Woodward(US:WWD)2025-11-24 21:00Financial 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]