8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2019

CURTISS-WRIGHT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware	1-134	13-0612970
State or Other	Commission File	IRS Employer
Jurisdiction of	Number	Identification No.
Incorporation or
Organization

130 Harbour Place Drive, Suite 300
Davidson, North Carolina	28036
Address of Principal Executive Offices	Zip Code

Registrant's telephone number, including area code: (704) 869-4600

--------------

(Former name or former address, if changed since last report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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SECTION 2 – FINANCIAL INFORMATION

ITEM 2.02.   RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On Tuesday, February 26, 2019, the Company issued a press release announcing financial results for the fourth quarter and full year ended December 31, 2018.  A conference call and webcast presentation will be held on Wednesday, February 27, 2019 at 9:00 am EST for management to discuss the Company’s fourth quarter and full-year 2018 performance as well as expectations for 2019 financial performance. David C. Adams, Chairman and CEO, and Glenn E. Tynan, Vice President and CFO, will host the call.  A copy of the press release and the webcast slide presentation are attached hereto as Exhibits 99.1 and 99.2.

The financial press release, access to the webcast, and the accompanying financial presentation will be posted on Curtiss-Wright's website at www.curtisswright.com. In addition, the Listen-Only dial-in number for domestic callers is (844) 220-4970, while international callers can dial (262) 558-6349.  For those unable to participate live, a webcast replay will be available for 90 days on the Company's website beginning one hour after the call takes place. A conference call replay will also be available for seven days.

Conference Call Replay:

Domestic(855) 859-2056

International (404) 537-3406

Passcode 4269278

The information contained in this Current Report, including Exhibits 99.1 and 99.2, are being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this report shall not be incorporated by reference into any filing of the registrant with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filings.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

         (a)  Not applicable.

         (b)  Not applicable.

         (c)  Exhibits.

99.1 Press Release dated February 26, 2019

99.2 Presentation shown during investor and securities analyst webcast on February 27, 2019

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CURTISS-WRIGHT CORPORATION
By:	/s/ Glenn E. Tynan
	Glenn E. Tynan
	Vice-President and
	Chief Financial Officer

Date:February 26, 2019

3

EXHIBIT INDEX

Exhibit	Description
Number
99.1	Press Release dated February 26, 2019
99.2	Presentation shown during investor and securities analyst webcast on February 27, 2019

4

EX-99.1

Exhibit 99.1

Exhibit 99.1

Curtiss-Wright Reports Fourth Quarter and Full-Year 2018 Financial Results; Full-Year 2019 Guidance Reflects Higher Sales, Operating Margin, EPS and Free Cash Flow

DAVIDSON, N.C.--(BUSINESS WIRE)--February 26, 2019--Curtiss-Wright Corporation (NYSE: CW) reports financial results for the fourth quarter and full-year ended December 31, 2018.

Fourth Quarter 2018 Highlights

• Reported diluted earnings per share (EPS) of $1.89, with Adjusted diluted EPS of $1.90, up 25% compared with the prior year (defined below);
• Free cash flow of $214 million, up 3%;
• Net sales of $649 million, up 6%, including 3% organic growth (defined below);
• Reported and Adjusted operating income of $110 million, up 4% and 5%, respectively;
• Reported and Adjusted operating margin of 17.0%, down 20 basis points;
• New orders of $608 million, up 7%; and
• Share repurchases of approximately $119 million, or 1.1 million shares.

Full-Year 2018 Highlights

• Reported diluted EPS of $6.22, with Adjusted diluted EPS of $6.37, up 28% compared with the prior year, reflecting increased profitability in all three segments;
• Adjusted free cash flow of $333 million and Adjusted free cash flow conversion of 121%;
• Net sales of $2.4 billion, up 6%, including 3% organic growth, driven by higher sales in all end markets;
• Reported operating income of $374 million, with Adjusted operating income of $382 million, up 14%;
• Reported operating margin of 15.5%, with Adjusted operating margin of 15.8%, up 110 basis points;
• Effective tax rate of 22.6%;
• New orders of $2.4 billion increased 6%, while Backlog of $2.0 billion increased 1% from December 31, 2017; and
• Share repurchases of approximately $199 million, or 1.7 million shares.

Full-Year 2019 Business Outlook

• Expect solid growth in sales (up 3-5%), driven by increases in all end markets;
• Anticipate higher operating income (up 4-6%), operating margin of 15.9% to 16.0% (up 10-20 basis points) and diluted earnings per share of $6.80 to $6.95 (up 7-9%), compared with Adjusted full-year 2018;
• Commercial/Industrial segment - improved profitability due to higher sales and benefits of our ongoing margin improvement initiatives, partially offset by $4 million for tariffs and a $3 million increase in R&D investments;
• Defense segment - reduced profitability, despite higher sales, due to a $5 million increase in R&D investments;
• Power segment - reduced profitability, despite solid sales growth, due to $6 million for transition and IT security costs related to the relocation of our DRG business and a $2 million increase in R&D investments;
• Absent these R&D investments, tariffs and DRG relocation costs, all three segments are expected to produce solid year-over-year operating margin expansion; and
• Expect Reported free cash flow to range from $300 to $310 million, with Adjusted free cash flow to range from $320 to $330 million, excluding a $20 million capital investment in the Power segment related to construction of a new, state-of-the-art naval facility principally for the DRG business.

“We delivered strong Adjusted diluted EPS of $1.90 in the fourth quarter, driven by better than expected operational performance in the Power segment,” said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. “We reported a 6% increase in sales, led by a solid contribution from the DRG acquisition, as well as strong organic growth across all of our commercial markets. Further, we generated $214 million in free cash flow, driving 259% free cash flow conversion in the quarter.

“Full-year 2018 Adjusted diluted EPS of $6.37 exceeded our expectations, driven by a strong operational performance which included 6% top-line growth with higher sales in all end markets, and strong profitability that generated a 15.8% Adjusted operating margin, the highest level of profitability achieved by Curtiss-Wright in recent history. Full-year Adjusted free cash flow of $333 million was also strong, and enabled us to return nearly $200 million to shareholders through share repurchase activity this past year.

“For 2019, we are projecting another solid performance, as we expect higher sales in all end markets and overall improved operating profitability, despite a planned ramp up in research and development costs and other strategic growth investments, to drive operating margin to approximately 16.0%. These investments remain critical to supporting our objectives for long-term profitable growth and maintaining top-quartile financial performance for all of our key financial metrics, in order to generate significant value for our shareholders.”

Fourth Quarter 2018 Operating Results
(In millions)	4Q-2018			4Q-2017			Change
Sales	$	648.6		$	611.9		6%
Reported operating income	$	110.0		$	105.3		4%
Adjustments (1)		0.4			-		-
Adjusted operating income	$	110.4		$	105.3		5%
Adjusted operating margin		17.0	%		17.2	%	(20 bps)
(1)  Includes one-time Inventory Step-up, Backlog Amortization and Transaction costs for current and prior year acquisitions.

