Woodward to Sell Gas Turbine Combustion Parts Business to GE Vernova

Core Insights - Woodward, Inc. has signed a definitive agreement to sell its heavy-duty gas turbines combustion parts business to GE Vernova, allowing Woodward to focus on its core growth areas [1][3] - The transaction aims to enhance GE Vernova's supply chain capabilities to meet the rising global demand for gas turbine upgrades and services [2] - The divestiture aligns with Woodward's strategy to concentrate on high-value products that drive innovation and growth, with the deal deemed not financially material to its operations [3] Company Performance - Woodward is experiencing strong momentum in its Aerospace and Industrial segments, with Aerospace sales increasing by 8% year over year to $518 million, driven by growth in commercial markets and defense activity [5] - The Industrial business saw a 3% year-over-year revenue increase to $330 million, attributed to higher demand for backup power for data centers [6] - However, flat sales in China for the on-highway segment are expected to hinder Industrial unit growth, with projected sales between $10 million and $15 million for the fiscal fourth quarter [7] Future Outlook - Management forecasts Industrial unit revenue growth of 11-13% for fiscal 2024, a revision from the previous estimate of 13-15%, with an estimated total revenue of $1,289.2 million for the year [7] - The transaction with GE Vernova is expected to close in early 2025, pending customary closing conditions, and emphasizes a commitment to the Greenville workforce [4]