Woodward(US:WWD)2026-02-04 18:07Financial Performance - Consolidated net sales for Q1 FY 2026 increased by $223,729, or 29.0%, to $996,454 compared to $772,725 in Q1 FY 2025[147] - Consolidated net earnings for Q1 FY 2026 were $133,719, representing 13.4% of net sales, compared to $87,091, or 11.3% of net sales, in Q1 FY 2025[146] - Consolidated net sales increased by $223,729, or 29.0%, to $996,454 for Q1 FY 2026, compared to $772,725 for Q1 FY 2025[156] - Consolidated net earnings increased by $46,628, or 53.5%, to $133,719 for Q1 FY 2026, compared to $87,091 for Q1 FY 2025[156] - Net earnings for Q4 2025 were $133.719 million, an increase from $87.091 million in Q4 2024, representing a growth of 53.5%[179] - Adjusted net earnings for Q4 2025 were $133.719 million, compared to $82.567 million in Q4 2024, reflecting a year-over-year increase of 61.8%[179] - Adjusted earnings per share for Q4 2025 were $2.17, up from $1.35 in Q4 2024, marking a 60.7% increase[179] - EBITDA for Q4 2025 was $207.832 million, compared to $140.694 million in Q4 2024, indicating a growth of 47.7%[185] - Adjusted EBITDA for Q4 2025 was $207.832 million, up from $134.851 million in Q4 2024, representing a 54.1% increase[185] - EBIT for Q4 2025 was $178.794 million, an increase from $112.818 million in Q4 2024, reflecting a growth of 58.3%[182] Segment Performance - Aerospace segment net sales rose to $634,897, up from $493,882, while Industrial segment net sales increased to $361,557 from $278,843[141] - Aerospace segment net sales increased by $141,015, or 28.6%, to $634,897 for Q1 FY 2026, compared to $493,882 for Q1 FY 2025[157] - Industrial segment net sales increased by $82,714, or 29.7%, to $361,557 for Q1 FY 2026, compared to $278,843 for Q1 FY 2025[162] - Aerospace segment earnings increased by $53,670, or 56.7%, to $148,395 for Q1 FY 2026, compared to $94,725 for Q1 FY 2025[160] - Industrial segment earnings increased by $26,797, or 66.7%, to $66,994 for Q1 FY 2026, compared to $40,197 for Q1 FY 2025[163] Cash Flow and Expenses - Free cash flow for Q1 FY 2026 was $70,308, a significant increase from $942 in Q1 FY 2025, attributed to higher earnings and tax payment timing[144] - Net cash provided by operating activities was $114,437 for Q1 FY 2026, compared to $34,516 for the same period in FY 2025[173] - Net cash used in investing activities increased to $48,329 for Q1 FY 2026, compared to $32,100 for Q1 FY 2025, primarily due to higher capital expenditures[175] - Selling, general, and administrative expenses rose by 36.3% to $94,985, representing 9.5% of net sales, compared to 9.0% in Q1 FY 2025[151] - Research and development costs were $37,756, or 3.8% of net sales, slightly down from 3.9% in Q1 FY 2025[152] Tax and Interest - The effective tax rate for Q1 FY 2026 was 20.9%, up from 14.5% in Q1 FY 2025[141] - The adjusted effective tax rate for Q4 2025 was 20.9%, compared to 14.0% in Q4 2024[180] - Interest expense decreased by $1,997, or 16.2%, to $10,344 for Q1 FY 2026, compared to $12,341 for Q1 FY 2025, with interest expense as a percentage of net sales at 1.0%[153] Operational Changes - The company plans to wind down its on-highway natural gas truck manufacturing operations in China, expecting pre-tax charges of approximately $20,000 to $25,000[139][140] Debt - Net debt borrowings increased to $185,448 in Q1 FY 2026, compared to $40,764 in Q1 FY 2025[176]