Woodward 2025 Q4 Earnings Net Income Surges 65.2% Amid Strong Aerospace Demand

Woodward (WWD) reported fiscal 2025 Q4 earnings on Nov 24, 2025, with revenue and EPS exceeding expectations. The company guided to 7–12% revenue growth in 2026, aligning with its record performance driven by aerospace and industrial demand.

Revenue

Woodward’s total revenue surged 16.5% to $995.26 million in Q4 2025, driven by robust Aerospace segment sales of $661.21 million and Industrial segment revenue of $334.06 million. The Aerospace segment benefited from 14% year-over-year growth, while the Industrial segment saw 10% expansion, reflecting strong demand in defense, commercial aerospace, and energy markets.

Earnings/Net Income

Woodward’s EPS rose 64.3% to $2.30 in Q4 2025, with net income climbing 65.2% to $137.62 million. The earnings growth was fueled by margin expansion in both segments, underscoring the company’s operational efficiency and pricing power.

Post-Earnings Price Action Review

The strategy of buying Woodward shares 30 days after its quarterly revenue growth outperformed expectations over the past three years delivered poor performance, with a CAGR of -7.21% and total return of -13.91%. The approach underperformed the benchmark by a significant margin, exhibiting high volatility, a maximum drawdown of 35%, and a Sharpe ratio of -0.21, highlighting its elevated risk profile.

CEO Commentary

CEO Charles Blankenship emphasized record 2025 performance, driven by aerospace margin expansion (290 bps) and industrial margin improvement (110 bps). Strategic initiatives, including an acquisition in electromechanical actuation and a competitive win for A350 wing spoilers, were highlighted as catalysts for future growth.

Guidance

Woodward projected 2026 revenue of $3.6B–$3.9B, with aerospace sales up 9–15% and industrial sales up 5–9%. Adjusted EPS is targeted at $7.50–$8.00, supported by 22–23% aerospace margins and 14.5–15.5% industrial margins. Free cash flow is expected to reach $300M–$350M.

Additional News

Woodward announced a $1.8 billion share repurchase program, following a $600 million repurchase completed ahead of schedule. The company also finalized the acquisition of Safran’s North American electromechanical actuation business, enhancing its aerospace portfolio. Additionally, construction began on an advanced manufacturing facility in Spartanburg, South Carolina, to support future production demands.