Core Insights - Woodward, Inc. (WWD) plans to wind down its on-highway natural gas truck business in China as part of a strategy to optimize its Industrial segment and product portfolio [1][10] - The decision follows a prolonged assessment of strategic alternatives, including potential divestitures, but no viable offers were received [2][10] - The exit from the China OH business is aimed at reallocating resources to higher-growth markets, enhancing focus on advanced control solutions in Transportation, Power Generation, and Oil & Gas [4][8] Financial Performance - Woodward reported record sales and earnings in fiscal 2025, with the Industrial segment's net sales reaching $334 million, a 10.6% increase year-over-year [5][6] - Core industrial sales, excluding the impact of the China OH business, rose by 15%, with Transportation sales up 15% and Oil & Gas sales increasing by 13% [6] - The Industrial segment's earnings fell to $183 million in fiscal 2025 from $230 million the previous year, primarily due to lower volumes and an unfavorable sales mix linked to reduced demand from China OH [7] Future Outlook - Woodward anticipates consolidated net sales growth of 7% to 12% for fiscal 2026, with Aerospace projected to grow by 9% to 15% and Industrial expected to increase by 5% to 9% [8] - The earnings projections for the Aerospace segment are expected to be 22% to 23% of segment sales, while the Industrial segment's earnings are projected at 14.5% to 15.5% [8] Market Position - Woodward currently holds a Zacks Rank 1 (Strong Buy), with shares having increased by 30.8% over the past six months, outperforming the Aerospace - Defense Equipment industry's growth of 19.5% [9]

Core Insights - Parker-Hannifin Corporation (PH) is experiencing growth driven by its Aerospace Systems segment and benefits from acquired assets, positioning it well for future performance [1][3] Business Strength - The Aerospace Systems segment is benefiting from strong demand in both commercial and military markets, with growth in air transport activities and stable defense spending [3][8] Expansion Efforts - The acquisition of Curtis Instruments in September 2025 enhances PH's industrial electrification portfolio and strengthens its electric motor and motion control capabilities [4][8] Gains from Win Strategy - PH's Win Strategy 3.0 focuses on innovation and strategic positioning, contributing to organic growth and improved operating margins, which increased by 170 basis points to 23.9% in Q4 fiscal 2025 [5][8] Rewards to Shareholders - In fiscal 2025, PH rewarded shareholders with $861 million in dividends (up 10.1%) and repurchased shares worth $851 million, with a 10% dividend increase to $1.80 per share in April 2025 [6][8]