What changed in this filing

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Item 1. Financial Statements

2024-10-31 compared with 2024-08-08 · 201 added, 194 removed, 659 unchanged (37% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands, except per share data) 2024 2023 2024 2023

28 unchanged sentences

(In thousands)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

7 unchanged sentences

Comprehensive income $ 141,220 $ 68,737 $ 296,921 $ 240,123

(1) The tax benefit (expense) included in foreign currency translation adjustments and pension and postretirement adjustments for the three and six months ended June 30, 2024 and June 30, 2023 was immaterial.

(1) The tax benefit (expense) included in foreign currency translation adjustments and pension and postretirement adjustments for the three and nine months ended September 30, 2024 and September 30, 2023 was immaterial.

See notes to condensed consolidated financial statements

2 unchanged sentences

(In thousands, except per share data)

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Current assets:

27 unchanged sentences

Stockholders’ equity

Common stock, $ 1 par value, 100,000,000 shares authorized as of June 30, 2024 and December 31, 2023;

49,187,378 shares issued as of June 30, 2024 and December 31, 2023;

outstanding shares were 38,289,678 as of June 30, 2024 and 38,202,754 as of December 31, 2023

Common stock, $ 1 par value, 100,000,000 shares authorized as of September 30, 2024 and December 31, 2023;

49,187,378 shares issued as of September 30, 2024 and December 31, 2023;

outstanding shares were 37,960,122 as of September 30, 2024 and 38,202,754 as of December 31, 2023

49,187 49,187

2 unchanged sentences

Accumulated other comprehensive loss ( 203,428 ) ( 213,223 )

Common treasury stock, at cost ( 10,897,700 shares as of June 30, 2024 and 10,984,624 shares as of December 31, 2023)

Common treasury stock, at cost ( 11,227,256 shares as of September 30, 2024 and 10,984,624 shares as of December 31, 2023)

( 1,250,917 ) ( 1,135,484 )

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended

Nine Months Ended

September 30,

(In thousands) 2024 2023

30 unchanged sentences

Effect of exchange-rate changes on cash 7,078 2,737

Net decrease in cash and cash equivalents ( 24,303 ) ( 98,237 )

Net increase (decrease) in cash and cash equivalents 36,983 ( 108,165 )

Cash and cash equivalents at beginning of period 406,867 256,974

4 unchanged sentences

(In thousands)

For the six months ended June 30, 2024

For the nine months ended September 30, 2024

Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock

1 unchanged sentence

Net earnings — — 287,126 — —

Other comprehensive loss, net of tax — — — ( 20,265 ) —

Other comprehensive income, net of tax — — — 9,795 —

Dividends declared — — ( 23,694 ) — —

5 unchanged sentences

Other — ( 2,492 ) — — 2,342

June 30, 2024 $ 49,187 $ 135,574 $ 3,648,005 $ ( 233,488 ) $ ( 1,140,858 )

For the three months ended June 30, 2024

September 30, 2024 $ 49,187 $ 144,394 $ 3,751,183 $ ( 203,428 ) $ ( 1,250,917 )

For the three months ended September 30, 2024

Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock

March 31, 2024 $ 49,187 $ 133,166 $ 3,556,572 $ ( 228,255 ) $ ( 1,130,491 )

June 30, 2024 $ 49,187 $ 135,574 $ 3,648,005 $ ( 233,488 ) $ ( 1,140,858 )

Net earnings — — 111,160 — —

Other comprehensive loss, net of tax — — — ( 5,233 ) —

Other comprehensive income, net of tax — — — 30,060 —

Dividends declared — — ( 7,982 ) — —

Restricted stock — ( 65 ) — — 65

Employee stock purchase plan — 3,230 — — 2,643

Share-based compensation — 5,683 — — 15

2 unchanged sentences

Other — ( 28 ) — — 2

June 30, 2024 $ 49,187 $ 135,574 $ 3,648,005 $ ( 233,488 ) $ ( 1,140,858 )

September 30, 2024 $ 49,187 $ 144,394 $ 3,751,183 $ ( 203,428 ) $ ( 1,250,917 )

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

1 unchanged sentence

(In thousands)

For the six months ended June 30, 2023

For the nine months ended September 30, 2023

Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock

9 unchanged sentences

Other — ( 261 ) — — 261

June 30, 2023 $ 49,187 $ 130,846 $ 3,286,376 $ ( 225,375 ) $ ( 1,113,675 )

For the three months ended June 30, 2023

September 30, 2023 $ 49,187 $ 136,610 $ 3,375,502 $ ( 253,416 ) $ ( 1,122,728 )

For the three months ended September 30, 2023

Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock

March 31, 2023 $ 49,187 $ 126,909 $ 3,213,039 $ ( 244,442 ) $ ( 1,101,439 )

June 30, 2023 $ 49,187 $ 130,846 $ 3,286,376 $ ( 225,375 ) $ ( 1,113,675 )

Net earnings — — 96,778 — —

Other comprehensive income, net of tax — — — 19,067 —

Other comprehensive loss, net of tax — — — ( 28,041 ) —

Dividends declared — — ( 7,652 ) — —

Restricted stock — ( 73 ) — — 73

Employee stock purchase plan — 1,829 — — 3,529

Share-based compensation — 3,935 — — 419

1 unchanged sentence

— — — — ( 13,001 )

June 30, 2023 $ 49,187 $ 130,846 $ 3,286,376 $ ( 225,375 ) $ ( 1,113,675 )

September 30, 2023 $ 49,187 $ 136,610 $ 3,375,502 $ ( 253,416 ) $ ( 1,122,728 )

See notes to condensed consolidated financial statements

(1) For the three and six months ended June 30, 2024, the Corporation repurchased approximately 47,000 and 100,000 shares of its common stock, respectively.

For the three and six months ended June 30, 2023, the Corporation repurchased approximately 73,000 and 146,000 shares of its common stock, respectively.

(1) For the three and nine months ended September 30, 2024, the Corporation repurchased approximately 356,000 and 455,000 shares of its common stock, respectively.

