Woodward, Inc. Reports 8% Revenue Growth and Strategic Acquisition in Q3 2025

Woodward, Inc. reported a notable increase in financial performance for the third quarter and nine months ended June 30, 2025, as detailed in its latest 10-Q filing. The company achieved net sales of $915.4 million for the third quarter, reflecting an 8.0% increase from $847.7 million in the same period last year. For the nine-month period, net sales rose to $2.57 billion, up 4.1% from $2.47 billion in the prior year. The increase in revenue was primarily driven by the Aerospace segment, which saw sales grow by 15.2% to $596.0 million, while the Industrial segment experienced a slight decline of 3.2% to $319.5 million.

In terms of profitability, Woodward reported net earnings of $108.4 million for the third quarter, a 6.4% increase from $102.1 million in the previous year. For the nine months, net earnings reached $304.5 million, compared to $289.7 million in the same period last year. The diluted earnings per share for the third quarter increased to $1.76, up from $1.63, while for the nine months, it rose to $4.96 from $4.65. The effective tax rate for the third quarter was 14.5%, down from 16.4% in the prior year, attributed to various tax credits and adjustments.

Operationally, Woodward's total assets increased to $4.71 billion as of June 30, 2025, compared to $4.37 billion at the end of the previous fiscal year. The company reported a significant rise in cash and cash equivalents, which stood at $473.2 million, up from $282.3 million. The increase in cash was partly due to improved cash flows from operations, which totaled $238.0 million for the first nine months, although this was a decrease from $297.3 million in the same period last year. The decline was primarily due to increased working capital requirements.

Strategically, Woodward announced the acquisition of Safran Electronics & Defense's electromechanical actuation business, which closed on July 21, 2025, for a cash consideration of $45.8 million. This acquisition is expected to enhance Woodward's capabilities in aerospace systems. Additionally, the company divested certain product lines, generating cash proceeds of $48.0 million and recognizing a pretax gain of $20.5 million. These strategic moves are part of Woodward's ongoing efforts to optimize its product portfolio and enhance operational efficiency.

Looking ahead, Woodward anticipates continued growth in its Aerospace segment, supported by operational improvements and increased demand. However, the Industrial segment faces challenges, particularly in the on-highway natural gas truck business in China, where demand remains uncertain. The company is closely monitoring market conditions and trade policies that may impact its operations. Overall, Woodward's management remains optimistic about the company's ability to navigate these challenges and capitalize on growth opportunities in the aerospace and industrial markets.