Core Insights - Woodward (WWD) reported quarterly earnings of $2.09 per share, exceeding the Zacks Consensus Estimate of $1.83 per share, and up from $1.41 per share a year ago [1] - The earnings surprise was +14.21%, following a previous surprise of +8.64% in the last quarter [2] - The company achieved revenues of $995.26 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.36% and increasing from $854.49 million year-over-year [3] Financial Performance - Woodward has consistently surpassed consensus EPS estimates over the last four quarters [2] - The company has also topped consensus revenue estimates three times in the last four quarters [3] - Year-to-date, Woodward shares have increased by approximately 57.9%, significantly outperforming the S&P 500's gain of 12.3% [4] Future Outlook - The future performance of Woodward's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $1.55 on revenues of $854.07 million, and for the current fiscal year, it is $7.54 on revenues of $3.79 billion [8] - The estimate revisions trend for Woodward was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - Woodward operates within the Aerospace - Defense Equipment industry, which is currently ranked in the bottom 37% of over 250 Zacks industries [9] - The performance of Woodward's stock may be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform the bottom half by more than 2 to 1 [9]

Financial Data and Key Metrics Changes - Annual revenue exceeded $3.5 billion for the first time, marking a record performance [5] - Fourth quarter net sales totaled $995 million, an increase of 16%, while total net sales for 2025 were $3.6 billion, up 7% [17] - Adjusted earnings per share for the fourth quarter were $2.09, compared to $1.41, and for 2025, earnings per share were $7.19, up from $6.01 [17][24] Business Line Data and Key Metrics Changes - Aerospace segment sales increased 20% in the fourth quarter to $661 million, with commercial services sales up 40% [18] - Industrial segment sales for the fourth quarter were $334 million, up 11%, with core industrial sales growing 15% [20] - Aerospace segment earnings for the fourth quarter were $162 million, with margins expanding 520 basis points to 24.4% [18] Market Data and Key Metrics Changes - Aerospace sales growth was driven by strong demand in defense OEM, which increased 27%, while commercial OEM sales were flat [18] - Industrial sales growth included 15% in transportation and 13% in oil and gas, while power generation grew only 6% due to a divestiture [21] - Core industrial margins expanded 330 basis points to 15.2% of core industrial sales, driven by price realization [23] Company Strategy and Development Direction - The company is focused on growth, operational excellence, and innovation, with strategic investments in automation and new facilities [9][11] - A new facility in Spartanburg, South Carolina, is under construction to support advanced manufacturing and increased capacity [10] - The company aims to capture growth in aerospace and industrial markets, with expectations for increased OEM orders and sustained demand [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory across segments, with guidance for 2026 reflecting continued strong demand [26] - Aerospace segment earnings are expected to be 22%-23% of segment sales, while industrial segment earnings are projected at 14.5%-15.5% [27] - The company anticipates a modest adjustment to cumulative free cash flow targets due to increased capital allocation towards high-return growth investments [16][25] Other Important Information - The company returned over $238 million to shareholders in 2025, including $173 million in share repurchases [24] - A new three-year share repurchase program has been authorized for up to $1.8 billion, reflecting confidence in the company's strategy [25] - Capital expenditures for 2026 are expected to be approximately $290 million, including investments in automation and the Spartanburg facility [28] Q&A Session Summary Question: What growth is expected for legacy narrowbody engine aftermarket in 2026? - Management expects single-digit growth rates for legacy narrowbody engines in 2026, with some price increases anticipated [42][44] Question: How much of the current power generation revenue is tied to Caterpillar? - Management indicated healthy growth from power generation customers, including Caterpillar, but did not specify revenue tied to individual customers [47][49] Question: What are the assumptions for OE de-stocking? - Management expects de-stocking to occur around the second quarter of the fiscal year if airframe and engine customers meet forecasted rates [81][82] Question: Will capital expenditures normalize after the A350 build-out? - Management indicated that the Spartanburg investment is causing a peak in capital expenditures, with future investments being evaluated [90] Question: How should shareholders expect the return of capital to be distributed? - Management plans to spread the return of capital evenly throughout the year [111]

