Woodward, Inc. (NASDAQ: WWD) reported first-quarter fiscal yr 2026 outcomes on February 2, 2026, with consolidated internet gross sales of $996 million, up 29 % year-over-year from $773 million in Q1 FY2025. Consolidated internet earnings reached $134 million in Q1 FY2026, up 54 % from $87 million within the prior yr interval. The corporate raised its full-year fiscal 2026 gross sales and earnings steering based mostly on first-quarter outperformance.
Market Capitalization
Woodward had a market capitalization of roughly $13-14 billion as of February 3, 2026.
Q1 FY2026 Outcomes
Woodward reported consolidated internet gross sales of $996 million for Q1 FY2026, representing 29 % year-over-year progress. Consolidated internet earnings totaled $134 million, in comparison with $87 million in Q1 FY2025, a rise of 54 %. Working money move reached $114 million, up $80 million from Q1 FY2025. Free money move totaled $70 million, up $69 million year-over-year.
Earnings earlier than revenue taxes reached $169 million in Q1 FY2026, in comparison with $102 million in Q1 FY2025. The efficient tax fee was 20.9 % in Q1 FY2026, in comparison with 14.5 % in Q1 FY2025. The rise in tax fee was resulting from prior yr discrete tax advantages not recurring. EBIT for Q1 FY2026 totaled $179 million, up 59 % year-over-year.
Section Efficiency
The Aerospace section reported Q1 FY2026 gross sales of $635 million, up 29 % from $494 million in Q1 FY2025. Section earnings reached $148 million with a section margin of 23.4 %, in comparison with 19.2 % within the prior yr interval. Business OEM gross sales grew 22 % to $188 million, Business companies elevated 50 % to $245 million, Protection OEM gross sales rose 23 % to $138 million, and Protection companies have been up 1 % to $64 million.
The Industrial section reported Q1 FY2026 gross sales of $362 million, up 30 % from $279 million in Q1 FY2025. Section earnings totaled $67 million with a section margin of 18.5 %, in comparison with 14.4 % within the prior yr interval. Transportation gross sales elevated 55 % to $166 million, Energy era gross sales rose 7 % to $123 million, and Oil and fuel gross sales grew 28 % to $72 million.
Fiscal Yr 2026 Steerage
Primarily based on first-quarter outperformance, Woodward raised its fiscal 2026 steering. The corporate now initiatives full-year gross sales progress of 14 to 18 %, up from prior steering of seven to 12 % progress. Free money move is projected at $300 to $350 million, per prior steering. Capital expenditures are anticipated to be roughly $290 million.
For the Aerospace section, revised steering initiatives gross sales progress of 15 to twenty %, up from 9 to fifteen %. Section earnings margin is anticipated to be 22 to 23 %. For the Industrial section, revised steering initiatives gross sales progress of 11 to 14 %, up from 5 to 9 %. Section earnings margin is anticipated to broaden to 16 to 17 %, up from prior steering of 14.5 to fifteen.5 %.
Quarterly Web Gross sales Pattern
3-Month Buying and selling Quantity Pattern
Enterprise and Operations Replace
Woodward is the worldwide chief within the design, manufacture, and repair of vitality conversion and management options for the aerospace and industrial tools markets. The corporate serves prospects in industrial aerospace, protection, energy era, transportation, and oil and fuel sectors. First-quarter efficiency benefited from operational excellence initiatives and elevated output throughout the manufacturing portfolio.
Woodward is executing centered efforts on provide chain alignment to assist secure stock ranges and predictable part availability. The corporate is implementing improved stock administration and pursuing capability enlargement efforts to fulfill sustained demand. Elevated companies choices throughout each segments are contributing to income progress and margin enlargement.
Strategic Developments
Woodward continues to execute its strategic capital allocation technique, which incorporates investments in operational excellence and focused innovation. The corporate returned $146 million to shareholders by means of dividends of $17 million and share repurchases of $129 million within the first quarter. Capital expenditures of $44 million have been deployed to assist progress initiatives and operational enhancements.
Woodward is executing its dedication to wind-down its China on-highway pure fuel truck enterprise. The corporate maintains give attention to core progress markets in industrial aerospace, protection, and industrial functions the place it holds differentiated market positions.
Outlook
Woodward expects sustained progress all through fiscal 2026 based mostly on robust demand throughout aerospace and industrial finish markets. The corporate anticipates continued margin enlargement pushed by value realization, favorable product combine, and operational effectivity beneficial properties. What to observe for contains execution of provide chain stabilization efforts, profitable capability enlargement initiatives, and the affect of ongoing restructuring.
The corporate assumes continued robust demand in industrial aerospace companies, strong protection OEM demand, and progress in transportation and energy era. Woodward expects to ship sustained worthwhile progress by means of operational excellence, focused innovation, and disciplined capital allocation.
Efficiency Abstract
Woodward reported Q1 FY2026 internet gross sales of $996 million, up 29 % year-over-year. Web earnings reached $134 million, a 54 % improve from the prior yr interval. The Aerospace section grew 29 % to $635 million in gross sales with 23.4 % margins; the Industrial section grew 30 % to $362 million with 18.5 % margins. Working money move totaled $114 million with free money move of $70 million. Woodward raised fiscal 2026 gross sales progress steering to 14-18 % and raised free money move projections. The corporate returned $146 million to shareholders by means of capital returns.
Commercial
