FORT COLLINS, Colo., April 29, 2026 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today reported financial results for its second quarter ended March 31, 2026.
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.
Second Quarter Overview Second Quarter 2026 Year-to-Date 2026Net sales$1.1B, +23% $2.1B, +26%Net earnings$134M, +23% $268M, +37%Adjusted net earnings1$139M, +35% $273M, +47%Earnings per share (EPS)$2.19, +23% $4.36, +36%Adjusted EPS1$2.27, +34% $4.44, +46%Net cash provided by operating activities$91M, +17% $205M, +83%Free cash flow1$38M, -36% $109M, +80%
"We delivered outstanding second quarter results reflecting robust demand and strong execution across both segments,” said Chip Blankenship, Chairman and Chief Executive Officer. “Aerospace performance was largely driven by continued strength in commercial services activity and OEM demand. Industrial grew across the board in transportation, power generation, and oil and gas.
“Based on our first half performance and continued demand strength, we are raising our full-year outlook. We remain focused on executing in a dynamic environment while continuing to invest in innovation and operational excellence to deliver sustained profitable growth and long-term shareholder value.”
Second Quarter Fiscal Year 2026 Company ResultsTotal Company Results
(Dollars in millions, except per share amounts) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Year over Year 2026 2025 Year over Year Income Statement Net sales$1,091 $884 23% $2,087 $1,656 26%Net earnings 134 109 23% 268 196 37%Adjusted net earnings 139 103 35% 273 186 47%EPS$2.19 $1.78 23% $4.36 $3.20 36%Adjusted EPS$2.27 $1.69 34% $4.44 $3.04 46%EBIT1 179 144 24% 358 257 39%Adjusted EBIT1 186 136 36% 364 243 50%Effective tax rate 20.0% 18.1%190 bps 20.5% 16.5%400 bps Adjusted effective tax rate1 20.2% 17.7%250 bps 20.5% 16.1%440 bps Cash Flow and Financial Position Net cash provided by operating activities$91 $78 17% $205 $112 83%Capital Expenditures53 18 186% 97 52 86%Free cash flow 38 59 -36% 109 60 80% Dividends Paid 19 17 14% 36 31 14%Share Repurchases 226 44 412% 355 79 346%Total Debt 1,123 912 23%EBITDA1Leverage 1.4x 1.5x
Aerospace
(Dollars in millions) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Year over Year 2026 2025 Year over Year Commercial OEM$218 $167 30% $406 $322 26%Commercial services 275 202 36% 520 366 42%Defense OEM 151 138 9% 289 251 15%Defense services 59 54 8% 123 118 4% Sales 703 562 25% 1,338 1,056 27%Segment Earnings 158 125 27% 306 219 40%Segment Margin % 22.5% 22.2%30 bps 22.9% 20.8%210 bps
Segment earnings for the second quarter of 2026 were $158 million, or 22.5 percent of segment net sales. Segment earnings for the first half of fiscal 2026 were $306 million, or 22.9 percent of segment net sales. The increase in segment earnings in both periods was a result of price realization and higher sales volumes, partially offset by inflation, strategic investments in manufacturing capabilities, research and development, and the enterprise resource planning system upgrade.
Industrial(Dollars in millions) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Year over Year 2026 2025 Year over Year Transportation$177 $132 34% $343 $239 43%Power generation 136 126 7% 259 241 7%Oil and gas 74 63 18% 147 120 23% Sales 387 322 20% 749 601 25%Segment Earnings 66 46 43% 133 86 54%Segment Margin % 17.0% 14.3%270 bps 17.7% 14.3%340 bps
Industrial segment earnings for the second quarter of 2026 were $66 million, or 17.0 percent of segment net sales. Industrial segment earnings for the first half of fiscal 2026 were $133 million, or 17.7 percent of segment net sales. The increase in segment earnings in both periods was a result of higher sales volume, price realization, and favorable mix, partially offset by inflation and a reserve for a product performance claim.
