Curtiss-wright Corporation · NYSE:CW
Curtiss-wright — Investor Day (May 2024)
110 slides from Curtiss-wright's investor day presentation, May 21, 2024
Slide 1: Investor Day 2024
INVESTOR 2024 DAY May 21, 2024 Investor Day 2024
Slide 2: Welcome & Opening Remarks
Welcome & JAMES RYAN Opening Remarks VP, INVESTOR RELATIONS InvestorDay Investor Day 2024 2024 2
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this website from one to twelve months following the initial presentation, but content will not be updated to reflect n
Slide 4: Agenda
AGENDA 8:30 am Welcome and Opening Remarks 10:00 am Break James Ryan VP, Investor Relations 10:10 am Commercial Nuclear Panel Discussion Moderator: Company Overview and Strategy Gary Wolski | VP, Sales & Marketing, CW Nuclear Division Lynn Bamford Panelists: Chair & Chief Executive Officer Maria Kor
Slide 5: Curtiss-Wright Today
CURTISS-WRIGHT TODAY Investor Day 2024 5
Slide 6: Company Overview & Strategy
Company Overview Lynn Bamford & Strategy Chair & Chief Executive Officer InvestorDay Investor Day 2024 2024 6
Slide 7: Key Messages
KEY MESSAGES 1 Building momentum as we execute our Pivot to Growth strategy 2 Advancing key enablers with the right talent, systems, and infrastructure to support organic growth 3 Investing in and delivering advanced technologies in attractive end markets 4 Driving strong financial performance inclu
Slide 8: Curtiss-Wright at a Glance
CURTISS-WRIGHT AT A GLANCE Leading Provider of Highly Engineered & Mission 8,600+ ~$3B Critical Technologies in Aerospace & Defense, Employees Revenue Commercial Power, Process & Industrial Markets BROAD & INTEGRATED PORTFOLIO GLOBAL FOOTPRINT 2024E Sales by End Market1 2023 Sales by Geography AEROS
Slide 9: Why We Win | Key Differentiators
WHY WE WIN | KEY DIFFERENTIATORS Strong Domain Expertise Highly Engaged Culture Managing and designing to meet customer needs and reduce risks Dedicated to integrity, excellence, and innovation Decades of Knowledge Transfer Global Footprint Since inception in major markets Engineering, sales, suppor
Slide 10: Today's Presenters - Execution Focused Management Team
TODAY’S PRESENTERS - EXECUTION FOCUSED MANAGEMENT TEAM Leadership Attributes • Deep industry expertise Lynn Bamford K. Christopher Farkas Kevin Rayment • Aggressive growth mindset Chair and CEO VP & Chief Financial Officer VP & Chief Operating Officer 2004 2009 2004 • Financial and operational rigor
Slide 11: Strong Foundation and Execution
STRONG FOUNDATION AND EXECUTION 2021 Investor Day Key Messages Delivered on Targets Target Actual1 ✓ Pivot to Growth, both organic and inorganic; reinvesting into the business to fuel the innovation engine; disciplined and strategic approach to M&A while 5-10% Total Revenue CAGR ✓ Total 7.4% CAGR ma
Slide 12: Talent Management Is a Key Organic Growth Enabler
TALENT MANAGEMENT IS A KEY ORGANIC GROWTH ENABLER CW Way • Operational excellence philosophy consists of core capabilities based on Lean and Six Sigma tools Program • 160+ hours of online training content A People-First Culture that New Business • Individuals take part in comprehensive 18 to 24-mont
Slide 13: Building Systems and Infrastructure to Enable Organic Growth
BUILDING SYSTEMS AND INFRASTRUCTURE TO ENABLE ORGANIC GROWTH Building out our operational growth Fueling Competitive Advantage through Innovation, Research and Development platform for long term success • Collaborative Innovation platform captures the brilliance of the enterprise and empowers teamma
Slide 14: Proactively Capturing Key Secular Growth Trends
PROACTIVELY CAPTURING KEY SECULAR GROWTH TRENDS Naval shipbuilding to High-tech battlefield Shift to carbon-free energy Move to electrification accelerate advancement & energy independence across a broad range of air, over the next decade driving larger spending within promotes need for nuclear land
Slide 15: Focused Investments to Drive Strong Financial Performance
FOCUSED INVESTMENTS TO DRIVE STRONG FINANCIAL PERFORMANCE Research & Development Sales & Marketing Systems & Capacity Acquisitions Balancing Investments One Curtiss-Wright Flexibility to Invest in Strategic Fit Supporting for Short-, Medium-, and Market Approach Future Capacity Needs Long-Term Profi
Slide 16: Maintain Disciplined Capital Allocation Strategy
