TLDR
- Woodward jumps after Q1 revenue climbs 29% and EPS beats expectations
- Aerospace unit posts strong growth with sharp margin expansion
- Industrial segment surges 30% on transportation and energy demand
- Company raises full-year EPS outlook after strong cash generation
- Broad segment strength reinforces Woodward’s expansion momentum
Woodward (WWD) shares closed at $327.25, up 2.96%, as the company reported a strong first-quarter performance with broad growth and firm execution. The company also posted major gains across both operating segments and lifted its full-year guidance. The update strengthened confidence in its momentum and positioned the company for continued expansion.
Strong Q4 Performance Drives Broad Sales and Earnings Momentum
Woodward reported $996 million in revenue for the first quarter, and the figure rose 29% from last year. The company recorded EPS of $2.17, and the result improved from $1.42 a year earlier. It generated $70 million in free cash flow as operating strength improved.
Net earnings reached $134 million, climbing 54% year over year. The company also posted higher EBIT and a stronger margin profile across both units. Additionally, its operating cash flow rose sharply to $114 million.
The company raised full-year expectations because the first quarter exceeded internal targets. It projected 2026 EPS between $8.20 and $8.60 while the range marked a sizeable upgrade. The company also maintained guidance for free cash flow of $300 million to $350 million.
Aerospace Segment Achieves Robust Gains With Margin Expansion
Aerospace sales reached $635 million, and the figure advanced 29% from the prior year. Growth was broad as commercial services rose 50% while commercial OEM increased 22%. Defense OEM sales also strengthened with a 23% rise.
The Aerospace margin climbed to 23.4%, and the gain reflected a 420-basis-point improvement. The company attributed the rise to a stronger mix and higher volume. It also benefited from solid demand across commercial and defense programs.
The company continued expanding manufacturing capability to support rising output. It also managed inflation pressures while still achieving higher profitability. Overall, the segment delivered one of its strongest quarterly improvements in recent years.
Industrial Segment Posts 30% Growth and Sharper Margin Expansion
The Industrial segment reported $362 million in sales, and the result represented a 30% increase. Transportation revenue surged 55%, and power generation posted a steady 7% rise. Oil and gas also contributed with a 28% gain.
Segment earnings rose to $67 million, and margin reached 18.5%. The gain marked a 410-basis-point expansion driven by volume and mix strength. The company also improved pricing and maintained tight operational control.
The stronger Industrial performance supported the company’s raised guidance. Woodward now expects industrial sales growth between 11% and 14% for 2026. It also forecasts segment margins between 16% and 17%, signaling continued improvement.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