For the three and nine months ended September 30, 2023, the Corporation repurchased approximately 64,000 and 209,000 shares of its common stock, respectively.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

7 unchanged sentences

Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements.

4 unchanged sentences

Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate.

During the three and six months ended June 30, 2024 and 2023, there were no significant changes in estimated contract costs.

During the three and nine months ended September 30, 2024 and 2023, there were no material changes in estimated contract costs.

In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

14 unchanged sentences

The Corporation’s contracts may contain either a single performance obligation, including the promise to transfer individual goods or services that are not separately distinct within the context of the respective contracts, or multiple performance obligations.

For contracts with multiple performance obligations, the Corporation allocates the overall transaction price to each performance obligation using standalone selling prices, where available, or utilizes estimates for each distinct good or service in the contract where standalone prices are not available.

For contracts with multiple performance obligations, the Corporation allocates the overall transaction price to each performance obligation using standalone selling

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

prices, where available, or utilizes estimates for each distinct good or service in the contract where standalone prices are not available.

The Corporation’s performance obligations are satisfied either at a point-in-time or on an over-time basis.

1 unchanged sentence

If a performance obligation does not qualify for over-time revenue recognition, revenue is then recognized at the point-in-time in which control of the distinct good or service is transferred to the customer, typically based upon the terms of delivery.

The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over-time versus at a point-in-time for the three and six months ended June 30, 2024 and 2023:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

3 unchanged sentences

Backlog includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods.

Total backlog was approximately $ 3.2 billion as of June 30, 2024, of which the Corporation expects to recognize approximately 88 % as net sales over the next 36 months .

Total backlog was approximately $ 3.3 billion as of September 30, 2024, of which the Corporation expects to recognize approximately 90 % as net sales over the next 36 months .

The remainder will be recognized thereafter.

1 unchanged sentence

The following table presents the Corporation’s total net sales disaggregated by end market and customer type:

Total Net Sales by End Market and Customer Type Three Months Ended Six Months Ended

June 30, June 30,

Total Net Sales by End Market and Customer Type Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 2024 2023

15 unchanged sentences

The Corporation’s contract liabilities primarily consist of customer advances received prior to revenue being earned.

Revenue recognized during the three and six months ended June 30, 2024 included in the contract liabilities balance as of January 1, 2024 was approximately $ 71 million and $ 161 million, respectively.

Revenue recognized during the three and six months ended June 30, 2023 included in the contract liabilities balance as of January 1, 2023 was approximately $ 58 million

Revenue recognized during the three and nine months ended September 30, 2024 included in the contract liabilities

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

and $ 147 million, respectively.

balance as of January 1, 2024 was approximately $ 47 million and $ 207 million, respectively.

Revenue recognized during the three and nine months ended September 30, 2023 included in the contract liabilities balance as of January 1, 2023 was approximately $ 38 million and $ 185 million, respectively.

Contract assets and contract liabilities are reported in the "Receivables, net" and "Deferred revenue" lines, respectively, within the Condensed Consolidated Balance Sheet.

8 unchanged sentences

The Corporation will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required.

During the six months ended June 30, 2024, the Corporation acquired one business for an aggregate purchase price of $ 34 million.

The Condensed Consolidated Statement of Earnings for the six months ended June 30, 2024 includes $ 2 million of total net sales and $ 1 million of net losses from the Corporation's 2024 acquisition.

During the six months ended June 30, 2023, the Corporation did not complete any acquisitions.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for the acquisition consummated during the six months ended June 30, 2024.

During the nine months ended September 30, 2024, the Corporation acquired one business for a purchase price of $ 34 million.

The Condensed Consolidated Statement of Earnings for the nine months ended September 30, 2024 includes $ 6 million of total net sales and $ 1 million of net losses from the Corporation's 2024 acquisition.

During the nine months ended September 30, 2023, the Corporation did not complete any acquisitions.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for the acquisition consummated during the nine months ended September 30, 2024.

(In thousands) 2024

9 unchanged sentences

Goodwill deductible for tax purposes $ —

2024 Acquisition

2024 Acquisitions

On April 1, 2024, the Corporation completed the acquisition of WSC for $ 34 million.

2 unchanged sentences

The acquisition is subject to post-closing adjustments with the purchase price allocation not yet complete.

2024 Acquisition to be completed

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

4 unchanged sentences

Ultra Energy is a designer and manufacturer of reactor protection systems, neutron monitoring systems, radiation monitoring systems, and temperature and pressure sensors.

The acquisition is expected to close in the third quarter of 2024, subject to UK regulatory approval, with the acquired business to operate within the Naval & Power segment.

The acquisition is expected to close in the fourth quarter of 2024, subject to UK regulatory approval, with the acquired business to operate within the Naval & Power segment.

Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables.

3 unchanged sentences

The composition of receivables is as follows:

(In thousands) June 30, 2024 December 31, 2023

(In thousands) September 30, 2024 December 31, 2023

Billed receivables:

11 unchanged sentences

The composition of inventories is as follows:

(In thousands) June 30, 2024 December 31, 2023

(In thousands) September 30, 2024 December 31, 2023

Raw materials $ 280,031 $ 239,313

11 unchanged sentences

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The changes in the carrying amount of goodwill for the six months ended June 30, 2024 are as follows:

The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 are as follows:

(In thousands) Aerospace & Industrial Defense Electronics Naval & Power Consolidated

2 unchanged sentences

Foreign currency translation adjustment 2,724 1,820 107 4,651

June 30, 2024 $ 324,367 $ 705,688 $ 540,949 $ 1,571,004

September 30, 2024 $ 327,855 $ 712,198 $ 543,395 $ 1,583,448

OTHER INTANGIBLE ASSETS, NET

2 unchanged sentences

The following tables present the cumulative composition of the Corporation’s intangible assets:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net

5 unchanged sentences

(1) Programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology, and trademarks underlying the associated program.

During the six months ended June 30, 2024, the Corporation acquired intangible assets of $ 18 million.

