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2016 Annual Report
WE CONTINUE TO DELIVER ON THE ONE CURTISS-WRIGHT
VISION. WE ARE FOCUSED ON DRIVING OPERATIONAL
EXCELLENCE AND FINANCIAL DISCIPLINE IN ORDER TO
ACHIEVE TOP QUARTILE PERFORMANCE, WHILE POSITIONING
THE COMPANY FOR RENEWED GROWTH ACROSS OUR
COMMERCIAL, INDUSTRIAL, DEFENSE AND POWER MARKETS.
Curtiss-Wright Corporation is a global diversified industrial company built on long-standing customer
relationships, leading market positions and advanced, highly-engineered technologies. Our legacy dates
back to 1929 with the merger of companies founded by aviation pioneers Glenn Curtiss and the Wright Brothers.
Headquartered in Charlotte, N.C., Curtiss-Wright employs approximately 8,000 men and women dedicated
to providing outstanding service and innovative products to customers worldwide.
We encourage you to read the on-line annual report at
www.curtisswright.com/investors/annual-report-and-proxy
2016 FINANCIAL HIGHLIGHTS1
NET SALES
‘16
‘15
‘14
OPERATING INCOME
‘16
‘15
‘14
OPERATING MARGIN
‘16
‘15
‘14
DILUTED EARNINGS PER SHARE
‘16
‘15
‘14
FREE CASH FLOW2
‘16
‘15
‘14
$2,109
$2,186
$2,243
$308
$291
$282
14.6%
13.3%
12.6%
$4.20
$3.74
$3.46
$376
$272
$265
1 All figures reported on a continuing operations basis. Dollars in millions, except per share data.
2015 Pro Forma results exclude the one-time China AP1000® fee of $20 million recognized as
revenue and operating income in the fourth quarter of 2015.
2 Free cash flow is defined as cash flow from operations less capital expenditures. 2015 adjusted
to remove the $145 million contribution to the Company’s corporate defined benefit pension plan.
*Announced Dec. 2016; closed Jan. 2017. Financials in this document do not include the results
of the acquisition.
NOTEWORTHY ACCOMPLISHMENTS
Added to S&P
MidCap 400 Index
Exceeded $100
share price for
first time ever
Eclipsed $4 billion
in market
capitalization
Acquired Teletronics
Technology
Corporation*
1
2016 ANNUAL REPORT CONTROL IS
CRITICAL
TO SUCCESS.
Through our ‘Own the Cab’ strategy,
we strive to be the leading electronic
systems integrator for the heavy-duty,
class 8 truck market.
COMMERCIAL/INDUSTRIAL SEGMENT
SALES BY END MARKET (2016)
44%
GENERAL
INDUSTRIAL
2
2
CURTISS-WRIGHT CORPORATION
32%
COMMERCIAL
AEROSPACE
9%
9%
6%
AEROSPACE
DEFENSE
NAVAL
DEFENSE
POWER
GENERATION
CURTISS-WRIGHT CORPORATION COMMERCIAL / INDUSTRIAL
CURTISS-WRIGHT PROVIDES VITAL CONTROL SOLUTIONS
FOR A MULTITUDE OF COMMERCIAL AND INDUSTRIAL
APPLICATIONS, INCLUDING INNOVATIVE HUMAN-MACHINE
INTERFACE APPLICATIONS, MUST-NOT-FAIL SENSORS
AND SURFACE TREATMENT SERVICES, AND CRITICAL
VALVE TECHNOLOGIES.
As a leading provider of joysticks, sensors, throttle controllers and power electronics to
on- and off-highway vehicles, our solutions drive higher operating efficiencies and also
support the global emphasis on reduced pollution and stringent emissions regulations.
Further, our sophisticated control systems play a key role in the medical mobility industry’s
evolution to more advanced wheelchairs.
For more than 100 years, Curtiss-Wright has played a significant role in the commercial
aerospace market. Today, our sensors, flight controls, actuation systems and critical
surface treatment services drive increased aircraft safety, reliability and performance.
