Woodward 2025 Q4 Earnings Strong Performance with 65.2% Net Income Growth

Woodward (WWD) reported fiscal 2025 Q4 earnings on Nov 24, 2025, with results exceeding expectations and an optimistic outlook for 2026. The company’s revenue and EPS growth outperformed estimates, and it raised guidance for the upcoming fiscal year.

Revenue

Woodward’s total revenue surged 16.5% year-over-year to $995.26 million in 2025 Q4, driven by robust demand in both Aerospace and Industrial segments. The Aerospace division contributed $661.21 million, reflecting strong performance in commercial and defense markets, while the Industrial segment generated $334.06 million, supported by growth in power generation and oil & gas.

Earnings/Net Income

Woodward’s EPS rose 64.3% to $2.30 in 2025 Q4, compared to $1.40 in 2024 Q4, marking continued earnings growth. Net income expanded by 65.2% to $137.62 million, underscoring improved profitability. The EPS increase was a positive outcome, aligning with the company’s strategic focus on margin expansion and operational efficiency.

Price Action

The stock price of Woodward declined 0.78% during the latest trading day but gained 0.51% over the most recent week. Month-to-date, it fell 0.99%, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review

The strategy of buying Woodward shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days resulted in poor performance over the past three years. This approach yielded a return of -13.91%, underperforming the benchmark by 23.46%. The strategy’s high volatility (35.00%) and negative Sharpe ratio (-0.21) highlighted significant risk, despite a maximum drawdown of 0.00%.

CEO Commentary

Charles Blankenship, CEO & Chairman, emphasized record 2025 performance, with $3.5 billion in revenue driven by 14% aerospace growth and 10% industrial sales. He highlighted margin expansion in both segments and strategic initiatives such as automation investments and facility expansions. Leadership expressed confidence in future opportunities, including defense demand and new aerospace programs.

Guidance

Woodward projected 2026 revenue growth of 7%–12%, with aerospace sales up 9%–15% and industrial growth of 5%–9%. Adjusted EPS is expected to range between $7.50–$8, reflecting 5% price realization and 22%–23% aerospace margins. Free cash flow targets $300 million–$350 million, with capital expenditures at $290 million.

Additional News

Woodward completed the acquisition of Safran’s North American Electromechanical Actuation business, enhancing its aerospace portfolio. The company also authorized a $1.8 billion share repurchase program, following a $600 million repurchase. Additionally, it broke ground on a new advanced manufacturing facility in Spartanburg, South Carolina, to support A350 production.

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Polished Article

Woodward’s 2025 Q4 results underscore its dominance in aerospace and industrial markets, with revenue and EPS growth outpacing expectations. The company’s strategic investments in automation and new facilities position it for sustained growth. While short-term trading strategies have underperformed, long-term fundamentals remain strong, supported by margin expansion and robust demand. Investors should monitor the company’s execution on capital allocation and market share gains in key sectors.