Woodward, Inc. Reports 21.2% Revenue Growth to $1.1 Billion in Latest Quarter

Woodward, Inc. reported significant financial growth in its latest quarterly filing, with net sales reaching $1,109.7 million for the three months ended June 30, 2026, a 21.2% increase from $915.4 million in the same period last year. For the nine months ending June 30, 2026, the company achieved net sales of $3,196.7 million, up 24.3% from $2,571.8 million in the prior year. The increase in revenue was driven by higher sales volumes and price realization across both the Aerospace and Industrial segments, which saw respective sales of $708.7 million and $401.0 million in the latest quarter.

The company's profitability also improved, with net earnings for the quarter rising to $146.7 million, compared to $108.4 million in the previous year, marking a 35.3% increase. This translated to diluted earnings per share of $2.40, up from $1.76 a year earlier. For the nine-month period, net earnings reached $414.4 million, a 36.1% increase from $304.5 million in the same period of 2025. The effective tax rate for the quarter was 24.2%, significantly higher than the 14.5% reported in the same quarter last year, primarily due to the elimination of certain tax benefits.

Operationally, Woodward has made strategic moves, including the acquisition of Jet Research Development, Inc. for $120.7 million, which is expected to enhance its aerospace capabilities. The company also announced plans to wind down its on-highway natural gas truck manufacturing operations in China, incurring restructuring charges of $14.2 million in the process. These strategic decisions are aimed at aligning the company's portfolio with long-term growth opportunities.

In terms of operational metrics, Woodward's cash and cash equivalents increased to $474.9 million as of June 30, 2026, up from $327.4 million at the end of the previous fiscal year. The company reported net cash provided by operating activities of $351.9 million for the first nine months of fiscal year 2026, compared to $238.0 million in the same period last year. However, net cash used in investing activities rose significantly to $286.8 million, primarily due to higher capital expenditures and acquisition payments.

Looking ahead, Woodward anticipates continued demand growth in both its Aerospace and Industrial segments, supported by investments in capacity and automation. The company expects to recognize almost all remaining performance obligations within two years, indicating a strong backlog of orders. Despite facing challenges such as inflation and geopolitical tensions, Woodward remains optimistic about its operational and financial outlook, bolstered by its strategic initiatives and market positioning.