Woodward (WWD) Announces Record Sales & Earnings Results For Fiscal Year 2025

Woodward, Inc. (WWD) today announced its financial results for the recent quarter, reporting revenue of $995 million, which exceeded analysts’ expectations by approximately $55.4 million. The company also met its earnings per share estimate, delivering results in line with forecasts. This performance highlights Woodward’s continued strength in the market and its ability to drive growth despite economic challenges.

Key Highlights:

• Woodward reported record sales of $3.6 billion for fiscal year 2025, a 7% increase year-over-year.
• Fourth quarter net sales reached $995 million, up 16% from the previous year.
• Net earnings for fiscal year 2025 were $442 million, a 19% increase, with adjusted net earnings of $424 million, up 12%.
• The company completed the strategic acquisition of Safran’s North American Electromechanical Actuation business.
• Woodward was selected by Airbus to supply 12 of the 14 spoiler actuation systems for the A350.
• The company announced a new three-year $1.8 billion share repurchase program.
• Fiscal 2026 guidance anticipates sales growth of 7% to 12% and EPS between $7.50 and $8.00.

In the earnings release, Chip Blankenship, Chairman and CEO, stated, “Woodward delivered another year of record sales in fiscal 2025, driven by strong demand and disciplined execution that expanded earnings and strengthened our foundation for growth.” He highlighted the substantial sales and margin expansion in the Aerospace segment, supported by high aircraft utilization and robust defense activity, while the Industrial segment achieved double-digit growth across power generation and oil & gas markets. Looking ahead, the company is focused on growth, operational excellence, and innovation to drive sustained performance and long-term shareholder value.

For fiscal year 2026, Woodward expects to maintain a strong demand environment, projecting sales growth of 7% to 12% and segment earnings margins of 22% to 23% for Aerospace, and 14.5% to 15.5% for Industrial. The company plans to invest approximately $290 million in capital expenditures and anticipates free cash flow of $300 to $350 million. This outlook reflects Woodward’s commitment to leveraging its enhanced capabilities and deep customer partnerships to capture opportunities in the next generation of aircraft and energy systems.

Woodward, Inc. (WWD) has shown impressive price appreciation over the past year, with a staggering 53.02% increase, reflecting strong investor confidence in the company’s growth trajectory. Over the last six months alone, the stock has surged by 26.83%, indicating a robust upward momentum that suggests positive market sentiment. The company’s fundamentals support this bullish trend, highlighted by a remarkable two-year compound annual growth rate (CAGR) of 37.83% in earnings per share, which is a testament to its operational efficiency and profitability. Additionally, Woodward’s revenue has also grown at an impressive 11.07% CAGR, showcasing its ability to expand its market presence. The return on invested capital stands at a healthy 13.83%, further underscoring the company’s effective capital management. With a net profit margin of 11.30%, Woodward demonstrates solid profitability, which is crucial for sustaining its growth. However, the price-to-earnings ratio of 41.56 suggests that the stock may be trading at a premium, reflecting high expectations from investors. Overall, Woodward, Inc. appears well-positioned for continued success, but potential investors should remain mindful of its elevated valuation.

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates through two segments: Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and various contractors, as well as through aftermarket sales of components, such as provisioning spares or replacements, and spare parts. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.