Woodward (WWD) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 performance with net sales of $1.1 billion, up 21% year-over-year, and adjusted EPS up 43%.

• Strong commercial aerospace and industrial market demand drove results, with commercial OEM sales up 34% and industrial transportation sales up 40%.

• Margin expansion driven by pricing actions, productivity gains from lean transformation and automation, and a one-time retroactive pricing adjustment.

• Announced new partnerships, facility expansions, and strategic M&A to support future growth and efficiency.

• Free cash flow for Q3 was $87 million, with year-to-date free cash flow at $196 million, up 23%.

Financial highlights

• Net sales: $1.1 billion for Q3, up 21% year-over-year; year-to-date sales reached $3.2 billion, up 24%.

• Adjusted EPS: $2.52 for Q3 (up from $1.76); reported EPS: $2.40.

• Free cash flow: $87 million in Q3, $196 million year-to-date; operating cash flow for nine months was $351.9 million.

• Aerospace segment sales: $709 million (+19%); Industrial segment sales: $401 million (+26%).

• Returned $608 million to shareholders in first nine months via $553 million buybacks and $55 million dividends.

Outlook and guidance

• Raised 2026 guidance: Aerospace sales growth 21–24% with ~23.5% margins; Industrial sales growth 19–21% with ~19% margins.

• Adjusted EPS guidance increased to $9.30–$9.50 for 2026.

• Capital expenditures expected to reach $290 million for the year, with a significant Q4 increase.

• Free cash flow guidance unchanged at $300–$350 million; expect to return ~$700 million to shareholders in FY26.

• R&D costs anticipated to rise as next-generation aircraft programs progress.