Woodward Reports Third Quarter Fiscal Year 2025 Results

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Raises 2025 Sales and Earnings Guidance on Strong Year-to-Date Performance and Outlook
FORT COLLINS, Colo., July 28, 2025 (GLOBE NEWSWIRE) -- Today, Woodward, Inc. (NASDAQ:WWD) reported financial results for its third quarter of fiscal year 2025.
All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are references to the Company's fiscal year unless otherwise stated.
Third Quarter Overview
Third Quarter 2025
Year-to-Date 2025
Net Sales
$915M, 8%
$2.6B, 4%
Net Earnings
$108M, 6%
$304M, 5%
Adjusted Net Earnings1
-
$294M, 1%
Earnings Per Share (EPS)
$1.76, 8%
$4.96, 7%
Adjusted EPS1
-
$4.80, 2%
Cash from Operations
$126, -18%
$238, -20%
Free Cash Flow1
$99, -28%
$159, -29%
"We delivered strong results in the third quarter underpinned by robust demand across our end markets, coupled with disciplined execution by our global teams,' said Chip Blankenship, Chairman and Chief Executive Officer. 'The Aerospace segment generated substantial sales growth and margin expansion, driven by smart defense and commercial services. This was partially offset by lower commercial OEM and defense services, although both achieved sequential improvement. Our Industrial business again delivered double-digit sales growth in oil and gas and marine transportation. This was offset by an expected decrease in China on-highway natural gas truck sales.
Based on our strong year-to-date performance and solid fourth quarter outlook, we are raising our full-year sales and earnings guidance. However, given the demands to support higher sales in a dynamic supply chain and production environment, we are lowering our full-year free cash flow guidance. We remain focused on growth, operational excellence, and innovation, which continue to position Woodward to deliver sustained long-term shareholder value.'
Third Quarter and Fiscal Year 2025 Company Results
Total Company Results(Dollars in millions, except per share amounts)
Three Months Ended June 30
Nine Months Ended June 30
2025
2024
Year over Year
2025
2024
Year over Year
Income Statement
Total Sales
$
915
$
848
8.0
%
$
2,572
$
2,470
4.1
%
Net Earnings
108
102
6.2
%
304
290
5.1
%
Adjusted Net Earnings1
-
-
-
294
293
0.6
%
EPS
$
1.76
$
1.63
8.0
%
$
4.96
$
4.65
6.7
%
Adjusted EPS1
-
-
-
$
4.80
$
4.70
2.1
%
EBIT
137
132
4.1
%
394
382
3.0
%
Adjusted EBIT1
-
-
-
381
386
-1.4
%
Effective Tax Rate
14.5
%
16.4
%
-190 bps
15.8
%
17.8
%
-200 bps
Adjusted Effective Tax Rate1
-
-
-
15.5
%
17.8
%
-230 bps
Cash Flow and Financial Position
Cash from Operating Activities
$
126
$
153
-18.0
%
$
238
$
297
-20.0
%
Capital Expenditures
27
16
67.0
%
79
72
8.8
%
Free Cash Flow
99
137
-27.8
%
159
225
-29.2
%
Dividends Paid
17
15
10.7
%
48
43
10.9
%
Share Repurchases
45
305
-
124
305
-
Total Debt
-
-
-
933
923
1.1
%
EBITDA1Leverage
-
-
-
1.5x
1.5x
-
Segment Results
Aerospace(Dollars in millions)
Three Months Ended June 30
Nine Months Ended June 30
2025
2024
Year over Year
2025
2024
Year over Year
Commercial OEM
$
175
$
190
-7.6
%
$
497
$
545
-8.8
%
Commercial Aftermarket
215
166
30.0
%
581
467
24.4
%
Defense OEM
150
97
55.7
%
401
281
42.7
%
Defense Aftermarket
55
66
-16.2
%
173
183
-5.7
%
Sales
596
518
15.2
%
1,652
1,476
11.9
%
Segment Earnings
126
102
23.5
%
345
279
23.6
%
Segment Margin %
21.1
%
19.7
%
140 bps
20.9
%
18.9
%
200 bps
The increase in Aerospace segment earnings in the third quarter was primarily a result of price realization and volume, partially offset by planned strategic investments in manufacturing capabilities to meet current and future growth, inflation, and unfavorable mix.
The increase in Aerospace segment earnings for the nine months ended June 30, 2025, was primarily a result of price realization and volume, partially offset by planned strategic investments in manufacturing capabilities to meet current and future growth, inflation, and unfavorable mix.