MAINTAIN DISCIPLINED CAPITAL ALLOCATION STRATEGY Capital Allocation Priorities Strategic Filters Strategic Filters • High Barriers to Entry M&A as a Strategic Accelerator to Organic Growth with Strong Pipeline • Unique, High-Value IP Operational Investments with the Highest Return • Clear Synergies,
Slide 17: Introducing New 3-Year Targets (2024-2026)
INTRODUCING NEW 3-YEAR TARGETS (2024 – 2026) >5% Operating Income Top Quartile >10% Organic Revenue >105% Growth > Revenue Margin Performance EPS CAGR CAGR FCF Conversion Growth Accelerating the Pace of Core Organic Growth; AP1000 Excluded from Targets and Provides Incremental Upside Investor Day 20
Slide 18: Operational Excellence
Operational Excellence Kevin Rayment Vice President and Chief Operating Officer InvestorDay Investor Day 2024 2024 18
Slide 19: Operational Excellence Key Messages
OPERATIONAL EXCELLENCE KEY MESSAGES 1 Accelerating strategy through the Operational Growth Platform (OGP); building upon strong track record of operational excellence 2 Deploying new tools and systems to optimize manufacturing operations and connectivity through Digital Transformation Enabling high
Slide 20: Significant Accomplishments Since 2021 Investor Day
SIGNIFICANT ACCOMPLISHMENTS SINCE 2021 INVESTOR DAY Codified Operational Growth Platform Deployed standards across all operations to ensure alignment with new strategy Overcame Significant Hurdles in the Supply Chain Improved component availability and turnaround time in Defense Electronics and Aero
Slide 21: Modernizing Tools and Systems to Manage Our Business
Strat-X Performance Innovation MODERNIZING TOOLS Management System Platform & R&D Management AND SYSTEMS TO EFFECTIVELY Business MANAGE OUR Intelligence Unified CRM (PowerBI®) BUSINESS AND ACCELERATE OPERATIONAL Contract & Workday Pricing Tools EXCELLENCE AI-Based Inventory Solution Investor Day 202
Slide 22: One Curtiss-Wright: Digital Transformation and Automation
ONE CURTISS-WRIGHT: DIGITAL TRANSFORMATION AND AUTOMATION Shop Floor Digitalization • Data Visualization in Manufacturing ꟷ KPI tool showing variety of metrics (e.g. throughput, performance, scrap, backlog) to indicate real-time progress and detect issues ꟷ Goal: show operators all data and identify
Slide 23: Enhancing Commercial Excellence Through New Software, Systems, and Tools
ENHANCING COMMERCIAL EXCELLENCE THROUGH NEW SOFTWARE, SYSTEMS, AND TOOLS Deploying Unified CRM Tool to Enable More Efficient, Effective Processes • Enhancing sales process and increasing focus on major accounts to win new business • More standardization in sales process to better track information a
Slide 24: Case Study | Enabling Workforce Management
CASE STUDY | ENABLING WORKFORCE MANAGEMENT Background Previously had 21 separate HR systems across the organization Solution: Consolidated HR Systems • Implemented Workday - Reduced from 21 to 1 HR system • Common interface, implemented across global workforce • Comprehensive approach to workforce m
Slide 25: Case Study | Strat-X Strategy Execution Tool
CASE STUDY | STRAT-X STRATEGY EXECUTION TOOL Background Implemented in 2023, our internally developed tool is an integral part of driving execution of growth strategies Solution: Strat-X • Online tool aggregates all strategic growth initiatives and related actions, owners, expected results, and date
Slide 26: Operational Excellence Key Takeaways
OPERATIONAL EXCELLENCE KEY TAKEAWAYS Modernizing Tools and Systems to Effectively Manage Our Business and Accelerate Operational Excellence Strat-X 1 Accelerating strategy through Operational Growth Platform Performance Innovation (OGP); building upon strong track record of operational excellence Ma
Slide 27: Aerospace & Industrial
Aerospace & Industrial Jeff Troutner Senior General Manager InvestorDay Investor Day 2024 2024 27
Slide 28: Aerospace & Industrial Key Messages
AEROSPACE & INDUSTRIAL KEY MESSAGES Legacy provider of critical solutions to the commercial aerospace and industrial 1 markets at the forefront of efficiency, performance and safety Secular trends of electrification and decarbonization along with tremendous 2 customer backlog driving long-term ramp
Slide 29: Aerospace & Industrial: Broad Market Applicability
