Woodward, Inc. Reports 23.4% Revenue Growth to $1,090.6 Million in Latest Quarter

Woodward, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $1,090.6 million for the three months ended March 31, 2026, a 23.4% increase from $883.6 million in the same period last year. For the first half of fiscal year 2026, the company achieved net sales of $2,087.0 million, up 26.0% from $1,656.4 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 $703.3 million and $387.2 million in the latest quarter.

The company's profitability also improved, with net earnings for the second quarter rising to $134.0 million, compared to $108.9 million in the same quarter of 2025. This translated to diluted earnings per share of $2.19, up from $1.78 a year earlier. For the first half of fiscal year 2026, net earnings totaled $267.7 million, compared to $196.0 million in the prior year, reflecting a strong performance across its business segments. The effective tax rate for the quarter was 20.0%, an increase from 18.1% in the previous year, primarily due to changes in tax reserves and the elimination of certain tax benefits.

Operationally, Woodward has made strategic moves, including the acquisition of Jet Research Development, Inc., which closed on April 1, 2026. This acquisition is expected to enhance Woodward's capabilities in precision flow control valves for aerospace applications. Additionally, the company announced a restructuring plan to wind down its on-highway natural gas truck manufacturing operations in China, incurring $6.8 million in restructuring charges during the quarter. This decision aligns with Woodward's strategy to focus on priority end-markets and long-term growth opportunities.

In terms of operational metrics, Woodward's cash and cash equivalents increased to $501.2 million as of March 31, 2026, up from $364.1 million a year earlier. The company reported net cash provided by operating activities of $205.3 million for the first half of fiscal year 2026, significantly higher than $112.3 million in the same period last year. However, net cash used in investing activities rose to $99.5 million, primarily due to increased capital expenditures. Looking ahead, Woodward anticipates continued growth driven by strong demand in its Aerospace and Industrial segments, while also managing the impacts of inflation and global supply chain dynamics.