During the nine months ended September 30, 2024, the Corporation acquired intangible assets of $ 18 million.

The Corporation acquired Customer-related intangibles of $ 12 million, Technology of $ 5 million, and Other intangible assets of $ 1 million, which have weighted average amortization periods of 18 years, 15 years, and 4 years, respectively.

Total intangible amortization expense for the six months ended June 30, 2024 was $ 29 million, as compared to $ 33 million in the comparable prior year period.

Total intangible amortization expense for the nine months ended September 30, 2024 was $ 43 million, as compared to $ 49 million in the comparable prior year period.

The estimated future amortization expense of intangible assets over the next five years is as follows:

4 unchanged sentences

dollar interest rates.

The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt.

The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issuances as of June 30, 2024.

Accordingly, all of the Corporation’s debt

Accordingly, all of the Corporation’s debt is valued as a Level 2 financial instrument.

The fair values described below may not be indicative of net realizable value or

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

is valued as a Level 2 financial instrument.

The fair values described below may not be indicative of net realizable value or reflective of future fair values.

reflective of future fair values.

Furthermore, the use of different methodologies to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value

22 unchanged sentences

The following table is a consolidated disclosure of all domestic and foreign defined benefit pension plans as described in the Corporation’s 2023 Annual Report on Form 10-K filed with the SEC.

The components of net periodic pension cost for the three and six months ended June 30, 2024 and 2023 were as follows:

Three Months Ended Six Months Ended

June 30, June 30,

The components of net periodic pension cost for the three and nine months ended September 30, 2024 and 2023 were as follows:

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 2024 2023

5 unchanged sentences

Net periodic pension cost $ ( 3,684 ) $ ( 2,873 ) $ ( 10,528 ) $ ( 8,599 )

The Corporation did not make any contributions to the Curtiss-Wright Pension Plan during the six months ended June 30, 2024, and does not expect to do so throughout the remainder of the year.

The Corporation did not make any contributions to the Curtiss-Wright Pension Plan during the nine months ended September 30, 2024, and does not expect to do so throughout the remainder of the year.

Contributions to the foreign benefit plans are not expected to be material in 2024.

3 unchanged sentences

The employer contributions include both employer match and non-elective contribution components up to a maximum employer contribution of 7 % of eligible compensation.

During the three and six months ended June 30, 2024, the expense relating to the plan was $ 6.7 million and $ 14.3 million, respectively.

During the three and six months ended June 30, 2023, the expense relating to the plan was $ 6.1 million and $ 12.2 million, respectively.

During the three and nine months ended September 30, 2024, the expense relating to the plan was $ 5.7 million and $ 20.0 million, respectively.

During the three and nine months ended September 30, 2023, the expense relating to the plan was $ 5.2 million and $ 17.4 million, respectively.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

3 unchanged sentences

A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 2024 2023

2 unchanged sentences

Diluted weighted-average shares outstanding 38,451 38,558 38,451 38,538

For the three and six months ended June 30, 2024, there were approximately 39,000 and 49,000 shares, respectively, issuable under equity-based awards that were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period.

There were approximately 20,000 and 22,000 anti-dilutive equity-based awards for the three and six months ended June 30, 2023, respectively.

For the nine months ended September 30, 2024, approximately 33,000 shares issuable under equity-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period.

There were no anti-dilutive equity-based awards for the three months ended September 30, 2024.

For the three and nine months ended September 30, 2023, there were approximately 5,000 and 16,000 anti-dilutive equity-based awards, respectively.

SEGMENT INFORMATION

2 unchanged sentences

Net sales and operating income by reportable segment were as follows:

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 2024 2023

15 unchanged sentences

NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 2024 2023

3 unchanged sentences

Earnings before income taxes $ 143,621 $ 127,046 $ 368,861 $ 306,221

(In thousands) June 30, 2024 December 31, 2023

(In thousands) September 30, 2024 December 31, 2023

Identifiable assets

8 unchanged sentences

December 31, 2022 $ ( 160,807 ) $ ( 98,109 ) $ ( 258,916 )

Other comprehensive income before reclassifications (1)

Other comprehensive income (loss) before reclassifications (1)

37,519 8,218 45,737

1 unchanged sentence

— ( 44 ) ( 44 )

Net current period other comprehensive income 37,519 8,174 45,693

Net current period other comprehensive income (loss) 37,519 8,174 45,693

December 31, 2023 $ ( 123,288 ) $ ( 89,935 ) $ ( 213,223 )

2 unchanged sentences

Amounts reclassified from accumulated other comprehensive income (1)

Net current period other comprehensive income (loss) ( 21,023 ) 758 ( 20,265 )

June 30, 2024 $ ( 144,311 ) $ ( 89,177 ) $ ( 233,488 )

9,644 467 10,111

Net current period other comprehensive income 9,644 151 9,795

September 30, 2024 $ ( 113,644 ) $ ( 89,784 ) $ ( 203,428 )

(1) All amounts are after tax.

14 unchanged sentences

The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers.

As of June 30, 2024 and December 31, 2023, there were $ 18 million and $ 20 million of stand-by letters of credit outstanding, respectively, and $ 11 million and $ 16 million of bank guarantees outstanding, respectively.

As of both September 30, 2024 and December 31, 2023, there was $ 20 million of stand-by letters of credit outstanding, respectively, and $ 13 million and $ 16 million of bank guarantees outstanding, respectively.

In addition, the Corporation is required to provide the Nuclear Regulatory Commission financial assurance demonstrating its ability to cover the cost of decommissioning its Cheswick, Pennsylvania facility upon closure, though the Corporation does not intend to close this facility.

1 unchanged sentence

RESTRUCTURING COSTS

During the quarter ended June 30, 2024, the Corporation executed restructuring activities across all of its segments to support its ongoing effort of improving operating efficiency ("2024 Restructuring Program").

These activities, which primarily include workforce reductions, consolidation of facilities, and costs related to legal entity restructuring, resulted in pre-tax charges of approximately $ 4 million for the three and six months ended June 30, 2024.