Nonsegment(Dollars in millions) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 Year over Year 2026 2025 Year over Year Nonsegment Expense$(45)$(27) 68% $(82)$(49) 67%Adjusted Nonsegment Expenses (38) (34) 12% (75) (62) 21%
Fiscal Year 2026 Guidance
Based on strong second quarter performance and improved confidence in the second half outlook, Woodward is raising its 2026 sales and earnings guidance.
Prior FY26 GuidanceRevised FY26 Guidance Issued on February 2, 2026Issued on April 29, 2026Total Company Sales growthup 14% to 18%up 20% to 23%Adjusted EPS3$8.20 - $8.60$9.15 - $9.45Free cash flow3$300 - $350 millionNo changeCapital expenditures~$290 millionNo changeShares~61 million~61.5 millionAdjusted effective tax rate3~22%No change Segment Data Aerospace Sales Growthup 15% to 20%up 21% to 24%Segment Earnings (% of Sales)22% to 23%23% to 23.5%Industrial Sales Growthup 11% to 14%up 18% to 20%Segment Earnings (% of Sales)16% to 17%18% to 18.5%
Conference Call
Woodward will hold an investor conference call at 5:00 p.m. ET on April 29, 2026, to provide an overview of the financial performance for its second quarter ended March 31, 2026, business highlights, and guidance for fiscal 2026. 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. Together with our customers, we are enabling the path to a cleaner, decarbonized world. 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 regarding future events and our future results within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, the continued strength in demand for our products and services; our investments in our business, including in our capabilities, innovation, and operational discipline, including whether these investments ultimately lead to sustained profitable growth and long-term shareholder value; and statements regarding our business and guidance for fiscal year 2026, including our guidance for sales, adjusted earnings per share, segment sales growth rates, segment earnings margin growth rates, adjusted effective tax rate, free cash flow, capital expenditures, and diluted weighted average shares outstanding, as well as our assumptions regarding our guidance, anticipated trends in our business and markets, including our assumptions regarding sales, demand, and margin expansion in fiscal 2026. 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 in the financial markets that affect Woodward, its customers, and its supply chain; (2) risks related to constraints and disruptions in the global supply chain and labor markets; (3) Woodward’s long sales cycle; (4) risks related to Woodward’s concentration of revenue among a relatively small number of customers; (5) Woodward’s ability to implement and realize the intended effects of any restructuring efforts; (6) Woodward’s ability to successfully manage competitive factors including expenses and fluctuations in sales, as well as innovation and new product development; (7) changes and consolidations in the aerospace market; (8) Woodward’s financial obligations including debt obligations and tax expenses and exposures; (9) risks related to Woodward’s U.S. government contracting activities including potential changes in government spending patterns; (10) volatility with respect to the China on-highway natural gas truck market; (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, including its ability to retain key personnel or attract and retain new qualified personnel; (15) Woodward’s ability to manage various regulatory and legal matters; (16) risks from operating internationally; (17) cybersecurity, data privacy, 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, 2025, any subsequently filed Quarterly Report on Form 10-Q, 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.