Industrial (Dollars in millions)
Three Months Ended June 30
Nine Months Ended June 30
2025
2024
Year over Year
2025
2024
Year over Year
Transportation
$
144
$
163
-12.0
%
$
402
$
512
-21.4
%
Power Generation
109
110
-0.2
%
326
315
3.5
%
Oil and Gas
66
57
16.1
%
193
168
14.7
%
Sales
319
330
-3.2
%
920
994
-7.4
%
Segment Earnings
48
60
-20.3
%
134
192
-30.3
%
Segment Margin %
14.9
%
18.1
%
-320 bps
14.5
%
19.3
%
-480 bps
The decrease in Industrial segment earnings in the third quarter was primarily a result of lower China on-highway volume and inflation, partially offset by price realization.
The decrease in Industrial segment earnings in the nine months ended June 30, 2025, was primarily a result of lower China on-highway volume and unfavorable mix, partially offset by price realization.
Nonsegment(Dollars in millions)
Three Months Ended June 30
Nine Months Ended June 30
2025
2024
Year over Year
2025
2024
Year over Year
Nonsegment Expenses
$
(36
)
$
(30
)
21.8
%
$
(85
)
$
(89
)
-4.2
%
Adjusted Nonsegment Expenses
-
-
-
(98
)
(85
)
15.6
%
Fiscal Year 2025 Guidance
Woodward, Inc. and Subsidiaries​Revised Guidance(In millions, except per share amount and percentages)
Prior FY25 Guidance
Revised FY25 Guidance
April 28, 2025
July 28, 2025
Total Company
Sales
$3,375 - $3,500
$3,450 - $3,525
Adjusted Effective Tax Rate
~19%
~17%
Adjusted Free Cash Flow
$350 - $400
$315 - $350
Capital Expenditures
~$115
No change
Shares
~61.5
No change
Adjusted EPS
$5.95 - $6.25
$6.50 - $6.75
Segment Data
Aerospace
Sales Growth
Up 8% to 13%
Up 11% to 13%
Segment Earnings (% of Sales)
20% - 21%
21% - 21.5%
Industrial
Sales Growth
Down 7% to 9%
Down 5% to 7%
Segment Earnings (% of Sales)
13% - 14%
~14.5%
Conference Call
Woodward will hold an investor conference call at 5:00 p.m. ET, July 28, 2025, to provide an overview of the financial performance for its fiscal year 2025 and third quarter ending June 30, 2025, business highlights, and guidance for fiscal 2025. You are invited to listen to the live webcast of our conference call, or a recording, and view or download accompanying presentation slides at our website, www.woodward.com2.
You may also listen to the call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international). Participants should call prior to the start time to allow for registration; the Conference ID is 4675940. The call and presentation will be available on the website by selecting 'Investors/Events & Presentations' from the menu and will remain accessible on the company's website for one year.
About Woodward, Inc.
Woodward is the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets. Our purpose is to design and deliver energy control solutions our partners count on to power a clean future. Our innovative fluid, combustion, electrical, propulsion and motion control systems perform in some of the world's harshest environments. Woodward is a global company headquartered in Fort Collins, Colorado, USA. Visit our website at www.woodward.com.
Cautionary Statement
Information in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, our focus on growth, operational excellence and innovation, including the outcome of such efforts on our long-term success and shareholder value; statements regarding our business, expectations and guidance for the fourth quarter and fiscal year 2025, our guidance for sales, segment sales growth as compared to the prior fiscal year, adjusted earnings per share, segment earnings margin, adjusted effective tax rate, free cash flow, capital expenditures, and diluted weighted average shares outstanding, as well as our assumptions and expectations regarding our guidance and the factors that may impact guidance, and anticipated trends in our business and markets. Factors that could cause actual results and the timing of certain events to differ materially from the forward-looking statements include, but are not limited to: (1) global economic uncertainty and instability, including a potential global or regional recession, inflation and the impact on customer demand and our costs and expenses; (2) changes in or uncertainty with respect to global trade and economic policy, including tariff levels and retaliatory measures; (3) risks related to constraints and disruptions in the global supply chain and labor markets; (4) Woodward's long sales cycle; (5) risks related to Woodward's concentration of revenue among a relatively small number of customers; (6) Woodward's ability to implement and realize the intended effects of any restructuring efforts; (7) Woodward's ability to successfully manage competitive factors including expenses and fluctuations in sales; (8) changes and consolidations in the aerospace market; (9) Woodward's financial obligations including debt obligations and tax expenses and exposures; (10) risks related to Woodward's U.S. government contracting activities including potential changes in government spending patterns; (11) Woodward's ability to protect its intellectual property rights and avoid infringing the intellectual property rights of others; (12) changes in the estimates of fair value of reporting units or of long-lived assets; (13) environmental risks; (14) Woodward's continued access to a stable workforce and favorable labor relations with its employees; (15) Woodward's ability to manage various regulatory and legal matters; (16) risks from operating internationally; (17) cybersecurity and other technological risks; and other risk factors and risks described in Woodward's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, any subsequently filed Quarterly Report on Form 10-Q, as well as its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which we expect to file shortly, and other risks described in Woodward's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof and Woodward assumes no obligation to update such statements, except as required by applicable law.
