Research · Sep 3, 2026
[WWD] Woodward Thesis 2026: Aerospace Strength Drives Margin Record and Earnings Growth
Woodward Inc. FY25 (Sep year-end) revenue $3.57B (+7%); op income $511M (+16%); NI $442M (+19%); EPS $7.19 (+20%). Aerospace segment FY25 revenue $2.30B (+14%) / margin +290bp. Q4 aerospace revenue $661M (+20%) / segment margin 24.4% (+520bp YoY). Defense OEM + commercial services driving growth. A350 wing spoiler actuator OEM win. Strategic acquisition for electromechanical actuation completed. Industrial segment FY25 revenue $1.25B (-3% reported / +10% core ex China on-highway). Q4 industrial revenue $334M (+11%) / margin 14.6%. Driven by oil & gas + power generation + marine. FY26 guide: net sales +7-12%; Aerospace +9-15%; Industrial +5-9%; adj EPS $7.50-$8.00; capex ~$290M; $650-$700M dividend + share repurchase.