Financial Data and Key Metrics Changes - Annual revenue exceeded $3.5 billion for the first time, marking a record performance [5] - Adjusted earnings per share increased nearly 13% compared to the prior year [6] - Net sales for Q4 2025 totaled $995 million, a 16% increase, while net sales for the full year reached $3.6 billion, a 7% increase [17] - Earnings per share for Q4 2025 were $2.23 compared to $1.36, and adjusted earnings per share were $2.09 compared to $1.41 [17] Business Line Data and Key Metrics Changes - Aerospace sales increased 14% to record levels, with margin expansion of 290 basis points [6] - Industrial segment sales for Q4 were $334 million, up 11%, with core industrial sales growing 15% [20] - Commercial services sales in the aerospace segment increased 40%, while defense OEM sales rose 27% [18] - Industrial segment earnings for Q4 were $49 million, or 14.6% of segment sales, compared to $38 million, or 12.6% of segment sales [21] Market Data and Key Metrics Changes - Aerospace segment sales for the full year were $2.3 billion, up 14%, driven by strong demand in commercial services and defense OEM [18] - Industrial sales anticipated to grow across all primary markets, with power generation growth expected to be muted in the first half of 2026 due to divestiture impacts [26][27] - China on-highway sales in 2026 expected to be approximately $60 million, in line with 2025 [27] Company Strategy and Development Direction - Company focuses on strong execution, capturing growth in markets, and driving operational excellence [15] - Strategic investments in automation and new facilities to support long-term growth [11][24] - Continued emphasis on innovation and partnerships to enhance technology solutions [14] Management's Comments on Operating Environment and Future Outlook - Management expects sustained demand across core markets, with a modest adjustment to cumulative free cash flow target due to increased capital allocation towards growth investments [16] - Anticipated strong repair growth for LEAP and GTF engines, with expectations for LEAP and GTF repair revenue to surpass legacy repair revenue by late 2026 or early 2027 [8][15] - Management remains confident in the growth trajectory across segments, with guidance for 2026 reflecting continued operational discipline [16][26] Other Important Information - Capital expenditures for 2025 were $131 million, driven by investments in automation and new facility construction [24] - New three-year share repurchase program authorized for up to $1.8 billion, reflecting confidence in the company's strategy and growth outlook [25] Q&A Session Summary Question: What growth is expected for legacy narrowbody engine aftermarket in 2026? - Management expects single-digit growth rates for legacy narrowbody engines in 2026, with some price increases anticipated [42][44] Question: How much of the current power generation revenue is tied to Caterpillar? - Management indicated healthy growth from power generation customers, including Caterpillar, but did not specify exact revenue figures [47][49] Question: What are the assumptions for OE de-stocking? - Management anticipates de-stocking could occur by the second quarter of fiscal year 2026 if airframe and engine customers meet forecasted rates [81][82] Question: Will capital expenditures normalize after the A350 build-out? - Management indicated that the Spartanburg investment is causing a peak in capital expenditures, with future investments being evaluated [90] Question: How should shareholders expect the return of capital to be distributed? - Management plans to spread the return of capital evenly throughout the year [111]

