Woodward (WWD) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue exceeding $3.3 billion in fiscal 2024, with double-digit growth in both Aerospace and Industrial segments driven by robust end market demand.

• Operating earnings and margins improved due to price realization, volume growth, and operational excellence across both segments.

• All-time high earnings per share and free cash flow, with adjusted free cash flow up 46% to $348 million.

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

• Entering fiscal 2025 with momentum, expecting continued Aerospace growth and mixed trends in Industrial.

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%; adjusted EPS: $6.11, up 45%; reported EPS: $6.01.

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

• Debt leverage at 1.4x EBITDA; cash and cash equivalents at year-end: $282 million.

• $449 million returned to stakeholders in 2024 via dividends and share repurchases.

Outlook and guidance

• Fiscal 2025 net sales expected between $3.3–$3.5 billion; EPS guidance: $5.75–$6.25.

• 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%.

• Free cash flow projected at $350–$400 million; CapEx: ~$115 million; effective tax rate expected at ~20%.

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