Woodward (NASDAQ:WWD) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Woodward (NASDAQ:WWD) posted its quarterly earnings results on Wednesday. The technology company reported $2.52 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.08, FiscalAI reports. Woodward had a net margin of 13.17% and a return on equity of 21.71%. The business had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same period in the prior year, the business posted $1.76 earnings per share. Woodward’s revenue for the quarter was up 21.2% compared to the same quarter last year. Woodward updated its FY 2026 guidance to 9.300-9.500 EPS.

Here are the key takeaways from Woodward’s conference call:

• Strong third-quarter results prompted higher 2026 guidance: Sales increased 21% year over year to $1.1 billion, adjusted EPS rose 43% to $2.52, and the company raised adjusted EPS guidance to $9.30-$9.50.
• Aerospace sales grew 19%, led by a 34% increase in commercial OEM and 24% growth in commercial services, while aerospace margins expanded to 24%. Management cited strong airframer build rates, sustained aftermarket demand, and improving supply-chain visibility.
• Industrial sales rose 26%, with core industrial sales up 19% and strong demand in marine, LNG infrastructure, and power generation, particularly data-center-related applications. Management said customer forecasts for power-generation demand continue to rise into 2027 and beyond.
• Pricing actions and higher volume drove significant margin expansion, while lean transformation and automation are beginning to improve factory productivity. Woodward expects automation initiatives to reduce approximately 1,000 incremental direct-labor hires by 2029 while supporting capacity growth.
• Management expects pricing to moderate from roughly 10% in the quarter to a more normal 3%-5% range, increasing the importance of productivity gains for future margin expansion. Free cash flow remains constrained by higher inventory and working-capital investment, and fourth-quarter capital expenditures are expected to rise substantially.

Woodward Trading Up 0.1%

Shares of WWD stock traded up $0.40 on Friday, reaching $356.68. 60,530 shares of the stock were exchanged, compared to its average volume of 721,103. The stock has a market cap of $21.25 billion, a PE ratio of 39.69, a P/E/G ratio of 2.30 and a beta of 0.86. Woodward has a one year low of $233.31 and a one year high of $450.92. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.73 and a quick ratio of 1.19. The stock has a 50 day moving average price of $395.42 and a 200 day moving average price of $377.35.

Woodward Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Woodward’s dividend payout ratio is 15.33%.

Insider Buying and Selling

In related news, EVP Karrie M. Bem sold 185 shares of Woodward stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $355.00, for a total transaction of $65,675.00. Following the completion of the sale, the executive vice president directly owned 3,648 shares of the company’s stock, valued at $1,295,040. The trade was a 4.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Daniel G. Korte sold 14,700 shares of the firm’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $356.05, for a total value of $5,233,935.00. Following the transaction, the director owned 4,434 shares in the company, valued at approximately $1,578,725.70. This trade represents a 76.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 15,629 shares of company stock valued at $5,570,005. 0.71% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Woodward

Large investors have recently bought and sold shares of the company. Compound Planning Inc. lifted its holdings in shares of Woodward by 4.7% during the 4th quarter. Compound Planning Inc. now owns 1,671 shares of the technology company’s stock valued at $505,000 after purchasing an additional 75 shares in the last quarter. Invesco Ltd. raised its holdings in Woodward by 8.5% during the 4th quarter. Invesco Ltd. now owns 982,448 shares of the technology company’s stock worth $297,014,000 after buying an additional 76,870 shares during the period. Corient Private Wealth LLC raised its holdings in Woodward by 831.1% during the 4th quarter. Corient Private Wealth LLC now owns 44,825 shares of the technology company’s stock worth $13,551,000 after buying an additional 40,011 shares during the period. Mercer Global Advisors Inc. ADV lifted its stake in Woodward by 5.0% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 23,056 shares of the technology company’s stock valued at $6,970,000 after buying an additional 1,090 shares in the last quarter. Finally, EP Wealth Advisors LLC bought a new position in Woodward in the fourth quarter valued at approximately $1,334,000. Institutional investors own 81.18% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on WWD shares. Royal Bank Of Canada set a $430.00 price objective on Woodward in a research note on Thursday. Zacks Research upgraded shares of Woodward from a “hold” rating to a “strong-buy” rating in a research note on Monday, June 29th. Truist Financial boosted their price objective on shares of Woodward from $404.00 to $415.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. TD Cowen increased their target price on shares of Woodward from $390.00 to $420.00 and gave the company a “hold” rating in a research note on Monday, July 13th. Finally, Susquehanna assumed coverage on Woodward in a research report on Tuesday, May 26th. They set a “positive” rating and a $423.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $393.83.

Woodward Company Profile

Woodward, Inc (NASDAQ: WWD) is a global leader in the design, manufacture and service of control systems and components for the aerospace and industrial markets. Founded in 1870 and headquartered in Fort Collins, Colorado, the company specializes in motion control, fuel systems, actuation, and digital control solutions. Its offerings enable precision management of flow, pressure and motion in critical applications ranging from aircraft engines and power turbines to hydraulic systems.

Woodward’s product portfolio is organized into two primary segments: Aerospace and Industrial.