Woodward(US:WWD)2026-02-02 21:00Financial Performance - Net sales for the first quarter of fiscal year 2026 reached $996 million, representing a 29% increase year-over-year[4] - Net earnings increased to $134 million, a 54% rise compared to the previous year, with earnings per share (EPS) at $2.17, up 53%[4] - Free cash flow for the quarter was $70 million, an increase of $69 million year-over-year[4] - Total consolidated net sales for the three months ended December 31, 2025, reached $996,454,000, a 29% increase from $772,725,000 in the same period of 2024[27] - Net earnings for the three months ended December 31, 2025, were $133,719,000, or $2.17 per share, compared to $87,091,000, or $1.42 per share, in 2024[28] - Adjusted net earnings for the same period were also $133,719,000, reflecting a strong performance without the impact of non-U.S. GAAP adjustments[28] Segment Performance - The Aerospace segment reported sales of $635 million, a 29% increase, with segment earnings of $148 million, reflecting a margin of 23.4%[8] - The Industrial segment achieved sales of $362 million, up 30%, with segment earnings of $67 million and a margin of 18.5%[9] - Aerospace segment net sales were $634,897,000, up 28.5% from $493,882,000 year-over-year, while the Industrial segment net sales increased by 29.6% to $361,557,000 from $278,843,000[27] Guidance and Projections - Based on strong first quarter performance, the company raised its fiscal 2026 sales growth guidance from 7%-12% to 14%-18%[13] - The revised EPS guidance for fiscal 2026 is now projected to be between $8.20 and $8.60, up from the previous range of $7.50 to $8.00[14] - Segment earnings for Aerospace are expected to remain at 22%-23% of sales, while Industrial segment earnings guidance has been raised to 16%-17% of sales[14] Cash Flow and Assets - Net cash provided by operating activities for the three months ended December 31, 2025, was $114,437,000, significantly higher than $34,516,000 in the prior year[25] - Free cash flow for the same period was $70,308,000, compared to only $942,000 in the previous year, indicating strong cash generation capabilities[33] - Total current assets increased to $2,049,123,000 as of December 31, 2025, from $1,884,414,000 at the end of September 2025, driven by higher cash and accounts receivable[24] Debt and Liabilities - The company reported a total debt of $888 million, down from $902 million in the previous year[7] - Total liabilities decreased slightly to $2,146,409,000 from $2,063,753,000, indicating improved financial stability[24] Tax and Expenditures - The effective tax rate for fiscal 2026 is expected to remain around 22%, with no changes to capital expenditures guidance of approximately $290 million[14] - The adjusted effective income tax rate for the three months ended December 31, 2025, was 20.9%, up from 14.0% in the previous year[29] - The company made payments for property, plant, and equipment totaling $44,129,000 during the quarter, compared to $33,574,000 in the same period last year[27]