Woodward (WWD)
NASDAQ:WWD
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Woodward
(NASDAQ:WWD)
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Rating:77Outperform
Price Target:
$421.00
▲(8.37% Upside)
Action:ReiteratedDate:02/04/26
The score is driven primarily by strong financial performance (profitability, improving scale, and currently low leverage) and a constructive earnings outlook after raised guidance and solid Q1 execution. Offsetting factors are a stretched valuation (high P/E, low yield) and technical overbought signals that increase near-term downside risk despite the broader uptrend.
Positive Factors
Improving profitability and margins
Woodward's sustained margin expansion and multi-year revenue growth reflect durable operating leverage across Aerospace and Industrial segments. Higher gross and net margins support enduring earnings power and reinvestment capacity, making profits less reliant on cyclical top-line swings.
Negative Factors
Elevated inventories and weak cash conversion
Management's deliberate inventory build to meet demand depresses near-term free cash flow and exposes cash generation to working-capital swings. A sustained OCF/net-income ratio ~0.5 implies earnings are not fully matched by operating cash, increasing liquidity and FCF risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Woodward's sustained margin expansion and multi-year revenue growth reflect durable operating leverage across Aerospace and Industrial segments. Higher gross and net margins support enduring earnings power and reinvestment capacity, making profits less reliant on cyclical top-line swings.
Read all positive factors
Woodward (WWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.16B
Dividend Yield0.35%
Average Volume (3M)608.09K
Price to Earnings (P/E)33.8
Beta (1Y)1.24
Revenue Growth7.30%
EPS Growth19.54%
CountryUS
Employees9,300
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.17
Shares Outstanding59,615,868
10 Day Avg. Volume547,290
30 Day Avg. Volume608,088
Financial Highlights & Ratios
PEG Ratio1.75
Price to Book (P/B)5.87
Price to Sales (P/S)4.22
P/FCF Ratio44.22
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue6.27
Enterprise Value/Gross Profit22.44
Enterprise Value/Ebitda33.58
Forecast
1Y Price Target
$419.83Price Target Upside8.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)8.76
Revenue Forecast (FY)$4.14B
Woodward Business Overview & Revenue Model
Company Description
Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates through two segments: Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units...
How the Company Makes Money
Woodward generates revenue through the sale of its diverse range of products and services within the aerospace and industrial sectors. Key revenue streams include the sale of control systems, components, and aftermarket services such as maintenanc...
Woodward Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strong quarter with robust revenue, margin expansion, improved price realization, and meaningful free cash generation. Management raised full-year sales and EPS guidance and outlined targeted operational and capacity investments. Notable challenges include persistent supply-chain constraints, elevated inventories (which temper free cash flow), and the planned wind-down of the volatile China on-highway business with associated restructuring costs. Overall, the positives (material growth, margin expansion, guidance raise, and balance-sheet strength) outweigh the negatives, which are largely operational and being actively managed.Positive Updates
Strong Revenue and EPS Growth
Net sales of $996 million, up 29% year over year. GAAP earnings per share of $2.17 (up ~54% YoY as noted on the call). Consolidated sales growth accelerated substantially versus prior year.
Negative Updates
Supply Chain Constraints and Inventory Strategy
Management expects inventory turns will not improve materially in 2026 and will likely remain elevated into late 2026/early 2027. Company intentionally maintained higher inventory to support demand, which constrained free cash flow upside for the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and EPS Growth
Net sales of $996 million, up 29% year over year. GAAP earnings per share of $2.17 (up ~54% YoY as noted on the call). Consolidated sales growth accelerated substantially versus prior year.