Condensed Consolidated Statement of Earnings
(Unaudited – In thousands) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 2026 2025 Net sales$1,090,568 $883,629 $2,087,022 $1,656,354 Costs and expenses: Cost of goods sold 774,660 643,530 1,478,953 1,226,621 Selling, general, and administrative expenses 102,285 83,842 197,270 153,538 Research and development costs 46,119 37,230 83,875 67,437 Restructuring charges 6,815 - 6,815 - Interest expense 12,035 11,889 22,379 24,230 Interest income (715) (1,021) (1,416) (2,398)Other income, net (18,058) (24,804) (37,432) (47,891)Total costs and expenses 923,141 750,666 1,750,444 1,421,537 Earnings before income taxes 167,427 132,963 336,578 234,817 Income taxes 33,414 24,014 68,846 38,777 Net earnings$134,013 $108,949 $267,732 $196,040 Earnings per share amounts: Basic earnings per share$2.25 $1.83 $4.48 $3.30 Diluted earnings per share$2.19 $1.78 $4.36 $3.20 Weighted average common shares outstanding: Basic 59,611 59,432 59,725 59,323 Diluted 61,276 61,344 61,462 61,258 Cash dividends paid per share$0.32 $0.28 $0.60 $0.53
Condensed Consolidated Balance Sheets
(Unaudited – In thousands) March 31,
2026 September 30,
2025 Assets Current assets: Cash and cash equivalents$501,169 $327,431 Accounts receivable 931,231 831,116 Inventories 704,465 654,608 Income taxes receivable 69,743 1,553 Other current assets 65,314 69,706 Total current assets 2,271,922 1,884,414 Property, plant, and equipment, net 1,034,798 986,623 Goodwill 825,503 832,288 Intangible assets, net 408,801 428,080 Deferred income tax assets 44,737 118,711 Other assets 383,351 380,027 Total assets$4,969,112 $4,630,143 Liabilities and stockholders’ equity Current liabilities: Short-term debt$623,000 $122,300 Current portion of long-term debt 46,905 122,934 Accounts payable 305,855 289,417 Income taxes payable 54,532 59,655 Accrued liabilities 281,463 313,083 Total current liabilities 1,311,755 907,389 Long-term debt, less current portion 453,373 456,968 Deferred income tax liabilities 105,332 107,669 Other liabilities 573,192 591,727 Total liabilities 2,443,652 2,063,753 Stockholders’ equity 2,525,460 2,566,390 Total liabilities and stockholders’ equity$4,969,112 $4,630,143
Condensed Consolidated Statements of Cash Flows
(Unaudited – In thousands) Six Months Ended March 31, 2026 2025 Net cash provided by operating activities$205,264 $112,341 Cash flows from investing activities: Payments for purchase of property, plant, and equipment(96,720) (51,990)Proceeds from sale of assets- 33 Proceeds from short-term investments65 2,923 Proceeds from business divestitures- 44,896 Payments for acquisitions, net of cash acquired(2,808) - Net cash (used in) investing activities (99,463) (4,138) Cash flows from financing activities: Cash dividends paid(35,853) (31,453)Proceeds from sales of treasury stock40,388 49,717 Payments for repurchases of common stock(355,297) (79,493)Borrowings on revolving lines of credit and short-term borrowings2,010,053 1,350,200 Payments on revolving lines of credit and short-term borrowings(1,509,353) (1,306,100)Payments of long-term debt and finance lease obligations(75,507) (473)Net cash provided by (used in) financing activities 74,431 (17,602)Effect of exchange rate changes on cash and cash equivalents(6,494) (8,730)Net change in cash and cash equivalents173,738 81,871 Cash and cash equivalents, including restricted cash, at beginning of year 327,431 282,270 Cash and cash equivalents, including restricted cash, at end of period501,169 $364,141
Segment Net Sales and Net Earnings
(Unaudited – In thousands) Three Months Ended March 31, Six Months Ended March 31, 2026 2025 2026 2025 Segment net sales: Aerospace 703,321 561,729 1,338,218 1,055,611 Industrial 387,247 321,900 748,804 600,743 Total consolidated net sales$1,090,568 $883,629 $2,087,022 $1,656,354 Segment earnings*: Aerospace 158,075 124,616 306,470 219,341 As a percent of segment net sales 22.5% 22.2% 22.9% 20.8%Industrial 65,721 45,967 132,715 86,164 As a percent of segment net sales 17.0% 14.3% 17.7% 14.3%Total segment earnings$223,796 $170,583 $439,185 $305,505 Nonsegment expenses (45,049) (26,752) (81,644) (48,856)EBIT$178,747 $143,831 $357,541 $256,649 Interest expense, net (11,320) (10,868) (20,963) (21,832)Consolidated earnings before income taxes$167,427 $132,963 $336,578 $234,817 *This schedule reconciles segment earnings, which exclude certain costs, to consolidated earnings before taxes. Payments for property, plant and equipment$52,591 $18,416 $96,720 $51,990 Depreciation expense$22,482 $20,794 $44,178 $41,756
Reconciliation of Net Earnings and EPS to Adjusted Earnings1 and Adjusted EPS1
(Unaudited – In thousands, except per share amounts) Three Months Ended March 31, 2026 2025 Net
Earnings Earnings
Per Share Net
Earnings Earnings
Per Share Net Earnings (U.S. GAAP)$134,013 $2.19 $108,949 $1.78 Non-U.S. GAAP Adjustments Restructuring charges 6,815 0.11 - - Product rationalizationa - - (11,163) (0.18)Business development activitiesb - - 3,793 0.06 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments (1,702) (0.03) 1,811 0.03 Total non-U.S. GAAP Adjustments 5,113 0.08 (5,559) (0.09)Adjusted Net Earnings (Non-U.S. GAAP)$139,126 $2.27 $103,390 $1.69
- Presented in the line item "Other income, net" in Woodward's Condensed Consolidated Statement of Earnings.