Woodward, Inc. and Subsidiaries​Condensed Consolidated Statement of Earnings(Unaudited – In thousands)
Three Months Ended June 30
Nine Months Ended June 30
2025
2024
2025
2024
Net sales
$
915,446
$
847,688
$
2,571,800
$
2,469,761
Costs and expenses:
Cost of goods sold
666,287
617,702
1,892,908
1,801,037
Selling, general, and administrative expenses
88,703
73,812
242,241
229,770
Research and development costs
41,088
38,728
108,525
105,987
Interest expense
11,234
11,516
35,464
34,482
Interest income
(838
)
(1,728
)
(3,236
)
(4,494
)
Other (income) expense, net
(17,864
)
(14,438
)
(65,755
)
(49,461
)
Total costs and expenses
788,610
725,592
2,210,147
2,117,321
Earnings before income taxes
126,836
122,096
361,653
352,440
Income taxes
18,388
20,021
57,165
62,765
Net earnings
$
108,448
$
102,075
$
304,488
$
289,675
Earnings per share amounts:
Basic earnings per share
$
1.82
$
1.69
$
5.12
$
4.80
Diluted earnings per share
$
1.76
$
1.63
$
4.96
$
4.65
Weighted average common shares outstanding:
Basic
59,680
60,425
59,442
60,290
Diluted
61,488
62,522
61,374
62,295
Cash dividends paid per share
$
0.28
$
0.25
$
0.81
$
0.72
Woodward, Inc. and Subsidiaries​Condensed Consolidated Balance Sheets(Unaudited – In thousands)
June 2025
September 2025
Assets
Current assets:
Cash and cash equivalents
$
473,159
$
282,270
Accounts receivable
829,581
770,066
Inventories
657,121
609,092
Income taxes receivable
35,883
22,016
Other current assets
65,413
60,167
Total current assets
2,061,157
1,743,611
Property, plant, and equipment, net
942,103
940,715
Goodwill
813,779
806,643
Intangible assets, net
435,057
440,419
Deferred income tax assets
85,714
84,392
Other assets
374,040
353,135
Total assets
$
4,711,850
$
4,368,915
Liabilities and stockholders' equity
Current liabilities:
Short-term debt
$
353,000
$
217,000
Current portion of long-term debt
76,020
85,719
Accounts payable
284,029
287,457
Income taxes payable
35,768
40,692
Accrued liabilities
261,381
292,642
Total current liabilities
1,010,198
923,510
Long-term debt, less current portion
503,851
569,751
Deferred income tax liabilities
127,744
121,858
Other liabilities
601,491
577,380
Total liabilities
2,243,284
2,192,499
Stockholders' equity
2,468,566
2,176,416
Total liabilities and stockholders' equity
$
4,711,850
$
4,368,915
Woodward, Inc. and Subsidiaries​Condensed Consolidated Statements of Cash Flows(Unaudited – In thousands)
Nine Months Ended June 30
2025
2024
Net cash provided by operating activities
$
237,976
$
297,329
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment
(78,537
)
(72,193
)
Proceeds from sale of assets
41
84
Proceeds from business divestitures
48,043
900
Payments for short-term investments
-
(6,767
)
Proceeds from sales of short-term investments
2,935
9,737
Net cash used in investing activities
(27,518
)
(68,239
)
Cash flows from financing activities:
Cash dividends paid
(48,195
)
(43,457
)
Proceeds from sales of treasury stock
96,064
90,142
Payments for repurchases of common stock
(124,276
)
(304,811
)
Borrowings on revolving lines of credit and short-term borrowings
1,957,900
2,258,600
Payments on revolving lines of credit and short-term borrowings
(1,821,900
)
(1,983,800
)
Payments of long-term debt and finance lease obligations
(85,719
)
(75,644
)
Net cash used in financing activities
(26,126
)
(58,970
)
Effect of exchange rate changes on cash and cash equivalents
6,557
765
Net change in cash and cash equivalents
190,889
170,885
Cash and cash equivalents at beginning of year
282,270
137,447
Cash and cash equivalents at end of period
$
473,159
$
308,332
Woodward, Inc. and Subsidiaries​Segment Net Sales and Net Earnings(Unaudited – In thousands)
Three Months Ended June 30
Nine Months Ended June 30
2025
2024
2025
2024
Segment net sales:
Aerospace
595,990
517,560
1,651,601
1,475,828
Industrial
319,456
330,128
920,199
993,933
Total consolidated net sales
$
915,446
$
847,688
$
2,571,800
$
2,469,761
Segment earnings*:
Aerospace
125,740
101,842
345,081
279,295