We have secured content on virtually every current and next generation commercial
aerospace platform and stand to benefit from the industry’s continued ramp up in the
production cycle.
Leveraging a vast, worldwide distribution network, we provide operationally-critical valve
technologies and innovative solutions enabling us to solve our customers’ most challenging
problems to support the longevity of global refineries and chemical plants.
Our highly-engineered
pressure relief valves
ensure plant safety is
safeguarded in severe
service environments.
From the nose to
the tail, we provide
critical technology that
enhances the reliability
and performance of
commercial aircraft.
3
2016 ANNUAL REPORT WE
GENERATE
POWER
SOLUTIONS.
POWER SEGMENT SALES
BY END MARKET (2016)
35%
NAVAL
DEFENSE
65%
POWER
GENERATION
Commercial nuclear power plants
rely on critical instrumentation
and control systems.
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CURTISS-WRIGHT CORPORATION
CURTISS-WRIGHT CORPORATION CURTISS-WRIGHT ENJOYS A STORIED HISTORY
POWERING COMMERCIAL PLANTS FOR OVER SIX
DECADES AND SUPPORTING NAVAL VESSELS
FOR MORE THAN 150 YEARS WITH LEADING EDGE
TECHNOLOGIES THAT ARE RELIED UPON TO ENHANCE
SAFETY, RELIABILITY AND PERFORMANCE IN THE
MOST DEMANDING ENVIRONMENTS.
The worldwide market for nuclear power generation continues to expand as the world
looks to meet rising energy demands. We are strategically aligned with the changing
market landscape, and through our diversified product portfolio, we are well positioned
to capitalize on growth opportunities.
As a critical provider of components and replacement parts, upgrades and modifications,
and outage inspection services to operating nuclear reactors globally, we maintain a
long-standing commitment to supporting safe, reliable and high performance products
in the commercial nuclear power industry.
For new nuclear power plants, we provide critical technology to support the Generation
III+ Westinghouse AP1000 reactor design and have the only fully qualified and installed
AP1000 reactor coolant pumps (RCPs) in the world.
Since the inception of the first U.S. nuclear submarine and aircraft carrier programs,
Curtiss-Wright has been a leading provider of highly-engineered propulsion technology
to power the U.S. Nuclear Navy. We are a leader in designing and manufacturing valves,
pumps, motors, generators, cable and aircraft handling systems, and electronics for a wide
range of markets and our technologies have passed the test of time.
Looking to the future,
we expect to remain
a key contributor on
the new Columbia
class nuclear ballistic
missile submarine.
POWER
5
2016 ANNUAL REPORT WE SUPPORT
THOSE
WHO DEFEND.
CURTISS-WRIGHT IS AN INDUSTRY-
LEADING SUPPLIER OF SOPHISTICATED
ELECTRONICS PRODUCTS, INCLUDING
COMMERCIAL OFF-THE-SHELF (COTS)
EMBEDDED COMPUTING SOLUTIONS,
UTILIZED BY OUR NATION’S MILITARY
AND INTERNATIONAL DEFENSE FORCES.
We are globally recognized as one
of the most innovative designers and
manufacturers of highly engineered
COTS solutions ruggedized to perform
reliably in harsh conditions. From
embedded computing to shipboard
aircraft and sensor handling systems,
Curtiss-Wright supports fighter jets,
helicopters and Unmanned Aerial
Vehicles (UAVs), as well as naval and
ground defense applications. We routinely demonstrate our ability to design and develop
advanced systems and products for high performance applications. As such, Curtiss-
Wright is uniquely positioned to benefit from the Department of Defense’s ongoing
commitment to C4ISR (Command, Control, Communications, Computers, Intelligence,
Surveillance, and Reconnaissance) and Electronic Warfare applications that will ensure
our military maintains its technological edge on the battlefield.
Our critical avionics and electronics solutions support flight control instrumentation,
flight test, telemetry, ground test, system and structural monitoring, and mission
recording on a wide range of defense, commercial aerospace, and space applications.
