Curtiss-Wright Corporation

Welcome to the Curtis Wright Third 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 zero. I would now like to turn the call over to Jim Ryan, Vice President of Investor Relations.

Thank you, Erica, and good morning, everyone. Welcome to Curtis Wright's third 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 Marcus. 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 discussion today includes certain projections and forward-looking statements that are based on management's current expectations and are not guarantees of future performance. We detail those risks and uncertainties associated with our forward-looking statements 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 CareSprite's ongoing operating and financial performance. GAAP to 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 saw in last night's results, we continue to deliver on our pivot to growth strategy. Our top line is accelerating. We continue to drive operational and commercial excellence initiatives throughout the organization while making focused investments and remaining measured in our approach to capital allocation. Looking ahead, I am encouraged by the positioning of our technologies across the A&D and commercial markets we serve and see meaningful growth opportunities for Curtiss-Wright well into the next decade. Later in our prepared remarks, I'll spend some more time discussing Curtiss-Wright's opportunities for growth within those markets, and will provide some high-level commentary on our outlook for 2026. The momentum continues to build, and the team and I are excited about the long runway ahead. With that, I'll turn to the highlights of our third quarter 2025 results. We delivered another strong operational performance with revenue and growth in operating income across all three segments. Overall sales of $869 million represented an increase of 9% year over year in line with our expectations and highlighted by 6% organic growth. Operating income increased 14% year-over-year, exceeding our sales growth and driving 90 basis points of overall operating margin expansion to 19.6%. This translated into a 14% year-over-year increase in diluted earnings per share. This result slightly exceeded our expectations based on improved operational performance and fewer shares outstanding. Free cash flow was $176 million, up 8% year over year, reflecting nearly 140% conversion due to higher cash earnings and lower tax payments, while increasing growth investments in capital spending. Regarding our order book, new orders increased 8% and resulted in an overall book-to-bill of 1.1 times, providing continued confidence in future top-line growth. Starting with our A&D markets, we continue to experience strong demand for commercial aerospace products, signaling a low risk of bestocking as production ramps across the major OEM platforms. In naval defense, we saw higher orders for nuclear propulsion equipment, supporting the U.S. Navy's current and next generation submarine programs. Those increases in demand were partially offset by the timing of orders within our aerospace defense and ground defense markets, where despite some delays due to the extended continuing resolution, our pipeline remained strong. Within our commercial markets, we experienced tremendous growth in commercial nuclear orders, including two new DOE-funded multi-year contracts in support of Idaho National Laboratory and other government sites. This is a small but growing opportunity which leverages Curtis Wright's nuclear pedigree and broad portfolio of products and services in support of increased government focus towards commercial nuclear. Beyond that, we continue to experience solid demand for aftermarket equipment supporting plant outages and restarts in addition to new development contracts supporting SMRs. Overall, the continued growth in orders builds on Curtis Wright's already strong backlog, which is now up 14% year-to-date, reaching a new record in excess of $3.9 billion. Regarding our updated full-year 2025 guidance, our strong year-to-date performance and growing backlog have provided confidence to once again raise our overall outlook for sales, operating income, and earnings per share. We now expect sales to increase 10% to 11%, reflecting the strength within our A&D markets. This, in turn, supports a new range of 16% to 19% growth in operating income. We continue to expect more than 100 basis points in margin expansion and remain on track to deliver record operating margin in excess of 18.5%. Diluted EPS is now expected to grow 19% to 21%, which also includes the benefits of our increased 2025 share repurchase activity. And lastly, we maintained our free cash flow guidance while accelerating overall capital expenditures to support future growth initiatives, and we continue to expect strong free cash flow conversion exceeding 105%. In summary, Curtis Wright's strong year-to-date execution and demonstrated success under our pivot to growth strategy ensures that we remain well positioned to deliver exceptional results for the full year. Now I would like to turn the call over to Chris to provide a more in-depth review of our financials.