• Sales of $649 million up $37 million, or 6%, compared with the prior year (3% organic, 4% acquisitions, 1% unfavorable foreign currency translation);
• From an end market perspective, total sales to the defense markets increased 5%, as higher naval defense revenues associated with the DRG acquisition more than offset reduced revenues in the aerospace defense market, while total sales to the commercial markets increased 7%, led by higher power generation revenues from the China Direct AP1000 program and nuclear aftermarket, compared with the prior year. Please refer to the accompanying tables for a breakdown of sales by end market;
• Reported operating income was $110 million, with Reported operating margin of 17.0%;
• Adjusted operating income of $110 million, up $5 million, or 5%, compared with the prior year, principally reflects higher power generation revenues and the contribution from our DRG acquisition in the Power segment, partially offset by reduced revenues and operating income in the Defense segment;
• Adjusted operating margin of 17.0%, essentially flat compared with the prior year, reflects higher revenues and favorable overhead absorption in the Power segment, offset by reduced revenues and increased research and development expenses in the Defense segment, and the negative impact from tariffs (as expected and included in prior guidance) and restructuring charges in the Commercial/Industrial segment; and
• Non-segment expenses of $9 million were flat compared with the prior year, as lower pension costs were offset by higher environmental costs.

Net Earnings and Diluted EPS
(In millions, except EPS)	4Q-2018			4Q-2017		Change
Reported net earnings	$	82.8		$	67.8	22	%
Adjustments (1)		0.4			-	-
Tax impact on Adjustments (1)		(0.1	)		-	-
Adjusted net earnings	$	83.2		$	67.8	23	%
Reported diluted EPS	$	1.89		$	1.52	25	%
Adjustments (1)	$	0.01			-	-
Tax impact on Adjustments (1)		($0.00	)		-	-
Adjusted diluted EPS	$	1.90		$	1.52	25	%
(1)  Includes one-time Inventory Step-up, Backlog Amortization and Transaction costs for current and prior year acquisitions.

• Reported net earnings of $83 million and Reported diluted EPS of $1.89;
• Adjusted net earnings of $83 million, up $15 million, or 23%, compared with the prior year, reflecting higher operating income, lower interest expense and a lower tax rate;
• Adjusted diluted earnings per share of $1.90, up $0.38, or 25%, compared with the prior year, reflecting higher operating income, lower interest expense and a lower tax rate, as well as a lower share count; and
• The effective tax rate (ETR) was 21.7%, a decrease from 31.8% in the prior year quarter, primarily driven by the reduction of the U.S. corporate income tax rate from 35% to 21% associated with the 2017 Tax Cuts and Jobs Act (TCJA).

Free Cash Flow
(In millions)	4Q-2018			4Q-2017			Change
Net cash provided by operating activities	$	237.3		$	226.4		5	%
Capital expenditures		(23.1	)		(17.8	)	(30	%)
Free cash flow	$	214.2		$	208.6		3	%

• Free cash flow of $214 million, defined as cash flow from operations less capital expenditures, increased $6 million compared with the prior year, as higher cash earnings and lower taxes were largely offset by the timing of collections; and
• Capital expenditures increased by $5 million to $23 million compared with the prior year, due to higher capital investments within the Power segment.

New Orders and Backlog

• During the fourth quarter, new orders of $608 million increased 7% compared with the prior year, led by solid growth in aerospace and naval defense orders, including the contribution from the DRG acquisition;
• For full-year 2018, new orders of $2.4 billion increased 6% compared with the prior year; and
• Backlog of $2.0 billion increased 1% from December 31, 2017.

Other Items – Share Repurchase

• During the fourth quarter, the Company repurchased 1.1 million shares of its common stock for approximately $119 million, increasing full-year 2018 repurchase activity to 1.7 million shares for approximately $199 million.

Fourth Quarter 2018 Segment Performance

Commercial/Industrial
(In millions)	4Q-2018			4Q-2017			Change
Sales	$	304.8		$	298.3		2	%
Reported operating income	$	46.9		$	47.3		(1	%)
Reported operating margin		15.4	%		15.8	%	(40 bps)

• Sales of $305 million, up $7 million, or 2%, compared with the prior year (3% organic, 1% unfavorable foreign currency translation);
• Defense market sales were down slightly, as lower sales of sensors and controls products on various fighter jet programs in the aerospace defense market were partially offset by higher sales of valves on the Virginia class submarine program in the naval defense market;
• Commercial aerospace market sales growth reflects higher OEM sales of sensors and controls products and surface treatment services;
• General industrial market sales growth was principally driven by solid demand for industrial valves;
• Reported operating income of $47 million, down less than $1 million, or 1%, compared with the prior year ((2%) organic, 1% favorable foreign currency translation), as the benefit from higher sales was offset by the impact from tariffs and restructuring charges; and
• Reported operating margin decreased 40 basis points to 15.4%, principally reflecting the aforementioned impact from tariffs and restructuring, partially offset by higher sales and improved profitability for sensors and controls products; Operating margin would have increased 60 basis points excluding the impact from tariffs and restructuring charges.

Defense
(In millions)	4Q-2018			4Q-2017			Change
Sales	$	150.9		$	172.5		(13	%)
Reported operating income	$	36.5		$	43.5		(16	%)
Reported operating margin		24.2	%		25.2	%	(100 bps)

• Sales of $151 million, down $22 million, or 13%, compared with the prior year ((12%) organic, 1% unfavorable foreign currency translation);
• Aerospace defense market sales declines reflect reduced sales of flight test equipment on fighter jet and bomber programs, as well as lower sales of embedded computing equipment on unmanned aerial vehicle (UAV) platforms;
• Naval defense market revenue declines principally reflect reduced sales of embedded computing and aircraft handling equipment on various naval defense platforms;
• Commercial aerospace market sales declines principally reflect reduced sales of avionics and electronics equipment on various domestic and international platforms; and
• Reported operating income of $36 million, down $7 million, or 16%, compared with the prior year, while reported operating margin decreased 100 basis points to 24.2%, driven by lower sales and higher research and development expenses, as expected, to support future organic growth initiatives, partially offset by favorable mix for our embedded computing products.

Power
(In millions)	4Q-2018			4Q-2017			Change
Sales	$	192.9		$	141.0		37%
Reported operating income	$	36.1		$	23.9		51%
Adjustments (1)		0.4			-		-
Adjusted operating income	$	36.5		$	23.9		52%
Adjusted operating margin		18.9	%		17.0	%	190 bps
(1)  Includes one-time Inventory Step-up, Backlog Amortization and Transaction costs for current and prior year acquisitions.

• Sales of $193 million, up $52 million, or 37%, compared with the prior year (21% organic, 16% acquisition);
• Strong naval defense market sales were driven by higher CVN-80 aircraft carrier revenues and solid DRG service center revenues;
• Strong power generation market sales reflect higher revenues on the China Direct AP1000 program as well as solid growth in domestic aftermarket sales supporting currently operating nuclear reactors;
• Reported operating income was $36 million, with Reported operating margin of 18.7%; and
• Adjusted operating income of $36 million, up $13 million, or 52%, compared with the prior year, while Adjusted operating margin increased 190 basis points to 18.9%, reflecting higher naval defense and power generation revenues, favorable overhead absorption and increased profitability on the China Direct AP1000 program.

