Aerospace controls maker Woodward's Q1 net sales rise

Overview

• Energy solutions provider's fiscal Q1 net sales rose 29%, beating analyst expectations

• EPS for fiscal Q1 increased by 53% yr/yr

Outlook

• Woodward raises FY26 sales growth guidance to 14%-18%

• Woodward increases FY26 EPS guidance to $8.20-$8.60

• Company maintains FY26 free cash flow guidance at $300-$350 mln

Result Drivers

• AEROSPACE PERFORMANCE - Margin expansion in Aerospace driven by higher commercial services activity and strong defense OEM demand

• INDUSTRIAL STRENGTH - Industrial segment performance boosted by power generation, transportation, and oil and gas sectors

• OPERATIONAL EXCELLENCE - Focus on operational excellence improved output and execution consistency

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Woodward Inc is $364.39, about 14.6% above its January 30 closing price of $317.84

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nGNX38Z8Nz

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