Slide 1: Q3 2021 Earnings Conference Call
Q3 2021 EARNINGS CONFERENCE CALL Listen-Only dial-in numbers: Conference Call Replay: NOVEMBER 4, 2021 (844) 220-4970 (domestic) (855) 859-2056 (domestic) (262) 558-6349 (international) (404) 537-3406 (international) Conference ID: 1381614 Conference ID: 1381614 Q3 2021 Earnings Presentation
Slide 2: 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 3: Strong Third Quarter Performance Supports Full-Year Outlook
STRONG THIRD QUARTER PERFORMANCE SUPPORTS FULL-YEAR OUTLOOK Third Quarter 2021 Highlights Recent News and FY 2021 Guidance ▪ Adjusted Sales increased 12% overall ▪ Expanded share repurchase authorization by $400M; Completed $200M opportunistic program – A&D markets up 15%; Commercial markets up 6% –
Slide 4: Third Quarter 2021 Financial Review
THIRD QUARTER 2021 FINANCIAL REVIEW Q3’21 Q3’20 Chg vs. ($ in millions) Adjusted Adjusted Q3’20 Key Drivers Aerospace & Industrial $196 $172 14% ▪ Strong sales growth in commercial aerospace (OEM / AM) and general industrial (vehicles) ▪ Strong contribution from PacStar acquisition in ground defense
Slide 5: 2021E End Market Sales Growth
2021E END MARKET SALES GROWTH (Guidance as of November 3, 2021) 2021E Growth vs 2020 2021E (Current) % Sales 2021 Key Drivers Aerospace Defense 2% - 4% 19% ▪ Favorable growth on fighter jets and helicopter programs (C5ISR ) Ground Defense 100% - 105% 9% ▪ Contribution from PacStar acquisition (HSD g
Slide 6: 2021E Financial Outlook
2021E FINANCIAL OUTLOOK (Guidance as of November 3, 2021) (1) 2021E Adjusted 2021E Change vs (1,2) ($ in millions) (Current) 2020 Adjusted ▪ Strong rebound in general industrial markets Aerospace & Industrial $760 - 775 3% - 5% ▪ Commercial aerospace market stabilizing ▪ Higher A&D sales driven by s
Slide 7: 2021E Financial Outlook - Updated
2021E FINANCIAL OUTLOOK (Guidance as of November 3, 2021) Updated (in blue) 2021E Adjusted (1) 2021E Adjusted (1) ($ in millions, except EPS) (Prior) (Current) Total Operating Income(2) $411 - 421 $411 - 421 Solid growth, up 9% - 12% Other Income $16 - 17 $16 - 17 Interest Expense ~($41) ($40 - 41)
Slide 8: Remain on Track to Deliver Profitable Growth in 2021
REMAIN ON TRACK TO DELIVER PROFITABLE GROWTH IN 2021 Revenue Growth Adj. Operating Margin Adj. Diluted EPS Robust FCF Generation 7% - 9% 16.7% - 16.8% $7.20 - 7.35 $330 - 360M KEY TAKEAWAYS • Organic growth 2% - 4% • Solid growth in Operating • Strong growth of 9% - 12% • Maintain disciplined capita
Slide 9: Appendix
Appendix Q3 2021 Earnings Presentation 9
Slide 10: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "Adjusted" amounts, which are Non-GAAP financial measures described below. We utilize a number o
Slide 11: Third Quarter 2021 End Market Sales Growth
THIRD QUARTER 2021 END MARKET SALES GROWTH Q3’21 % of Total Key Drivers Change Sales Aerospace & Defense Markets: 4% Organic Growth Aerospace Defense (5%) 19% ▪ Aerospace Defense: Lower defense electronics revenue on UAVs and fighter jet programs (timing), partially offset by higher sales on helicop
Slide 12: 2021E End Market Sales Waterfall
FY’21 Guidance: 2021E END MARKET SALES WATERFALL (as of November 3, 2021) Overall UP 7 - 9% A&D Markets UP 7 - 9% Total 2021 CW End Markets Comm’l Markets UP 6 - 8% $2.465B - 2.515B Aerospace & Defense Markets Commercial Markets 66% $1.65B 34% $0.8B Naval Commercial Aerospace Power & Process General
Slide 13: Non-GAAP Reconciliations – Q3 2021 Results
NON-GAAP RECONCILIATIONS – Q3 2021 RESULTS (In millions, except EPS) Q3-2021 Q3-2020 Change Net sales $ 620.6 $ 571.6 9% Adjustments (1) (6.8) (21.7) Adjusted net sales $ 613.8 $ 549.9 12% Reported operating income (GAAP) $ 97.7 $ 84.6 15% Adjustments (1) 9.9 11.2 Adjusted operating income (Non-GAAP
Slide 14: Non-GAAP Reconciliation – Organic Results
NON-GAAP RECONCILIATION – ORGANIC RESULTS Three Months Ended September 30, 2021 vs. 2020 Aerospace & Industrial Defense Electronics Naval & Power Total Curtiss-Wright Operating Operating Operating Operating Sales income Sales income Sales income Sales income Organic 3% 19% (3%) (2%) 3% 11% 1% 7% Acq
Slide 15: Non-GAAP Reconciliation – 2020 vs 2021 (Adjusted)
NON-GAAP RECONCILIATION – 2020 VS 2021 (ADJUSTED) CURTISS-WRIGHT CORPORATION 2021 Guidance (New Segment Structure) As of November 3, 2021 (#039;s in millions, except per share data) 2020 Exiting 2020 2021 Exiting 2021 2021 Adjusted (2,4) (3) (3) Non-Core Adjusted Reported Guidance Non-Core Adjustments