Full-Year 2019 Guidance
The Company is issuing full-year 2019 financial guidance as follows:
(In millions, except EPS)	2018 Reported	2018 Adjustments (1)(2)	2018 Adjusted (1)(2)	2019E Reported Guidance	2019 Adjustments (3)	2019E Adjusted Guidance
Total Sales	$2,412	-	$2,412	$2,490 - $2,535	-	$2,490 - $2,535
Operating Income	$374	$9	$382	$396 - $405	-	$396 - $405
Operating Margin	15.5%	30 bps	15.8%	15.9% - 16.0%	-	15.9% - 16.0%
Effective Tax Rate	22.6%	-	22.6%	23.0%	-	23.0%
Diluted EPS	$6.22	$0.15	$6.37	$6.80 - $6.95	-	$6.80 - $6.95
Diluted Shares Outstanding	44.3	-	44.3	43.4	-	43.4
Free Cash Flow	$283	$50	$333	$300 - $310	$20	$320 - $330
(1) 2018 Adjusted results for operating income, operating margin and diluted EPS exclude the one-time Inventory Step-up, Backlog Amortization and Transaction costs for current and prior year acquisitions.
(2) 2018 Adjusted results for free cash flow exclude a $50 million voluntary pension contribution made in the first quarter of 2018.
(3) 2019 Adjusted results exclude a $20 million capital investment in the Power segment related to the construction of a new, state-of-the-art naval facility principally for DRG.

Full-year 2019 guidance notes:

• Expect solid growth in sales (up 3-5%), driven by increases in all end markets;
• Anticipate higher operating income (up 4-6%), operating margin of 15.9% to 16.0% (up 10-20 basis points) and diluted earnings per share of $6.80 to $6.95 (up 7-9%), compared with Adjusted full-year 2018;
• Commercial/Industrial segment - improved profitability due to higher sales and benefits of our ongoing margin improvement initiatives, partially offset by $4 million for tariffs and a $3 million increase in R&D investments;
• Defense segment - reduced profitability, despite higher sales, due to a $5 million increase in R&D investments;
• Power segment - reduced profitability, despite solid sales growth, due to $6 million for transition and IT security costs related to the relocation of our DRG business and a $2 million increase in R&D investments;
• Absent these R&D investments, tariffs and DRG relocation costs, all three segments are expected to produce solid year-over-year operating margin expansion;
• Reflects lower share count driven by 2018 share repurchase activity; and
• A more detailed breakdown of the Company’s 2019 guidance by segment and by market can be found in the accompanying schedules.

Conference Call & Webcast Information

The Company will host a conference call to discuss fourth quarter and full-year 2018 financial results and expectations for 2019 guidance at 9:00 a.m. EST on Wednesday, February 27, 2019. A live webcast of the call and the accompanying financial presentation, as well as a replay of the call, will be made available on the internet by visiting the Investor Relations section of the Company’s website at www.curtisswright.com.

(Tables to Follow)

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
($'s in thousands, except per share data)
	Three Months Ended											Year Ended
	December 31,						Change					December 31,						Change
	2018			2017			$			%		2018			2017			$			%
Product sales	$	541,689		$	503,140		$	38,549		8	%	$	1,993,249		$	1,854,216		$	139,033		7	%
Service sales	106,933			108,741			(1,808		)	(2	%)	418,586			416,810			1,776			0	%
Total net sales	648,622			611,881			36,741			6	%	2,411,835			2,271,026			140,809			6	%
Cost of product sales	336,402			311,570			24,832			8	%	1,272,599			1,198,881			73,718			6	%
Cost of service sales	71,168			68,967			2,201			3	%	267,975			271,360			(3,385		)	(1	%)
Total cost of sales	407,570			380,537			27,033			7	%	1,540,574			1,470,241			70,333			5	%
Gross profit	241,052			231,344			9,708			4	%	871,261			800,785			70,476			9	%
Research and development expenses	19,291			15,188			4,103			27	%	64,525			61,393			3,132			5	%
Selling expenses	32,095			34,108			(2,013		)	(6	%)	126,641			121,873			4,768			4	%
General and administrative expenses	79,661			76,766			2,895			4	%	306,469			292,399			14,070			5	%
Operating income	110,005			105,282			4,723			4	%	373,626			325,120			48,506			15	%
Interest expense	8,264			9,887			(1,623		)	(16	%)	33,983			41,471			(7,488		)	(18	%)
Other income, net	4,099			3,937			162			4	%	16,596			15,970			626			4	%
Earnings before income taxes	105,840			99,332			6,508			7	%	356,239			299,619			56,620			19	%
Provision for income taxes	(23,005		)	(31,582		)	8,577			27	%	(80,490		)	(84,728		)	4,238			5	%
Net earnings	$	82,835		$	67,750		$	15,085		22	%	$	275,749		$	214,891		$	60,858		28	%
Net earnings per share:
Basic earnings per share	$	1.91		$	1.54							$	6.28		$	4.86
Diluted earnings per share	$	1.89		$	1.52							$	6.22		$	4.80
Dividends per share	$	0.15		$	0.15							$	0.60		$	0.56
Weighted average shares outstanding:
Basic	43,447			44,132								43,892			44,182
Diluted	43,782			44,692								44,316			44,761

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($'s in thousands, except par value)
		December 31,			December 31,			Change
		2018			2017			%
Assets
Current assets:
	Cash and cash equivalents	$	276,066		$	475,120		(42	%)
	Receivables, net	593,755			494,923			20	%
	Inventories, net	423,426			378,866			12	%
	Other current assets	50,719			52,951			(4	%)
	Total current assets	1,343,966			1,401,860			(4	%)
Property, plant, and equipment, net		374,660			390,235			(4	%)
Goodwill		1,088,032			1,096,329			(1	%)
Other intangible assets, net		429,567			329,668			30	%
Other assets		19,160			18,229			5	%
	Total assets	$	3,255,385		$	3,236,321		1	%
Liabilities
Current liabilities:
	Current portion of long-term and short term debt	$	243		$	150		62	%
	Accounts payable	232,983			185,176			26	%
	Accrued expenses	166,954			150,406			11	%
	Income taxes payable	5,811			4,564			27	%
	Deferred revenue	236,508			214,891			10	%
	Other current liabilities	44,829			35,810			25	%
	Total current liabilities	687,328			590,997			16	%
Long-term debt, net		762,313			813,989			(6	%)
Deferred tax liabilities, net		47,121			49,360			(5	%)
Accrued pension and other postretirement benefit costs		101,227			121,043			(16	%)
Long-term portion of environmental reserves		15,777			14,546			8	%
Other liabilities		110,838			118,586			(7	%)
	Total liabilities	1,724,604			1,708,521			1	%
Stockholders' equity
Common stock, $1 par value		$	49,187		$	49,187		0	%
Additional paid in capital		118,234			120,609			(2	%)
Retained earnings		2,191,471			1,944,324			13	%
Accumulated other comprehensive loss		(288,447		)	(216,840		)	33	%
Less: cost of treasury stock		(539,664		)	(369,480		)	46	%
	Total stockholders' equity	1,530,781			1,527,800			0	%
	Total liabilities and stockholders' equity	$	3,255,385		$	3,236,321		1	%

