Have you been paying attention to shares of Woodward (WWD) ? Shares have been on the move with the stock up 14.7% over the past month. The stock hit a new 52-week high of $304.72 in the previous session. Woodward has gained 80.4% since the start of the year compared to the 22.6% move for the Zacks Aerospace sector and the 20.6% return for the Zacks Aerospace - Defense Equipment industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our ear ...

Key TakeawaysBank of Japan (BOJ) officials are urging vigilance regarding the potential overvaluation of AI-related stocks, echoing concerns from other global financial institutions.The Japanese Yen (JPY) strengthened significantly, and Japanese government bond (JGB) yields surged following hawkish comments from BOJ Governor Kazuo Ueda, signaling a potential interest rate hike as early as December.Truist Securities has raised its price target for Woodward Inc. (WWD) to $305 from $294, maintaining a "Buy" ra ...

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on the positions of the authors and the disclosure policy of The Motley Fool [1] Summary by Categories - **Company Positions**: Anand Chokkavelu, Jason Hall, and Lou Whiteman have no positions in any of the stocks mentioned [1] - **Disclosure Policy**: The Motley Fool has a disclosure policy stating that it holds no positions in any of the stocks mentioned [1]

BREAKING: Market Rallies Into Holiday On Tuesday, Woodward (WWD) stock jumped almost 13%. Woodward is a major supplier of aerospace parts. Prior to Tuesday's run-up, Woodward stock had been in the 5% buy range for five weeks. The stock broke out on Oct. 23 at a 261.56 price, MarketSurge charts show. Tuesday's action left the stock extended, and up more than 76% since the start of… Related news Boeing Pentagon Contracts Nudge Stock Up After Long Slide Take a Trial Today Get instant access to exclusive stock ...

Core Insights - Woodward, Inc. is a key player in the aerospace and industrial sectors, recognized for its innovative energy control and optimization solutions [1] - The company has received a price target of $305 from Truist Financial, indicating a potential increase of 5.63% from its current price [1][5] Financial Performance - In Q4 fiscal 2025, Woodward reported a 48% year-over-year increase in adjusted net earnings per share (EPS), reaching $2.09, exceeding the Zacks Consensus Estimate by 14.2% [2][5] - Quarterly net sales rose by 16% year-over-year to $995 million, surpassing the consensus estimate by 6.4% [2] Annual Results - For the full fiscal year, Woodward's net sales reached $3.6 billion, marking a 7% increase from the previous year [3] - The adjusted EPS for the year rose by 13% to $6.89, supported by the acquisition of Safran's North American Electromechanical Actuation business [3] Strategic Initiatives - Woodward executed a divestiture and launched a $1.8 billion share repurchase program, positively impacting its outlook for 2026 [4] - The stock price increased by 10.93% to $289.72, reflecting investor confidence in the company's growth trajectory [4][5]

Revenue and Sales Performance - The Aerospace segment generated revenues from sales to OEMs, tier-one suppliers, and prime contractors, with significant content on platforms like Airbus A320neo and Boeing 737 MAX[19] - Sales to the five largest customers represented approximately 36% of consolidated net sales for the fiscal year ended September 30, 2025, compared to 35% in the previous year[24] - The remaining performance obligations for the Aerospace segment were $2,683,116, expected to be satisfied by October 31, 2025, representing 74% of the total[41] - The Industrial segment's revenues are primarily from sales to OEMs, with a remaining performance obligation of $736,912, expected to be satisfied by October 31, 2025, representing 89%[41] - Sales made directly to U.S. Government agencies represented 20% of total sales for fiscal year 2025, up from 17% in fiscal year 2024[39] - Consolidated net sales for fiscal year 2025 increased by $242,815, or 7.3%, to $3,567,064 compared to fiscal year 2024[188] - Aerospace segment net sales rose to $2,312,806, an increase from $2,028,618 in fiscal year 2024, driven by higher sales volumes and price realization[183] - Industrial segment net sales decreased to $1,254,258 from $1,295,631, primarily due to lower sales volume and unfavorable mix related to reduced demand in China[189] Financial Performance - Consolidated net earnings for fiscal year 2025 were $442,111, a 18.6% increase from $372,971 in fiscal year 2024[183] - Operating profit for the aerospace segment increased to $506,613, representing 21.9% of segment net sales, up from 19.0% in fiscal year 2024[183] - Free cash flow for fiscal year 2025 was $340,366, slightly down from $342,809 in fiscal year 2024, primarily due to higher capital expenditures[185] - Research and development costs increased by 4.9% to $147,568, representing 4.1% of net sales, down from 4.2% in fiscal year 2024[194] - Effective tax rate decreased to 15.2% in fiscal year 2025 from 17.8% in fiscal year 2024, mainly due to a reduction in the German corporate tax rate[197] Market and Industry Trends - The company has a strategic focus on energy control and optimization solutions, addressing the growing requirements for efficiency and emissions reduction in aerospace and industrial markets[13] - The company anticipates continued demand growth in power generation driven by global electrification and data center requirements[179] - The defense industry has seen increased budget allocations, with expectations for continued growth in procurement and research and development funding[174] - The company reported significant growth in smart defense programs during fiscal year 2025, with an expected increase in demand for these weapons programs[174] - The company anticipates steady global air traffic growth in fiscal year 2026, leading to increased demand for new generation aircraft models[171] Operational and Strategic Initiatives - The company operates manufacturing and assembly plants primarily in the U.S., Europe, and Asia, utilizing raw materials like aluminum, iron, and steel[42] - The company collaborates closely with customers during preliminary design stages to enhance product performance and increase the likelihood of selection for new platforms[47] - The company has developed key components for the CFM LEAP engine program and Pratt & Whitney's GTF engine program, continuing support through joint ventures[50] - The company has a strategic joint venture with GE Aerospace, which may impact its ability to secure long-term sales in certain aerospace markets[75] - The company maintains high utilization levels across its manufacturing facilities, indicating efficient operations[147] Risks and Challenges - The company has experienced shortages of certain parts and raw materials due to supply chain challenges, which may affect revenue and margins[77] - The company faces risks from potential changes in U.S. Government spending, which could adversely affect sales and financial condition[80] - The company is subject to unique risks associated with government contracting, including potential contract modifications or terminations[83] - Operations may be disrupted by unforeseen events such as natural disasters, which could lead to significant delays in product shipments and loss of sales[103] - Cybersecurity threats are a significant concern, with ongoing risks of attacks that could compromise sensitive data and disrupt operations[111] Workforce and Employment - As of October 31, 2025, the company employed approximately 10,200 full-time members, with about 30% located outside the United States[56] - Approximately 13% of the total full-time workforce in the U.S. were union members as of October 31, 2025, primarily in the Aerospace segment[57] - The company emphasizes the importance of its members, with an average tenure of 10 years, reflecting a positive workplace culture[51] - The company has not experienced recent work stoppages, but future disruptions could adversely affect operations and financial performance[102] Environmental and Compliance - The company is committed to compliance with environmental regulations, which has not materially impacted its capital expenditures or earnings[64] - The company must comply with U.S. laws restricting business in certain countries, which may affect international operations[94] - The company is subject to environmental costs and liabilities due to manufacturing operations, which could adversely affect financial results[135] - Compliance with evolving data privacy and cybersecurity regulations is critical, as failures could result in substantial costs and damage to reputation[116][117]