AEROSPACE & INDUSTRIAL: BROAD MARKET APPLICABILITY DRIVING EFFICIENCY, PERFORMANCE AND SAFETY Significant Accomplishments Since AEROSPACE 2021 Investor Day & DEFENSE • Electromechanical actuation wins on 50% Airbus A350F and UpNext, and Leidos Dynetics Enduring Shield programs COMMERCIAL • Newly dev
Slide 30: Uniquely Positioned to Win in Aerospace & Industrial
UNIQUELY POSITIONED TO WIN IN AEROSPACE & INDUSTRIAL Historic Pedigree in developing critical solutions within Commercial Aerospace Broad portfolio of differentiated technologies in must-not-fail applications Industry-leading power management electronics for on/off-highway Leading provider of rugged
Slide 31: Commercial Aerospace Market Focus
COMMERCIAL AEROSPACE MARKET FOCUS: SUPPORTING THE INDUSTRY SINCE ITS INCEPTION Flight Controls ▪ Electromechanical actuation Nacelles systems for primary & secondary ▪ Thrust reverser position flight controls sensing and control valves ▪ Safety certified controls ▪ Anti-ice system piloting and by ▪
Slide 32: Well-Positioned to Capture Compelling Trends in Commercial Aerospace
WELL-POSITIONED TO CAPTURE COMPELLING TRENDS IN COMMERCIAL AEROSPACE Broad Secular Themes Decarbonization & Population Travel Quality Differentiation Electrification • Rising global demand in leisure and business travel driving long-term growth across markets • Long tailwind of airplane production b
Slide 33: Commercial Aerospace Fleet Renewal Driving Long-Term Growth
COMMERCIAL AEROSPACE FLEET RENEWAL DRIVING LONG-TERM GROWTH OPPORTUNITY Industry Fleet Expected to Key OEM Platforms Backlog1 Increase ~2x through 2042 ~47,000 ~8,200 Widebody Narrowbody >12,500 units in Backlog ~32,800 Narrowbody Widebody >2,200 units in Backlog ~23,000 ~6,000 Remain Regional >380
Slide 34: Strategic Long-Term Growth Initiatives
STRATEGIC LONG-TERM GROWTH INITIATIVES Growing Core and Expanding Content Innovating Designs and Processes that Developing Leading Solutions in on Current & Next-Gen Platforms Enable Carbon Reduction Electrification Across our Markets • Targeted investments on current platform • Enhance sensor, valv
Slide 35: Unique IP Enables Carbon Reduction Goals
UNIQUE IP ENABLES CARBON REDUCTION GOALS Extreme Temperature Capabilities Unique Technology Driving Leadership Positions on Engine Platforms • New engine platforms and current upgrade programs requiring extreme • Content on all major current engine platforms and upgrade programs temperature and accu
Slide 36: Electrification Technology Expanding in Commercial Aerospace and Defense
ELECTRIFICATION TECHNOLOGY EXPANDING IN COMMERCIAL AEROSPACE AND CROSSING OVER INTO DEFENSE MARKETS Leading Electromechanical Actuation Technology in Commercial Aerospace Leveraging Technology to Win in Defense Markets Tier One System Supply One CW Approach Driving Success • Vertically integrated an
Slide 37: Leading-Edge Power Electronics Enabling Industrial Vehicle Electrification
LEADING-EDGE POWER ELECTRONICS ENABLING INDUSTRIAL VEHICLE ELECTRIFICATION New Product Introductions and Ongoing Innovation Accelerating POWER DISTRIBUTION MODULE EXPANSION Growth within Industrial markets • Supports green and electrification initiatives ꟷ Electric and Hybrid Traction Inverters and
Slide 38: Aerospace & Industrial Key Takeaways
AEROSPACE & INDUSTRIAL KEY TAKEAWAYS Enduring critical solution provider to commercial aerospace and industrial 1 markets at the forefront of efficiency, performance and safety Secular trends of electrification and decarbonization along with tremendous 2 customer backlog driving long-term ramp in co
Slide 39: Defense Electronics
Defense Electronics Brian Perry Senior VP, General Manager InvestorDay Investor Day 2024 2024 39
Slide 40: Defense Electronics Key Messages
DEFENSE ELECTRONICS KEY MESSAGES 1 Trusted, proven leader in integrating open industry standards into ruggedized, reliable and secure computing and communications solutions 2 Global security concerns driving increased U.S. and allied funding to support modernization and next-generation requirements
Slide 41: Defense Electronics: Poised to Benefit from Growth in MOSA
DEFENSE ELECTRONICS: POISED TO BENEFIT FROM GROWTH IN MODULAR OPEN SYSTEMS APPROACH (MOSA) Significant Accomplishments Since AEROSPACE 2021 Investor Day & DEFENSE • MOSA leadership recognized with design wins on 100% major U.S. air and naval modernizations • Acclaimed state-of-the-art SOSA-aligned F