As a percent of segment net sales
21.1
%
19.7
%
20.9
%
18.9
%
Industrial
47,622
59,717
133,786
191,842
As a percent of segment net sales
14.9
%
18.1
%
14.5
%
19.3
%
Total segment earnings
$
173,362
$
161,559
$
478,867
$
471,137
Nonsegment expenses
(36,130
)
(29,675
)
(84,986
)
(88,709
)
EBIT
$
137,232
$
131,884
$
393,881
$
382,428
Interest expense, net
(10,396
)
(9,788
)
(32,228
)
(29,988
)
Consolidated earnings before income taxes
$
126,836
$
122,096
$
361,653
$
352,440
Payments for property, plant and equipment
$
26,547
$
15,892
$
78,537
$
72,193
Depreciation expense
$
21,482
$
20,661
$
63,238
$
61,494
There were no adjustments to net earnings, earnings per share, adjusted effective tax rate, adjusted nonsegment, and adjusted income tax expense in the three months ended June 30, 2025 or the three months ended June 30, 2024.
Woodward, Inc. and Subsidiaries​Reconciliation of Net Earnings to Adjusted Earnings1​(Unaudited – In thousands, except per share amounts)
​
Nine Months Ended June 30
​
2025
2024
​
Net Earnings​
Earnings​ Per Share
Net Earnings​
Earnings ​Per Share
Net Earnings (U.S. GAAP)​
$
304,488
$
4.96
$
289,675
$
4.65
Non-U.S. GAAP Adjustments​
​
​
​
Product rationalization1
(20,524
)
(0.33
)
-
-
Non-recurring gain related to a previous acquisition1
-
-
(4,803
)
(0.08
)
Business development activities1
7,310
0.12
5,902
0.09
Certain non-restructuring separation costs2
-
-
2,666
0.05
Tax Effect of Non-U.S. GAAP ​Net Earnings Adjustments
3,130
0.05
(729
)
(0.01
)
Total non-U.S. GAAP Adjustments​
(10,084
)
(0.16
)
3,036
0.05
Adjusted Net Earnings​(Non-U.S. GAAP)
$
294,404
$
4.80
$
292,711
$
4.70
Presented in the line item "Other (income) expense, net" in Woodward's Condensed Consolidated Statement of Earnings.
Presented in item "Selling, general and administrative" expenses in Woodward's Condensed Consolidated Statement of Earnings.
Woodward, Inc. and Subsidiaries​Reconciliation of Income Tax Expense​to Adjusted Income Tax Expense1(Unaudited – In thousands)
​
Nine Months Ended June 30
​
2025
2024
Income tax expense (U.S. GAAP)​
$
57,165
$
62,765
Tax Effect of Non-U.S. GAAP ​Net Earnings Adjustments
(3,130
)
729
Adjusted Income Tax Expense (Non-U.S. GAAP)
$
54,035
$
63,494
Adjusted Income Tax Rate (Non-U.S. GAAP)
15.5
%
17.8
%
Woodward, Inc. and Subsidiaries​Reconciliation of Net Earning to EBIT1(Unaudited – In thousands)
​
Three Months Ended June 30
​
2025
2024
Net Earnings (U.S. GAAP)​
$
108,448
$
102,075
Income Tax Expense
18,388
20,021
Interest Expense
11,234
11,516
Interest Income
(838
)
(1,728
)
EBIT (Non-U.S. GAAP)
137,232
131,884
Woodward, Inc. and Subsidiaries​Reconciliation of Net Earning to EBIT1and Adjusted EBIT1​(Unaudited – In thousands)
​
Nine Months Ended June 30
​
2025
2024
Net Earnings (U.S. GAAP)​
$
304,488
$
289,675
Income Tax Expense
57,165
62,765
Interest Expense
35,464
34,482
Interest Income
(3,236
)
(4,494
)
EBIT (Non-U.S. GAAP)
393,881
382,428
Total non-U.S. GAAP Adjustments​
(13,214
)
3,765
Adjusted EBIT​ (Non-U.S. GAAP)
$
380,667
$
386,193
Woodward, Inc. and Subsidiaries​Reconciliation of Net Earning to EBITDA1(Unaudited – In thousands)
​
Three Months Ended June 30
​
2025
2024
Net Earnings (U.S. GAAP)​
$
108,448
$
102,075
Income Tax Expense
18,388
20,021
Interest Expense
11,234
11,516
Interest Income
(838
)
(1,728
)
Amortization of intangible assets​
7,172
8,131
Depreciation Expanse​
21,482
20,661
EBITDA (Non-U.S. GAAP)
165,886
160,676
Woodward, Inc. and Subsidiaries​Reconciliation of Net Earning to EBITDA1and Adjusted EBITDA1​(Unaudited – In thousands)
​
Nine Months Ended June 30
​
2025
2024
Net Earnings (U.S. GAAP)​
$
304,488
$
289,675
Income Tax Expense
57,165
62,765
Interest Expense
35,464
34,482
Interest Income
(3,236
)
(4,494
)
Amortization of Intangible Assets​
20,858
25,348
Depreciation Expanse​
63,238
61,494
EBITDA (Non-U.S. GAAP)
477,977
469,270
Total non-U.S. GAAP Adjustments​
(13,214
)
3,765
Adjusted EBITDA​ (Non-U.S. GAAP)
$
464,763
$
473,035