- Presented in the line item "Selling, general, and administrative expenses" in Woodward's Condensed Consolidated Statement of Earnings.
Reconciliation of Net Earnings and EPS to Adjusted Net Earnings1 and Adjusted EPS1
(Unaudited – In thousands, except per share amounts) Six Months Ended March 31, 2026 2025 Net
Earnings Earnings
Per Share Net
Earnings Earnings
Per Share Net Earnings (U.S. GAAP)$267,732 $4.36 $196,040 $3.20 Non-U.S. GAAP Adjustments Restructuring charges 6,815 0.11 - - Product rationalizationa - - (20,524) (0.33)Business development activitiesb - - 7,310 0.12 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments (1,702) (0.03) 3,130 0.05 Total non-U.S. GAAP Adjustments 5,113 0.08 (10,084) (0.16)Adjusted Net Earnings(Non-U.S. GAAP)$272,845 $4.44 $185,956 $3.04
- Presented in the line item "Other income, net" in Woodward's Condensed Consolidated Statement of Earnings.
- Presented in the line item "Selling, general, and administrative expenses" in Woodward's Condensed Consolidated Statement of Earnings.
Reconciliation of Income Tax Expense
to Adjusted Income Tax Expense1
(Unaudited – In thousands) Three Months Ended March 31, 2026 2025 Income tax expense (U.S. GAAP)$33,414 $24,014 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments 1,702 (1,811)Adjusted Income Tax Expense (Non-U.S. GAAP)$35,116 $22,203 Adjusted Income Tax Rate (Non-U.S. GAAP) 20.2% 17.7%
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense1
(Unaudited – In thousands) Six Months Ended March 31, 2026 2025 Income tax expense (U.S. GAAP)$68,846 $38,777 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments 1,702 (3,130)Adjusted Income Tax Expense (Non-U.S. GAAP)$70,548 $35,647 Adjusted Income Tax Rate (Non-U.S. GAAP) 20.5% 16.1%
Reconciliation of Net Earnings to EBIT1 and Adjusted EBIT1
(Unaudited – In thousands) Three Months Ended March 31, 2026 2025 Net Earnings (U.S. GAAP)$134,013 $108,949 Income Tax Expense 33,414 24,014 Interest Expense 12,035 11,889 Interest Income (715) (1,021)EBIT (Non-U.S. GAAP) 178,747 143,831 Total non-U.S. GAAP Adjustments 6,815 (7,370)Adjusted EBIT(Non-U.S. GAAP)$185,562 $136,461
Reconciliation of Net Earnings to EBIT1 and Adjusted EBIT1
(Unaudited – In thousands) Six Months Ended March 31, 2026 2025 Net Earnings (U.S. GAAP)$267,732 $196,040 Income Tax Expense 68,846 38,777 Interest Expense 22,379 24,230 Interest Income (1,416) (2,398)EBIT (Non-U.S. GAAP) 357,541 256,649 Total non-U.S. GAAP Adjustments 6,815 (13,214)Adjusted EBIT(Non-U.S. GAAP)$364,356 $243,435
Reconciliation of Net Earnings to EBITDA1 and Adjusted EBITDA1
(Unaudited – In thousands) Three Months Ended March 31, 2026 2025 Net Earnings (U.S. GAAP)$134,013 $108,949 Income Tax Expense 33,414 24,014 Interest Expense 12,035 11,889 Interest Income (715) (1,021)Amortization of intangible assets 7,424 6,772 Depreciation Expense 22,482 20,794 EBITDA (Non-U.S. GAAP) 208,653 171,397 Total non-U.S. GAAP Adjustments 6,815 (7,370)Adjusted EBITDA(Non-U.S. GAAP)$215,468 $164,027
Reconciliation of Net Earnings to EBITDA1 and Adjusted EBITDA1
(Unaudited – In thousands) Six Months Ended March 31, 2026 2025 Net Earnings (U.S. GAAP)$267,732 $196,040 Income Tax Expense 68,846 38,777 Interest Expense 22,379 24,230 Interest Income (1,416) (2,398)Amortization of Intangible Assets 14,766 13,686 Depreciation Expense 44,178 41,756 EBITDA (Non-U.S. GAAP) 416,485 312,091 Total non-U.S. GAAP Adjustments 6,815 (13,214)Adjusted EBITDA(Non-U.S. GAAP)$423,300 $298,877
