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Woodward (WWD) investor relations material
Woodward Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
First quarter FY2026 net sales rose 29% year-over-year to $996 million, with net earnings up 54% to $134 million and EPS of $2.17, driven by strong demand and disciplined execution in both Aerospace and Industrial segments.
Margin expansion was supported by higher commercial services in Aerospace and robust demand in power generation, transportation, and oil & gas for Industrial.
Operational execution, supply chain improvements, and innovation contributed to outperformance, though inventory turns are expected to remain elevated through 2026.
Strategic decision made to wind down the China On-Highway product lines by year-end, aligning with long-term industrial growth strategy.
Gross margin improved to 29.3% from 24.5% year-over-year, reflecting operational leverage and favorable mix.
Financial highlights
Net sales reached $996 million, up 29% year-over-year; net earnings were $134 million, up 54%; EPS was $2.17, up from $1.42; adjusted EPS was $2.17, up 61%.
Free cash flow for the quarter was $70 million, up from $1 million a year ago.
Aerospace segment sales were $635 million, up 29%, with commercial services sales up 50%; Industrial segment sales were $362 million, up 30%, with transportation up 55%.
Segment margins: Aerospace improved by 420 bps to 23.4%; Industrial rose 410 bps to 18.5%.
Gross margin expanded to 29.3%; operating margin rose to 17.0%.
Outlook and guidance
Full-year FY26 consolidated sales growth guidance raised to 14–18%; EPS guidance increased to $8.20–$8.60.
Aerospace sales growth expected at 15–20% with margins of 22–23%; Industrial sales growth at 11–14% with margins of 16–17%.
Free cash flow guidance maintained at $300–$350 million; capital expenditures expected at ~$290 million.
Capital returns through dividends and share repurchases expected between $650 million and $700 million for the year.
Wind-down of China On-Highway business to be completed by year-end, incurring $20–25 million in restructuring costs, mainly in 2026.
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