Financial Data and Key Metrics Changes - Annual revenue exceeded $3.5 billion for the first time, marking a 7% increase year-over-year [5][16] - Fourth quarter net sales totaled $995 million, a 16% increase [16] - Adjusted earnings per share for the fourth quarter were $2.09, up from $1.41, while full-year adjusted earnings per share were $6.89 compared to $6.11 [16][24] Business Line Data and Key Metrics Changes - Aerospace segment sales increased 20% in the fourth quarter to $661 million, with commercial services sales up 40% [17] - Industrial segment sales for the fourth quarter were $334 million, an 11% increase, with core industrial sales growing 15% [20][21] - Aerospace segment earnings for the fourth quarter were $162 million, with margins expanding 520 basis points to 24.4% [17] Market Data and Key Metrics Changes - Aerospace sales for the full year reached $2.3 billion, a 14% increase, driven by strong demand in commercial services and defense OEM [17][19] - Industrial segment sales for 2025 were $1.25 billion, a 3% decrease, but core industrial sales increased 10% [22][23] - Marine transportation grew 9%, driven by elevated ship build rates [22] Company Strategy and Development Direction - The company is focused on growth, operational excellence, and innovation, with strategic investments in automation and new facilities [9][11][15] - A new facility in Spartanburg, South Carolina, is under construction to support advanced manufacturing [10][11] - The company aims to capture growth in aerospace and industrial markets while expanding capabilities in regional repair and overhaul [14][15] Management's Comments on Operating Environment and Future Outlook - Management expects continued strong demand in aerospace and industrial markets, with a focus on operational excellence [14][15] - The guidance for 2026 reflects confidence in growth across segments, with net sales growth expected between 7% and 12% [26][28] - Anticipated challenges include muted top-line growth in commercial services due to advanced purchases in 2025 [14][28] Other Important Information - The company returned over $238 million to shareholders in 2025, including $173 million in share repurchases [24][25] - A new three-year share repurchase program has been authorized for up to $1.8 billion [25] - Capital expenditures for 2025 were $131 million, with expectations for approximately $290 million in 2026 [24][29] Q&A Session Summary Question: What growth is expected for legacy narrowbody engine aftermarket in 2026? - Management expects single-digit growth rates for legacy narrowbody engines in 2026, with some price increases anticipated [40][41] Question: Does the EPS guide include any benefit from the recent share repurchase authorization? - Yes, the EPS guidance includes the expected benefits from the share repurchase authorization [42] Question: How much current power generation revenue is tied to Caterpillar? - Management noted healthy growth from power generation customers, including Caterpillar, but did not specify exact revenue figures [44][45] Question: What are the assumptions for OE de-stocking? - Management anticipates de-stocking could occur by the second quarter of fiscal 2026 if airframe and engine customers meet forecasted rates [69] Question: How should shareholders expect the return of capital to be distributed? - The plan is to spread the return of capital evenly throughout the year [84] Question: Will Q1 margins be below the rest of the year? - Historically, Q1 margins are lower, with expectations for sequential growth throughout the year [85]

Value Driver Pillars Deliver Differentiated Value For Shareholders Fourth Quarter and Fiscal Year 2025 Results November 24, 2025 Cautionary Statement Information in this presentation contains forward-looking statements regarding future events and our future results within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, to the extent to which we will be successful winning content on the next generation of aircraft and en ...