Slide 42: Platform Agnostic with Tremendous Breadth of Content and Solutions
PLATFORM AGNOSTIC WITH TREMENDOUS BREADTH OF CONTENT AND SOLUTIONS ▪ Network Links ▪ Secure Network Storage ▪ Graphics and Video Display ▪ Video Management System ▪ Flight Test & System Monitoring ▪ Avionics Display ▪ Flight Test & System Monitoring ▪ Secure Network IP Router ▪ Network Attached Stor
Slide 43: Enabling the Connected Battlefield
ENABLING THE CONNECTED BATTLEFIELD Curtiss-Wright is a leader in hardware-enabled, software-defined solutions at the forefront of military digital convergence Secure Tactical Communications • Tactical data link gateways for secure military command and control (air-to-air and air-to-ground) • Secure
Slide 44: PacStar Acquisition Expanded Offering
PACSTAR ACQUISITION EXPANDED OFFERING TO CAPTURE ONE OF DOD’S TOP PRIORITIES: SENSORS TO EFFECTORS Background • Acquired in 2020, PacStar products include advanced tactical communications solutions for mission-critical applications and unified network communications management software Strategic Hig
Slide 45: Uniquely Positioned to Win in Defense Electronics
UNIQUELY POSITIONED TO WIN IN DEFENSE ELECTRONICS Trusted and Proven Provider of Modular Open Systems Approaches (MOSA) supporting current and next-generation platforms Broadest Leading-Edge Portfolio in Industry enabling acceleration of new capabilities while simplifying modernization and sustainme
Slide 46: Global Security Concerns Driving Increased Demand for Defense Electronics
GLOBAL SECURITY CONCERNS DRIVING INCREASED DEMAND FOR DEFENSE ELECTRONICS Global Security Environment • U.S. National Defense Strategy focused on near peer threats • Shift driving new priorities and requirements to stay ahead of the threat GLOBAL DoD Priorities • Investments in next-gen aircraft, su
Slide 47: Accelerating Growth Through Strategically Focused Investments
ACCLERATING GROWTH THROUGH STRATEGICALLY FOCUSED INVESTMENTS Consistent Innovation and Investment to Leverage Legacy Positions to Expanding into Fastest Growing drive Long-Term Growth Increase Opportunities on Existing Markets and Adjacencies • Open standards leadership in Modular Open and New Platf
Slide 48: Case Study | Organic Investment in Innovation Drives Growth
CASE STUDY | ORGANIC INVESTMENT IN INNOVATION DRIVES GROWTH IN CORE MARKETS Background • Curtiss-Wright was selected by Northrop Grumman to supply a sensor mission unit and mission computer for the U.S. Navy Triton Unmanned Aircraft Systems (UAS) program • Program success led U.S. Navy to select Cur
Slide 49: Comprehensive Provider of Total Lifecycle Management Services
CURTISS-WRIGHT IS A COMPREHENSIVE PROVIDER OF END-TO-END TOTAL LIFECYCLE MANAGEMENT (TLCM) SERVICES Since 2009, CW has delivered a suite of products to support a radar system on the U.S. Navy’s MH-60 Seahawk helicopter Our Unique Solution: World-class Outcomes and Accomplishments life-cycle manageme
Slide 50: Case Study | Program Expansion from Test & Evaluation to Deployed Platforms
CASE STUDY | PROGRAM EXPANSION FROM TEST & EVALUATION TO DEPLOYED PLATFORMS Background • Leveraging our expertise and leadership in Flight Test Instrumentation, Curtiss-Wright developed the Quick Reaction Instrumentation Package (QRIP) Our Unique Solution • QRIP is an all-in-one instrumentation pack
Slide 51: Defense Electronics Key Takeaways
DEFENSE ELECTRONICS KEY TAKEAWAYS 1 Trusted, proven leader in integrating open industry standards into ruggedized, reliable and secure computing and communications solutions 2 Global security concerns driving increased U.S. and allied funding to support modernization and next-generation requirements
Slide 52: Naval & Power: Naval Defense
Naval & Power: David Micha Naval Defense Senior VP, General Manager InvestorDay Investor Day 2024 2024 52
Slide 53: Naval Defense Key Messages
NAVAL DEFENSE KEY MESSAGES 1 Mission critical partner to U.S. & international navies for highly engineered solutions on surface & submarine platforms 2 Rising geopolitical tensions driving increased funding toward U.S. and allied naval shipbuilding 3 Expanding content & advancing key technologies on
