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WWD Stock Surges 32% in the Past 3 Months: Will the Uptrend Continue?
ZACKSยท 2025-06-10 15:51
Key Takeaways WWD's Q3 results beat estimates with year-over-year growth in both revenues and earnings. Aerospace segment sales rose 12.9% on 52% defense OEM and 23% commercial aftermarket growth. Industrial momentum driven by data center power, marine demand and key defense control contracts.Woodward, Inc. (WWD) is gaining from strength in Aerospace and Core Industrial (power generation, oil & gas, and marine transportation) units. Aerospace is riding on strong defense demand and a robust commercial afte ...
Woodward(WWD) - 2025 Q2 - Earnings Call Transcript
2025-04-29 02:02
Financial Data and Key Metrics Changes - Woodward's net sales increased by 6% year over year, reaching $884 million in the second quarter of fiscal year 2025, while adjusted earnings per share rose by 4% to $1.69 [7][20] - Net cash provided by operating activities for the first half of fiscal year 2025 was $112 million, down from $144 million in the previous year, with free cash flow at $60 million compared to $88 million [20][21] - Debt leverage as of March 31, 2025, was 1.5x EBITDA [21] Business Line Data and Key Metrics Changes - Aerospace segment sales increased by 13% to $562 million, with defense OEM sales up 52% and commercial aftermarket sales up 23% [23][24] - Industrial segment sales decreased by 5% to $322 million, with transportation down 18% due to a decline in China on highway sales, while core industrial sales excluding this segment rose by 11% [25][26] Market Data and Key Metrics Changes - China on highway sales were $21 million, a decrease of $45 million from the prior year, indicating subdued demand in that market [25] - The aerospace market outlook remains bullish despite concerns about soft forward bookings in the U.S. and some international routes [10][11] Company Strategy and Development Direction - The company is focused on organic growth, returning cash to stockholders, and pursuing strategic mergers and acquisitions [21][22] - Woodward's lean transformation efforts have led to operational improvements and increased output in various gas turbine systems [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite potential risks from tariffs and economic downturns, reaffirming the top end of their guidance [17][18] - The company is closely monitoring early indicators from end markets and customer forecasts to mitigate potential impacts from tariffs and trade tensions [16] Other Important Information - The company achieved record sales in aerospace, with the highest segment earnings recorded at $125 million and margins expanding to 22.2% [24] - Woodward's production footprint and supply base strategy result in less exposure to tariffs compared to other aerospace and industrial companies [15] Q&A Session Summary Question: Can you further decompose the commercial aftermarket growth in the quarter? - The growth was broad-based, with a notable increase in spare parts orders from MRO facilities contributing to the 23% growth [32] Question: What is the backlog in marine transportation? - The OE backlog is extended into 2029, but trade tensions could impact fleet utilization [34] Question: Given trade tensions, does it make sense to find a different owner for the China on highway product line? - The company is continuously examining its portfolio but has no immediate comments on potential actions [41] Question: What is the outlook for the commercial OE side? - The company is in close contact with Boeing and is meeting order rates, with a positive outlook for the program [43] Question: What drove the 52% increase in defense OE growth? - The increase is largely attributed to smart defense programs, with overall good health in other programs as well [94]
Woodward(WWD) - 2025 Q2 - Earnings Call Transcript
2025-04-28 22:02
Woodward (WWD) Q2 2025 Earnings Call April 28, 2025 05:00 PM ET Company Participants Daniel Provaznik - Director of Investor RelationsChip Blankenship - Chairman & Chief Executive OfficerWilliam Lacey - Chief Financial OfficerScott Deuschle - Director - Aerospace & Defense Equity ResearchDavid Strauss - Managing Director - Aerospace & Defense Equity ResearchMichael Ciarmoli - Managing Director - Aerospace & Defense Equity ResearchSheila Kahyaoglu - Aerospace & Defense and Airlines Equity Research Conference ...