During the three and nine months ended September 30, 2024, the Corporation executed restructuring activities across all of its segments to support its ongoing effort of improving operating efficiency ("2024 Restructuring Program").

These activities, which primarily include workforce reductions, consolidation of facilities, and costs related to legal entity restructuring, resulted in pre-tax charges of approximately $ 3.3 million and $ 7.6 million for the three and nine months ended September 30, 2024.

The Company anticipates that these actions will be substantially completed by June 30, 2025.

The following tables summarize the respective balances related to these restructuring activities by both reportable segment as well as on a consolidated basis:

In thousands Restructuring Liability as of December 31, 2023 Provision Cash Payments Restructuring Liability as of June 30, 2024

In thousands Restructuring Liability as of December 31, 2023 Provision Cash Payments Restructuring Liability as of September 30, 2024

Aerospace & Industrial

18 unchanged sentences

Affected line item in the Condensed Consolidated Statement of Earnings

Six months ended

(In thousands) June 30, 2024

Three months ended Nine months ended

(In thousands) September 30, 2024 September 30, 2024

Inventory write-downs Cost of product sales $ 8 $ 1,402

Severance, facility closure, and other costs Restructuring expenses 1,633 4,551

Property, plant, and equipment & operating lease right of use asset impairments Restructuring expenses 1,647 1,647

$ 3,280 $ 6,198

Total restructuring charges Earnings before income taxes $ 3,288 $ 7,600

There were no such comparable charges for the three or six months ended June 30, 2023.

There were no such comparable charges for the three or nine months ended September 30, 2023.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

26 unchanged sentences

RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand the results of operations and financial condition of the Corporation for the three and six month periods ended June 30, 2024.

The financial information as of June 30, 2024 should be read in conjunction with the financial statements for the year ended December 31, 2023 contained in our Form 10-K.

The financial information as of September 30, 2024 should be read in conjunction with the financial statements for the year ended December 31, 2023 contained in our Form 10-K.

The MD&A is organized into the following sections:

5 unchanged sentences

The sales for the relevant markets will be discussed throughout the MD&A.

During the quarter ended June 30, 2024, we commenced our 2024 Restructuring Program across all of our segments in an effort to improve operating efficiency.

These actions, which primarily include workforce reductions, consolidation of facilities, and costs related to legal entity restructuring, resulted in pre-tax charges of approximately $4 million for the quarter and six months ended June 30, 2024.

The Company anticipates that these actions, which are expected to be substantially completed by June 30, 2025, will result in annual operating cost savings of approximate ly $ 10 million.

During the three and nine months ended September 30, we conducted actions associated with our 2024 Restructuring Program across all of our segments in an effort to improve operating efficiency.

These actions, which primarily include workforce reductions, consolidation of facilities, and costs related to legal entity restructuring, resulted in pre-tax charges of approximately $3 million and $8 million for the three and nine months ended September 30, 2024, respectively.

The Company anticipates that these actions, which are expected to be substantially completed by June 30, 2025, will result in annual operating cost savings of approximately $10 million.

Analytical Definitions

8 unchanged sentences

Condensed Consolidated Statements of Earnings

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 % change 2024 2023 % change

16 unchanged sentences

Components of sales and operating income increase (decrease):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2024 vs.

5 unchanged sentences

Total 10 % 9 % 12 % 15 %

Sales in the second quarter increased $80 million, or 11%, to $785 million, compared with the prior year period.

Sales in the third quarter increased $75 million, or 10%, to $799 million, compared with the prior year period.

On a segment basis, sales from the Aerospace & Industrial, Defense Electronics, and Naval & Power segments increased $8 million, $27 million, and $40 million, respectively.

Sales during the six months ended June 30, 2024 increased $163 million, or 12%, to $1,498 million, compared with the prior year period.

Sales during the nine months ended September 30, 2024 increased $237 million, or 12%, to $2,297 million, compared with the prior year period.

On a segment basis, sales from the Aerospace & Industrial, Defense Electronics, and Naval & Power segments increased $32 million, $107 million, and $98 million, respectively.

4 unchanged sentences

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Operating income in the second quarter increased $16 million, or 14%, to $129 million, while operating margin increased 40 basis points to 16.4% compared with the same period in 2023.

Operating income and operating margin in the Defense Electronics segment benefited from favorable overhead absorption on higher sales, favorable mix on defense electronics and tactical communications products, as well as the benefit of cost containment initiatives.

In the Aerospace & Industrial segment, operating income was essentially flat while operating margin decreased, as favorable overhead absorption on higher sales was essentially offset by current period restructuring costs.

In the Naval & Power segment, both operating income and operating margin decreased, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition was more than offset by unfavorable product mix and the timing of development programs.

Operating income during the six months ended June 30, 2024 increased $37 million, or 20%, to $229 million, and operating margin increased 100 basis points to 15.3%, compared with the same period in 2023.

In the Defense Electronics segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales, favorable mix on defense electronics and tactical communications products, as well as the benefit of cost containment initiatives.

In the Aerospace & Industrial segment, operating income increased while operating margin decreased, as favorable overhead absorption on higher sa les was essentially offset by current period restructuring costs as well as unfavorable mix on actuation products.

Both operating income and operating margin in the Naval & Power segment decreased, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition was more than offset by an unfavorable naval contract adjustment as well as unfavorable product mix.

Non-segment operating expense in the second quarter decreased $2 million, or 15%, to $11 million, primarily due to lower foreign currency losses in the current period.

Non-segment operating expense during the six months ended June 30, 2024 of $22 million was essentially flat against the comparable prior year period.

Interest expense in the second quarter and six months ended June 30, 2024 decreased $4 million, or 25% to $11 million and $6 million, or 22%, to $22 million, respectively, primarily due to lower borrowings under our revolving Credit Agreement (the “Credit Agreement” or “credit facility”).

Interest expense for the six months ended June 30, 2024 also benefited from the repayment of our 2013 Notes in February 2023.

