Woodward Reports Third Quarter Fiscal Year 2024 Results

Core Insights - Woodward, Inc. reported a solid financial performance for the third quarter of fiscal year 2024, with net sales increasing by 6% to $848 million compared to $801 million in the same period last year [3][14][49] - The Aerospace segment showed strong growth, with net sales rising 8% to $518 million, driven by increased aftermarket demand and higher aircraft utilization [5][53] - The Industrial segment experienced a more moderate growth of 3%, with net sales reaching $330 million, supported by power generation and transportation sales despite a decline in oil and gas [40][53] Financial Performance - Net earnings for the third quarter were $102 million, or $1.63 per share, compared to $85 million, or $1.37 per share in the prior year [16][49] - EBIT for the third quarter was $132 million, up from $117 million in the same quarter last year [4][49] - The effective tax rate decreased to 16.4% from 20.0% in the previous year [17][49] Segment Results - Aerospace segment earnings for the third quarter were $102 million, representing 19.7% of segment net sales, an increase from 17.3% in the prior year [18][53] - Industrial segment earnings were $60 million, or 18.1% of segment net sales, slightly down from 18.2% in the previous year [19][53] - Year-to-date results for the Aerospace segment showed net sales of $1.48 billion, up from $1.31 billion, with earnings increasing to $279 million, or 18.9% of segment net sales [8][42] Cash Flow and Financial Position - Cash flow from operating activities for the first nine months of 2024 was $297 million, compared to $156 million in the same period last year [14][44] - Free cash flow for the first nine months was $225 million, significantly up from $98 million in the prior year [23][44] - Total debt as of June 30, 2024, was $923 million, compared to $751 million a year earlier, with a debt-to-EBITDA ratio of 1.5 times [45][49] Guidance and Outlook - Woodward revised its full-year guidance, projecting total company sales between $3.250 billion and $3.300 billion, with an adjusted effective tax rate of approximately 18.5% [41][41] - Adjusted free cash flow guidance was updated to a range of $300 million to $350 million [41][41]