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
SEGMENT INFORMATION (UNAUDITED)
($'s in thousands)
	Three Months Ended								Year Ended
	December 31,								December 31,
							Change								Change
	2018			2017			%		2018			2017			%
Sales:
Commercial/Industrial	$	304,835		$	298,329		2	%	$	1,209,178		$	1,162,689		4	%
Defense	150,924			172,511			(13	%)	554,374			555,479			0	%
Power	192,863			141,041			37	%	648,283			552,858			17	%
Total sales	$	648,622		$	611,881		6	%	$	2,411,835		$	2,271,026		6	%
Operating income (expense):
Commercial/Industrial	$	46,922		$	47,272		(1	%)	$	182,669		$	168,146		9	%
Defense	36,462			43,538			(16	%)	128,446			109,338			17	%
Power	36,066			23,928			51	%	98,858			81,119			22	%
Total segments	$	119,450		$	114,738		4	%	$	409,973		$	358,603		14	%
Corporate and other	(9,445		)	(9,456		)	0	%	(36,347		)	(33,483		)	(9	%)
Total operating income	$	110,005		$	105,282		4	%	$	373,626		$	325,120		15	%
Operating margins:
Commercial/Industrial	15.4		%	15.8		%	(40	bps)	15.1		%	14.5		%	60	bps
Defense	24.2		%	25.2		%	(100	bps)	23.2		%	19.7		%	350	bps
Power	18.7		%	17.0		%	170	bps	15.2		%	14.7		%	50	bps
Total Curtiss-Wright	17.0		%	17.2		%	(20	bps)	15.5		%	14.3		%	120	bps
Segment margins	18.4		%	18.8		%	(40	bps)	17.0		%	15.8		%	120	bps

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
SALES BY END MARKET (UNAUDITED)
($'s in thousands)
	Three Months Ended						Year Ended
	December 31,						December 31,
					Change						Change
	2018		2017		%		2018		2017		%
Defense markets:
Aerospace	$	104,142	$	112,193	(7	%)	$	376,951	$	372,678	1	%
Ground	28,667		29,518		(3	%)	97,131		96,042		1	%
Naval	134,020		112,371		19	%	486,476		408,221		19	%
Total Defense	$	266,829	$	254,082	5	%	$	960,558	$	876,941	10	%
Commercial markets:
Aerospace	$	108,529	$	105,457	3	%	$	414,422	$	409,384	1	%
Power Generation	124,317		109,742		13	%	431,793		423,747		2	%
General Industrial	148,947		142,600		4	%	605,062		560,954		8	%
Total Commercial	$	381,793	$	357,799	7	%	$	1,451,277	$	1,394,085	4	%
Total Curtiss-Wright	$	648,622	$	611,881	6	%	$	2,411,835	$	2,271,026	6	%

Use of Non-GAAP Financial Information (Unaudited)

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 non-GAAP measures provide investors with additional insight into the Company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. Curtiss-Wright encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

Organic Revenue and Organic Operating Income

The Corporation discloses organic revenue and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance. Organic revenue and organic operating income are defined as revenue and operating income excluding the impact of foreign currency fluctuations and contributions from acquisitions made during the last twelve months.

Three Months Ended
December 31,
2018 vs. 2017
	Commercial/Industrial				Defense				Power				Total Curtiss-Wright
	Sales		Operating income		Sales		Operating income		Sales		Operating income		Sales		Operating income
Organic	3	%	(2	%)	(12	%)	(18	%)	21	%	37	%	3	%	0	%
Acquisitions	0	%	0	%	0	%	0	%	16	%	14	%	4	%	3	%
Foreign Currency	(1	%)	1	%	(1	%)	2	%	0	%	0	%	(1	%)	1	%
Total	2	%	(1	%)	(13	%)	(16	%)	37	%	51	%	6	%	4	%
	Year Ended
	December 31,
	2018 vs. 2017
	Commercial/Industrial				Defense				Power				Total Curtiss-Wright
	Sales		Operating income		Sales		Operating income		Sales		Operating income		Sales		Operating income
Organic	3	%	7	%	(1	%)	17	%	6	%	21	%	3	%	14	%
Acquisitions	0	%	0	%	0	%	0	%	11	%	1	%	3	%	0	%
Foreign Currency	1	%	2	%	1	%	0	%	0	%	0	%	0	%	1	%
Total	4	%	9	%	0	%	17	%	17	%	22	%	6	%	15	%

Free Cash Flow and Free Cash Flow Conversion

The Corporation discloses free cash flow because it measures cash flow available for investing and financing activities. Free cash flow represents cash available to repay outstanding debt, invest in the business, acquire businesses, return capital to shareholders and make other strategic investments. Free cash flow is defined as cash flow provided by operating activities less capital expenditures. The Corporation discloses free cash flow conversion because it measures the proportion of net earnings converted into free cash flow and is defined as free cash flow divided by net earnings from continuing operations.

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NON-GAAP FINANCIAL DATA (UNAUDITED)
($'s in thousands)
	Three Months Ended						Year Ended
	December 31,						December 31,
	2018			2017			2018			2017
Net cash provided by operating activities	$	237,298		$	226,405		$	336,273		$	388,712
Capital expenditures	(23,130		)	(17,831		)	(53,417		)	(52,705		)
Free cash flow	$	214,168		$	208,574		$	282,856		$	336,007
Pension payment	—			—			50,000
Adjusted free cash flow	$	214,168		$	208,574		$	332,856		$	336,007
Free Cash Flow Conversion	259		%	308		%	121		%	156		%