Other income, net in the second quarter and six months ended June 30, 2024 increased $1 million, or 8%, to $9 million, and $2 million, or 16%, to $18 million, respectively, primarily due to lower overall pension costs against the comparable prior year periods.

The effective tax rate of 21.2% in the second quarter decreased compared to an effective tax rate of 23.4% in the prior year period.

The effective tax rate of 21.9% for the six months ended June 30, 2024 decreased as compared to an effective tax rate of 23.1% in the prior year period.

Decreases in both of the comparable periods were primarily due to the benefits of a legal entity restructuring as well as lower provisional tax expense associated with foreign withholding taxes in the current year.

Comprehensive income in the second quarter was $94 million, compared to comprehensive income of $100 million in the prior year period.

Operating income in the third quarter increased $12 million, or 9%, to $145 million, while operating margin decreased 20 basis points to 18.1% compared with the same period in 2023.

Operating income and operating margin in the Defense Electronics segment primarily benefited from favorable overhead absorption on higher A&D sales.

In the Aerospace & Industrial segment, favorable overhead absorption on higher sales was essentially offset by current period restructuring costs and unfavorable product mix.

In the Naval & Power segment, operating income increased while operating margin decreased, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition were partially offset by unfavorable product mix and the timing of development programs.

Operating income during the nine months ended September 30, 2024 increased $50 million, or 15%, to $374 million, and operating margin increased 60 basis points to 16.3%, compared with the same period in 2023.

In the Defense Electronics segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher A&D sales, favorable product mix, as well as the benefit of our cost containment initiatives.

In the Aerospace & Industrial segment, both operating income and operating margin decreased, as f avorable overhead absorption on higher sales was partially offset by current period restructuring costs and unfavorable product mix.

In the Naval & Power segment, operating income increased while operating margin decreased, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition were essentially offset by an unfavorable naval contract adjustment, unfavorable product mix, and the timing of development programs.

Non-segment operating expense in the third quarter and nine months ended September 30, 2024 decreased $1 million, or 11%, to $9 million, and $2 million, or 5%, to $31 million, primarily due to lower foreign currency losses against the comparable prior year periods.

Interest expense in the third quarter and nine months ended September 30, 2024 decreased $1 million, or 9%, to $11 million, and $7 million, or 18%, to $33 million, respectively, primarily due to lower borrowings under our revolving Credit Agreement (the “Credit Agreement” or “credit facility”).

Interest expense for the nine months ended September 30, 2024 also benefited from the repayment of our 2013 Notes in February 2023.

Other income, net in the third quarter and nine months ended September 30, 2024 increased $3 million, or 44%, to $10 million, and $6 million, or 24%, to $28 million, respectively, primarily due to higher interest income and lower overall pension costs against the comparable prior year periods.

The effective tax rate of 22.6% in the third quarter decreased compared to an effective tax rate of 23.8% in the prior year period.

The effective tax rate of 22.2% for the nine months ended September 30, 2024 decreased as compared to an effective tax rate of 23.4%.

Decreases in both of the comparable periods were primarily due to the benefits of a legal entity restructuring as well as lower provisional tax expense associated with foreign withholding taxes.

Comprehensive income in the third quarter was $141 million, compared to comprehensive income of $69 million in the prior year period.

The change was primarily due to the following:

• Foreign currency translation adjustments in the second quarter resulted in a $5 million comprehensive loss, compared to a $19 million comprehensive gain in the prior year period.

The comprehensive loss during the current period was primarily attributed to decreases in the Canadian dollar and British Pound.

• Net earnings increas ed $18 million , primarily due to higher operating income and lower interest expense.

Comprehensive income during the six months ended June 30, 2024 was $156 million, compared to comprehensive income of $171 million in the prior year period.

• Foreign currency translation adjustments in the third quarter resulted in a $31 million comprehensive gain, compared to a $28 million comprehensive loss in the prior year period.

The comprehensive gain during the current period was primarily attributed to increases in t he British Pound.

• Net earnings increas ed $14 million , primarily due to higher operating income.

Comprehensive income during the nine months ended September 30, 2024 was $297 million, compared to comprehensive income of $240 million in the prior year period.

The change was primarily due to the following:

• Foreign currency translation adjustments for the six months ended June 30, 2024 resulted in a $21 million comprehensive loss, compared to a $34 million comprehensive gain in the prior period.

The comprehensive loss during the current period was primarily attributed to decreases in the Canadian dollar and British Pound.

• Net earnings increased $38 million, pr imarily due to higher operating income and lower interest expense.

• Net earnings increased $53 million, pr imarily due to higher operating income.

• Foreign currenc y translation adjustments for the nine months ended September 30, 2024 resulted in a $10 million comprehensive gain, c ompared to a $6 million comprehensive gain in the prior period.

The co mprehensive gain during the current period was primarily attributed to increases in the British Pound.

New orders in the third quarter increased $15 million from the comparable prior year period, primarily due to an increase in orders for defense electronics products in the Defense Electronics segment and an increase in orders for sensors products and surface treatment services within our A&D markets in the Aerospace & Industrial segment.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

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FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

New orders in the second quarter increased $154 million from the comparable prior year period, primarily due to an increase in naval defense orders in the Naval & Power segment, as well as an increase in orders in the Aerospace & Industrial segment for sensors products and surface treatment services within our A&D markets.

These increases were partially offset by the timing of orders within our A&D markets in the Defense Electronics segment.

New orders during the six months ended June 30, 2024 increased $337 million from the comparable prior year period, primarily due to an increase in naval defense orders in the Naval & Power segment.

New orders during the nine months ended September 30, 2024 increased $352 million from the comparable prior year period, primarily due to an increase in naval defense orders in the Naval & Power segment.

New orders also benefited from an increase in orders for defense electronics equipment in the Defense Electronics segment as well as increase in orders for sensors products and surface treatment services within our A&D markets in the Aerospace & Industrial segment.

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The following tables summarize sales, operating income and margin, and new orders within the Aerospace & Industrial segment.

