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Woodward's Q2 Earnings & Revenues Surpass Estimates, Stock Up
WWDWoodward(WWD) ZACKS·2025-04-29 14:55

Core Insights - Woodward, Inc. (WWD) reported second-quarter fiscal 2025 adjusted net earnings per share (EPS) of 1.69,a4.31.69, a 4.3% increase year over year, exceeding the Zacks Consensus Estimate by 17.4% [1] - Quarterly net sales rose 5.8% year over year to 883.6 million, surpassing the consensus estimate by 6.4% [1] - The company raised the lower end of its sales and earnings guidance, reflecting confidence in navigating tariffs and current market conditions [2] Financial Performance - Aerospace segment net sales reached 561.7million,up12.9561.7 million, up 12.9% year over year, driven by strong defense demand and a robust commercial after-market [3] - Defense OEM sales increased 52% to 138 million, while commercial after-market sales grew 23% [4] - Industrial segment net sales totaled 321.9million,down4.7321.9 million, down 4.7% year over year, with transportation sales declining 18% due to a drop in China on-highway sales [5][6] Earnings and Margins - Segmental earnings for Aerospace were 125 million, up from 98millionayearago,primarilydrivenbypricerealizationandhighervolumes[4]−Industrialsegmentearningsdeclinedto98 million a year ago, primarily driven by price realization and higher volumes [4] - Industrial segment earnings declined to 46 million from 65millionintheyear−agoquarter,affectedbylowerChinaon−highwayvolume[7]−Grossmargindecreasedby90basispointsyearoveryearto27.265 million in the year-ago quarter, affected by lower China on-highway volume [7] - Gross margin decreased by 90 basis points year over year to 27.2% [8] Cash Flow and Shareholder Returns - As of March 31, 2024, WWD had 364.1 million in cash and cash equivalents and 489.8millioninlong−termdebt[11]−Thecompanygenerated489.8 million in long-term debt [11] - The company generated 78 million of net cash from operating activities, down from 97millionintheprior−yearperiod[11]−Freecashflowwas97 million in the prior-year period [11] - Free cash flow was 59 million compared to 83millionintheyear−agoperiod,with83 million in the year-ago period, with 61 million returned to shareholders through dividends and share repurchases [12] Fiscal 2025 Guidance - WWD raised the lower end of its sales guidance to between 3,375millionand3,375 million and 3,500 million, and adjusted EPS guidance to range from 5.95to5.95 to 6.25 [14] - Aerospace segment revenues are expected to increase by 8-13%, while industrial segment revenues are anticipated to decline by 7-9% [15]