Woodward Announces Deal to Acquire VRM to Boost Aerospace Portfolio

Woodward, Inc. WWD announced that it has entered into an agreement to acquire Jet Research Development, Inc., which operates as Valve Research & Manufacturing Company ("VRM"), a Florida-based manufacturer of high-precision flow control valves for aerospace applications. VRM’s approximately 130 employees bring expertise in precision flow control technologies that complement Woodward’s engineering, design and manufacturing capabilities in fuel and motion control systems. Its solutions are used by leading aerospace OEMs and are deployed across major commercial and defense aircraft programs.

The transaction includes the acquisition of all outstanding shares of VRM, along with its manufacturing assets and associated real estate. VRM will continue to operate without interruption, and its customer contracts and supplier relationships will remain unchanged. The transaction is expected to close in the first half of 2026.

The acquisition will add precision electromagnetic valve solutions, including solenoid, check and relief valves, to Woodward’s aerospace controls portfolio. It is also expected to create new growth opportunities across commercial and defense aerospace OEM programs, including Next Generation Single Aisle aircraft programs, where solenoid technology plays an important role in precision flow control for current and future aircraft platforms.

Management noted that the acquisition will help optimize the company’s supply chain and support delivery amid strong demand for its control solutions in the near term, while also supporting long-term growth with aerospace OEMs and end users, including increased content on next-generation aircraft.

Woodward, Inc. Price and Consensus

Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote

Woodward is benefiting from strategic acquisitions aimed at strengthening its aerospace capabilities. On July 21, 2025, Woodward completed its acquisition of Safran’s Electronics & Defense electromechanical actuation business, with operations across the United States, Mexico and Canada. The acquisition, initially announced in December 2024, includes obtaining intellectual property, operational assets, skilled talent and long-term customer agreements related to Horizontal Stabilizer Trim Actuation systems. These systems play a critical role in aircraft stabilization, ensuring safe and efficient flight operations with notable applications like the Airbus A350.

Woodward is gaining strength in the Aerospace segment and Core Industrial (transportation, power generation and oil & gas markets) units, which continued in the first quarter of fiscal 2026. Aerospace benefited from strength across commercial services and defense OEM in the fiscal first quarter. For fiscal 2026, Woodward expects consolidated net sales to rise 14% to 18%, with Aerospace projected to grow 15% to 20% and Industrial anticipated to increase 11% to 14%.

Aerospace segment earnings are expected to be 22% to 23% of segment sales for fiscal 2026. Industrial segment earnings are estimated to be 16% to 17% compared with the prior view of 14.5% to 15.5% of segment sales. The company earlier highlighted that it plans to wind down the China on-highway business by the end of fiscal 2026.

WWD’s Zacks Rank & Stock Price Performance

Woodward currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 60.6% in the past six months compared with the Aerospace - Defense Equipment industry's growth of 15.6%.

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Other Key Picks

Some other top-ranked stocks from the Aerospace Defense Equipment space are Astronics Corporation ATRO, AAR Corp. AIR and ATI Inc. ATI. While ATRO presently sports a Zacks Rank #1, AIR and ATI carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

ATRO’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 31.72%. In the last reported quarter, Astronics delivered an earnings surprise of 19.05%. Its shares have surged 202.4% in the past six months.

AIR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 11.26%. In the last reported quarter, AAR delivered an earnings surprise of 15.69%. Its shares have rallied 65% in the past year.

ATI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 11.19%. In the last reported quarter, ATI delivered an earnings surprise of 4.49%. Its shares have jumped 202% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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