Woodward(US:WWD) ZACKS·2026-02-03 13:45Core Insights - Woodward, Inc. (WWD) reported strong first-quarter fiscal 2026 results, with adjusted net earnings per share (EPS) of $2.17, a 60.7% increase year over year, surpassing the Zacks Consensus Estimate by 31.5% [1][8] - Quarterly net sales reached $996 million, reflecting a 29% year-over-year growth, driven by favorable market conditions in Aerospace and Industrial sectors, and exceeding consensus estimates by 10.1% [1][2] Financial Performance - Aerospace segment net sales were $635 million, up 29% year over year, supported by strong demand in commercial services and defense OEM [4] - Industrial segment net sales totaled $362 million, a 30% increase year over year, driven by growth in transportation, power generation, and oil & gas markets [6] - Overall gross margin improved by 480 basis points to 29.3%, with total costs and expenses rising 23.3% year over year to $827.3 million [10] Operational Highlights - The company emphasized operational excellence, leading to productivity gains and consistent execution across its portfolio [2][3] - Segmental earnings in Aerospace rose to $148 million from $95 million a year ago, with margins expanding 420 basis points to 23.4% [5] - In the Industrial segment, earnings increased to $67 million from $40 million, with margins up 410 basis points to 18.5% [9] Cash Flow and Shareholder Returns - Woodward generated $114.4 million in net cash from operating activities, up from $34.5 million in the prior year, and free cash flow increased to $70 million from $1 million [11][12] - The company returned $146 million to shareholders through dividends and share repurchases [13] Guidance and Future Outlook - Following the strong first-quarter performance, Woodward raised its fiscal 2026 guidance, expecting consolidated net sales to grow 14% to 18%, up from the previous 7% to 12% [14][15] - EPS guidance was also increased to a range of $8.2 to $8.6, compared to the prior expectation of $7.5 to $8 [17]