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1. Company Snapshot

1.a. Company Description

Woodward, Inc.designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide.The company operates through two segments: Aerospace and Industrial.


The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft.These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems.It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users.


This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and various contractors, as well as through aftermarket sales of components, such as provisioning spares or replacements, and spare parts.The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors.These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines.


This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users.The company was founded in 1870 and is headquartered in Fort Collins, Colorado.

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1.b. Last Insights on WWD

Woodward, Inc.'s recent performance was driven by strong Q1 FY26 earnings, with a 29% sales growth and EPS beat. The company's aerospace and industrial demand surged, leading to a 15% share jump. Deutsche Bank upgraded the stock to a buy rating, raising the price target to $445.00. The company's growth prospects are fueled by a strong aerospace recovery, defense tailwinds, and improving operating leverage. A key acquisition and new programs also contributed to the positive outlook.

1.c. Company Highlights

2. Woodward's Q1 FY2026 Earnings: A Strong Start to the Year

Woodward's financial performance in the first quarter of fiscal year 2026 was impressive, with net sales reaching $996 million, a 29% increase year over year. Earnings per share (EPS) came in at $2.17, beating estimates of $1.65 and representing a 54% increase from the same period last year. The company's aerospace segment sales grew 29% to $635 million, driven by commercial services sales, which rose 15%. The industrial segment also saw significant growth, with sales increasing 30% to $362 million.

Publication Date: Feb -09

📋 Highlights
  • 29% YoY Sales Growth: with net sales reaching $996 million in Q1 2026.
  • 54% EPS Increase: to $2.17, driven by aerospace (29% growth, $635M) and industrial segments (30% growth, $362M).
  • $70M Free Cash Flow: in Q1, with guidance for $650–$700M returned to shareholders via dividends and buybacks annually.
  • 2026 Guidance Raised: Sales growth now 14–18% and EPS of $8.20–$8.60, up from prior plans.

Segment Performance

The aerospace segment's strong performance was driven by increased OEM sales and commercial services. The industrial segment's growth was broad-based, with increases across end markets, price, and FX. As Charles P. Blankenship noted, "We continue to expand our services capacity to address increasing demand and improve turnaround times for our customers." This focus on operational excellence is expected to drive continued benefits, including stabilizing the end-to-end supply chain and improving on-time delivery.

Guidance and Outlook

Woodward is raising its 2026 guidance for sales and earnings, with consolidated sales growth now expected to be between 14-18%, and EPS expected to be between $8.20 and $8.60. The company's near-term strategic priorities include meeting OEM demand growth, providing world-class service, and shifting R&D focus to customer value demonstration. With a strong balance sheet and flexibility to evaluate potential inorganic opportunities, Woodward is well-positioned for continued growth.

Valuation and Metrics

Using the current P/E Ratio of 47.56, it's clear that the market has high expectations for Woodward's future growth. The EV/EBITDA ratio of 36.06 also suggests that the company's valuation is somewhat elevated. However, with a ROE of 19.63% and ROIC of 11.04%, Woodward is generating strong returns on equity and invested capital. Analysts estimate next year's revenue growth at 7.8%, which may be a more modest pace than this year's growth, but still indicates a strong outlook for the company.

3. NewsRoom

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Reviewing Woodward (NASDAQ:WWD) and Rocket Lab (NASDAQ:RKLB)

Feb -22

Source: defenseworld.net

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Woodward, Inc. $WWD Shares Sold by PNC Financial Services Group Inc.

Feb -19

Source: defenseworld.net

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Woodward (NASDAQ:WWD) & AerSale (NASDAQ:ASLE) Head to Head Analysis

Feb -19

Source: defenseworld.net

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Watch Woodward Soar on Huge Inflows

Feb -18

Source: fxempire.com

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Here is Why Growth Investors Should Buy Woodward (WWD) Now

Feb -13

Source: zacks.com

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Record Defense AI Spending Opens a Procurement Window

Feb -12

Source: prnewswire.com

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Woodward Stock Is Up 50% This Year -- but Is There Enough Upside Left for New Investors?

Feb -11

Source: fool.com

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Best Growth Stocks to Buy for February 10th

Feb -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.62%)

6. Segments

Aerospace

Expected Growth: 4.5%

Woodward, Inc.'s Aerospace segment growth of 4.5% is driven by increasing demand for fuel-efficient aircraft, rising defense spending, and growing adoption of unmanned aerial vehicles (UAVs). Additionally, the company's focus on innovative engine control systems, propulsion systems, and aftermarket services contributes to its growth momentum.

Industrial

Expected Growth: 4.8%

Woodward Inc.'s Industrial segment growth of 4.8% is driven by increasing demand for industrial gas turbines, expansion in the aerospace market, and growing adoption of renewable energy sources. Additionally, the company's focus on innovation and R&D investments in industrial valves and actuators is contributing to the segment's growth.

7. Detailed Products

Aerospace Control Systems

Woodward's aerospace control systems provide advanced engine control and fuel systems for commercial and military aircraft, as well as for industrial and marine applications.

Aerospace Fuel Systems

Woodward's aerospace fuel systems provide advanced fuel management and delivery systems for commercial and military aircraft, as well as for industrial and marine applications.

Industrial Turbomachinery Controls

Woodward's industrial turbomachinery controls provide advanced control systems for industrial gas turbines, compressors, and pumps.

Industrial Valve Systems

Woodward's industrial valve systems provide advanced valve solutions for industrial applications such as power generation, oil and gas, and process industries.

Wind Turbine Systems

Woodward's wind turbine systems provide advanced control and pitch systems for wind turbines.

Industrial Gas and Steam Turbine Systems

Woodward's industrial gas and steam turbine systems provide advanced control and fuel systems for industrial gas and steam turbines.

8. Woodward, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Woodward, Inc. is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry and the availability of resources in the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the high level of competition in the market, leading to a competitive pricing strategy.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.84%
Debt Cost 7.88%
Equity Weight 74.16%
Equity Cost 10.43%
WACC 9.77%
Leverage 34.84%

11. Quality Control: Woodward, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Huntington Ingalls

A-Score: 5.8/10

Value: 4.5

Growth: 4.2

Quality: 5.1

Yield: 4.0

Momentum: 10.0

Volatility: 6.7

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Woodward

A-Score: 5.1/10

Value: 0.9

Growth: 6.9

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

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Textron

A-Score: 4.9/10

Value: 4.7

Growth: 5.9

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 8.7

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BWXT

A-Score: 4.9/10

Value: 0.9

Growth: 6.3

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 5.7

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AAR

A-Score: 4.2/10

Value: 4.8

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

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Axon Enterprise

A-Score: 3.8/10

Value: 0.0

Growth: 9.6

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

393.0$

Current Price

393$

Potential

-0.00%

Expected Cash-Flows