Additionally, our turret drive stabilization systems deliver unmatched target location
accuracy and turret stabilization functionality in harsh terrain for a multitude of
international ground defense platforms.
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CURTISS-WRIGHT CORPORATION DEFENSE
2016 ANNUAL REPORT
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DEFENSE SEGMENT SALES
BY END MARKET (2016)
3%
9%
17%
GENERAL
INDUSTRIAL
COMMERCIAL
AEROSPACE
GROUND
DEFENSE
27%
NAVAL
DEFENSE
44%
AEROSPACE
DEFENSE
Marines conducting training
operations on board a M1A1
Abrams Main Battle Tank.
Through the acquisition
of Teletronics Technology
Corporation (TTC), we
significantly enhanced our
position as a leading global
supplier of data acquisition
and flight test instrumentation
systems for the aerospace
and defense markets.
2016 ANNUAL REPORT SHAREHOLDERS
2016 WAS A HIGHLY SUCCESSFUL YEAR FOR CURTISS-WRIGHT.
OUR TEAM IS DELIVERING ON THE VISION OF ONE CURTISS-WRIGHT,
AND WE ARE ON THE PATH TOWARDS ACHIEVING TOP QUARTILE
PERFORMANCE WITHIN OUR PEER GROUP FOR ALL OF OUR KEY
FINANCIAL METRICS. IN FACT, THROUGH THE TEAM’S INCREASED
EFFICIENCY AND COMPETITIVENESS, WE ALREADY HAVE MET OR
EXCEEDED SEVERAL OF THOSE FIVE-YEAR OBJECTIVES — INITIATED
IN DECEMBER 2013 — IN ONLY THREE YEARS.
LOOKING TO THE FUTURE, WE ARE POSITIONING THE COMPANY FOR
RENEWED GROWTH BY INCREASING OUR INVESTMENTS IN RESEARCH
AND DEVELOPMENT, AND SEEKING PRUDENT AND STRATEGIC ACQUISITIONS,
WHILE ALSO LOOKING TO CAPITALIZE ON THE IMPROVED ORGANIC
GROWTH ENVIRONMENT EXPECTED IN THE COMING YEARS.
FINANCIAL PERFORMANCE
We achieved solid operational performance in 2016, led by continued margin expansion and very strong free cash flow
generation, despite lower sales driven by continued headwinds in our industrial markets. We generated a 6% increase
in operating income and a 130 basis point increase in operating margin compared with pro forma 2015 results (which
exclude the one-time China AP1000 fee of $20 million recognized in the fourth quarter of 2015), driving an operating
margin of 14.6%. This performance demonstrates the benefits of our ongoing margin improvement initiatives, including
our consolidation activities, as well as strong profitability associated with the AP1000® program. As a result of our
excellent performance, we achieved our objective of reaching the top quartile of our peer group for operating margin
in 2016. Our diluted earnings per share of $4.20 improved 12% compared with pro forma 2015 results.
In addition, we significantly exceeded expectations with $376 million in free cash flow in 2016, one of the strongest
performances in the Company’s history. This equated to 199% free cash flow conversion, as we significantly reduced
our working capital. Further, our balance sheet remains healthy and provides a solid base of financial flexibility to
continue pursuing our growth strategies.
As a sign of our continued financial success, Curtiss-Wright was added to the S&P MidCap 400 stock market index
in 2016. In addition, we experienced solid share price performance this year, as the stock price exceeded $100 and our
market cap eclipsed $4 Billion, both firsts in the history of our Company. We are very proud of these achievements.
FOCUS ON RENEWED GROWTH
Looking forward, we remain focused on exceeding the expectations of our customers, fostering solid long-term customer
relationships and enhancing value for our shareholders.
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CURTISS-WRIGHT CORPORATION
CURTISS-WRIGHT CORPORATIONLETTER TO While our operational performance has been stellar, we have faced several economic and end market challenges in
recent years, particularly in the industrial markets. However, as we look to the future, we believe we are well positioned
for renewed top-line growth across our broad and highly diversified technology portfolio of products and services to the
commercial aerospace, defense, general industrial and power generation markets.