Slide 54: Naval Defense Market Focus: Supporting the Nuclear Navy
NAVAL & POWER, NAVAL DEFENSE MARKET FOCUS: SUPPORTING THE NUCLEAR NAVY SINCE ITS INCEPTION Significant Accomplishments AEROSPACE & Since 2021 Investor Day COMMERCIAL DEFENSE 50% 50% (Of N&P Segment) • Transitioning from development to production on Columbia class submarine (Of N&P Segment) • Continu
Slide 55: Uniquely Positioned to Win
UNIQUELY POSITIONED TO WIN Leading Provider of Highly Engineered Mission-Critical Solutions with expertise developed over decades since inception of U.S. nuclear naval fleet Deep Customer Relationships with U.S. and International Allies supports investment and visibility into long-term shipbuilding
Slide 56: Naval Platforms Key to Maintaining Asymmetrical Advantage
NAVAL PLATFORMS ARE KEY TO MAINTAINING ASYMMETRICAL ADVANTAGE OVER NEAR-PEER ADVERSARIES • Naval Power Projection is a Centerpiece of DoD Strategy - Great Power Competition and Indo-Pacific tensions elevating demand for naval shipbuilding - China’s Navy is outbuilding U.S. by more than 10x - Columbi
Slide 57: Well-Positioned on Highest Priority U.S. Naval Platforms
WELL-POSITIONED ON HIGHEST PRIORITY U.S. NAVAL PLATFORMS Ford Aircraft Carrier Nimitz Aircraft Carrier RCOH Virginia Submarine Columbia Submarine 30-Yr Authorization 17+ Total Ship Projection 6-7 3 12 (excluding potential upside from AUKUS (through FY’35 / CVN-77) (includes 1st ship in production) (
Slide 58: Strategically Focused Growth Initiatives
STRATEGICALLY FOCUSED GROWTH INITIATIVES Grow Strong Core & Expand Internationally Increase Content on Next-Gen Platforms Grow the Aftermarket • Expand content on key platforms via • Actively engaged and under contract for next • Maturing platforms beginning to drive initial portfolio expansion & cr
Slide 59: Significant Opportunity to Expand Content on Next-Generation Platforms
SIGNIFICANT OPPORTUNITY TO EXPAND CONTENT ON NEXT-GENERATION PLATFORMS Virginia Submarine SSN(X) Fast Attack Submarine Production Timeline Expect Steady Production through 2035 First Ship Construction Authorization mid-2030s Construction Pace ~2 / Year Procurement Future State: 2 / Year Procurement
Slide 60: Leveraging Naval Defense Technology to Crossover into Adjacent Markets
LEVERAGING PROVEN NAVAL DEFENSE TECHNOLOGY TO CROSSOVER INTO ADJACENT MARKETS Curtiss-Wright’s legacy expertise in pump technology led to development of reactor CW provides process-fluid lubricated, coolant pump for Westinghouse AP1000 commercial nuclear reactor in 2006 canned motor pump systems for
Slide 61: Naval Defense Key Takeaways
NAVAL DEFENSE KEY TAKEAWAYS 1 Mission critical partner to U.S. & international navies for highly engineered solutions on surface & submarine platforms 2 Rising geopolitical tensions driving increased funding toward U.S. and allied naval shipbuilding 3 Expanding content & advancing key technologies o
Slide 62: Break
Break InvestorDay Investor Day 2024 2024 62
Slide 63: Commercial Nuclear Panel Discussion
Commercial Nuclear Panel Discussion InvestorDay Investor Day 2024 2024 63
Slide 64: Commercial Nuclear Panel Discussion
COMMERCIAL NUCLEAR PANEL DISCUSSION Moderator Panelists Gary Wolski Maria Korsnick Dr. Rita Baranwal Greg Cullen VP, Sales & Marketing, President & CEO, Nuclear SVP AP300 Small Modular VP Energy Services and CW Nuclear Division Energy Institute (NEI) Reactor, Westinghouse Development, Energy Northwe
Slide 65: Naval & Power: Commercial Nuclear
Naval & Power: Kurt Mitchell Commercial Nuclear Senior VP, General Manager InvestorDay Investor Day 2024 2024 65
Slide 66: Commercial Nuclear Key Messages
COMMERCIAL NUCLEAR KEY MESSAGES 1 Recognized leading provider of highly engineered critical solutions for the most challenging customer needs 2 Strong global support for energy independence and carbon reduction driving strategic shift in focus to nuclear 3 Growing our core and extending globally to
Slide 67: Commercial Nuclear Market Focus: Supporting the Industry Since Inception
NAVAL & POWER, COMMERCIAL NUCLEAR MARKET FOCUS: SUPPORTING THE INDUSTRY SINCE INCEPTION Significant Accomplishments Since 2021 Investor Day AEROSPACE & • Partnering with Westinghouse to COMMERCIAL DEFENSE provide RCP technology in future 50% 50% (Of N&P Segment) AP1000 power plants (Of N&P Segment)
