Curtiss-Wright (CW): Positioned for Long-Term Defense and Energy Growth
Curtiss-Wright (CW) is a company with deep roots in aviation and engineering, tracing its history back to pioneers like Glenn Curtiss and the Wright brothers. Today, it has evolved into a diversified player in defense, aerospace, and nuclear energy, making it a compelling pick for investors looking to capitalize on global trends in military spending and energy innovation.
The company has a strong track record of delivering shareholder value, with its stock advancing 60% in 2024, 34% in 2023, and double-digit gains in the two years prior. So far in 2025, shares are only up 1%, but there’s reason to believe the stock will continue to rise in 2025. Citi recently initiated coverage with a buy rating and a 12-month price target of $410, representing roughly 18% upside from current levels.
A Defense and Energy Powerhouse
Curtiss-Wright is uniquely positioned to benefit from increasing global military budgets as geopolitical concerns in Europe and the Pacific drive demand for advanced defense systems. The company is poised to ride Department of Defense spending priorities, particularly in aircraft production, shipbuilding, and C4I (Command, Control, Communications, Computers, and Intelligence) systems. These areas are expected to drive sustained revenue growth in the defense segment, complemented by increased production rates for commercial aircraft.
On the energy front, Curtiss-Wright’s role in the nuclear sector provides another powerful growth driver. The company’s partnerships with leading small modular reactor (SMR) developers, such as NuScale, TerraPower, and X-energy, underscore its strategic positioning in the commercial nuclear market. Its 2022 agreement with X-energy, for instance, supports the design and deployment of Xe-100 advanced SMRs, expanding Curtiss-Wright’s footprint in both operating expenses and aftermarket revenue streams.
Financial and Strategic Catalysts
Curtiss-Wright has demonstrated a strong ability to de-lever its balance sheet and generate consistent cash flow, with projections of 13% earnings growth through 2027. Additionally, the company’s history of mergers and acquisitions could further expand its capabilities in nuclear power and defense, adding new revenue streams.
Key catalysts include ongoing plant life extensions in the U.S. and abroad, new nuclear awards, and potential SMR partnerships that could solidify Curtiss-Wright’s leadership in energy innovation.
Why Curtiss-Wright Is a Buy
Curtiss-Wright combines the stability of a well-established business with the growth potential of expanding markets in defense and nuclear energy. Its diversified portfolio, strong cash flow, and strategic partnerships make it a standout option for investors seeking long-term value.
While the stock’s 12% potential upside based on Citi’s price target is attractive, the real value lies in Curtiss-Wright’s ability to capitalize on major trends that are expected to shape global industries for years to come. For those looking to build a resilient portfolio, Curtiss-Wright is worth serious consideration.
