Curtiss-Wright Corporation

Welcome to the Curtis Wright Second Quarter 2026 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, Angela, for a second quarter 2026 earnings conference call. Joining me on the call today are Chair and Chief Executive Officer Lynn Bamford and Executive Vice President and Chief Financial Officer Chris Farkas. The copy of today's financial presentation and the press release are available in the investor relations section of our website. 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 guaranteed for future performance. We detail those risks and uncertainties associated with the forward-looking statements in our public filings of 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 in the Curtis-Wright's ongoing operating and financial performance. GAAP to non-GAAP reconciliations are available in the earnings release and on our website. Now I would like to turn the call over to Lynn to get things started.

Thank you, Jim, and good morning, everyone. Curtis Wright delivered excellent second quarter results that exceeded our expectations. We also raised our full year earnings guidance to reflect the strong first half results, record backlog, and the outlook for the balance of the year. The successful and ongoing execution of our pivot to growth strategy has been the key to our quarterly performance, and I'm proud of our team's ability to deliver consistently strong results for our shareholders. With that, and turning to today's presentation, I'll begin with the highlights of our second quarter 2026 results. Sales of $924 million grew 5% year-over-year, reflecting solid growth across our overall A&D and commercial markets. Operating income increased 12% year-over-year, exceeding our sales growth, and resulted in 110 basis points of operating margin expansion. As a result, diluted earnings per share increased 15% year-over-year and was slightly ahead of our expectations, driven by the strong operational performance. We also generated $150 million of free cash flow, representing a year-over-year improvement of 37% and a strong cash conversion rate of 115%. Free Cash Flow Generation continues to be an important focus for the team, driving funding for continued investments back into the organization to support our future profitable growth. I'll provide more information about these targeted investments and our alignment to growth factors across our markets later in my prepared remarks. Regarding our order book, we experienced strong demand in the second quarter as new orders increased 8% and reflected an overall book-to-bill in excess of 1.1 times. We have a robust and growing pipeline which continues to demonstrate positive momentum across our A&D and commercial markets. Digging into the details by segment, I'll start with Defense Electronics, which delivered a record performance as orders grew nearly 50% year-over-year and are now up more than 30% year-to-date, reflecting the team's alignment to the strategic growth priorities of the U.S. and allied militaries. Notable bookings within the segment included some significant awards for turret drive stabilization systems, supporting international ground vehicles along with tactical communication equipment supporting the U.S. Army, Marine Corps, and Air Force operations. We also received numerous awards supporting the modernization of existing helicopter, UAV, and fighter jet platforms, some initial orders on Golden Zones, and various development contracts supporting next-generation programs. Next, in the A&I segment, and starting with our defense markets, we experienced strong demand for our industry-leading EM actuation technology, supporting the U.S. Army's IFPC program. This program is on track to receive another sizable increase in funding under the FY27 budget and maintains continued healthy growth projections. I would also emphasize the notable progress in our industrial vehicle order book, which has achieved strong growth for three consecutive quarters and contributing to our more positive outlook in the general industrial market. Chris will discuss this further in his remarks. Lastly, within the naval and power segment, following the strong Q1 order book, second quarter orders were down year over year principally due to the timing of naval defense orders on submarine programs. Aside from that, we continue to benefit from increasing demand in our commercial nuclear aftermarket, supporting plant outages and restarts, and also experiencing a strong demand for valve equipment in our process markets. To sum up our overall order activity, and based on the strong demand thus far in 2026, orders are up 12% year-to-date, exceeding sales growth of 9% to yield an overall book-to-bill in excess of 1.2 times. In addition, Curtiss-Wright's strengthening pipeline enhances our confidence in meeting our near-term targets and establishing a strong foundation for sustained medium and long-term growth across our end markets. Turning to our full-year 2026 guidance, overall sales are now projected to increase 8% to 9% driven by more favorable outlooks in our defense and general industrial markets. We continue to expect that operating income growth will outpace sales growth, and our increased guidance reflects 50 to 70 basis points of margin expansion in pursuit of a record 19.1 to 19.3%. As a result, diluted EPS is now projected to grow 14 to 16% as we continue to compound our earnings at a mid-teens pace over time. Last week, we raised our free cash flow guidance and continue to expect strong free cash flow conversion in excess of 105%. Overall, Curtis Wright's strong growth in revenue during the first half of 2026, along with gains in operational efficiency, have positioned our team to continue to deliver outstanding financial performance. Now, I would like to turn the call over to Chris to provide a more in-depth review of our financials.