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 % change 2024 2023 % change

4 unchanged sentences

Components of sales and operating income increase (decrease):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2024 vs.

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Sales in the Aerospace & Industrial segment are primarily generated from the general industrial and aerospace & defense markets, and, to a lesser extent, the power & process markets.

Sales in the second quarter increased $7 million, or 3%, to $233 million from the prior year period.

Sales in the commercial aerospace market benefited $9 million from higher OEM sales of sensors and actuation products, as well as surface treatment services, on narrowbody and widebody platforms.

In the general industrial market, higher sales of surface treatment services were more than offset by reduced sales of industrial vehicle products to off-highway vehicle platforms.

Sales during the six months ended June 30, 2024 increased $24 million, or 6%, to $453 million from the prior year period.

Sales in the third quarter increased $8 million, or 4%, to $229 million from the prior year period.

Sales in the commercial aerospace market benefited $12 million from higher demand for sensors products as well as surface treatment services on various narrow-body and wide-body platforms.

This increase was partially offset by lower sales of industrial vehicle products to off-highway vehicle platforms.

Sales during the nine months ended September 30, 2024 increased $32 million , or 5%, to $681 million from the prior year period.

In the commercial aerospace market, sales increased $36 million primarily due to higher OEM sales of sensors and actuation products, as well as surface treatment services, on narrowbody and widebody platforms.

Sales in the aerospace defense market benefited from higher actuation development on various fighter jet programs.

These increases were partially offset by lower sales in the general industrial market, primarily due to reduced sales of industrial vehicle products to off-highway vehicle platforms.

Sales in the aerospace defense market benefited $8 million primarily from higher actuation development and production on various fighter jet programs.

These increases were partially offset by lower sales of $14 million in the general industrial market, primarily due to lower sales of industrial vehicle products to off-highway vehicle platforms.

Operating income in the third quarter decreased $2 million, or 4%, to $37 million from the prior year period, and operating margin decreased 130 basis points to 16.4%, as favorable overhead absorption on higher sales was essentially offset by current period restructuring costs and unfavorable product mix.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

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FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Operating income in the second quarter of $35 million was essentially flat compared to the prior year period, while operating margin decreased 70 basis points to 15.1%, as favorable overhead absorption on higher sales was essentially offset by current period restructuring costs.

Operating income during the six months ended June 30, 2024 increased $1 million, o r 1%, to $63 million from the prior year period, while operating margin decreased 60 basis points to 13.9%, as favorable overhead absorption on higher sa les was essentially offset by current period restructuring costs.

New orders in the second quarter and six months ended June 30, 2024 increased $31 million and $24 million, respectively, primarily due to an increase in orders for sensors products and surface treatment services within our A&D markets.

Operating income during the nine months ended September 30, 2024 decreased $1 million, o r 1% , to $100 million from the prior year period, and operating margin decreased 90 basis points to 14.7%, as favorable overhead absorption on higher sales was partially offset by current period restructuring costs and unfavorable product mix.

New orders in the third quarter and nine months ended September 30, 2024 increased $7 million and $31 million, respectively, primarily due to an increase in orders for sensors products and surface treatment services within our A&D markets.

These increases were partially offset by the timing of orders for actuati on products.

Defense Electronics

The following tables summarize sales, operating income and margin, and new orders within the Defense Electronics segment.

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 % change 2024 2023 % change

4 unchanged sentences

Components of sales and operating income increase (decrease):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2024 vs.

2 unchanged sentences

Restructuring — % (1 %) — % (1 %)

Foreign currency — % — % 1 % — %

Total 12 % 13 % 19 % 38 %

Sales in the Defense Electronics segment are primarily to the defense markets and, to a lesser extent, the commercial aerospace market.

Sales in the second quarter increased $31 million, or 16%, to $228 million from the prior year period.

Sales in the third quarter increased $27 million, or 12%, to $243 million from the prior year period.

In the ground defense market, sales increased $11 million primarily due to higher demand for tactical battlefield communications equipment.

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In the commercial aerospace market, sales increased primarily due to higher OEM sales of avionics and electronics on various platforms.

Sales during the six months ended June 30, 2024 increased $80 million, or 22%, to $440 million from the prior year period.

Sales during the nine months ended September 30, 2024 increased $107 million, or 19%, to $683 million from the prior year period.

In the ground defense market, sales increased $51 million primarily due to higher demand for tactical battlefield communications equipment.

Sales in the aerospace defense market increased $32 million primarily due to higher demand for embedded computing equipment on various helicopter, fighter jet, and unmanned aerial vehicle programs.

In the commercial aerospace market, sales benefited from higher OEM demand for avionics and electronics on various platforms.

Operating income in the second quarter increased $15 million, or 35%, to $58 million compared to the prior year period, and operating margin increased 370 basis points from the prior year period to 25.5%.

Operating income during the six months ended June 30, 2024 increased $40 million, or 60%, to $106 million, and operating margin increased 570 basis points from the prior year period to 24.2%.

Increases in operating income and operating margin in both respective periods were primarily due to favorable overhead absorption on higher sales, favorable mix on defense electronics and tactical communications products, as well as the benefit of our cost containment initiatives.

Sales in the aerospace defense market increased $40 million primarily due to higher demand for embedded computing equipment on various helicopter and fighter jet programs.

In the commercial aerospace market, sales benefited $12 million primarily from higher OEM demand for avionics and electronics on various platforms.

Operating income in the third quarter increased $7 million, or 13%, to $64 million compared to the prior year period, and operating margin increased 20 basis points from the prior year period to 26.2%, primarily due to favorable overhead absorption on higher A&D sales.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

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FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

New orders in the second quarter decreased $7 million primarily due to the timing of orders within our A&D markets.

New orders during the six months ended June 30, 2024 increased $46 million primarily due to an increase in orders for defense

electronics equipment, including embedded computing and tactical communications products.

Operating income during the nine months ended September 30, 2024 increased $47 million, or 38%, to $170 million, and operating margin increased 360 basis points from the prior year period to 24.9%, primarily due to favorable overhead absorption on higher A&D sales, favorable product mix, as well as the benefit of our cost containment initiatives.

