Woodward 2025 Q3 Earnings Strong Performance as Net Income Grows 6.2%

Woodward (WWD) reported its fiscal 2025 Q3 earnings on Jul 28th, 2025. Woodward's third-quarter performance exceeded expectations, driven by robust demand across its Aerospace and Industrial segments. The company raised its fiscal year 2025 guidance based on solid year-to-date results, projecting increased sales and adjusted EPS. Despite cash flow concerns due to higher working capital needs, Woodward's outlook remains positive, with sustained growth anticipated in its key markets.

Revenue
The total revenue of Woodward increased by 8.0% to $915.45 million in 2025 Q3, up from $847.69 million in 2024 Q3.

Earnings/Net Income
Woodward's EPS rose 7.7% to $1.82 in 2025 Q3 from $1.69 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $108.45 million in 2025 Q3, marking 6.2% growth from $102.08 million in 2024 Q3. The EPS performance was solid, reflecting consistent growth.

Price Action
The stock price of Woodward has edged up 0.41% during the latest trading day, has edged up 1.71% during the most recent full trading week, and has climbed 6.20% month-to-date.

Post-Earnings Price Action Review
Investors employing the strategy of purchasing Woodward (WWD) shares following a quarter-over-quarter revenue increase have seen impressive returns over the past three years. This approach resulted in a remarkable 234.28% return, significantly outpacing the benchmark return of 88.74%. The excess return of 145.54% underscores the strategy's success in capitalizing on Woodward's revenue growth events. With a compound annual growth rate (CAGR) of 27.45%, the strategy demonstrated consistent growth while maintaining robust risk management, evidenced by a maximum drawdown of 0.00% and a Sharpe ratio of 0.80. This indicates strong performance even amid market volatility, showcasing the strategy's effectiveness in delivering substantial gains.

CEO Commentary
Charles P. Blankenship - CEO & Chairman: Woodward reported strong third-quarter results, driven by robust demand in both Aerospace and Industrial segments, with record sales up 8% year-over-year. Aerospace margins expanded to 21.1%, reflecting disciplined execution by our global teams. We are raising our full-year sales and earnings guidance, supported by sustained growth in our markets. Significant milestones include our selection to provide spoiler control actuators for the Airbus A350, marking a key achievement in our growth strategy. We are investing in a new manufacturing facility for A350 production, which aligns with our focus on operational excellence and innovation while navigating external challenges.

Guidance
We now expect consolidated sales for 2025 to be between $3.45 billion and $3.525 billion, with adjusted EPS projected between $6.50 and $6.75. Aerospace sales growth is anticipated to be between 11% and 13%, while Industrial sales are expected to decline between 5% and 7%. The adjusted effective tax rate is expected to be approximately 17%, and we anticipate free cash flow to be between $315 million and $350 million, reflecting increased working capital needs to support higher sales.

Additional News
In recent developments, Woodward completed the acquisition of Safran’s North American Electromechanical Actuation Business on July 21, 2025, bolstering its portfolio in aerospace solutions. The company was also honored by TIME magazine, being named to America’s Best Midsize Companies 2025 List on July 18, 2025, recognizing its growth and innovation. Earlier, on July 15, 2025, Woodward secured a spot on the Fortune 1000 2025 List, highlighting its achievements in the industrial sector. These accolades and strategic moves reflect Woodward's ongoing commitment to excellence and expansion in its core markets.