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Curtiss-Wright Buys Ultra Energy, Widens Defense & Nuclear Business

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Curtiss-Wright Corporation (CW - Free Report) announced the acquisition of Ultra Energy for $200 million in cash. The acquiree offers safety-critical measurement and control systems to the commercial nuclear, aerospace and defense industries.

How Will the Buyout Help Curtiss-Wright?

Ultra Energy's acquisition is expected to strengthen Curtiss-Wright’s footprint in the aerospace and defense industry. Ultra Energy's reactor protection systems, neutron monitoring systems, radiation monitoring systems, and temperature and pressure sensors, among others, ensure the safe and reliable operation of commercial nuclear reactors and other power generation plants.

The acquisition broadens CW's worldwide commercial nuclear portfolio by adding highly complementary measurement and control solutions that support plant life extensions and aging power plant modernization projects. It increases CW's presence with the top small modular reactor designers in the United States and Europe.

CW’s Acquisition Spree

The military industry has seen a notable increase in mergers and acquisitions due to factors such as a growing emphasis on cost-cutting initiatives and diversifying portfolios to combat competition. These transactions are becoming more significant, allowing businesses to expand their operations, gain access to new skills, develop technologies, and produce higher-quality goods and services.

Curtiss-Wright has also been engaged in acquisitions like the latest one. In April 2024, the company acquired WSC, Inc. for $34 million, which is a supplier of simulation technology that aids in the planning, building and dependable operation of commercial nuclear power production and processing facilities across the globe. Such acquisitions are expected to boost CW’s position in the commercial nuclear market.

Acquisitions Among Other Defense Players

Other defense companies that have recently indulged in valuable acquisition deals are as follows:

In August 2024, Lockheed Martin Corp. (LMT - Free Report) agreed to acquire a manufacturer of satellite products, Terran Orbital, for $450 million, which serves the aerospace and defense industry. Through this acquisition, LMT will be able to expand its customer base, enhance its product offerings and increase its market share in the satellite-based solutions business area.

LMT has a long-term (three to five years) earnings growth rate of 4.6%. The Zacks Consensus Estimate for its 2024 sales implies an improvement of 5.5% from the prior-year reported figure.

In July 2024, TransDigm Group, Inc. (TDG - Free Report) signed a contract to acquire an engineering, testing and measurement services provider, Raptor Scientific. This buyout is likely to be instrumental to TDG’s growth in the aftermarket business space.

TransDigm has a long-term earnings growth rate of 12.7%. The Zacks Consensus Estimate for its fiscal 2025 sales implies an improvement of 11.7%.

On Dec. 30, 2024, Teledyne Technologies, Inc. (TDY - Free Report) completed the acquisition of a designer and producer of microelectronic circuits, optoelectronic components and power products — Micropac. The buyout is expected to expand TDY’s customer base, enhance its product offerings and increase its market share in the industrial, medical, space, military and aerospace business areas.

TDY has a long-term earnings growth rate of 7.4%. The Zacks Consensus Estimate for its 2025 sales implies a year-over-year improvement of 4.6%.

Curtiss-Wright’s Stock Price Movement

In the past six months, the company’s shares have risen 29.1% compared with the industry’s growth of 17.2%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

CW’s Zacks Rank

Curtiss-Wright currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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