Woodward (WWD) investor relations material

Executive summary

• Q3 net sales rose 8% year-over-year to $915–$915.4M, with net earnings up 6–6.2% to $108–$108.4M and EPS up 8% to $1.76, driven by strong Aerospace growth and disciplined execution.

• Aerospace segment achieved record sales, up 15–15.2% year-over-year, with margin expansion to 21.1%, while Industrial faced declines due to China on-highway weakness.

• Major wins included the Airbus A350 spoiler actuator contract and the acquisition of Safran's North American electromechanical actuation business for $45.8M.

• A $20.5M pretax gain from divestitures and product rationalization was recognized in the nine months ended June 30, 2025.

• Full-year sales and earnings guidance were raised, but free cash flow guidance was lowered due to higher working capital and CapEx needs.

Financial highlights

• Q3 net sales: $915–$915.4M, up 8% year-over-year; Q3 EPS: $1.76, up from $1.63; Q3 net earnings: $108–$108.4M, up 6–6.2%.

• Year-to-date net sales: $2.57B, up 4.1%; net earnings: $304–$304.5M, up 5.1%; adjusted EPS: $4.96.

• Aerospace Q3 sales: $596M, up 15–15.2%; Defense OEM up 56%; Commercial services up 30%; Commercial OEM down 8%.

• Industrial Q3 sales: $319–$330M, down 3% or up 3% depending on core vs. total; core industrial up 9%.

• Free cash flow for nine months: $159–$159.4M, down from $225–$225.1M, due to higher working capital and CapEx.

Outlook and guidance

• FY2025 consolidated sales guidance raised to $3.45–$3.525B; adjusted EPS guidance increased to $6.50–$6.75.

• Aerospace sales growth expected at 11–13% with margins at 21–21.5%; Industrial sales to decrease 5–7% with margins at ~14.5%.

• Adjusted effective tax rate revised down to ~17%; free cash flow guidance lowered to $315–$350M.

• Management expects sequential growth in Commercial OEM sales in Q4 2025.

• Industrial segment faces ongoing uncertainty in China on-highway natural gas truck business.