Slide 68: Uniquely Positioned to Win in Commercial Nuclear
UNIQUELY POSITIONED TO WIN IN COMMERCIAL NUCLEAR Long-standing Aftermarket and New Build Presence Go-to partner for 60 years enhancing power plant efficiency and reliability Industry Certifications and Best-in-Class Expertise Solving our customers most difficult problems with strong barriers to entr
Slide 69: Nuclear Power Is Undergoing a Major Strategic Shift
NUCLEAR POWER IS UNDERGOING A MAJOR STRATEGIC SHIFT 3x Broad Secular Themes GLOBAL NUCLEAR Carbon Reduction Energy Independence Job Creation POWER BY 20501 Supporting Legislation NEI Member Survey2 • Advanced Reactor Development Program; $2.5B funding for two projects (X-energy, TerraPower) Nuclear
Slide 70: Life Extensions and Plant Modernization Drive the Aftermarket
LIFE EXTENSIONS AND PLANT MODERNIZATION DRIVE THE AFTERMARKET Key Market Highlights CW Positioning • To achieve carbon reduction goals, existing plants must • A leading provider of Aftermarket support supplying hundreds of operating operate into the 2050s and beyond plants globally including every r
Slide 71: Large Reactors Continue to Play Critical Role in Meeting Energy Demand
LARGE REACTORS CONTINUE TO PLAY CRITICAL ROLE IN MEETING ENERGY DEMAND Key Market Highlights CW Positioning • Energy security, geopolitics, and carbon reduction driving renewed • Strong incumbent position on leading large light water reactors interest in large scale nuclear power plants including AP
Slide 72: Small Modular Reactors Target Commercial Operation by 2030
SMALL MODULAR REACTORS TARGET COMMERCIAL OPERATION BY 2030 Key Market Highlights CW Positioning • Major SMR developers backed by significant government support – • CW brand, unique capabilities, and extensive portfolio position us to U.S. and International broadly participate on all leading platform
Slide 73: Accelerate Growth Through Partnership and Innovation
ACCELERATE GROWTH THROUGH PARTNERSHIP AND INNOVATION Leverage CW’s brand and capabilities Expand portfolio to meet the evolving Leverage core positions to grow our to gain content on all leading SMRs needs of our customers international presence • Utilize core technical expertise and decades • Targe
Slide 74: Case Study | WSC Acquisition
CASE STUDY | WSC ACQUISITION Background April 2024: CW acquired WSC, Inc. Strategic Highlights • A leading supplier of state-of-the-art power plant control room simulation technology • Supports the design, commissioning, and reliable operation of commercial nuclear power generation and process plant
Slide 75: Commercial Nuclear Key Takeaways
COMMERCIAL NUCLEAR KEY TAKEAWAYS 1 Recognized leading provider of highly engineered critical solutions for the most challenging customer needs 2 Strong global support for energy independence and carbon reduction driving strategic shift in focus to nuclear 3 Growing our core and extending globally to
Slide 76: Long-Term Financial Outlook
Long-Term Financial K. Christopher Farkas Outlook VP & CHIEF FINANCIAL OFFICER InvestorDay Investor Day 2024 2024 76
Slide 77: Financial Key Messages
FINANCIAL KEY MESSAGES 1 Executing our Pivot to Growth strategy, driving record financial performance 2 Leverage strong foundation in operational excellence and reinvesting into the business to deliver accelerated profitable organic growth 3 Maintain disciplined and strategic capital allocation with
Slide 78: Pivot to Growth Strategy Drives Value Creation
PIVOT TO GROWTH STRATEGY DRIVES VALUE CREATION $3B+ Backlog1 Commercial and Incremental Investments to Higher Growth, Higher Operational Excellence Support Fastest Growth Margin Opportunities Drive Drive Margin Expansion Vectors (R&D, Talent, Systems) Strengthened Pipeline VALUE CREATION Disciplined
Slide 79: Pivot to Growth Strategy - First Three Years Financial Performance
PIVOT TO GROWTH STRATEGY – 1ST THREE YEARS FINANCIAL PERFORMANCE (2020 - 2023) ADJ. NET SALES ($M) ADJ. OPERATING MARGIN Highlights ▪ Organic growth across all end markets $2,845 17.3% 17.4% $2,557 $2,300 $2,468 17.0% ▪ Delivered margin expansion through 16.3% commercial & operational excellence 202
Slide 80: Stock Price Performance (2021-2023)
