Woodward Set to Release Q3 Earnings: Here's What to Expect

Core Insights - Woodward, Inc. (WWD) is set to report its third-quarter fiscal 2025 results on July 28, with revenue expectations of $887.8 million, reflecting a 4.7% increase year-over-year, while earnings per share (EPS) are projected to decline by 0.6% to $1.62 [1][9] - The company has consistently exceeded earnings estimates in the past four quarters, with an average surprise of 15.6% [1][9] Revenue and Segment Performance - The Aerospace segment is anticipated to drive performance in the fiscal third quarter, supported by growth in the commercial aftermarket and increased defense activity [4] - The Industrial segment is experiencing strong demand for power generation and backup power for data centers, with a narrowed revenue decline projection of 7-9% for fiscal 2025 [5][6] - Revenue from the Aerospace segment is expected to rise by 10.3% to $571 million, while the Industrial segment is projected to decline by 7.8% to $304.4 million for the fiscal third quarter [6] Market Challenges - The on-highway natural gas truck market in China is facing volatility, with sales reported at $21 million in the last quarter and a full-year revenue expectation of only $40 million, down significantly from $175 million in fiscal 2024 [7][8] - Global macroeconomic weakness and rising costs are additional concerns impacting WWD's Industrial performance [7][9] Recent Developments - On July 21, 2025, WWD completed the acquisition of Safran's Electronics & Defense electromechanical actuation business, enhancing its capabilities in aircraft stabilization systems [10] - WWD was selected by Airbus to supply the electro-hydraulic Spoiler Actuation System for the A350 aircraft, which includes hardware delivery and long-term maintenance services [11] Earnings Prediction - The company's earnings model indicates a likely earnings beat, supported by a positive Earnings ESP of +4.29% and a Zacks Rank of 1 (Strong Buy) [12]