Woodward (WWD) Q3 2026: Strong Growth and Raised Guidance — Positive Outlook

Woodward, Inc. (NASDAQ: WWD) reported impressive financial results for its third quarter ended June 30, 2026, showcasing significant growth compared to the prior year. The company achieved net sales of $1.1 billion, reflecting an increase of $193 million or +21% year-over-year. This robust performance is indicative of strong demand across its aerospace and industrial segments.

Key Financial Metrics

• Net Sales: $1.1 billion, +21% YoY
• Earnings Per Share (EPS): $2.40, +36% YoY
• Adjusted EPS: $2.52, +43% YoY
• Net Cash Provided by Operating Activities: $147 million, +17% YoY
• Free Cash Flow: $87 million, -12% YoY

Analyst Opinion

This quarter is a positive outcome for shareholders, driven by strong sales growth and margin expansion. The 36% increase in EPS and 43% rise in adjusted EPS demonstrate the company's ability to enhance profitability alongside revenue growth. The increase in net cash provided by operating activities further underscores operational efficiency, although the decline in free cash flow warrants monitoring.

Dividend and Share Buyback

Woodward declared a cash dividend of $0.32 per share, up from $0.28 in the same quarter last year. This increase reflects the company's commitment to returning value to shareholders. Additionally, the company has been active in share repurchases, which can enhance shareholder value by reducing the number of outstanding shares.

Guidance Update

• Adjusted EPS Guidance: Revised to $9.30 - $9.50 from the previous range of $9.15 - $9.45.
• Sales Growth Guidance: Maintained at 20% - 23%.

Forward Catalysts

Investors should watch for continued demand in both the aerospace and industrial segments, particularly as commercial aircraft production rates increase. The company’s focus on expanding capacity and improving operational flow will be critical in sustaining growth. Additionally, any updates on strategic investments and capacity expansions in the upcoming quarters will be pivotal for assessing future performance.

In conclusion, Woodward's third quarter results reflect a strong operational performance and a positive outlook for the remainder of the fiscal year. The raised guidance and commitment to shareholder returns position the company favorably in the market.

Here are the extracted tables from the press release:

Condensed Consolidated Statements of Income (In thousands)

Note: The amounts in the following table are in thousands.

	Three Months Ended June 30,	Nine Months Ended June 30,
2026	2025	2026	2025
Net sales	$ 1,109,448	$ 915,439	$ 3,196,429	$ 2,571,326
Costs and expenses
Cost of goods sold	759,794	666,257	2,238,332	1,892,235
Selling, general and admin	106,467	88,703	303,754	242,274
Research and development costs	49,316	41,088	133,132	108,546
Restructuring charges	9,264	-	16,079	-
Interest expense	14,827	11,234	37,206	35,464
Interest income	(611)	(838)	(2,027)	(3,236)
Other income, net	(22,802)	(17,852)	(60,231)	(65,724)
Total costs and expenses	916,117	788,634	2,666,883	2,210,945
Earnings before income taxes	193,331	126,805	530,000	361,381
Income tax expense	46,837	18,388	115,683	57,165
Net earnings	$ 146,494	$ 108,417	$ 414,317	$ 304,216
Earnings per share amount
Basic earnings per share	$ 2.47	$ 1.82	$ 6.95	$ 5.12
Diluted earnings per share	$ 2.40	$ 1.76	$ 6.76	$ 4.96
Weighted-average shares used to compute net income per share, basic	59,445	59,680	59,632	59,442
Diluted	61,018	61,488	61,317	61,374
Cash dividends paid per share	$ 0.32	$ 0.28	$ 0.92	$ 0.81

Condensed Consolidated Balance Sheets (In thousands)

Note: The amounts in the following table are in thousands.

Assets	June 30, 2026	September 30, 2025
Current assets:
Cash and cash equivalents	$ 474,851	$ 327,431
Accounts receivable	1,012,481	831,116
Inventories	724,803	654,608
Income taxes receivable	43,880	1,553
Assets held for sale	19,953	-
Other current assets	62,590	69,706
Total current assets	2,338,558	1,884,414
Property, plant, and equipment, net	1,087,764	986,623
Goodwill	893,956	832,288
Intangible assets, net	447,263	428,080
Deferred income tax assets	39,504	118,711
Other assets	389,356	380,027
Total assets	$ 5,196,401	$ 4,630,143
Liabilities and stockholders’ equity
Current liabilities:
Short-term debt	$ 592,426	$ 122,300
Current portion of long-term debt	131,779	122,934
Accounts payable	328,957	289,417
Income taxes payable	65,196	59,655
Accrued liabilities	299,255	313,083
Liabilities held for sale	3,589	-
Total current liabilities	1,421,202	907,389
Long-term debt, less current portion	617,730	456,968
Deferred income tax liabilities	109,023	107,669
Other liabilities	574,652	591,727
Total liabilities	2,722,607	2,063,753
Stockholders’ equity	2,473,794	2,566,390
Total liabilities and stockholders’ equity	$ 5,196,401	$ 4,630,143

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