STOCK PRICE PERFORMANCE (2021 - 2023) Indexed Price Performance As of 12/31/23 CW S&P 500 S&P 400 MID Peer Average Nasdaq DJIA CW +78.2% Peer Avg. +22.2% S&P500 +13.7% DJIA +9.8% Nasdaq +9.3% S&P400 +2.7% May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 81: Commercial and Operational Excellence at Our Core
COMMERCIAL AND OPERATIONAL EXCELLENCE AT OUR CORE • Highly engaged culture with a strong financial acumen • Remain focused on pricing, cost containment and execution • Resilience and agility in our most economically sensitive businesses • Continuous optimization of the portfolio 800 bps • Addressing
Slide 82: Case Study | Tax Optimization
CASE STUDY | TAX OPTIMIZATION Background Management Incentive Plan drives additional focus to enhance value “below the line” through balance sheet efficiency and continued tax optimization Initiatives • Undergoing legal entity consolidations both domestic and abroad • Opportunity to revamp our exist
Slide 83: Highly Efficient and Disciplined Capital Allocation Framework
HIGHLY EFFICIENT AND DISCIPLINED CAPITAL ALLOCATION FRAMEWORK Historical Use of Cash Flow from Operations (2021 – 2023) ~$0.5B ~$0.4B ~$0.3B $1.2B Returns to Shareholders Operational Investments Acquisitions Operating Cash Flow ~$450M Buybacks (Avg. $150M+/yr.) CapEx, Debt Repayment, 3 Deals ~$88M D
Slide 84: Strong and Flexible Balance Sheet Provides Ample Capacity for Growth
STRONG AND FLEXIBLE BALANCE SHEET PROVIDES AMPLE CAPACITY FOR GROWTH Cash and Debt Levels1 Thoughtfully Scheduled Debt Maturities $250M Cash & Cash Equivalents Total Debt Accordion $338M $1.05B Feature $750M Undrawn Weighted-average Revolver Interest Rate: 3.8% $450M Revolver Leverage Ratio - Adjust
Slide 85: Maintain Disciplined Capital Allocation Strategy
MAINTAIN DISCIPLINED CAPITAL ALLOCATION STRATEGY Capital Allocation Priorities Financial Filters • Long-term Sustainable Organic Growth M&A as a Strategic Accelerator to Organic Growth with Strong Pipeline • Operating Income Growth > Revenue Growth Operational Investments with the Highest Return • A
Slide 86: Successful M&A Track Record
SUCCESSFUL M&A TRACK RECORD ESCO Arresting Systems Business Acquisition Close November 2020 June 2022 November 2022 April 2024 Annual Sales Added1 $120M $70M $9M $15M High Barriers to Entry ✓ ✓ ✓ ✓ Unique, High-Value IP ✓ ✓ ✓ ✓ STRATEGIC FILTERS Clear Synergies, Leverages CW’s Operational Excellence
Slide 87: Generating Strong Returns on Our Investments
GENERATING STRONG RETURNS ON OUR INVESTMENTS Return on Invested Capital1 12.5% 11.3% 10.6% Expanded ROIC by 300+ bps over the 10.5% past 3 years, while selectively…. 9.2% 10.1% • Increasing R&D spend > Sales growth 8.8% 8.5% • Integrating acquisitions and overcoming initial M&A hurdles • Investing i
Slide 88: Reiterating 2024 Financial Outlook
REITERATING 2024 FINANCIAL OUTLOOK Guidance1 Commentary 5% - 7% Sales growth • MSD+ organic growth, with increases in all end markets 5% - 8% Operating Income growth • Favorable absorption offset by increased R&D investments • Expect 17.4% - 17.6%, flat to up 20 basis points Targeting Operating Marg
Slide 89: New 3-Year Targets (2024-2026)
NEW 3-YEAR TARGETS (2024 – 2026) >5% Operating Income Top Quartile >10% >105% Organic Revenue Growth > Revenue Margin Performance EPS CAGR FCF Conversion CAGR Growth + Elevated global threat + Volume absorption • Short-term balance with • EPS Growth > • Return to target CapEx environment + Op excell
Slide 90: Long-Term Revenue Growth Assumptions (2024-2026)
LONG-TERM REVENUE GROWTH ASSUMPTIONS (2024 – 2026) Aerospace Ground Naval Commercial Power & General Defense Defense Defense Aerospace Process Industrial MSD HSD MSD HSD Nuclear: LDD LSD Process: MSD Key Drivers Enabling Market Outperformance • MOSA • Tactical Comms • Columbia • Record backlog Nucle
Slide 91: Beyond the Next Three Years
BEYOND THE NEXT THREE YEARS The Art of the Possible Known AP1000 Opportunity Today1: • 12+ plants 48+ pumps (4/plant) = $1.5B+ in Europe • Each plant $110M+ over 5-year production cycle Key Assumptions 2X Annual Commercial Nuclear PLEX >15 plants undergoing AP1000 Poland & Bulgaria SMR SMR developme
Slide 92: Key Takeaways
KEY TAKEAWAYS Executing our Pivot to Growth strategy, driving record financial 1 performance 2 Leverage strong foundation in operational excellence and reinvesting into the business to deliver accelerated profitable organic growth 3 Maintain disciplined and strategic capital allocation with M&A as a