CURTISS-WRIGHT CORPORATION
2019 Guidance
As of February 26, 2019
($'s in millions, except per share data)
	2018 Reported (GAAP)			2018 Adjustments (1) (Non-GAAP)			2018 Adjusted (Non-GAAP)			2019 Reported Guidance (2)(3)(4) (GAAP)
										Low			High			2019 Chg vs 2018 Adjusted
Sales:
Commercial/Industrial	$	1,209		$	-		$	1,209		$	1,245		$	1,270
Defense		554			-			554			565			575
Power		648			-			648			680			690
Total sales	$	2,412		$	-		$	2,412		$	2,490		$	2,535		3 to 5%
Operating income:
Commercial/Industrial	$	183		$	-		$	183		$	193		$	198
Defense		128			-			128			128			131
Power		99			9			108			109			111
Total segments		410			9			419			430			440
Corporate and other		(36	)		-			(36	)		(34	)		(36	)
Total operating income	$	374		$	9		$	382		$	396		$	405		4 to 6%
Interest expense	$	(34	)	$	-		$	(34	)	$	(33	)	$	(33	)
Other income, net		17			-			17			19			19
Earnings before income taxes		356			9			365			383			391
Provision for income taxes		(81	)		(2	)		(83	)		(88	)		(90	)
Net earnings	$	276		$	7		$	282		$	295		$	301
Diluted earnings per share	$	6.22		$	0.15		$	6.37		$	6.80		$	6.95		7 to 9%
Diluted shares outstanding		44.3						44.3			43.4			43.4
Effective tax rate		22.6	%					22.6	%		23.0	%		23.0	%
Operating margins:
Commercial/Industrial		15.1	%		-			15.1	%		15.5	%		15.6	%	40 to 50 bps
Defense		23.2	%		-			23.2	%		22.6	%		22.7	%	(50 to 60 bps)
Power		15.2	%	+140 bps				16.6	%		16.0	%		16.1	%	(50 to 60 bps)
Total operating margin		15.5	%	+30 bps				15.8	%		15.9	%		16.0	%	10 to 20 bps
Note: Full year amounts may not add due to rounding
(1) Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding the impact of first year purchase accounting costs associated with acquisitions for current and prior year periods, specifically one-time inventory step-up, backlog amortization and transaction costs.
(2) Commercial/Industrial segment 2019 guidance reflects improved profitability due to higher sales and benefits of our ongoing margin improvement initiatives, partially offset by $4 million for tariffs and a $3 million increase in R&D investments.
(3) Defense segment 2019 guidance reflects reduced profitability, despite higher sales, due to a $5 million increase in R&D investments.
(4) Power segment 2019 guidance reflects reduced profitability, despite solid sales growth, due to $6 million for transition and IT security costs related to the relocation of our DRG business and a $2 million increase in R&D investments.

CURTISS-WRIGHT CORPORATION
2019 Sales Growth Guidance by End Market
As of February 26, 2019
	2019 % Change vs 2018
Defense Markets
Aerospace	6 - 8%
Ground	5 - 7%
Navy	6 - 8%
Total Defense	6 - 8%
Commercial Markets
Commercial Aerospace	4 - 6%
Power Generation	1 - 3%
General Industrial	1 - 3%
Total Commercial	1 - 3%
Total Curtiss-Wright Sales	3 - 5%

CURTISS-WRIGHT CORPORATION
2017 Reconciliation Reported (GAAP)(1) to Adjusted (Non-GAAP) (2)
($'s in millions, except per share data)
	Reported 1Q 2017			Adjustments (Non-GAAP)			Adjusted 1Q 2017			Reported 2Q 2017			Adjustments (Non-GAAP)			Adjusted 2Q 2017			Reported 3Q 2017			Reported 4Q 2017			Reported FY 2017			Adjustments Non-GAAP)			Adjusted FY 2017
Sales:
Commercial/Industrial	$	279		$	-		$	279		$	292		$	-		$	292		$	294		$	298		$	1,163		$	-		$	1,163
Defense		115			-			115			126			-			126			142			173			555			-			555
Power		130			-			130			150			-			150			132			141			553			-			553
Total sales	$	524			-		$	524		$	568			-		$	568		$	568		$	612		$	2,271			-		$	2,271
Operating income:
Commercial/Industrial	$	31		$	-		$	31		$	44		$	-		$	44		$	47		$	47		$	168		$	-		$	168
Defense		11			5			16			21			5			26			34			44			109			10			119
Power		16			-			16			24			-			24			18			24			81			-			81
Total segments		57			5			62			89			5			94			98			115			359			10			368
Corporate and other		(10	)		-			(10	)		(9	)		-			(9	)		(6	)		(9	)		(34	)		-			(34	)
Total operating income	$	48		$	5		$	52		$	80		$	5		$	85		$	92		$	105		$	325		$	10		$	335
Interest expense	$	(10	)	$	-		$	(10	)	$	(11	)	$	-		$	(11	)	$	(10	)	$	(10	)	$	(41	)	$	-		$	(41	)
Other income, net		4			-			4			4			-			4			4			4			16			-			16
Earnings before income taxes		41			5			46			73			5			78			86			99			300			10			309
Provision for income taxes		(9	)		(1	)		(10	)		(22	)		(2	)		(24	)		(22	)		(32	)		(85	)		(3	)		(88	)
Net earnings	$	33		$	4		$	36		$	51		$	4		$	54		$	64		$	68		$	215		$	7		$	222
Diluted earnings per share	$	0.73		$	0.08		$	0.81		$	1.13		$	0.08		$	1.21		$	1.43		$	1.52		$	4.80		$	0.16		$	4.96
Diluted shares outstanding		44.9						44.9			44.8						44.8			44.7			44.7			44.8						44.8
Effective tax rate		20.9	%					20.9	%		30.3	%					30.3	%		26.0	%		31.8	%		28.3	%					28.3	%
Operating margins:
Commercial/Industrial		11.0	%					11.0	%		15.0	%					15.0	%		15.9	%		15.8	%		14.5	%					14.5	%
Defense		9.7	%	+395 bps				13.6	%		16.7	%	+410 bps				20.8	%		23.7	%		25.2	%		19.7	%	+170 bps				21.4	%
Power		11.9	%					11.9	%		15.9	%					15.9	%		13.5	%		17.0	%		14.7	%					14.7	%
Total operating margin		9.1	%	+90 bps				10.0	%		14.0	%	+100 bps				15.0	%		16.3	%		17.2	%		14.3	%	+40 bps				14.7	%
Note: Full year amounts may not add due to rounding
(1) Reported 2017 results reflect the retrospective impact from the adoption of ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which results in reclassification of the non-service components of Pension expense from Operating Income to Other Income/Expense effective for fiscal years beginning after December 15, 2017. This accounting change lowers operating income by $14.6 million and lowers operating margin by 70 basis points for the full-year 2017 period. This change is neutral to earnings per share.
(2) Adjusted operating income, operating margin and diluted EPS exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, associated with the acquisition of TTC in 2017 (Defense segment). First year purchase accounting costs in the third and fourth quarters of 2017 are not material.

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE: CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 9,000 people worldwide. For more information, visit www.curtisswright.com.

Certain statements made in this press release, including statements about future revenue, financial performance guidance, quarterly and annual revenue, net income, operating income growth, future business opportunities, cost saving initiatives, the successful integration of the Company’s acquisitions, and future cash flow from operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements present management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; a change in government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, electronics, marine, and industrial companies. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and subsequent reports filed with the Securities and Exchange Commission.

This press release and additional information are available at www.curtisswright.com.

