Woodward (WWD) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue exceeding $3 billion in fiscal 2024, with strong performance in both Aerospace and Industrial segments and robust end market demand.

• Aerospace sales rose 15% year-over-year, with margins expanding by 260 basis points; Industrial segment delivered record sales, notably from China on-highway and robust performance in other industrial lines.

• All-time high earnings per share and free cash flow, with free cash flow up over $100 million from the prior year and adjusted free cash flow of $348 million.

• $449 million was returned to shareholders via dividends and share repurchases, with capital expenditures totaling $96 million.

• Strategic focus on growth, operational excellence, and innovation, including facility upgrades, product portfolio rationalization, and capacity improvements.

Financial highlights

• Fiscal 2024 net sales: $3.32 billion, up 14% year-over-year; Q4 sales: $855 million, up 10%.

• Net earnings for FY24: $373 million, up 61%; diluted EPS: $6.01, up 59%; adjusted EPS: $6.11, up 45%.

• Free cash flow for FY24: $343 million, up 48%; adjusted free cash flow: $348 million.

• Aerospace Q4 sales: $553 million (+22%); Industrial Q4 sales: $302 million (-6%).

• Q4 EPS: $1.36; adjusted EPS: $1.41; Q4 free cash flow: $118 million, down 12% from Q4 FY23.

Outlook and guidance

• Fiscal 2025 sales guidance: $3.3–$3.5 billion; EPS expected between $5.75–$6.25; free cash flow: $350–$400 million.

• Aerospace sales growth forecast at 6–13% with segment margins of 20–21%.

• Industrial sales expected to decline 7–11%, with core industrial sales up 3–7% and segment margins of 13–14%.

• Capital expenditures projected at $115 million, focused on automation and manufacturing investments.

• Growth in Aerospace and Core Industrial anticipated to be offset by a decline in China on-highway market.