, book to bill across our A&D markets was 1.2 times. With our commercial markets, we experienced strong demand in our commercial nuclear aftermarket, supporting the plant outages and restarts in addition to the contribution from ultra energy. Overall, the second quarter growth in orders builds on our already strong backlog, which is now up 12% year to date, reaching a new record in excess of $3.8 billion. I would also like to highlight our second quarter announcements regarding capital allocations, where the board approved a $400 million increase in share repurchase authorization and a 14% increase in our quarterly dividend, which we've now grown for nine straight years. Both actions highlight our strong track record of financial performance and our dedication to returning capital to shareholders. Turning to our full year guidance based on our first half performance, the strength of our order book and our confidence in our second half outlook, we once again raised our overall guidance. We remain on track to deliver strong results while generating some of the strongest operational growth rates and margin expansion to date under the pivot to growth strategy. Overall, sales are now expected to increase 9 to 10%, and our revised guide represents 100 to 120 basis points of margin expansion in pursuit of a record operating margin in excess of 18.5%. At the bottom line, the strong increases in sales and earnings are now expected to drive diluted DPS growth of 16 to 19% as we continue to compound our earnings at a mid-teen pace over time. Lastly, we raised our free cash flow guidance and continue to expect strong free cash flow conversion exceeding 105%. In summary, Curtis Wright's strong year to date execution provides a stable foundation for our team to deliver another outstanding financial performance. Now I would like to turn the call over to Chris to provide a more in-depth review of our financials.