Within the commercial markets, Curtiss-Wright stands to benefit from the increased focus on human-machine interface
applications, hybrid and electric commercial vehicles, powered wheelchairs, the continued production ramp up in commercial
aerospace and ongoing support for operating and new build reactors in the commercial nuclear power industry. In the defense
markets, we expect to benefit from increased military spending for our nuclear naval propulsion and COTS embedded
computing products on leading submarine, aircraft carrier and fighter jet programs.
DISCIPLINED CAPITAL ALLOCATION STRATEGY
Curtiss-Wright remains committed to a disciplined and balanced capital allocation strategy that consists of reinvesting
in our business (including increased R&D in 2017), complementing our organic growth with disciplined acquisitions and
providing steady distributions to our shareholders in the form of share repurchases and dividends in order to maximize
shareholder value.
Our strong cash performance allowed us to maintain an active share repurchase program, as we repurchased $100
million in shares in 2016, as well as a steady annual dividend payout of $0.52 per share. We expect to repurchase at
least $50 million in shares in 2017.
To supplement our expectations for renewed growth, we will also seek strategic acquisitions that further expand our
portfolio and support our long-term financial objectives. We did just that with our recent acquisition of Teletronics
Technology Corporation (TTC), a leading designer and manufacturer of high-technology, comprehensive data acquisition
and flight test instrumentation systems for the aerospace and defense markets.
These collective actions reflect the Board of Directors’ continued confidence in our ability to deliver solid, profitable
growth and strong free cash flow.
14.6%
OPERATING MARGIN
$376M
FREE CASH FLOW
IN RECOGNITION
It is with sincere best wishes that we announce the retirement of our colleague John R. Myers from our Board of Directors.
For 20 years, John has been an integral member of our Board, serving as a member and Chairman of the Executive
Compensation Committee, the Committee on Directors and Governance and, from 2014-2015, as Lead Independent Director
of the Board. I would like to personally thank John for his enduring dedication and
many years of service to Curtiss-Wright and wish him well in his future endeavors.
As always, I would like to thank our 8,000 global employees for their steady drive
and commitment to ensuring the Company’s future success.
In summary, our team remains confident and focused on enhancing Curtiss-Wright’s
long-term shareholder value through continued organic investment supplemented
with acquisitions, operating margin expansion, significant free cash flow generation
and steady distributions to our shareholders. We will continue to deliver on the One
Curtiss-Wright vision and look forward to continued successes in 2017.
DAVID C. ADAMS
Chairman and Chief Executive Officer
9
2016 ANNUAL REPORT S
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Year ended December 31
(Dollars in millions, except percentages; unaudited)
2016
2015
CHANGE
(6%)
(2%)
(4%)
(4%)
(9%)
(1%)
2%
(4%)
33%
(1%)
SALES
Commercial/Industrial
$
1,118.8
$
1,184.8
Defense
Power
TOTAL SALES
OPERATING INCOME (EXPENSE)
466.6
523.5
477.4
543.5
$
2,108.9
$
2,205.7
Commercial/Industrial
$
156.5
$
Defense
Power
TOTAL SEGMENTS
CORPORATE & OTHER
98.3
76.5
171.5
98.9
75.0
$
331.3
$
345.4
(23.2)
(34.8)
TOTAL OPERATING INCOME
$
308.1
$
310.6
OPERATING MARGINS
Commercial/Industrial
Defense
Power
SEGMENT MARGINS
TOTAL OPERATING MARGIN
Note: Amounts may not add to the total due to rounding.
