Woodward (WWD) quarter:Q1 year:2026 Financial Results Summary
· Stocks · QuoteReporter
Woodward, Inc. (WWD) Q1 2026 Financial Results Summary
Release Date: February 02, 2026
Woodward, Inc. (NASDAQ: WWD) has announced its financial results for the first quarter of fiscal year 2026, which ended on December 31, 2025. The report highlights a remarkable increase in performance across various metrics compared to the same quarter in the previous year.
First Quarter Overview
- Net Sales: $996 million, representing a 29% increase from $773 million in Q1 fiscal year 2025.
- Net Earnings: $134 million, showcasing a 54% growth from $87 million in Q1 fiscal year 2025.
- Earnings Per Share (EPS): $2.17, up by 53% from $1.42 in Q1 fiscal year 2025.
- Net Cash Provided by Operating Activities: $114 million, an increase of $80 million from $35 million in Q1 fiscal year 2025.
- Free Cash Flow: $70 million, up by $69 million from $1 million in Q1 fiscal year 2025.
Segment Performance
Aerospace Segment:
– Sales: $635 million, up 29% from $494 million in Q1 fiscal year 2025.
– Commercial OEM: $188 million, +22%
– Commercial Services: $245 million, +50%
– Defense OEM: $138 million, +23%
– Defense Services: $64 million, +1%
– Segment Earnings: $148 million, up 57% from $95 million in Q1 fiscal year 2025.
– Segment Margin: 23.4%, an increase of 420 basis points from 19.2%.
Industrial Segment:
– Sales: $362 million, increasing 30% from $279 million in Q1 fiscal year 2025.
– Transportation: $166 million, +55%
– Power Generation: $123 million, +7%
– Oil and Gas: $72 million, +28%
– Segment Earnings: $67 million, a rise of 67% from $40 million in Q1 fiscal year 2025.
– Segment Margin: 18.5%, up 410 basis points from 14.4%.
Nonsegment Performance:
– Nonsegment Expense: $37 million, increased by 66% from $22 million in Q1 fiscal year 2025.
Cash Flow and Financial Position
- Total Debt: $888 million, a decrease from $902 million year-over-year.
- Free Cash Flow: Significantly improved to $70 million from $1 million in Q1 fiscal year 2025.
- Dividends Paid: $17 million, up from $15 million one year prior.
- Share Repurchases: $129 million, compared to $35 million during the same quarter of the previous year.
Fiscal Year 2026 Guidance
- Based on the strong performance in Q1, Woodward has updated its full-year sales and earnings guidance:
- Sales Growth: Previously projected growth of 7% to 12% is now raised to 14% to 18%.
- EPS Forecast: Increased from $7.50 – $8.00 to $8.20 – $8.60.
- Free Cash Flow: Maintained at $300 – $350 million.
- Capital Expenditures: No change expected, remaining around $290 million.
- Effective Tax Rate: Expected to remain around 22%.
Conference Call Information
Woodward will conduct an investor conference call on February 2, 2026, at 5:00 p.m. ET to discuss the financial performance for the first quarter-ended December 31, 2025. This session will include highlights from the quarter and guidance for fiscal year 2026.
Conclusion
Woodward, Inc. reports significant growth in both sales and earnings in Q1 of fiscal year 2026, prompting an optimistic revision of the company’s forecasts for the year. The continued positive performance across both Aerospace and Industrial segments reflects the strong demand and effective operational management.
Here are the extracted tables from the press release:
Condensed Consolidated Statement of Earnings (Unaudited – In thousands)
| 2025 | 2024 | |
|---|---|---|
| Net sales | $996,454 | $772,725 |
| Costs and expenses: | ||
| Cost of goods sold | 704,293 | 583,091 |
| Selling, general, and administrative expenses | 94,985 | 69,696 |
| Research and development costs | 37,756 | 30,207 |
| Interest expense | 10,344 | 12,341 |
| Interest income | (701) | (1,377) |
| Other income, net | (19,374) | (23,087) |
| Total costs and expenses | 827,303 | 670,871 |
| Earnings before income taxes | 169,151 | 101,854 |
| Income taxes | 35,432 | 14,763 |
| Net earnings | $133,719 | $87,091 |
| Earnings per share amounts: | ||
| Basic earnings per share | $2.23 | $1.47 |
| Diluted earnings per share | $2.17 | $1.42 |
| Weighted average common shares | ||
| outstanding: | ||
| Basic | 59,837 | 59,216 |
| Diluted | 61,590 | 61,141 |
| Cash dividends paid per share | $0.28 | $0.25 |
Condensed Consolidated Balance Sheets (Unaudited – In thousands)
| December 31, 2025 | September 30, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $454,245 | $327,431 |
| Accounts receivable | 796,760 | 831,116 |
| Inventories | 689,217 | 654,608 |
| Income taxes receivable | 44,934 | 1,553 |
| Other current assets | 63,967 | 69,706 |
| Total current assets | 2,049,123 | 1,884,414 |
| Property, plant, and equipment, net | 1,002,187 | 986,623 |
| Goodwill | 832,065 | 832,288 |
| Intangible assets, net | 425,408 | 428,080 |
| Deferred income tax assets | 45,503 | 118,711 |
| Other assets | 379,611 | 380,027 |
| Total assets | $4,733,897 | $4,630,143 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Short-term debt | $383,000 | $122,300 |
| Current portion of long-term debt | 48,033 | 122,934 |
| Accounts payable | 269,981 | 289,417 |
| Income taxes payable | 52,429 | 59,655 |
| Accrued liabilities | 245,688 | 313,083 |
| Total current liabilities | 999,131 | 907,389 |
| Long-term debt, less current portion | 457,005 | 456,968 |
| Deferred income tax liabilities | 107,652 | 107,669 |
| Other liabilities | 582,621 | 591,727 |
| Total liabilities | 2,146,409 | 2,063,753 |
| Stockholders’ equity | 2,587,488 | 2,566,390 |
| Total liabilities and stockholders’ | $4,733,897 | $4,630,143 |
| equity |