New orders in the third quarter increased $14 million primarily due to an increase in orders for defense electronics products.

New orders during the nine months ended September 30, 2024 increased $60 million primarily due to an increase in orders for defense electronics equipment, including embedded computing and tactical communications products.

Naval & Power

The following tables summarize sales, operating income and margin, and new orders within the Naval & Power segment.

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 % change 2024 2023 % change

4 unchanged sentences

Components of sales and operating income increase (decrease):

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2023 2024 vs.

2 unchanged sentences

Acquisitions 1 % — % 1 % — %

Foreign currency — % — % — % — %

Total 14 % 11 % 12 % 2 %

Sales in the Naval & Power segment are primarily to the naval defense and power & process markets, and, to a lesser extent, the aerospace defense market.

Sales in the second quarter increased $42 million, or 15%, to $323 million from the prior year period.

In the naval defense market, sales increased $26 million primarily d ue to higher demand on various submarine programs, partially offset by the timing of sales on the CVN-80 aircraft carrier program.

Sales in the third quarter increased $40 million, or 14%, to $327 million from the prior year period.

In the naval defense market, sales increased $31 million primarily due to increased production on Virginia-class and Columbia-class submarine programs and the CVN-81 aircraft carrier program, as well as higher growth on various next-generation submarine development programs.

Sales in the power & process market benefited $8 million primarily due to higher commercial nuclear aftermarket sales supporting the maintenance of operating reactors in the United States.

In the aerospace defense market, sales increases were primarily due to higher demand for arresting systems equipment supporting various domestic and international customers.

Sales during the six months ended June 30, 2024 increased $59 million, or 11%, to $605 million from the prior year period.

In the naval defense market, sales increased $28 million primarily due to higher demand on various submarine programs.

Sales in the aerospace defense market benefited $16 million primarily due to higher demand for arresting systems equipment supp orting various domestic and international customers.

In the power & process market, sales increased $14 million primarily due to higher commercial nuclear aftermarket sales supporting the maintenance of operating reactors in North America, partially offset by the wind-down on the China Direct AP1000 program.

Operating income in the second quarter decreased $1 million, or 1%, to $46 million, and operating margin decreased 240 basis points from the prior year period to 14.3%, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition was more than offset by unfavorable product mix and the timing of development programs.

Sales during the nine months ended September 30, 2024 increased $98 million, or 12%, to $932 million from the prior year period.

In the naval defense market, sales increased $59 million primarily due to higher demand on various submarine programs as well as higher foreign military sales.

Sales in the power & process market increased $21 million primarily due to higher commercial nuclear aftermarket sales supporting the maintenance of operating reactors in North America, partially offset by the wind-down on the China Direct AP1000 program.

In the aerospace defense market, sales increased $17 million primarily due to higher demand for arresting systems equipment supporting various domestic and international customers.

Operating income in the third quarter increased $5 million, or 11%, to $53 million against the comparable prior year period, while operating margin decreased 40 basis points from the prior year period to 16.2%, as favorable overhead absorption on

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

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FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

Operating income during the six months ended June 30, 2024 decreased $3 million, or 4% , to $81 million, and operating margin decreased 200 basis points from the prior year period to 13.5%, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition was more than offset by an unfavorable naval contract adjustment as well as unfavorable product mix.

New orders in the second quarter and six months ended June 30, 2024 increased $130 million and $267 million, respectively, primarily due to an increase in naval defense orders.

higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition were partially offset by unfavorable product mix and the timing of development programs.

Operating income during the nine months ended September 30, 2024 increased $2 million, or 2% , to $135 million while operating margin decreased 150 basis points from the prior year period to 14.4%, as favorable overhead absorption on higher sales as well as the absence of first year purchase accounting costs from our arresting systems acquisition were essentially offset by an unfavorable naval contract adjustment, unfavorable product mix, and the timing of development programs.

New orders in the third quarter decreased $6 million primarily due to the timing of naval defense orders.

New orders during the nine months ended September 30, 2024 increased $261 million primarily due to an increase in naval defense orders.

SUPPLEMENTARY INFORMATION

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The table has been included to supplement the discussion of our consolidated operating results.

Total Net Sales by End Market and Customer Type Three Months Ended Six Months Ended

June 30, June 30,

Total Net Sales by End Market and Customer Type Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands) 2024 2023 % change 2024 2023 % change

11 unchanged sentences

Aerospace & Defense markets

Sales in the second quarter increased $76 million, or 16%, to $542 million against the comparable prior year period, primarily due to higher sales across all markets.

Sales in the aerospace defense market increased primarily due to higher demand for both arresting systems equipment supporting various domestic and international customers as well as embedded computing equipment on various domestic and international helicopter programs.

I n the ground defense market, sales increased primarily due to higher demand for tactical battlefield communications equipment.

Sales increases in the naval defense market were primarily due to higher demand on various submarine programs.

In the commercial aerospace market, sales increased primarily due to higher demand for OEM sensors and actuation products, as well as surface treatment services, on narrowbody and widebody platforms.

Sales during the six months ended June 30, 2024 increased $158 million, or 18%, to $1,032 million, primarily due to higher sales across all markets.

Sales in the third quarter increased $75 million, or 15%, to $566 million against the comparable prior year period, due to higher sales across all markets.

Sales in the aerospace defense market increased primarily due to higher demand for embedded computing equipment on various domestic and international helicopter programs.

In the ground defense market, sales increased primarily due to higher demand for tactical battlefield communications equipment.

Sales increases in the naval defense market were primarily due to higher demand on various submarine programs as well as the CVN-81 aircraft carrier program.

In the commercial aerospace market, sales increased primarily due to higher demand for actuation and sensors products, as well as surface treatment services, on various narrow-body and wide-body platforms, and higher demand for avionics equipment on various domestic helicopter programs.

Sales during the nine months ended September 30, 2024 increased $233 million, or 17%, to $1,599 million, primarily due to higher sales across all markets.