END MARKET SALES (2016)
14.0%
21.1%
14.6%
15.7%
14.6%
14.5%
20.7%
13.8%
15.7%
14.1%
38%
DEFENSE
24%
GENERAL
INDUSTRIAL
19%
COMMERCIAL
AEROSPACE
19%
POWER
GENERATION
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CURTISS-WRIGHT CORPORATION
CURTISS-WRIGHT CORPORATION
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THREE-YEAR REVIEW
Years ended December 31
(Dollars in millions, except per share data; unaudited)
2016
2015
2014
PERFORMANCE(1)
Net Sales
Operating income
Operating margin
Net earnings
EARNINGS PER SHARE
Basic
Diluted
Dividends per share
YEAR-END FINANCIAL POSITION
Return on invested capital(2)
New orders
Backlog
Working capital as % of sales(3)
Total assets
Total debt
Stockholder’s equity
OTHER YEAR-END DATA
Cash flow from operations
Capital expenditures
Free cash flow(4)
EBITDA
Depreciation and amortization
Shares of stock outstanding at December 31
Number of registered shareholders(5)
Number of employees(5)
$
$
2,108.9
308.1
14.6%
$
$
2,205.7
310.6
14.1%
$
$
2,243.1
282.4
12.6%
$
189.4
$
192.2
$
169.9
$
$
$
$
$
$
$
$
$
$
$
$
$
4.27
4.20
0.52
12.0%
2,149.2
1,950.8
21.0%
3,037.8
966.3
1,291.2
423.2
46.8
376.4
404.1
96.0
44.2
3,770
7,946
$
$
$
$
$
$
$
$
$
$
$
$
$
4.12
4.04
0.52
11.5%
2,585.0
1,928.7
25.4%
2,989.6
953.2
1,255.4
162.5
35.5
272.0
411.4
100.8
44.6
4,038
8,421
$
$
$
$
$
$
$
$
$
$
$
$
$
3.54
3.46
0.52
10.4%
2,409.2
1,674.1
23.4%
3,382.4
953.0
1,478.4
331.8
67.1
264.7
401.3
118.9
47.9
4,321
8,911
Note: Amounts may not add due to rounding.
(1) Reported on a continuing operations basis.
(2) Return on invested capital is equal to net operating profit after-tax over two-year average net debt plus equity and excludes equity from
discontinued operations.
(3) Working capital is equal to accounts receivable plus inventory minus accounts payable, deferred income and deferred development costs.
(4) Free cash flow is defined as cash flow from operations less capital expenditures. 2015 adjusted to remove the $145 million contribution to
the Company’s corporate defined benefit pension plan.
(5) Actual number, not in millions.
2016 ANNUAL REPORT
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2016 ANNUAL REPORT
DIRECTORS
DAVID C. ADAMS
JOHN R. MYERS
Chairman and Chief Executive Officer;
Former Chairman and Chief Executive Officer of
Director, Snap-on Incorporated
DEAN M. FLATT
Tru-Circle Corporation; Management Consultant;
Former Non-Executive Chairman of the Board of
Garrett Aviation Services
Director, Ducommun, Inc.; Former President and
Chief Operating Officer of Honeywell International’s
Defense and Space Business
JOHN B. NATHMAN
Admiral, U.S. Navy (Ret.)
S. MARCE FULLER
ROBERT J. RIVET
Former President and Chief Executive Officer
Former Executive Vice President, Chief Operations, and
of Mirant Corporation, Inc.
Administrative Officer of Advanced Micro Devices, Inc.
(formerly known as Southern Energy, Inc.)
RITA J. HEISE
ALBERT E. SMITH
Director, Tetra Tech, Inc. and CDI Corporation; Former
Director, Fastenal Company; Former Corporate
Executive Vice President of Lockheed Martin Corporation
Vice President and Chief Information Officer
of Cargill, Incorporated
DR. ALLEN A. KOZINSKI
PETER C. WALLACE
Director, Applied Industrial Technologies, Inc. and Rogers
Corporation; Former Chief Executive Officer and Director
Former Vice President of Global Refining
of Gardner Denver Inc.; Former President, Chief Executive
of British Petroleum PLC
Officer, and Director of Robbins & Myers, Inc
OFFICERS
DAVID C. ADAMS
PAUL J. FERDENZI
Chairman and Chief Executive Officer
Vice President, General Counsel, and Corporate Secretary
GLENN E. TYNAN
HARRY S. JAKUBOWITZ
Vice President and Chief Financial Officer
Vice President and Treasurer
THOMAS P. QUINLY
K. CHRISTOPHER FARKAS
Vice President and Chief Operating Officer
Vice President and Corporate Controller
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CURTISS-WRIGHT CORPORATION
CURTISS-WRIGHT CORPORATION
SHAREHOLDER INFORMATION
CORPORATE HEADQUARTERS
13925 Ballantyne Corporate Place, Suite 400
DIRECT STOCK PURCHASE PLAN/
DIVIDEND REINVESTMENT PLAN
Charlotte, NC 28277
www.curtisswright.com
Tel: (704) 869-4600
ANNUAL MEETING
The 2017 annual meeting of stockholders will be held on
Thursday, May 11, 2017, at the Ballantyne Business Center,
13850 Ballantyne Corporate Place, Suite 500, Charlotte, NC
28277, commencing at 10:00 a.m. local time.
