DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE:CW) announced today an expansion of its share repurchase program by $100 million, bringing the anticipated total share buybacks for 2024 to $150 million. Additionally, the company's Board of Directors has declared a quarterly dividend of $0.21 per share, payable on October 11, 2024, to shareholders of record as of September 27, 2024.
Lynn M. Bamford, Chair and Chief Executive Officer of Curtiss-Wright Corporation, highlighted the Board's ongoing confidence in the company's prospects for profitable growth and robust free cash flow generation. The expanded repurchase authorization is part of a capital allocation strategy that also includes strategic acquisitions and reinvestment in the business.
The current $50 million share repurchase program, initiated in January 2024, is expected to be completed within the year, operating under a 10b5-1 trading plan. The additional $100 million in share repurchases will commence immediately using the same type of trading plan, with an aim to conclude by year's end. Following the fulfillment of the 2024 repurchase programs, Curtiss-Wright will retain an open authorization to buy back another $300 million in shares.
Curtiss-Wright, with a workforce of approximately 8,600 employees, serves primarily the Aerospace & Defense industries, while also catering to Commercial Power, Process, and Industrial markets with its highly engineered products, solutions, and services. The company prides itself on a heritage linked to aviation pioneers Glenn Curtiss and the Wright brothers and emphasizes its commitment to innovation and customer relationships.
This expansion of the share repurchase program and the declaration of a quarterly dividend reflect the company's strategy to deliver shareholder value while maintaining a focus on long-term growth. The information provided is based on a press release statement from Curtiss-Wright Corporation.
In other recent news, Curtiss-Wright Corporation has secured a $26 million contract to modernize the Belgian Air Force's aircraft arresting systems, further strengthening its relationship with NATO defense allies. This development coincides with the company's robust financial performance, including an 11% increase in sales to $785 million, a 16% rise in operating income, and a 24% growth in diluted earnings per share to $2.67. Analysts at Baird have responded by raising the price target for Curtiss-Wright shares from $300 to $312, while maintaining an Outperform rating.
The company's Defense Electronics margins notably surpassed market expectations, supported by growth in the commercial nuclear sector, which is projected to double by 2028. This positive performance contributed to a record backlog of over $3.2 billion, with an 18% increase in the company's order book. Alongside these achievements, Curtiss-Wright announced a corporate-wide restructuring program and the strategic acquisition of Ultra Energy, initiatives that are expected to drive future success according to Baird. These are among the latest developments for Curtiss-Wright, a company known for its highly engineered products and services for various sectors.
InvestingPro Insights
Curtiss-Wright Corporation (NYSE:CW) has demonstrated a consistent commitment to shareholder returns, as evidenced by the company's track record of raising its dividend for 7 consecutive years, a trend underscored by the recent announcement of a quarterly dividend payment. This commitment is further supported by the company's ability to maintain dividend payments for an impressive 51 consecutive years. These actions align with the company's capital allocation strategy focused on long-term growth and shareholder value.
InvestingPro data shows that Curtiss-Wright holds a market capitalization of $11.34 billion and trades at a Price/Earnings (P/E) ratio of 28.86, which is considered high relative to near-term earnings growth. The company's Price/Book (P/B) ratio stands at 4.61, suggesting a premium valuation in terms of its book value. Despite a high revenue valuation multiple, analysts are optimistic about the company's profitability, predicting Curtiss-Wright will be profitable this year, a sentiment supported by the company's profitability over the last twelve months.
InvestingPro Tips for Curtiss-Wright highlight that while some analysts have revised their earnings expectations downwards for the upcoming period, the company's liquid assets exceed its short-term obligations, and it operates with a moderate level of debt, indicating a healthy financial position. These insights, among others available on InvestingPro, can provide investors with a more comprehensive view of the company's financial health and potential investment value.
For those seeking additional insights, InvestingPro offers more tips on Curtiss-Wright, which can be accessed through the dedicated page at InvestingPro Curtiss-Wright. These insights may further inform investment decisions regarding the aerospace and defense industry stalwart.
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