Core Insights - Woodward, Inc. reported second quarter fiscal year 2025 results that met expectations, with strong performance in the aerospace segment driven by demand for smart defense and commercial aftermarket activity [4][5][15] - The company raised the low end of its sales and adjusted EPS guidance for the fiscal year 2025, reflecting confidence in managing current operating conditions and tariff impacts [4][15] Financial Performance - Net sales for Q2 2025 were $884 million, a 6% increase from $835 million in Q2 2024; year-to-date sales reached $1,656 million, up 2% from $1,622 million [4][6] - Net earnings for Q2 2025 were $109 million, a 12% increase from $98 million in Q2 2024; year-to-date net earnings were $196 million, up 5% from $188 million [4][6] - Adjusted net earnings for Q2 2025 were $103 million, a 3% increase from $101 million in Q2 2024; year-to-date adjusted net earnings were $186 million, down 3% from $191 million [4][6] - Earnings per share (EPS) for Q2 2025 were $1.78, a 14% increase from $1.56 in Q2 2024; year-to-date EPS was $3.20, up 6% from $3.02 [4][6] Segment Performance - Aerospace segment revenue for Q2 2025 was $562 million, a 13% increase from $498 million in Q2 2024, with segment earnings rising to $125 million, a 27% increase [9][32] - Industrial segment revenue for Q2 2025 was $338 million, a 5% decrease from $322 million in Q2 2024, with segment earnings declining to $65 million, a 30% decrease [11][32] Guidance and Outlook - The company revised its fiscal year 2025 guidance, now expecting total sales between $3,375 million and $3,500 million, up from the previous range of $3,300 million to $3,500 million [15][17] - Adjusted EPS guidance was raised to a range of $5.95 to $6.25, reflecting strong year-to-date performance [15][17] Cash Flow and Financial Position - Cash from operations for Q2 2025 was $78 million, a 20% decrease from $97 million in Q2 2024; year-to-date cash from operations was $112 million, down 22% from $144 million [4][7] - Free cash flow for Q2 2025 was $59 million, a 28% decrease from $83 million in Q2 2024; year-to-date free cash flow was $60 million, down 31% from $88 million [4][7]