CONTACT:
Jim Ryan
(704) 869-4621
Jim.Ryan@curtisswright.com

EX-99.2

Exhibit 99.2

 4Q and FY 2018 Earnings Conference CallFebruary 27, 2019  NYSE: CW 

 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 new information that may become available after the original presentation posting. The presentation contains forward-looking statements including, among other things, management's estimates of future performance, revenue and earnings, our management's growth objectives, our management’s ability to integrate our acquisition, and our management's ability to produce consistent operating improvements. These forward-looking statements are based on expectations as of the time the statements were made only, and are subject to a number of risks and uncertainties which could cause us to fail to achieve our then-current financial projections and other expectations. This presentation also includes certain non-GAAP financial measures with reconciliations to GAAP financial measures being made available in the earnings release that is posted to our website and furnished with the SEC. We undertake no duty to update this information. More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which is on file with the SEC and available at the SEC's website at www.sec.gov. 

 Agenda  Review of 4Q and Full-Year 2018 PerformanceDelivering Top Quartile PerformanceFull-Year 2019 Business Outlook China Direct AP1000 Program UpdateDRG Acquisition Integration and Capital InvestmentCapital Allocation Strategy UpdateNew 3-Year Targets 

 Fourth Quarter 2018 Highlights  Net Sales up 6% overall (3% organic)Driven by solid organic growth in all commercial marketsBenefit of DRG acquisition in Power segment (+$23M)Adjusted Operating Income up 5%; Adjusted Operating Margin of 17.0%Driven by higher sales and strong profitability in Power segmentAdjusted Diluted EPS of $1.90, up 25%Reflects higher sales and strong profitability in Power segment, lower tax rate and lower share countFree Cash Flow of $214M, FCF conversion 259%   Notes: Any references to organic growth exclude the effects of foreign currency translation, acquisitions and divestitures, unless otherwise noted. Adjusted operating income, operating margin and diluted EPS exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, for current and prior year acquisitions.Free Cash Flow is defined as cash flow from operations less capital expenditures. FCF conversion is defined as free cash flow divided by net earnings from continuing operations. 

 Full-Year 2018 Highlights  Net Sales up 6% overall (3% organic)Higher sales in all end markets, led by strong naval defense and general industrial demandBenefit of DRG acquisition Adjusted Operating Income up 14%; Adjusted Operating Margin of 15.8%, up 110 bpsExceeded expectations due to improved sales and solid executionBenefited from ongoing margin improvement initiatives Adjusted Diluted EPS of $6.37, up 28%Driven by double-digit increase in operating income, lower tax rate and benefit of share repurchaseNew Orders up 6%, led by strong defense ordersAdjusted Free Cash Flow of $333M, FCF conversion 121%   Notes: Any references to organic growth exclude the effects of foreign currency translation, acquisitions and divestitures, unless otherwise noted. Adjusted operating income, operating margin and diluted EPS exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, for current and prior year acquisitions.Free Cash Flow is defined as cash flow from operations less capital expenditures. FCF conversion is defined as free cash flow divided by net earnings from continuing operations. Adjusted Free Cash Flow excludes a voluntary contribution to the Company’s corporate defined benefit pension plan of $50 million in 2018. Adjusted Free Cash Flow Conversion is calculated as adjusted free cash flow divided by net earnings from continuing operations. 

 We Are Delivering Top Quartile Performance  Target Metric  Original 5-Year Target*  2013 Reported  *Issued December 11, 2013    Achieved or Exceeded ALL Target Metrics Issued in 2013  EPS, CapEx and Free Cash Flow conversion represent performance covering fiscal years 2014 – 2018. Adjusted operating margin and diluted EPS exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, for current and prior year acquisitions. Return on Invested Capital (ROIC) is defined as NOPAT / two-year average net debt plus equity, and excludes equity from discontinued operationsWorking Capital is defined as Accounts receivable plus inventory minus accounts payable, deferred income and deferred development costs, and excludes first-year acquisitions. Free Cash Flow is defined as cash flow from operations less capital expenditures. FCF conversion is defined as free cash flow divided by net earnings from continuing operations, and excludes pension payments made in 2015 and 2018.  2018 Results(1) 

 One Curtiss-Wright Vision Driving Strong Returns (1)  Notes:Adjusted operating margin excludes first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, for current and prior year acquisitions. Prior year results on a reported basis, not adjusted for accounting changes.  Ongoing benefits of Operating Margin improvement initiatives:Consolidations (segment structure and overhead; facilities)Portfolio rationalization (including divesting majority of oil & gas assets during 2014-2015)Operational excellence (lean and supply chain)Shared services (finance, IT and HR)Low cost economies (shifting direct labor hours to Mexico, China and India)Segment focus (improving profitability of lowest performing business units)  OPERATING MARGIN 

 One Curtiss-Wright Vision Driving Strong Returns (2)  Notes:Free cash flow is defined as cash flow from operations less capital expenditures. Free cash flow for 2015 & 2018 adjusted to remove contributions of $145 million & $50 million, respectively, to the Company’s corporate defined benefit pension plan. Adjusted Free Cash Flow Conversion is calculated as adjusted free cash flow divided by net earnings from continuing operations.  Free cash flow ($M)  Generated more than $1.5B in FCF over the past 5 years, driven by:Strong operational performanceRigorous working capital management~1,300 bps improvement since 2013Benefit of 2015 China Direct AP1000 orderFocus on efficient capital spendingAvg. FCF Conversion 155%  FREE CASH FLOW  119%  156%  141%  199%  156%  121% 

 2019E End Market Sales Growth (Guidance as of February 26, 2019)  Synchronized Growth Continues in 2019    2018  2019E  2019E % of Total Sales  Aero Defense   1%  6 - 8%  16%  Ground Defense   1%  5 - 7%   4%  Naval Defense  19%  6 - 8%  21%  Total Defense   10%  6 - 8%  41%  Commercial Aero   1%  4 - 6%  17%  Power Generation   2%  1 - 3%  17%  General Industrial    8%  1 - 3%  25%  Total Commercial   4%  1 - 3%  59%  Total Curtiss-Wright   6%  3 - 5%  100%  Note: Amounts may not add down due to rounding.  