Sales in the ground defense market increased primarily due to higher demand for tactical battlefield communications equipment.

Sales increases in the naval defense market were primarily due to higher demand on various submarine programs.

Sales in the commercial aerospace market primarily benefited from higher demand for OEM sensors and actuation products, surface treatment services on narrowbody and widebody platforms, as well as OEM avionics and electronics on various platforms.

Sales increases in the naval defense market were primarily due to

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

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FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

higher demand on various submarine programs as well as higher foreign military sales.

Commercial markets

Sales in the second quarter increased $4 million, or 2%, to $243 million.

Sales in the power & process market primarily benefited from higher commercial nuclear aftermarket sales supporting the maintenance of operating reactors in the United States.

In the general industrial market, higher sales of surface treatment services were more than offset by reduced sales of industrial vehicle products to off-highway vehicle platforms.

Sales during the six months ended June 30, 2024 increased $5 million, or 1%, to $465 million.

Sales in the third quarter of $233 million were essentially flat against the comparable prior year period.

Sales in the power & process market benefited from higher commercial nuclear aftermarket sales supporting the maintenance of operating reactors in the United States.

This increase was essentially offset by lower sales of industrial vehicle products to off-highway vehicle platforms in the general industrial market.

Sales during the nine months ended September 30, 2024 increased $4 million, or 1%, to $698 million.

Sales in the power & process market primarily benefited from higher commercial nuclear aftermarket sales supporting the maintenance of operating reactors in North America, partially offset by the wind-down on the China Direct AP1000 program.

6 unchanged sentences

In some cases, these payments can exceed the costs incurred on a project.

Condensed Consolidated Statements of Cash Flows Six Months Ended

(In thousands) June 30, 2024 June 30, 2023

Condensed Consolidated Statements of Cash Flows Nine Months Ended

(In thousands) September 30, 2024 September 30, 2023

Cash provided by (used for):

6 unchanged sentences

Effect of exchange-rate changes on cash 7,078 2,737

Net decrease in cash and cash equivalents (24,303) (98,237)

Net increase (decrease) in cash and cash equivalents 36,983 (108,165)

Net cash provided by operating activities increased $77 million from the prior year period, primarily due to higher cash earnings and improved working capital.

1 unchanged sentence

Net cash used for financing activities decreased $102 million from the prior year period, primarily due to the repayment of our 2013 Notes in February 2023.

This decrease was partially offset by lower current period net borrowings under our credit facility.

This decrease was partially offset by higher share repurchases during the current period.

Refer to the "Financing Activities" section below for further details.

Financing Activities

The Corporation’s debt outstanding had an average intere st rate of 3.8% for both the three and six months ended June 30, 2024, respectively, and 4.1% and 4.0% for the three and six months ended June 30, 2023, respectively.

The Corporation’s average debt outstanding wa s $1.0 billion for b oth the three and six months ended June 30, 2024, respectively, and $1.3 billion and $1.2 billion for the t hree and six months ended June 30, 2023, respectively.

Credit Agreement

The Corporation’s debt outstanding had an average interest rate of 3.8% for both the three and nine months ended September 30, 2024, respectively, and 4.0% for both the three and nine months ended September 30, 2023, respectively.

The Corporation’s average debt outstanding was $1.0 billion for both the three and nine months ended September 30, 2024, respectively, and $1.1 billion and $1.2 billion for the three and nine months ended September 30, 2023, respectively.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

2 unchanged sentences

FINANCIAL CONDITION and RESULTS OF OPERATIONS, continued

As of June 30, 2024, the Corporation had approximately $18 million in letters of credit supported by the Credit Agreement.

The unused credit available under the Credit Agreement as of June 30, 2024 was $732 million, which could be borrowed without violating any of our debt covenants.

Credit Agreement

As of September 30, 2024, the Corporation had $20 million in letters of credit supported by the Credit Agreement.

The unused credit available under the Credit Agreement as of September 30, 2024 was $730 million, which could be borrowed without violating any of our debt covenants.

Repurchase of common stock

During the six months ended June 30, 2024, the Corporation used $25 million of cash to repurchase approximately 0.1 million outstanding shares under its share repurchase program.

During the six months ended June 30, 2023, the Corporation used $24 million of cash to repurchase approximately 0.1 million outstanding shares under its share repurchase program.

During the nine months ended September 30, 2024, the Corporation used $138 million of cash to repurchase approximately 0.5 million outstanding shares under its share repurchase program.

During the nine months ended September 30, 2023, the Corporation used $37 million of cash to repurchase approximately 0.2 million outstanding shares under its share repurchase program.

Cash Utilization

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We believe that our cash and cash equivalents, cash flow from operations, available borrowings under the credit facility, and ability to raise additional capital through the credit markets are sufficient to meet both the short-term and long-term capital needs of the organization.

The Corporation made dividend payments of $8 million and $7 million during the six months ended June 30, 2024 and June 30, 2023, respectively.

Additionally, beginning in the second quarter, the Corporation increased its quarterly dividend to $0.21 per share.

The Corporation made dividend payments of $16 million and $15 million during the nine months ended September 30, 2024 and September 30, 2023, respectively.

Additionally, beginning in the second quarter of 2024, the Corporation increased its quarterly dividend to $0.21 per share.

Debt Compliance

1 unchanged sentence

The debt to capitalization limit is a measure of our indebtedness (as defined per the notes purchase agreement and credit facility) to capitalization, where capitalization equals debt plus equity, and is the same for and applies to all of our debt agreements and credit facility.

As of June 30, 2024, we had the ability to borrow additional debt of $2.6 billion without violating our debt to capitalization covenant.

As of September 30, 2024, we had the ability to borrow additional debt of $2.6 billion without violating our debt to capitalization covenant.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

10 unchanged sentences

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risk during the six months ended June 30, 2024.

There have been no material changes in our market risk during the nine months ended September 30, 2024.

Information regarding market risk and market risk management policies is more fully described in "Item 7A.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements