CURTISS WRIGHT CORP
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
CW$463.47+6.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054196
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001628280-26-070951
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 86 current paragraphs.
39 unchanged; 35 reworded; 11 added; 11 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Non-segment operating expense in the third quarter and nine months ended September 30, 2026 increased $1 million, or 8%, to $12 million, and $1 million, or 2%, to $32 million, primarily due to higher corporate costs.
Current report
Operating income during the nine months ended September 30, 2026 increased$27 million, or 23%, to$141 million from the prior year period, and operating margin increased 150 basis points to 17.5%, primarily due to favorable overhead absorption on higher sales, the benefits of the Company's restructuring initiatives, and favorable product mix. These increases were partially offset by higher investment in research and development.
Current report
Sales in the third quarter increased $6 million, or 2%, to $259 million from the prior year period. Sales in the aerospace defense market benefited primarily due to higher sales of embedded computing equipment supporting various helicopter and international fighter jet programs, partially offset by the timing of production for unmanned aerial vehicle (UAV) programs. In the ground defense market, sales increased primarily due to higher international demand forturret drive stabilization systems. These increases were partially offset by lower sales in the commercial aerospace market, primarily due to the timing of sales of avionics equipment to OEM customers.
Current report
Operating incomein the third quarter decreased $4 million, or 5%, to $70 million compared to the prior year period, and operating margin decreased 220 basis points from the prior year period to 27.0%, as favorable overhead absorption on higher sales was more than offset by unfavorable product mix and higher investment in research and development.
Current report
Operating income during the nine months ended September 30, 2026 increased $1 million, or 1%, to$211 million, while operating margin decreased 10 basis points from the prior year period to 27.7%, as favorable overhead absorption on higher sales was essentially offset by unfavorable product mix.
Current report
New orders in the third quarter increased $67 million primarily due to strong demand for aerospace defense and ground defense equipment.
Current report
Sales in the third quarter increased $44 million, or 12%, to $412 million from the prior year period. In the naval defense market, sales increased $20 million primarily due to the timing of production on the Virginia-class and Columbia-class submarine programs, as well as higher aftermarket sales supporting aircraft carrier refueling and overhaul projects. Sales in the power & process market increased $16 million primarily due to higher sales of commercial nuclear solutions supporting next-generation advanced reactors as well as higher government nuclear sales. In the aerospace defense market, sales benefited primarily due to higher sales of arresting systems equipment supporting various domestic and international customers.
Current report
Operating incomein the third quarter increased $19 million, or 32%, to$76 million, and operating margin increased 280 basis points from the prior year period to 18.5%, primarily due tofavorable overhead absorption on higher sales and favorable product mix.
Current report
Operating income during the nine months ended September 30, 2026 increased $47 million, or 29%, to $207 million, and operating margin increased 220 basis points from the prior year period to 16.9%, primarily due to favorable overhead absorption on higher sales as well as favorable product mix.
Current report
New orders in the third quarter increased $47 million primarily due to the timing of naval defense orders.
Current report
Sales in the third quarter increased $56 million, or 9%, to $674 million against the comparable prior year period. Sales in the aerospace defense market increased primarily due tohigher demand for actuation equipment and sensors products supporting various international fighter jet programs as well asincreased sales of embedded computing equipment supporting various helicopter and fighter jet programs. Sales increases in the naval defense market were primarily due to the timing of production on the Virginia-class and Columbia-class submarine programs, as well as higher aftermarket sales supporting aircraft carrier refueling and overhaul projects. In the commercial aerospace market, sales increased primarily due to higher OEM demand for sensors products and surface treatment services on various narrow-body and wide-body platforms. Sales in the ground defense market were essentially flat.
Removed paragraphs (11)
Previous report
Non-segment operating expense in the second quarter decreased $1 million, or 8%, to $10 million, primarily due to lower corporate costs. Non-segment operating expense of $21 million during the six months ended June 30, 2026 was essentially flat against the comparable prior year period.
Previous report
Operating income in the second quarter increased $10 million, or 26%, to $49 million from the comparable prior year period, and operating margin increased 200 basis points to 18.3%, primarily due to favorable overhead absorption on higher sales, favorable product mix, as well as the benefits of the Company's restructuring initiatives. These increases were partially offset by higher investment in research and development.
Previous report
Operating income during the six months ended June 30, 2026 increased $19 million, or 27%, to $88 million from the prior year period, and operating margin increased 190 basis points to 16.7%, primarily due to favorable overhead absorption on higher sales, favorable product mix, as well as the benefits of the Company's restructuring initiatives. These increases were partially offset by unfavorable foreign currency translation and higher investment in research and development.
Previous report
Sales in the second quarter decreased $7 million, or 3%, to $246 million from the prior year period, primarily due to thetiming of tactical communications equipment sales in the ground defense market. This decrease was partially offset byhigher demand forembedded computing equipment on various domestic fighter jet and unmanned aerial vehicle (UAV) programs in the aerospace defense market.
Previous report
Operating incomein the second quarter increased $1 million, or 1%, to $69 million compared to the prior year period, and operating margin increased 120 basis points from the prior year period to 28.0%, primarily due to favorable product mix and the benefits from our cost containment initiatives. These increases were partially offset by higher investment in research and development.
Previous report
Operating income during the six months ended June 30, 2026 increased $5 million, or 4%, to $141 million, and operating margin increased 80 basis points from the prior year period to 28.0%, primarily due to favorable product mix and the benefits from our cost containment initiatives. These increases were partially offset by higher investment in research and development.
Previous report
New orders during the six months ended June 30, 2026 increased $151 million primarily due to the timing of orders on ground and naval defense equipment.
Previous report
Sales in the second quarter increased $26 million, or 7%, to $410 million from the prior year period. In the naval defense market, sales increased $16 million primarily due to the timing of production on the Virginia-class submarine program as well as higher aftermarket sales supporting naval shipyards. Sales in the power & process market increased $10 million primarily due to higher sales of commercial nuclear products supporting next-generation advanced reactors as well as higher government nuclear sales.
Previous report
Operating income during the six months ended June 30, 2026 increased $29 million, or 28%, to $131 million, and operating margin increased 180 basis points from the prior year period to 16.1%, primarily due to favorable overhead absorption on higher sales. These increases were partially offset by higher investment in research and development.
Previous report
New ordersin the second quarter decreased $93 million primarily due to the timing of naval defense orders.
Previous report
Sales in the second quarter increased $35 million, or 6%, to $643 million against the comparable prior year period. Sales in the aerospace defense market increased primarily due to higher demand for sensors products and actuation equipment supporting various domestic and international fighter jet programs as well as higher demand forembedded computing equipment on various domestic fighter jet and UAV programs. Sales increases in the naval defense market were primarily due to the timing of production on the Virginia-class submarine program as well as higher aftermarket sales supporting naval shipyards. In the commercial aerospace market, sales increased primarily due tohigher OEM sales of actuation equipment, sensors products, and surface treatment services on narrowbody and widebody platforms. These market increases were partially offset by lower sales in the ground defense market due to thetiming of tactical communications equipment sales.
Reworded paragraphs (35)
Previous wording
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, 2026. The financial information as of June 30, 2026 should be read in conjunction with the financial statements for the year ended December 31, 2025 contained in our Form 10-K.
Current wording
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 nine month periods ended September 30, 2026. The financial information as of September 30, 2026 should be read in conjunction with the financial statements for the year ended December 31, 2025 contained in our Form 10-K.
Previous wording
Sales in the second quarter increased $47 million, or 5%, to $924 million, compared with the prior year period. On a segment basis, sales from the Aerospace & Industrial and Naval & Power segments increased $28 million and $26 million, respectively, while sales from the Defense Electronics segment decreased $7 million.
Current wording
Sales in the third quarter increased $83 million, or 10%, to $953 million, compared with the prior year period. On a segment basis, sales from the Aerospace & Industrial, Defense Electronics, and Naval & Power segments increased $33 million, $6 million, and $44 million, respectively.
Previous wording
Sales during the six months ended June 30, 2026 increased $155 million, or 9%, to $1,838 million, compared with the prior year period. On a segment basis, sales from the Aerospace & Industrial, Defense Electronics, and Naval & Power segments increased $56 million, $4 million, and $95 million, respectively. Changes in sales by segment are discussed in further detail in the results by business segment section below.
Current wording
Sales during the nine months ended September 30, 2026 increased $239 million, or 9%, to $2,790 million, compared with the prior year period. On a segment basis, sales from the Aerospace & Industrial, Defense Electronics, and Naval & Power segments increased $90 million, $10 million, and $139 million, respectively. Changes in sales by segment are discussed in further detail in the results by business segment section below.
Previous wording
Operating incomein the second quarter increased $22 million, or 14%, to $179 million, and operating margin increased 150 basis points to 19.3% compared with the same period in 2025, due to increases across all segments. In the Aerospace & Industrial segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales, favorable product mix, as well as the benefits of the Company's restructuring initiatives. Operating income and operating margin in the Defense Electronics segment increased primarily due to favorable product mix and the benefits from our cost containment initiatives. In the Naval & Power segment, increases in operating income and operating margin were primarily due tofavorable overhead absorption on higher sales.
Current wording
Operating incomein the third quarter increased $22 million, or 13%, to $188 million, and operating margin increased 60 basis points to 19.7% compared with the same period in 2025. In the Aerospace & Industrial segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales, favorable product mix, as well as the benefits of the Company's restructuring initiatives. These increases were partially offset by higher investment in research and development. In the Naval & Power segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales and favorable product mix. These increases were partially offset by decreases in operating income and operating margin in the Defense Electronics segment, as favorable overhead absorption on higher sales was more than offset by unfavorable product mix and higher investment in research and development.
Previous wording
Operating income during the six months ended June 30, 2026 increased $53 million, or 18%, to $338 million, and operating margin increased 140 basis points to 18.4%, compared with the same period in 2025, due to increases across all segments. In the Aerospace & Industrial segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales, favorable product mix, as well as the benefits of the Company's restructuring initiatives. Operating income and operating margin in the Defense Electronics segment increased primarily due to favorable product mix and the benefits from our cost containment initiatives. In the Naval & Power segment, increases in operating income and operating margin were primarily due tofavorable overhead absorption on higher sales.
Current wording
Operating income during the nine months ended September 30, 2026 increased $74 million, or 16%, to$526 million, and operating margin increased 120 basis points to 18.9%, compared with the same period in 2025. In the Aerospace & Industrial segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales, favorable product mix, as well as the benefits of the Company's restructuring initiatives. These increases were partially offset by higher investment in research and development. In the Naval & Power segment, increases in operating income and operating margin were primarily due to favorable overhead absorption on higher sales as well as favorable product mix. In the Defense Electronics segment, both operating income and operating margin were essentially flat.
Previous wording
Interest expense in the second quarter and six months ended June 30, 2026 decreased $1 million, or 6% to $10 million and $1 million, or 4%, to $20 million, respectively, primarily due to lower borrowings under our revolving Credit Agreement (the “Credit Agreement” or “credit facility”).
Current wording
Interest expense in the third quarter of $10 million was essentially flat against the comparable prior year period. Interest expense during the nine months ended September 30, 2026 decreased $1 million, or 3%, to $30 million, primarily due to lower borrowings under our revolving Credit Agreement (the “Credit Agreement” or “credit facility”) as well as the repayment of our $90 million 3.85% Senior Notes in February 2025.
Previous wording
Other income, net in the second quarter andsix months ended June 30, 2026 increased $15 million, or 132%, to $26 million and$17 million, or 98%, to $34 million, respectively, primarily due to an unrealized gain recognized during the current period on equity securities held for investment purposes.
Current wording
Other income, net in the third quarter decreased $5 million, or 94%, to less than $1 million, primarily due to an unrealized loss recognized during the current period on equity securities held for investment purposes. Other income, net during the nine months ended September 30, 2026 increased$12 million, or 52%, to $34 million, primarily due to an unrealized gain recognized during the current period on equity securities held for investment purposes.
Previous wording
The effective tax rate of 22.2% in the second quarter decreased compared to an effective tax rate of 22.8% in the prior year period, primarily due to lower withholding taxes on foreign undistributed earnings. The effective tax rate of 20.7% for the six months ended June 30, 2026 decreased as compared to an effective tax rate of 21.1% in the prior year period, primarily due to increased tax benefits associated with stock-based compensation.
Current wording
The effective tax rate of 21.9% in the third quarter decreased compared to an effective tax rate of 22.5% in the prior year period, primarily due to higher foreign R&D tax credits and increased tax benefits on stock-based compensation. The effective tax rate of 21.1% for the nine months ended September 30, 2026 decreased as compared to an effective tax rate of 21.6%, primarily due to increased tax benefits associated with stock-based compensation.
Previous wording
Comprehensive incomein the second quarter was $155 million, compared to comprehensive income of $177 million in the prior year period. The change was primarily due to the following:
Current wording
Comprehensive incomein the third quarter was $138 million, compared to comprehensive income of $107 million in the prior year period. The change was primarily due to the following:
Previous wording
•Foreign currency translation adjustments in the second quarter resulted in a $4 million comprehensive gain, compared to a $57 million comprehensive gain in the prior year period. The comprehensive gain during the current period was primarily attributed to increases in the British Pound and Canadian dollar.
Current wording
•Foreign currency translation adjustments in the third quarter resulted in a $3 million comprehensive loss, compared to a $14 million comprehensive loss in the prior year period.
Previous wording
Comprehensive income during the six months ended June 30, 2026 was $263 million, compared to comprehensive income of $298 million in the prior year period. The change was primarily due to the following:
Current wording
Comprehensive income during the nine months ended September 30, 2026 was $401 million, compared to comprehensive income of $405 million in the prior year period. The change was primarily due to the following:
Previous wording
•Foreign currency translation adjustments for the six months ended June 30, 2026 resulted in a $17 million comprehensive loss, compared to a $76 million comprehensive gain in the prior period. The comprehensive loss during the current period was primarily attributed to decreases in the British Pound and Canadian dollar.
Current wording
•Foreign currency translation adjustments for the nine months ended September 30, 2026 resulted in a $20 million comprehensive loss, compared to a $62 million comprehensive gain in the prior period. The comprehensive loss during the current period was primarily attributed to decreases in the British Pound and Canadian dollar.
Previous wording
•Net earnings increased$30 million, primarily due to higher operating income as well as higher other income, net, from an unrealized gain recognized during the current period on equity securities held for investment purposes.
Current wording
•Net earnings increased $71 million, primarily due to higher operating income as well as higher other income, net, from an unrealized gain recognized during the current period on equity securities held for investment purposes.
Previous wording
New ordersin the second quarter increased $76 million from the comparable prior year period, primarily due to strong demand for ground defense equipment in the Defense Electronics segment as well as an increase in orders for actuation products on ground defense and commercial aerospace equipment in the Aerospace & Industrial segment. These increases were partially offset by the timing of naval defense orders in the Naval & Power segment.
Current wording
New ordersin the third quarter increased $135 million from the comparable prior year period, due to increases across all segments. New orders in the Aerospace & Industrial segment benefited from increased demand for actuation products on commercial aerospace equipment, as well as increases for industrial vehicle and industrial automation products within our commercial markets. New orders in the Defense Electronics segment increased primarily due to strong demand for aerospace defense and ground defense equipment. In the Naval & Power segment, new orders increased primarily due to the timing of naval defense orders.
Previous wording
New orders during the six months ended June 30, 2026 increased $243 million from the comparable prior year period, primarily due to strong demand for ground and naval defense orders in the Defense Electronics segment. New orders also benefited from increased demand for actuation products on aerospace defense and ground defense equipment and industrial vehicle products within our commercial markets in the Aerospace & Industrial segment. These increases were partially offset by the timing of naval defense orders in the Naval & Power segment. Changes in new orders by segment are discussed in further detail in the "Results by Business Segment" section below.
Current wording
New orders during the nine months ended September 30, 2026 increased $379 million from the comparable prior year period, due to increases across all segments. New orders in the Aerospace & Industrial segment benefited from increased demand for actuation products on aerospace defense and ground defense equipment, as well as increases for industrial vehicle products within our commercial markets. New orders in the Defense Electronics segment increased primarily due to strong demand for ground defense equipment. In the Naval & Power segment, new orders increased primarily due to increased demand for commercial nuclear and process products. Changes in new orders by segment are discussed in further detail in the "Results by Business Segment" section below.
Previous wording
Sales in the second quarter increased $28 million, or 12%, to $268 million from the prior year period. In the commercial aerospace market, sales increased $12 million primarily due to higher OEM sales of actuation equipment, sensors products, and surface treatment services on narrowbody and widebody platforms. Sales in the aerospace defense market primarily benefited from higher demand for sensors products and actuation equipment supporting various domestic and international fighter jet programs. Sales in the general industrial market primarily benefited from higher sales of industrial vehicle products to off-highway vehicle platforms.
Current wording
Sales in the third quarter increased $33 million, or 14%, to $282 million from the prior year period. In the aerospace defense market, sales increased $13 million primarily due to higher demand for actuation equipment and sensors products supporting various domestic fighter jet programs. Sales in the commercial aerospace market primarily benefited from higher OEM demand for sensors products and surface treatment services on various narrowbody and widebody platforms. In the naval defense market, sales increased primarily due to higher demand for electromechanical actuation equipment. Sales in the general industrial market benefited $10 million primarily from higher sales of industrial vehicle products to domestic on-highway and global off-highway vehicle platforms.
Previous wording
Sales during the six months ended June 30, 2026 increased$56 million, or 12%, to $523 million from the prior year period. In the commercial aerospace market, sales increased $25 million primarily due to higher OEM sales of actuation equipment, sensors products, and surface treatment services on narrowbody and widebody platforms. Sales in the aerospace defense market benefited $10 million from higher demand for sensors products and actuation equipment supporting various international fighter jet programs. In both the ground and naval defense markets, sales increased primarily due to higher demand for electromechanical actuation equipment. Sales in the general industrial market benefited $10 million primarily from higher sales of industrial vehicle products to off-highway vehicle platforms.
Current wording
Sales during the nine months ended September 30, 2026 increased$90 million, or 13%, to $804 million from the prior year period. In the commercial aerospace market, sales increased $34 million primarily due to higher OEM sales of actuation equipment, sensors products, and surface treatment services on narrowbody and widebody platforms. Sales in the aerospace defense market benefited $23 million from higher demand for sensors products and actuation equipment supporting various domestic and international fighter jet programs. In the naval defense market, sales increased $11 million primarily due to higher demand for electromechanical actuation equipment. Sales in the general industrial market benefited $20 million primarily from higher sales of industrial vehicle productsto global on-highway and off-highway vehicle platforms.
Previous wording
Operating incomein the second quarter increased $11 million, or 18%, to $71 million, and operating margin increased 160 basis points from the prior year period to 17.3%, primarily due to favorable overhead absorption on higher sales.
Current wording
Operating income in the third quarter increased $8 million, or 18%, to $53 million from the prior year period, and operating margin increased 70 basis points to 19.0%, primarily due to favorable overhead absorption on higher sales, the benefits of the Company's restructuring initiatives, and favorable product mix. These increases were partially offset by higher investment in research and development.
Previous wording
New orders in the second quarter increased $61 million primarily due to an increase in orders for actuation products on ground defense and commercial aerospace equipment, as well as an increase in orders for industrial vehicle products within our commercial markets.
Current wording
New orders in the third quarter increased $21 million primarily due to increased demand for actuation products on commercial aerospace equipment, as well as increases for industrial vehicle and industrial automation products within our commercial markets.
Previous wording
New orders during the six months ended June 30, 2026 increased $100 million primarily due to an increase in orders for actuation products on aerospace defense and ground defense equipment, as well as an increase in orders for industrial vehicle products within our commercial markets.
Current wording
New orders during thenine months ended September 30, 2026 increased$122 million primarily due to increased demand for actuation products on aerospace defense and ground defense equipment, as well as increases for industrial vehicle products within our commercial markets.
Previous wording
Sales during the six months ended June 30, 2026 increased $4 million, or 1%, to $502 million from the prior year period. Sales in the aerospace defense market benefited $17 million primarily due to higher demand for embedded computing and avionics equipmenton various domestic fighter jet and UAV programs, partially offset by the timing of sales on various helicopter programs. In the ground defense market, sales decreased $11 million primarily due to thetiming of tactical communications equipment sales. Lower sales in the naval defense market were primarily due to the timing of embedded computing equipment sales supporting various domestic and international programs.
Current wording
Sales during the nine months ended September 30, 2026 increased $10 million, or 1%, to $761 million from the prior year period. Sales in the aerospace defense market benefited $23 million primarily due to higher demand for embedded computing and avionics equipment on various fighter jet and UAV programs, partially offset by the timing of sales on various helicopter programs. In the ground defense market, sales decreased primarily due to the timing of tactical communications equipment sales. Lower sales in the naval defense market were primarily due to the timing of embedded computing equipment sales supporting various domestic and international programs.
Previous wording
New orders in the second quarter increased $108 million primarily due to strong demand for ground defense equipment, including turret technologies and tactical communications products.
Current wording
New orders during thenine months ended September 30, 2026 increased $218 million primarily due to strong demand for ground defense equipment, including turret technologies and tactical communications products.
Previous wording
Sales during the six months ended June 30, 2026 increased $95 million, or 13%, to $813 million from the prior year period. In the naval defense market, sales increased $51 million primarily due to the timing of production on the Virginia-class submarine program as well as higher aftermarket sales supporting naval shipyards. Sales in the power & process market increased $35 million primarily due to higher commercial nuclear aftermarket sales supporting the maintenance of existing operating reactors, higher sales supporting next-generation advanced reactors, as well as higher government nuclear sales. In the aerospace defense market, sales increased $10 million primarily due to higher sales of arresting systems equipment supporting various international customers.
Current wording
Sales during the nine months ended September 30, 2026 increased $139 million, or 13%, to $1,225 million from the prior year period. In the naval defense market, sales increased $71 million primarily due to the timing of production on the Virginia-class submarine programas well as higher aftermarket sales supporting aircraft carrier refueling and overhaul projects. Sales in the power & process market increased $51 million primarily due to higher sales of commercial nuclear solutions supporting next-generation advanced reactors, higher aftermarket sales supporting the maintenance of existing operating reactors, as well as higher government nuclear sales. In the aerospace defense market, sales increased $16 million primarily due to higher sales of arresting systems equipment supporting various domestic and international customers.
Previous wording
New orders during the six months ended June 30, 2026 decreased $8 million primarily due to the timing of naval defense orders. This decrease was partially offset by an increase in orders for commercial nuclear and process products.
Current wording
New orders during thenine months ended September 30, 2026 increased $39 million primarily due to an increase in demand for commercial nuclear and process products.
Previous wording
Sales during the six months ended June 30, 2026 increased $113 million, or 10%, to $1,285 million. Sales in the aerospace defense market increased primarily due tohigher demand for sensors products and actuation equipment supporting various international fighter jet programs, higher demand for embedded computing and avionics equipmenton various domestic fighter jet and UAV programs, as well as higher sales of arresting systems equipment supporting various international customers. These increases were partially offset by the timing of sales on various helicopter programs. Sales increases in the naval defense market were primarily due to the timing of production on the Virginia-class submarine program, higher aftermarket sales supporting naval shipyards, as well as higher demand for electromechanical actuation equipment. In the commercial aerospace market, sales increased primarily due to higher OEM sales of actuation equipment, sensors products, and surface treatment services on narrowbody and widebody platforms. These market increases were partially offset by lower sales in the ground defense market due to the timing of tactical communications equipment sales.
Current wording
Sales during the nine months ended September 30, 2026 increased $170 million, or 9%, to $1,959 million. Sales in the aerospace defense market increased primarily due to higher demand for sensors products and actuation equipment supporting various domestic and international fighter jet programs, higher demand for embedded computing and avionics equipment on various fighter jet and UAV programs, as well as higher sales of arresting systems equipment supporting various domestic and international customers. These increases were partially offset by the timing of sales on various helicopter programs. Sales increases in the naval defense market were primarily due to the timing of production on the Virginia-class submarine program, higher aftermarket sales supporting aircraft carrier refueling and overhaul projects, as well as higher demand for electromechanical actuation equipment. In the commercial aerospace market, sales increased primarily due to higher OEM sales of actuation equipment, sensors products, and surface treatment services on narrowbody and widebody platforms. These market increases were partially offset by lower sales in the ground defense market due to the timing of tactical communications equipment sales.
Previous wording
Sales in the second quarter increased $12 million, or 5%, to $281 million. In the power & process market, sales increased primarily due tohigher sales of commercial nuclear products supporting next-generation advanced reactors as well as higher government nuclear sales. Sales in the general industrial market benefited primarily from higher sales of industrial vehicle products to off-highway vehicle platforms.
Current wording
Sales in the third quarter increased $27 million, or 11%, to $279 million against the comparable prior year period. Sales in the power & process market increased primarily due to higher sales of commercial nuclear solutions supporting next-generation advanced reactors as well as higher government nuclear sales. Sales in the general industrial market benefited primarily from higher sales of industrial vehicle productsto domestic on-highway and global off-highway vehicle platforms.
