Woodward Inc. reported fiscal 2025 results on November 24, 2025, delivering record net sales of $3.60 billion and adjusted earnings of $507 million, a 21.9% share of net sales. The company’s fourth‑quarter net sales rose 16% to $995 million, driven by a 15% increase in aerospace revenue and a 9% rise in core industrial sales after a 69% decline in China on‑highway sales.
Aerospace revenue topped $661 million, up 15% YoY, as demand from commercial and defense customers surged. The segment’s gross margin expanded to 24.4% from 23.5% in the prior year, reflecting pricing power and a favorable mix of high‑margin contracts. Industrial revenue reached $334 million, down 3% YoY, largely due to the sharp drop in China on‑highway sales, but core industrial sales excluding China grew 9% and margins widened to 15.6%.
Adjusted earnings per share of $2.09 beat the consensus estimate of $1.86, a 12.4% beat, driven by disciplined cost control and higher operating leverage. Operating income increased to $162 million, up 18% from $134 million in Q3, as the company maintained strong pricing while managing supply‑chain costs.
Management guided for fiscal 2026 revenue growth of 7–12% and adjusted EPS of $7.50–$8.00, a modest lift from the prior guidance of $7.25–$7.75. The outlook signals confidence in sustained demand in aerospace and a gradual recovery in industrial markets, while acknowledging ongoing headwinds in China.
The company also announced a new three‑year, $1.8 billion share‑repurchase program and highlighted strategic investments, including the acquisition of Safran’s North American electromechanical actuation business and a new manufacturing facility in Spartanburg, South Carolina. These moves reinforce Woodward’s position in high‑value aerospace systems and expand its production capacity.
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