Reconciliation of Non-Segment Expenses to Adjusted Non-Segment Expenses1
(Unaudited – In thousands) Three Months Ended March 31, 2026 2025 Non-Segment Expenses (U.S. GAAP)$(45,049)$(26,752)Restructuring charges 6,815 - Product rationalization - (11,163)Business development activities - 3,793 Adjusted Non-Segment Expenses (Non-U.S. GAAP)$(38,234)$(34,122)
Reconciliation of Non-Segment Expenses to Adjusted Non-Segment Expenses1
(Unaudited – In thousands) Six Months Ended March 31, 2026 2025 Non-Segment Expenses (U.S. GAAP)$(81,644)$(48,856)Restructuring charges 6,815 - Product rationalization - (20,524)Business development activities - 7,310 Adjusted Non-Segment Expenses (Non-U.S. GAAP)$(74,829)$(62,070)
Reconciliation of Net Cash Provided by Operating Activities
to Free Cash Flow1
(Unaudited – In thousands) Three Months Ended March 31, 2026 2025 Net cash provided by operating activities (U.S. GAAP)$90,827 $77,825 Payments for property, plant, and equipment (52,591) (18,416)Free cash flow (Non-U.S. GAAP)$38,236 $59,409
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow1
(Unaudited – In thousands) Six Months Ended March 31, 2026 2025 Net cash provided by operating activities (U.S. GAAP)$205,264 $112,341 Payments for property, plant, and equipment(96,720) (51,990)Free cash flow (Non-U.S. GAAP)$108,544 $60,351
1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted income tax expense, adjusted effective income tax rate, EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, and adjusted nonsegment expenses exclude, as applicable, (i) product rationalization, (ii) costs related to business development activities, and (iii) restructuring charges. The product rationalization adjustment pertains to the elimination and divestiture 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, restructuring charges.
EBIT (earnings before interest and taxes), adjusted EBIT, EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EBITDA, free cash flow, adjusted net earnings, adjusted earnings per share, adjusted income tax expenses, adjusted effective income 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 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. Management’s calculations of EBIT, EBITDA, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective income 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. EBITDA leverage is calculated by taking a rolling twelve-month EBITDA divided by total debt.
2Website, Facebook: Woodward has used, and intends to continue to use, its Investor Relations website and its Facebook page as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
3FY26 Adjusted EPS, Free Cash Flow and Adjusted Effective Tax Rate: Information reconciling our FY26 adjusted EPS, free cash flow and adjusted effective tax rate guidance to the most directly comparable GAAP financial measures on a forward-looking basis is not available without unreasonable effort primarily due to [the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.
Contact:
Dan Provaznik
Director, Investor Relations
970-498-3849
[email protected]