Previous wording
Sales during the six months ended June 30, 2026 increased $42 million, or 8%, to $553 million. Sales in the power & process market increased primarily due tohigher commercial nuclear aftermarket sales supporting the maintenance of existing operating reactors, higher sales supporting next-generation advanced reactors, as well as higher government nuclear sales. Sales in the general industrial market benefited primarily from higher sales of industrial vehicle products to off-highway vehicle platforms.
Current wording
Sales during the nine months ended September 30, 2026 increased $69 million, or 9%, to $831 million. Sales in the power & process market increased primarily due to higher commercial nuclear aftermarket sales supporting the maintenance of existing operating reactors, higher sales supporting next-generation advanced reactors, as well as higher government nuclear sales. Sales in the general industrial market benefited primarily from higher sales of industrial vehicle productsto global on-highway and off-highway vehicle platforms.
Previous wording
Net cash provided by operating activities increased $78 million from the prior year period, primarily due to higher cash earnings and improved working capital in the current period.
Current wording
Net cash provided by operating activities increased $65 million from the prior year period, primarily due to higher cash earnings.
Previous wording
Net cash used for investing activities decreased $4 million from the prior year period, primarily due to lower capital expenditures during the current period.
Current wording
Net cash used for investing activities increased $2 million from the prior year period, primarily due to higher capital expenditures during the current period.
Previous wording
Net cash used for financing activities decreased $96 million from the prior year period, primarily due to the repayment of our 3.85% Senior Notes in February 2025. Refer to the "Financing Activities" section below for further details.
Current wording
Net cash used for financing activities decreased $23 million from the prior year period, primarily due to the repayment of our $90 million 3.85% Senior Notes in February 2025. This decrease was partially offset by higher repurchases of common stock during the current period. Refer to the "Financing Activities" section below for further details.
Previous wording
The Corporation’s debt outstanding had an average interest rate of 3.8% for boththe three and six months ended June 30, 2026, respectively, and 3.8% for both the three and six months ended June 30, 2025, respectively. The Corporation’s average debt outstanding was$958 million and$961 million for the three and six months ended June 30, 2026, respectively, and $960 million and $990 million for the three and six months ended June 30, 2025, respectively.
Current wording
The Corporation’s debt outstanding had an average interest rate of 3.8% for both the three and nine months ended September 30, 2026, respectively, and 3.8% for both the three and nine months ended September 30, 2025, respectively. The Corporation’s average debt outstanding was approximately $962 million for both the three and nine months ended September 30, 2026, respectively, and approximately $982 million and $988 million for the three and nine months ended September 30, 2025, respectively.
Previous wording
As of June 30, 2026, the Corporation had approximately $27 million in letters of credit supported by the credit facility. The unused credit available under the credit facility as of June 30, 2026 was $973 million, which could be borrowed without violating any of our debt covenants.
Current wording
As of September 30, 2026, the Corporation had approximately $25 million in letters of credit supported by the credit facility. The unused credit available under the credit facility as of September 30, 2026 was $975 million, which could be borrowed without violating any of our debt covenants.
Previous wording
For the six months ended June 30, 2026, the Corporation repurchased approximately 42,000 shares of its common stock for $29 million. For the six months ended June 30, 2025, the Corporation repurchased approximately 102,000 shares of its common stock for $35 million.
Current wording
During the nine months ended September 30, 2026, the Corporation repurchased approximately 580,000 shares of its common stock for $382 million. During the nine months ended September 30, 2025, the Corporation repurchased approximately 684,000 shares of its common stock for $325 million.
Previous wording
The Corporation made dividend payments of $9 million and $8 million during the six months ended June 30, 2026 and June 30, 2025, respectively. Additionally, beginning in the second quarter of 2026, the Corporation increased its quarterly dividend to $0.26 per share.
Current wording
The Corporation made dividend payments of $18 million and $17 million during the nine months ended September 30, 2026 and September 30, 2025, respectively. Additionally, beginning in the second quarter of 2026, the Corporation increased its quarterly dividend to $0.26 per share.
Previous wording
As of June 30, 2026, we had the ability to borrow additional debt of $3.1 billion without violating our debt to capitalization covenant.
Current wording
As of September 30, 2026, we had the ability to borrow additional debt of $2.7 billion without violating our debt to capitalization covenant.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Net earnings increased$14 million, primarily due to higher operating income.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Net earnings increased $57 million, primarily due to higher operating income as well as higher other income, net, from an unrealized gain recognized during the current period on equity securities held for investment purposes.