STOCK EXCHANGE LISTING
A plan is available to purchase or sell shares of Curtiss-
Wright common stock. The plan provides a low-cost
alternative to the traditional methods of buying, holding
and selling stock. The plan also provides for the automatic
reinvestment of Curtiss-Wright dividends. For more
information, contact our transfer agent, Broadridge
Corporate Issuer Solutions, Inc., P.O. Box 1342, Brentwood,
NY 11717, toll-free at (855) 449-0995.
INVESTOR INFORMATION
Investors, stockbrokers, security analysts and others
seeking information about Curtiss-Wright Corporation
The Corporation’s common stock is listed and traded on
should contact James M. Ryan, Senior Director of Investor
the New York Stock Exchange under the symbol CW.
Relations, at (704) 869-4600 or investor@curtisswright.com
COMMON SHAREHOLDERS
SHAREHOLDER COMMUNICATIONS
As of December 31, 2016, the approximate number of registered
Any stockholder wishing to communicate directly
holders of record of common stock, par value of $1.00 per
share of the Corporation, was 3,770.
FORWARD-LOOKING STATEMENTS
with our Board of Directors should write to
Dr. Allen A. Kozinski, c/o Curtiss-Wright Corporation,
13925 Ballantyne Corporate Place, Suite 400,
Charlotte, NC 28277.
This brochure contains not only historical information,
but also forward-looking statements regarding expectations
FINANCIAL REPORTS
of future performance of the Corporation. Forward-looking
This brochure includes some of the periodic financial
statements involve risk and uncertainty. Please refer to
information required to be on file with the Securities
the Corporation’s 2016 Annual Report on Form 10-K for
and Exchange Commission. The Corporation also files
a discussion relating to forward-looking statements
an Annual Report on Form 10-K, a copy of which may be
obtained free of charge. These reports, as well as additional
financial documents such as quarterly shareholder
reports, proxy statements, and quarterly reports on Form
10-Q, may be obtained by written request to James M.
Ryan, Senior Director of Investor Relations, at the Corporate
Headquarters or through the Investor Relations section
of the Corporation’s website: www.curtisswright.com.
contained in this brochure and risk factors that could
cause future results to differ from current expectations.
STOCK TRANSFER AGENT AND REGISTRAR
For services such as changes of address, replacement
of lost certificates or dividend checks, and changes in
registered ownership, or for inquiries as to account status,
write to Broadridge Corporate Issuer Solutions, Inc.,
P.O. Box 1342, Brentwood, NY 11717 or overnight to
1155 Long Island Avenue, Brentwood, NY 11717. Please
include your name, address and telephone number
with all correspondence. Telephone inquiries may be
made toll-free to (855) 449-0995, or to (720) 864-4772
internationally. Internet inquiries should be directed to
http://shareholder.broadridge.com/curtisswright and by
email to shareholder@broadridge.com. Hearing-impaired
shareholders are invited to log on to the website and
select the Live Chat option.
Cover Image of F-35 Lightning II: Jelle Harberts
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CURTISS-WRIGHT CORPORATION
13925 Ballantyne Corporate Place, Suite 400
Charlotte, NC 28277
www.curtisswright.com