 ($ in millions)  2018 Adjusted (1)  2019E   2019E Change vs 2018 Adjusted (1)  2019E OI / Margin Impacts  Commercial / Industrial  $1,209  $1,245 - 1,270   3 - 5%    Defense   $554  $565 - 575   2 - 4%    Power   $648  $680 - 690   5 - 7%    Total Sales  $2,412  $2,490 - 2,535   3 - 5%    Commercial / IndustrialMargin  $183 15.1%  $193 - 198 15.5% - 15.6%   6 - 9% +40 - 50 bps  Tariffs ($4M)Increased R&D ($3M)  DefenseMargin  $128 23.2%  $128 - 131 22.6% - 22.7%   0 - 2% (50 - 60 bps)  Increased R&D ($5M)Negative mix (systems)  PowerMargin  $108 16.6%  $109 - 111 16.0% - 16.1%   1 - 4% (50 - 60 bps)  DRG Transition / IT Costs ($6M)Increased R&D ($2M)Negative mix (naval defense)  Corporate and Other   ($36)   ($34 - 36)   (0 - 5%)    Total Op. IncomeCW Margin   $382 15.8%   $396 - 405 15.9% - 16.0%   4 - 6% +10 - 20 bps      2019E Financial Outlook (Guidance as of February 26, 2019)  Note: Amounts may not add down due to rounding. Adjusted operating margin excludes first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, for current and prior year acquisitions     

 2019E Financial Outlook (Guidance as of February 26, 2019)  Note: Amounts may not add down due to rounding. Adjusted operating income and diluted EPS exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs, for current and prior year acquisitions.      ($ in millions, except EPS)  2018 Adjusted (1)  2019E   2019E Change vs 2018 Adjusted (1)  Total Operating Income   $382   $396 - 405    4 - 6%  Other Income/(Expense)   $17   $19    Interest Expense   ($34)   ($33)    Provision for Income Taxes   ($83)   ($88 - 90)    Effective Tax Rate   22.6%  23.0%    Diluted EPS  $6.37  $6.80 - 6.95   7 - 9%  Diluted Shares Outstanding   44.3   43.4   

 2019E Financial Outlook (Guidance as of February 26, 2019)  ($ in millions)  2018 Adjusted (2)  2019EReported  Adjustments (3)   2019EAdjusted (3)  Free Cash Flow(1)  $333  $300 - 310  $20  $320 - 330  Free Cash Flow Conversion(1)   121%   ~103%     ~110%  Capital Expenditures   $53   $75 - 85     $75 - 85  Depreciation & Amortization  $103  $100 - 110    $100 - 110  Notes:Free Cash Flow is defined as cash flow from operations less capital expenditures. Free Cash Flow Conversion is calculated as free cash flow divided by net earnings from continuing operations. Adjusted Free Cash Flow Conversion is calculated as adjusted free cash flow divided by net earnings from continuing operations.2018 Adjusted Free Cash Flow excludes a voluntary contribution to the Company’s corporate defined benefit pension plan of $50 million.2019 Adjusted Free Cash Flow guidance excludes a $20 million capital investment in the Power segment related to construction of a new, state-of-the-art naval facility principally for the DRG business.    

 China Direct AP1000 Revenue Projection (1)  $ in millions  Total production revenue: $448M (16 reactor coolant pumps @ $28M apiece)  Revenue and margin recognition based on percentage of completion (POC) accounting methodRevenue recognition cadence expected to resemble bell curveFavorable cost performance and mitigation of risks has driven improved profitabilityContract margin remains strong at 23%+2019 - 2021+ Revenue Forecast:Initial $187MRevised $217M   

 China Direct AP1000 Revenue Projection (2)  $ in millions  Expect to fill gap through increased defense revenues (i.e. fighter jet, submarine and peak CVN-80 aircraft carrier)   

 $ in millions  China Direct AP1000 Free Cash Flow Projection  Note: Free cash flow is defined as cash flow from operations less capital expenditures  Expect to generate ~$110M in cumulative FCF Well above previous estimate of $65MHigher than expected contract profitability driving strong free cash flowBenefit of lower corporate tax rate (23%) 

 DRG Acquisition Integration & Capital Investment  Investing Capital and Resources to Drive Long-Term Margin Expansion  Constructing new, state-of-the-art naval facility in Charleston, SC$20M capital investment in 2019Long-overdue upgrades to critical steam turbine equipment Provides access to deep water ports Expect new facility to be operational in 2020  Benefits of DRG acquisitionExpanded CW shipset content and increased footprint on naval vesselsEx: Aircraft carrier content increased from $300M to $380M per shipEnabled CW to expand its Navy shipyard presence and capture more revenueStrengthened long-term relationships with nearly identical customer baseProvides long-term profitable growth 

 Capital Allocation Strategy Update  Capital Allocation 2014 - 2018  Accelerate Top-Line via Growth Investments and AcquisitionsIncrease capital allocation weighting to high quality, profitable acquisitionsContinuing more stringent and prudent approach (not serial acquirer)Efficiently utilize strong balance sheet and low leverage positionDeliver improved organic growth through increased R&D and capital investmentsContinue to return capital to shareholders through share repurchases and dividends  Major accomplishments since 2013:Returned ~$850 million to shareholders~$715M via share repurchase (8.7M shares)~$135M via dividends Completed two major acquisitions for ~$500 million in cash Spent ~$500 million on operational investmentsCapital expenditures, voluntary pension contributions and debt prepayments 

 Three Year Targets (2019 - 2021)  Delivering long-term profitable growth  (1) Adjusted operating margin and diluted EPS targets exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs.  5 - 7% Total Sales CAGR17% Adjusted Operating Margin(1)Maintain top-quartile status vs. peer groupContinue to invest in CW’s future growth10% Adjusted diluted EPS Growth CAGR(1)Expect to deliver $8.50 in diluted EPS$1B Cumulative Free Cash Flow GenerationRaising min. FCF target >$300 Million annuallyAverage FCF conversion 110%Disciplined Capital Allocation StrategyIncreased focus on larger strategic acquisitions and internal growth investments 

 Appendix  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 of different financial measures in analyzing and assessing the overall performance of our business, and in making operating decisions, forecasting and planning for future periods. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operation of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance.  Beginning with the second quarter of 2018, coinciding with the initial reporting of the DRG acquisition, the Company elected to present its financials and guidance on an Adjusted, non-GAAP basis for operating income, operating margin, net earnings and diluted earnings per share to exclude first year purchase accounting costs associated with its acquisitions, specifically one-time inventory step-up, backlog amortization and transaction costs for current and prior year acquisitions.  Management believes that this approach will provide improved transparency to the investment community in order to measure Curtiss-Wright’s core operating and financial performance, provide quarter-over-quarter comparisons excluding one-time items and show better comparisons among company peers. Reconciliations of non-GAAP to GAAP amounts are furnished with this presentation. All per share amounts are reported on a diluted basis. The following definitions are provided: Adjusted Operating Income, Operating Margin, Net Income and Diluted EPSThese Adjusted financials are defined as Reported Operating Income, Operating Margin, Net Income and Diluted EPS under GAAP excluding the impact of first year purchase accounting costs associated with acquisitions for current and prior year periods, specifically one-time inventory step-up, backlog amortization and transaction costs. 

 FY2019E End Market Sales Waterfall (Guidance as of February 26, 2019)  Guidance:Defense Markets up 6-8%Comm’l Markets up 1-3%  Industrial Controls:Medical Mobility, Industrial Automation equipment, Sensors and Controls  Industrial Vehicles:“Own the Cab” strategy49% On-highway,51% Off-Highway  Industrial Pumps & Valves:65% O&G, 35% Chem/Petro; 75% MRO, 25% projects  Non-Nuclear:Surface Technologies services (peening, coatings); Fossil power gen equipment  Note: Percentages in chart relate to Full-Year 2019E sales.  