Woodward, Inc. and Subsidiaries​Reconciliation of Non-Segment Expenses ​to Adjusted Non-Segment Expenses1 (Unaudited – In thousands)
​
Nine Months Ended June 30
​
2025
2024
Non-Segment Expenses (U.S. GAAP)
$
(84,986
)
$
(88,709
)
Product rationalization
(20,524
)
-
Non-recurring gain related to a previous acquisition
-
(4,803
)
Business development activities
7,310
5,902
Certain non-restructuring separation costs
-
2,666
Adjusted Non-Segment Expenses (Non-U.S. GAAP)
$
(98,200
)
$
(84,944
)
Woodward, Inc. and Subsidiaries​Reconciliation of Cash Flow from Operating Activitiesto Free Cash Flow1 (Unaudited – In thousands)
​
Nine Months Ended June 30
​
2025
2024
Net cash provided by operating activities (U.S. GAAP)
$
237,976
$
297,329
Payments for property, plant, and equipment
(78,537
)
(72,193
)
Free cash flow (Non-U.S. GAAP)
$
159,439
$
225,136
1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted income tax expense, adjusted effective tax rate, and adjusted nonsegment expenses exclude, as applicable (i) product rationalization, (ii) a non-recurring gain related to a previous acquisition, (iii) costs related to business development activities, and (iv) certain non-restructuring separation costs. The product rationalization adjustment pertains to gains related to the elimination of certain product lines. The Company believes that these excluded items are short‐term in nature, not directly related to the ongoing operations of the business, and therefore, the exclusion of them illustrates more clearly how the underlying business of Woodward is performing. Guidance with respect to non-U.S. GAAP measures as provided in this release excludes, as applicable, (i) product rationalization, and (ii) business development activities.
EBIT (earnings before interest and taxes), EBITDA (earnings before interest, taxes, depreciation and amortization), free cash flow, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted income tax expense, adjusted effective tax rate, and adjusted nonsegment expenses are financial measures not prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Management uses EBIT and adjusted EBIT to evaluate Woodward's operating performance without the impacts of financing and tax related considerations. Management uses EBITDA and adjusted EBITDA in evaluating Woodward's operating performance, making business decisions, including developing budgets, managing expenditures, forecasting future periods, and evaluating capital structure impacts of various strategic scenarios. Management also uses free cash flow, which is derived from net cash provided by or used in operating activities less payments for property, plant, and equipment in reviewing the financial performance of Woodward's various business segments and evaluating cash generation levels. Securities analysts, investors, and others frequently use EBIT, EBITDA, and free cash flow in their evaluation of companies, particularly those with significant property, plant, and equipment, and intangible assets that are subject to amortization. The use of any of these non-U.S. GAAP financial measures is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. Because adjusted net earnings, adjusted earnings per share, EBIT, EBITDA, adjusted EBIT, and adjusted EBITDA exclude certain financial information compared with net earnings, the most comparable U.S. GAAP financial measure, users of this financial information should consider the information that is excluded. Free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. Woodward's calculations of EBIT, EBITDA, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, adjusted nonsegment expenses, and free cash flow may differ from similarly titled measures used by other companies, limiting their usefulness as comparative measures.
2Website, Facebook, LinkedIn: Woodward has used, and intends to continue to use, its Investor Relations website, LinkedIn page, and Facebook page as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Contact:
Dan Provaznik Director, Investor [e-mail]