Core Insights - Woodward, Inc. (WWD) reported a significant increase in adjusted net earnings per share (EPS) for Q4 fiscal 2025, reaching $2.09, a 48% year-over-year increase, surpassing the Zacks Consensus Estimate by 14.2% [1][11] - Quarterly net sales rose 16% year over year to $995 million, driven by strong performance in Aerospace and Industrial sectors, exceeding the consensus estimate by 6.4% [2][11] - For the full fiscal year, WWD's net sales totaled $3.6 billion, a 7% increase year over year, with adjusted EPS rising 13% to $6.89 [2] Financial Performance - Aerospace segment net sales were $661 million, up 19.6% year over year, with defense OEM sales increasing by 27% and defense services by 80% [5] - Industrial segment net sales reached $334 million, a 10.6% year-over-year increase, driven by power generation and oil & gas markets [6] - Gross margin improved by 360 basis points year over year to 27.9%, while total costs and expenses rose 11% to $835.5 million [9] Strategic Developments - WWD completed the acquisition of Safran's North American Electromechanical Actuation business, enhancing its technology portfolio [3] - The company launched a new three-year, $1.8 billion share repurchase program and divested its combustion product line to focus on high-growth areas [3][11] - WWD is constructing a highly automated aerospace manufacturing facility in Spartanburg County, SC, and was selected by Airbus for a significant contract [3] Cash Flow and Shareholder Returns - For fiscal 2025, WWD generated $471 million in net cash from operating activities, an increase from $439 million in the previous year [12] - Adjusted free cash flow was $340 million, slightly down from $343 million in fiscal 2024, primarily due to increased capital spending [13] - The company returned $238 million to shareholders through dividends and share repurchases during fiscal 2025 [14] Fiscal 2026 Guidance - Management anticipates continued strong demand in fiscal 2026, projecting consolidated net sales growth of 7% to 12% [15] - Aerospace segment earnings are expected to be 22% to 23% of segment sales, while Industrial segment earnings are projected at 14.5% to 15.5% [16] - Adjusted free cash flow is forecasted to be between $300 million and $350 million, with EPS expected to range from $7.5 to $8 [16]

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Core Insights - Woodward reported revenue of $995.26 million for the quarter ended September 2025, reflecting a 16.5% increase year-over-year and surpassing the Zacks Consensus Estimate of $935.8 million by 6.36% [1] - The company's EPS for the quarter was $2.09, up from $1.41 in the same quarter last year, exceeding the consensus EPS estimate of $1.83 by 14.21% [1] Revenue Performance - Industrial segment external net sales reached $334 million, exceeding the average estimate of $303.48 million by analysts, marking a 10.7% increase year-over-year [4] - Aerospace segment external net sales totaled $661 million, surpassing the average estimate of $632.12 million, with a year-over-year increase of 19.6% [4] - Aerospace segment net sales in the Defense aftermarket were $64 million, slightly above the average estimate of $63.43 million, representing an 8.5% year-over-year change [4] - Aerospace segment net sales in the Commercial aftermarket were $242 million, exceeding the average estimate of $213.53 million, with a significant year-over-year increase of 39.1% [4] - Aerospace segment net sales in the Commercial OEM were $194 million, in line with the average estimate of $200.93 million, showing no year-over-year change [4] - Aerospace segment net sales in the Defense OEM reached $160 million, surpassing the average estimate of $155.01 million, reflecting a 27% year-over-year increase [4] Earnings Performance - Aerospace segment earnings were reported at $162 million, exceeding the average estimate of $141.2 million by analysts [4] - Industrial segment earnings were $49 million, surpassing the average estimate of $43.64 million [4] Stock Performance - Woodward's shares have returned -1.2% over the past month, compared to a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]