 4Q 2018 Adjusted Operating Income / Margin Drivers  ($ in millions)  4Q’18Adjusted(1)  4Q’17Adjusted(1)  Change vs. 2017 Adjusted(1)  Key Drivers  Commercial / IndustrialMargin  $46.9 15.4%  $47.3 15.8%  (1%) (40 bps)  Impact from tariffs and restructuring actionsPartially offset by higher sales and improved profitability in sensors and controls business  DefenseMargin   36.5 24.2%   43.5 25.2%   (16%) (100 bps)  Lower sales and unfavorable absorptionIncreased R&D expenses  PowerMargin   36.5 18.9%   23.9 17.0%  52%190 bps  Higher sales and favorable absorption across naval defense, China Direct AP1000 and nuclear aftermarket businesses  Total SegmentsAdjusted Operating Income  $119.9  $114.7  4%    Corp & Other   ($9.4)   ($9.5)  0%    Total CW Adjusted Op IncomeMargin  $110.4 17.0%  $105.3 17.2%  5%(20 bps)    Adjusted operating income and operating margin exclude first year purchase accounting costs, specifically one-time inventory step-up, backlog amortization and transaction costs.  Note: Amounts may not add down due to rounding.  

     Key DriversDefense Markets (10% sales growth, 3% organic)Aerospace Defense: Higher sales of flight test and embedded computing equipment on fighter jet programs, partially offset by lower UAV salesGround Defense: Higher embedded computing sales on various domestic and int'l ground programsNaval Defense: Higher aircraft carrier revenues and contribution from DRG acquisition, partially offset by lower submarine revenues  Full-Year 2018 End Market Sales Growth  Notes: Percentages in chart relate to Full-Year 2018 sales compared with the prior year. Amounts may not add due to rounding.Any references to organic growth exclude the effects of foreign currency translation, acquisitions and divestitures, unless otherwise noted.    FY’18Change  % of Total Sales  Aero Defense   1%  16%  Ground Defense   1%   4%  Naval Defense   19%   20%  Total Defense   10%   40%  Commercial Aero   1%  17%  Power Generation   2%  18%  General Industrial    8%  25%  Total Commercial   4%  60%  Total Curtiss-Wright   6% 3% organic  100%      Commercial Markets (4% sales growth, 3% organic)Commercial Aerospace: Higher sales of sensors and controls products and surface treatment services, partially offset by lower revenues from FAA directivesPower Generation: Higher China Direct AP1000 and nuclear aftermarket revenues, partially offset by lower US AP1000 revenues General Industrial: Solid demand for industrial vehicles, valves and controls products, and surface treatment services 

 FY2018 End Market Sales Waterfall  Defense Markets up 10% (up 3% org)Comm’l Markets up 4%  Industrial Controls:Medical Mobility, Industrial Automation equipment, Sensors and Controls  Industrial Vehicles:“Own the Cab” strategy49% On-highway,51% Off-Highway  Industrial Pumps & Valves:62% O&G, 38% Chem/Petro; 75% MRO, 25% projects  Non-Nuclear:Surface Technologies services (peening, coatings); Fossil power gen equipment  Note: Percentages in chart relate to Full-Year 2018 sales.  

 2018 Sales by Segment vs. End Market (1)  Defense Segment  Power Segment  Commercial / Industrial Segment  Commercial Aerospace 30%  Commercial Aerospace 9%  Ground Defense 17%  Note: Percentages in chart relate to Full-Year 2018 sales 

 2018 Sales by Segment vs. End Market (2)  Commercial / Industrial Segment  General Industrial (47%):Industrial vehicles (on-highway, off-highway, medical mobility)Industrial valves (O&G, chemical, petrochemical)Surface Tech services (peening, coatings, analytical testing)Sensors and controls; Industrial automationCommercial Aerospace (30%):Primarily Commercial OEMActuation, sensors and controls equipmentSurface Tech services (peening, coatings)Aerospace Defense (10%):Actuation, sensors and controls equipmentSurface Tech services (peening, coatings)Naval Defense (7%):Valves for nuclear submarines and aircraft carriersPower Generation (6%):Valves; Surface Tech services (peening, coatings)  Note: Percentages in chart relate to Full-Year 2018 sales 

 2018 Sales by Segment vs. End Market (3)  Defense Segment  Aerospace Defense (48%):Commercial Off-the-Shelf (COTS) embedded computing productsAvionics and electronics; flight test equipmentAircraft data management solutionsNaval Defense (23%):COTS embedded computing productsInstrumentation and control systemsHelicopter handling solutionsGround Defense (17%):COTS embedded computing productsRefurbishment and upgrades (U.S. vehicles)Turret-drive stabilization systems (international vehicles)Commercial Aerospace (9%):Avionics and electronics; flight test equipmentAircraft data management solutions  Note: Percentages in chart relate to Full-Year 2018 sales 

 2018 Sales by Segment vs. End Market (4)  Power Segment  Power Generation (58%):Commercial nuclear aftermarket products and servicesAP1000 reactor coolant pumps (RCPs) and other new build equipmentSmall modular reactors (SMRs) componentsFossil power generation equipmentNaval Defense (42%):Nuclear propulsion equipment (pumps, steam turbines and generators) for submarines and aircraft carriersAftermarket Navy servicesElectromagnetic aircraft launching and advanced arresting gear systems  Note: Percentages in chart relate to Full-Year 2018 sales  Naval Defense 42% 

 Non-GAAP Reconciliation – Organic Results  Organic Revenue and Organic Operating Income               The Corporation discloses organic revenue and organic operating income because the Corporation believes it provides investors with insight as to the Company’s ongoing business performance.  Organic revenue and organic operating income are defined as revenue and operating income excluding the impact of foreign currency fluctuations and contributions from acquisitions made during the last twelve months.  Note: Amounts may not add due to rounding 

 Non-GAAP Reconciliations – 4Q 2018 Results  (In millions, except EPS)   4Q-2018  4Q-2017   Change  Sales  $ 648.6  $ 611.9  6%  Reported operating income (GAAP)  $ 110.0  $ 105.3   4%  Adjustments (1)  0.4  0.0  -  Adjusted operating income (Non-GAAP)  $ 110.4  $ 105.3   5%  Adjusted operating margin (Non-GAAP)  17.0%  17.2%  (20 bps)  Reported net earnings (GAAP)  $ 82.8  $ 67.8   22%  Adjustments (1)  0.4  0.0  -  Tax impact on Adjustments (1)  (0.1)  (0.0)  -  Adjusted net earnings (Non-GAAP)  $ 83.2  $ 67.8  23%  Reported diluted EPS (GAAP)  $ 1.89  $ 1.52   25%  Adjustments (1)  $0.01  $0.00  -  Tax impact on Adjustments (1)  ($0.00)  ($0.00)  -  Adjusted diluted EPS (Non-GAAP)  $ 1.90  $ 1.52  25%  Includes one-time Inventory Step-up, Backlog Amortization and Transaction costs for current and prior year acquisitions. 

 Non-GAAP Reconciliation – 2019 vs. 2018 Adjusted