Woodward (WWD) Q1 2026 earnings summary

Executive summary

• First quarter fiscal 2026 delivered net sales of $996 million, up 29% year-over-year, with net earnings of $134 million, up 54%, and EPS of $2.17, driven by robust demand and strong execution in both Aerospace and Industrial segments.

• Growth was supported by higher volumes, price realization, and operational excellence, with a focus on innovation and capital allocation for long-term shareholder value.

• Margin expansion in Aerospace was fueled by commercial services and defense OEM demand; Industrial benefited from power generation, transportation, and oil & gas strength.

• Strategic decision made to wind down the China On-Highway product lines by year-end to align with long-term growth strategy.

Financial highlights

• Net sales reached $996 million, up 29% year-over-year; EPS was $2.17 versus $1.42 in the prior year.

• Free cash flow was $70 million, compared to $1 million in the prior year.

• Aerospace segment sales were $635 million (+29%), with commercial services up 50%; industrial segment sales were $362 million (+30%).

• Gross margin expanded to 29.3% from 24.5% year-over-year.

• Segment margins: Aerospace 23.4% (up 420 bps), Industrial 18.5% (up 410 bps).

Outlook and guidance

• Full-year 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 million-$350 million; capital expenditures expected at ~$290 million.

• Capital returns through dividends and share repurchases expected between $650 million and $700 million.