Woodward 2025 Q4 Earnings 65.2% Net Income Surge Drives Strong Performance

Woodward (WWD) reported its fiscal 2025 Q4 earnings on Nov 24, 2025, delivering robust results that exceeded expectations. The company’s revenue surged 16.5% to $995.26 million, while EPS and net income grew by 64.3% and 65.2%, respectively. Guidance for 2026 was raised, with revenue growth projected at 7–12%.

Revenue

Aerospace led the revenue surge with $661.21 million, driven by strong demand in defense and commercial aviation. The Industrial segment contributed $334.06 million, reflecting double-digit growth in power generation and oil & gas markets. Total consolidated net sales reached $995.26 million, reflecting a 16.5% year-over-year increase.

Earnings/Net Income

Woodward’s EPS rose 64.3% to $2.30, while net income surged 65.2% to $137.62 million. The substantial EPS and net income growth underscore the company’s strong profitability and operational efficiency.

Price Action

The stock edged down 0.78% in the latest trading day but gained 0.51% in the most recent full week. Month-to-date, it declined 0.99%.

Post-Earnings Price Action Review

The strategy of buying Woodward shares after a revenue raise quarter-over-quarter on the earnings report date and holding for 30 days delivered a 129.99% return over the past three years, outperforming the benchmark by 60.78%. With a CAGR of 32.29%, maximum drawdown of 0.00%, and Sharpe ratio of 0.99, the strategy demonstrated effective risk management and strong returns.

CEO Commentary

CEO Charles Blankenship highlighted 2025 as a record year, with revenue exceeding $3.5 billion. He emphasized strategic priorities, including automation investments, the Spartanburg facility for A350 production, and operational excellence initiatives. Blankenship expressed optimism about aerospace defense demand and industrial market growth.

Guidance

CFO William Lacey outlined 2026 guidance: revenue growth of 7–12%, adjusted EPS of $7.50–$8.00, and free cash flow of $300–$350 million. Aerospace margins are projected at 22–23%, with Industrial at 14.5–15.5%.

Additional News

Woodward announced a $1.8 billion share repurchase program, following the completion of a $600 million repurchase. The company also acquired Safran’s North American Electromechanical Actuation business, enhancing its aerospace portfolio. Additionally, it secured a contract to supply 12 of 14 spoiler actuation systems for Airbus’s A350, marking a first for a primary flight control system. These moves underscore strategic growth initiatives and market expansion.