Slide 93: Closing Remarks
Closing Remarks LYNN BAMFORD Chair & Chief Executive Officer InvestorDay Investor Day 2024 2024 93
Slide 94: Why Invest With Us
WHY INVEST WITH US 1 Building momentum as we execute our Pivot to Growth strategy 2 Advancing key enablers with the right talent, systems, and infrastructure to support organic growth 3 Investing in and delivering advanced technologies in attractive end markets 4 Driving strong financial performance
Slide 95: Break
Break InvestorDay Investor Day 2024 2024 95
Slide 96: Q&A
Q&A InvestorDay Investor Day 2024 2024 96
Slide 97: Appendix
APPENDIX InvestorDay Investor Day 2024 2024 97
Slide 98: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved tran
Slide 99: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED SALES1 ADJUSTED OPERATING MARGIN1 ADJUSTED DILUTED EARNINGS PER SHARE1 ADJUSTED FREE CASH FLOW 1The adjusted amounts in 2020 and 2021 do not reflect the immaterial restatement described in the Company's Q3 2023 Form 10-Q filed with the SEC on November 2, 2023. Inves
Slide 100: Non-GAAP Reconciliation - 2023 vs. 2024 (Adjusted)
NON-GAAP RECONCILIATION – 2023 vs. 2024 (ADJUSTED) Investor Day 2024 100
Slide 101: Acronyms and Definitions
ACRONYMS AND DEFINITIONS • APNT: Assured Positioning, Navigation and Timing • MR&O: Maintenance, Repair, and Overhaul • AUKUS: Trilateral security partnership between Australia, U.K., and U.S. • NDE: Non-Destructive Evaluation • C5ISR: Command, Control, Communication, Computers, Cyber, • NEI: Nuclea
Slide 102: Speaker Bios
SPEAKER BIOS InvestorDay Investor Day 2024 2024 102
Slide 103: Lynn Bamford
LYNN BAMFORD CHAIR & CHIEF EXECUTIVE OFFICER Lynn M. Bamford assumed the role of President and Chief Executive Officer of Curtiss-Wright Corporation on January 1, 2021, and was named a member of the Board. She assumed the role of Chair of the Board of Directors in May 2022. Previously, she served as
Slide 104: K. Christopher Farkas
K. CHRISTOPHER FARKAS VICE PRESIDENT & CHIEF FINANCIAL OFFICER K. Christopher (Chris) Farkas was named Vice President and Chief Financial Officer of Curtiss-Wright Corporation in 2020. Prior to assuming his current responsibilities, he was named Vice President of Finance of Curtiss-Wright Corporatio
Slide 105: Kevin Rayment
KEVIN RAYMENT VICE PRESIDENT & CHIEF OPERATING OFFICER Kevin M. Rayment was named Vice President and Chief Operating Officer of Curtiss-Wright Corporation in 2021. Prior to assuming his current responsibilities, he was named President of the Commercial / Industrial Segment in January 2020. Mr. Rayme
Slide 106: Jeff Troutner
JEFF TROUTNER SENIOR GENERAL MANAGER Jeff Troutner was named Senior General Manager of the Sensors Division in 2019. Prior to his current role, he spent 9 years in the Nuclear Division holding various positions, beginning with Sales Director for the QualTech NP business unit, followed by General Man
Slide 107: Brian Perry
BRIAN PERRY SENIOR VP, GENERAL MANAGER Brian Perry was named Senior Vice President and General Manager of the Defense Solutions Division in 2023. Prior to joining Curtiss-Wright, he held various senior leadership roles during a 15-year tenure at Mercury Systems, and most recently led their sensor pr
Slide 108: David Micha
DAVID MICHA SENIOR VP, GENERAL MANAGER David (Dave) Micha was named Senior Vice President and General Manager of the Electro-Mechanical Systems (EMS) Division in 2023. Prior to joining Curtiss-Wright, he served as President of Intelsat Government Solutions, the largest supplier of Commercial Satelli
Slide 109: Kurt Mitchell
KURT MITCHELL SENIOR VP, GENERAL MANAGER Kurt Mitchell was named Senior Vice President and General Manager of the Nuclear Division in 2018 and subsequently appointed as the General Manager of the Valves Division in 2022. In these roles, Mr. Mitchell is responsible for driving long-term strategy, bus
Slide 110: James Ryan
JAMES RYAN VICE PRESIDENT, INVESTOR RELATIONS James (Jim) Ryan was named Vice President, Investor Relations in 2022. Mr. Ryan leads the Company’s investor relations efforts. Prior to assuming his current responsibilities, he was named Senior Director, Investor Relations in 2016, and previously held