Woodward(WWD)2025-02-04 21:50Financial Performance - Consolidated net sales for Q1 FY2025 decreased by $14,005, or 1.8%, to $772,725 compared to $786,730 in Q1 FY2024[134] - Consolidated net earnings for Q1 FY2025 were $87,091, down from $90,044 in Q1 FY2024, representing a decrease of 3.3%[129] - Net cash provided by operating activities was $34,516 for Q1 FY2025, down from $46,789 in Q1 FY2024[163] - Net earnings for Q4 2024 were $87,091 million, a decrease of 3.3% from $90,044 million in Q4 2023[169] - Adjusted net earnings for Q4 2024 were $82,567 million, down 8.1% from $89,811 million in Q4 2023[169] - Adjusted earnings per share for Q4 2024 were $1.35, compared to $1.45 in Q4 2023, reflecting a decrease of 6.9%[169] - EBIT for Q4 2024 was $112,818 million, a decrease of 5.7% from $119,683 million in Q4 2023[171] - Adjusted EBITDA for Q4 2024 was $134,851 million, down from $147,943 million in Q4 2023, representing a decline of 8.8%[172] Segment Performance - Aerospace segment net sales increased to $493,882, while Industrial segment net sales decreased to $278,843, reflecting a decline in volumes[129] - Aerospace segment net sales increased by $33,126, or 7.2%, to $493,882 for Q1 FY2025 compared to $460,756 for Q1 FY2024[147] - Industrial segment net sales decreased by $47,131, or 14.5%, to $278,843 for Q1 FY2025 compared to $325,974 for Q1 FY2024[150] - Aerospace segment earnings increased by $15,723, or 19.9%, to $94,725 for Q1 FY2025 compared to $79,002 for Q1 FY2024[149] - Industrial segment earnings decreased by $26,684, or 39.9%, to $40,197 for Q1 FY2025 compared to $66,881 for Q1 FY2024[151] Cash Flow and Debt - Free cash flow for Q1 FY2025 was $942, down from $4,977 in Q1 FY2024, primarily due to lower earnings[131] - Total outstanding debt as of December 31, 2024, was $902,174, with additional borrowing availability of $734,108 under the revolving credit agreement[132] - Cash and cash equivalents at the end of the period were $283,726, compared to $144,348 at the end of the same period last year[163] - Free cash flow for Q4 2024 was $942 million, significantly lower than $4,977 million in Q4 2023[175] Tax and Expenses - Effective tax rate improved to 14.5% in Q1 FY2025 from 17.9% in Q1 FY2024, primarily due to larger stock-based compensation tax benefits[143] - Adjusted effective tax rate for Q4 2024 was 14.0%, down from 17.7% in Q4 2023[171] - Income tax expense for Q4 2024 was $14,763 million, compared to $19,676 million in Q4 2023, indicating a reduction of 25.1%[171] - Interest expense increased by $905, or 7.9%, to $12,341 in Q1 FY2025 compared to $11,436 in Q1 FY2024[141] - Interest expense for Q4 2024 was $12,341 million, an increase from $11,436 million in Q4 2023[171] - Nonsegment expenses decreased by $4,096 to $22,104 for Q1 FY2025 compared to $26,200 for Q1 FY2024[153] Company Outlook - The company anticipates significant sales and earnings decreases in its China on-highway natural gas truck business due to economic conditions[136] - The company emphasizes the importance of non-U.S. GAAP measures like EBIT and EBITDA for evaluating operational performance[170] Stock Repurchase - The company repurchased $35,473 of its common stock during Q1 FY2025, compared to no repurchases in Q1 FY2024[165] Research and Development - Research and development costs remained stable at $30,207, representing 3.9% of net sales for both Q1 FY2025 and Q1 FY2024[140]