Financial Performance - Fourth quarter net sales reached $995 million, a 16% increase year-over-year, while fiscal year 2025 net sales totaled $3.6 billion, up 7%[5] - Net earnings for the fourth quarter were $138 million, reflecting a 66% increase, and for fiscal year 2025, net earnings were $442 million, up 19%[5] - Adjusted EPS for the fourth quarter was $2.09, a 48% increase, and for fiscal year 2025, adjusted EPS was $6.89, up 13%[5] - Net Earnings for 2025 reached $442,111, an increase of 18.5% from $372,971 in 2024[32] - Adjusted Net Earnings for 2025 were $423,553, translating to $6.89 per share, compared to $379,136 or $6.11 per share in 2024[32] - Basic earnings per share increased to $2.30, up from $1.40 in Q3 2024, marking a 64.3% rise[26] Segment Performance - Aerospace segment sales grew 19.6% in Q4 2025, with segment earnings at $162 million, representing 24.4% of segment net sales[11] - Industrial segment sales increased by 10.6% in Q4 2025, with segment earnings of $49 million, or 14.6% of segment net sales[13] - Aerospace segment net sales increased to $661,205, up 19.6% from $552,790 in the same period last year[30] - Industrial segment net sales rose to $334,059, a 10.7% increase compared to $301,698 in Q3 2024[30] Cash Flow and Assets - Free cash flow for fiscal year 2025 was $340 million, a slight decrease of 1% compared to the previous year[5] - Free Cash Flow for the three months ended September 30, 2025, was $180,927, up from $117,673 in the same period of 2024[44] - Total assets as of September 30, 2025, were $4,630,143, an increase from $4,368,915 in 2024[28] - Cash and cash equivalents at the end of the period were $327,431, up from $282,270 in the previous year[29] - The company reported a total of $471,294 in net cash provided by operating activities for the year ended September 30, 2025, compared to $439,089 in 2024[29] Guidance and Future Plans - Fiscal 2026 guidance projects sales growth of 7% to 12%, with EPS expected to be between $7.50 and $8.00[18] - The company anticipates continued focus on growth and operational excellence, with guidance for fiscal year 2026 including sales and earnings projections[25] - Woodward plans to continue using its Investor Relations website and Facebook page for disclosing material non-public information[48] - FY26 free cash flow guidance is uncertain due to timing of capital expenditures, making reconciliation to net cash from operating activities unavailable without unreasonable effort[48] Strategic Initiatives - The company completed the strategic acquisition of Safran's North American Electromechanical Actuation business, enhancing its portfolio with advanced technology[8] - The company broke ground on a new facility in South Carolina aimed at advanced precision aerospace manufacturing[8] - The company authorized a new three-year $1.8 billion share repurchase program to enhance shareholder value[8] Expenses and Taxation - Research and development costs for Q3 2025 were $39,043, an increase from $34,689 in Q3 2024[26] - Adjusted Effective Income Tax Rate for 2025 was 22.3%, compared to 18.4% in 2024[33] - Income Tax Expense (U.S. GAAP) for 2025 was $79,300, a decrease from $81,000 in 2024[36] - Payments for property, plant, and equipment in 2025 totaled $130,928, compared to $96,280 in 2024[45] Earnings Before Interest and Taxes - EBIT for 2025 was $562,911, an increase from $495,472 in 2024[38] - Adjusted EBITDA for 2025 was $669,511, compared to $619,785 in 2024[41] - Non-Segment Expenses for 2025 were $126,226, up from $119,745 in 2024[42] - Total non-U.S. GAAP Adjustments for 2025 included a product rationalization charge of $20,524[43]

FORT COLLINS, Colo., Nov. 24, 2025 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today reported financial results for its fiscal year 2025 and fourth quarter ending September 30, 2025. All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are references to the Company’s fiscal year unless otherwise s ...

Group 1 - Woodward, Inc. is set to release its fourth-quarter earnings results on November 24, with expected earnings of $1.87 per share, an increase from $1.41 per share in the same period last year [1] - The consensus estimate for Woodward's quarterly revenue is $943.15 million, compared to $854.49 million a year earlier [1] - On September 16, Woodward announced a $200 million investment in a new aerospace manufacturing facility in South Carolina [2] Group 2 - Wolfe Research analyst Louis Raffetto upgraded Woodward's stock from Peer Perform to Outperform with a price target of $300 [4] - Barclays analyst David Strauss maintained an Equal-Weight rating and raised the price target from $200 to $260 [4] - UBS analyst Gavin Parsons maintained a Buy rating and increased the price target from $283 to $299 [4] - Truist Securities analyst Michael Ciarmoli maintained a Buy rating and raised the price target from $232 to $267 [4] - Jefferies analyst Sheila McGrath maintained a Buy rating and increased the price target from $250 to $328 [4]

Group 1 - Woodward, Inc. is set to release its fourth-quarter earnings results on November 24, with expected earnings of $1.87 per share, an increase from $1.41 per share in the same period last year [1] - The consensus estimate for Woodward's quarterly revenue is $943.15 million, compared to $854.49 million a year earlier [1] - On September 16, Woodward announced a $200 million investment in a new aerospace manufacturing facility in South Carolina [2] Group 2 - Wolfe Research analyst upgraded Woodward's stock from Peer Perform to Outperform with a price target of $300 [4] - Barclays analyst maintained an Equal-Weight rating and raised the price target from $200 to $260 [4] - UBS analyst maintained a Buy rating and increased the price target from $283 to $299 [4] - Truist Securities analyst maintained a Buy rating and raised the price target from $232 to $267 [4] - Jefferies analyst maintained a Buy rating and increased the price target from $250 to $328 [4]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]