Read all positive updates
Company Guidance
Management raised full-year sales and EPS guidance, now targeting consolidated sales growth of 14–18% and EPS of $8.20–$8.60. Segment guidance calls for aerospace sales growth of 15–20% with aerospace margins of 22–23%, and industrial sales growth of 11–14% with industrial margins of 16–17%; pricing was stronger in Q1 (~8%) and full‑year price realization was revised toward ~7% (vs. prior 5%). They reiterated capital priorities (returning $650–700 million to shareholders), said capital spending will meaningfully rise for the Spartanburg build and automation after Q1 capex of $44 million, expect inventory turns to lag improvements into late‑2026/early‑2027, and maintained free cash flow guidance (transcript cites “between $303 million and $150 billion,” an apparent typo). Supporting the raise, Q1 results were strong: net sales $996 million (+29% YoY), Q1 EPS $2.17, Q1 free cash flow $70 million and net debt leverage ~1.2x EBITDA.Woodward Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.79B | 3.57B | 3.32B | 2.91B | 2.38B | 2.25B |
| Gross Profit | 1.06B | 956.29M | 876.48M | 677.58M | 525.30M | 551.06M |
| EBITDA | 707.52M | 680.38M | 556.24M | 406.09M | 334.72M | 383.83M |
| Net Income | 488.74M | 442.11M | 372.97M | 232.37M | 171.70M | 208.65M |
Balance Sheet | ||||||
| Total Assets | 4.73B | 4.63B | 4.37B | 4.01B | 3.81B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 454.25M | 327.43M | 282.27M | 137.45M | 107.84M | 448.46M |
| Total Debt | 907.12M | 722.40M | 895.14M | 748.67M | 798.86M | 749.62M |
| Total Liabilities | 2.15B | 2.06B | 2.19B | 1.94B | 1.91B | 1.88B |
| Stockholders Equity | 2.59B | 2.57B | 2.18B | 2.07B | 1.90B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 409.73M | 340.37M | 342.81M | 229.81M | 140.77M | 426.98M |
| Operating Cash Flow | 551.22M | 471.29M | 439.09M | 306.31M | 193.64M | 464.67M |
| Investing Cash Flow | -135.78M | -119.55M | -89.22M | -73.55M | -65.45M | -35.30M |
| Financing Cash Flow | -273.16M | -313.93M | -218.05M | -194.24M | -442.38M | -136.32M |
Woodward Technical Analysis
Positive
388.48
Price Trends
375.04
Positive
339.69
Positive
295.49
Positive
Market Momentum
3.97
Negative
57.31
Neutral
86.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWD, the sentiment is Positive. The current price of 388.48 is above the 20-day moving average (MA) of 368.61, above the 50-day MA of 375.04, and above the 200-day MA of 295.49, indicating a bullish trend. The MACD of 3.97 indicates Negative momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWD.
Woodward Risk Analysis
Woodward disclosed 29 risk factors in its most recent earnings report. Woodward reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Woodward Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.16B | 33.82 | 19.63% | 0.35% | 7.30% | 19.54% | |
76 Outperform | $12.24B | 32.53 | 10.54% | 1.04% | 12.27% | 33.16% | |
72 Outperform | $26.76B | 42.60 | 18.74% | 0.16% | 9.51% | 16.03% | |
68 Neutral | $15.91B | 17.04 | 12.25% | 0.09% | 1.83% | -0.73% | |
64 Neutral | $20.99B | 47.98 | 27.65% | 0.56% | 14.01% | 10.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $13.18B | 606.55 | 1.20% | ― | 14.00% | 23.78% |
* Industrials Sector Average
WWD
Woodward
388.48
219.07
129.31%
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725.71
408.51
128.79%
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Woodward Corporate Events
Executive/Board ChangesShareholder Meetings
Woodward shareholders approve directors, compensation and governance changes
Positive
Feb 3, 2026
On January 28, 2026, Woodward, Inc. held its Annual Meeting of Stockholders, at which shareholders elected three directors—David Hess, Mary Petryszyn, and Tana Utley—to three-year terms on the company’s board. Shareholders also a...
Dividends
Woodward Board Approves 14% Increase in Quarterly Dividend
Positive
Feb 2, 2026
On January 28, 2026, Woodward’s Board of Directors approved a 14 percent increase in the company’s quarterly cash dividend, raising it from $0.28 to $0.32 per share, with the dividend payable on March 5, 2026, to stockholders of record...
Business Operations and Strategy
Woodward to Exit China Natural Gas Truck Operations
Negative
Jan 15, 2026
On January 12, 2026, Woodward approved a plan to wind down its on-highway natural gas truck manufacturing operations in China, following unsuccessful divestiture efforts and limited, inconsistent financial contribution from the business. The move,...
Business Operations and StrategyStock Buyback
Woodward Announces $1.8 Billion Share Repurchase Plan
Positive
Nov 20, 2025
On November 20, 2025, Woodward, Inc. announced a new $1.8 billion, three-year share repurchase authorization, following the completion of its previous $600 million authorization. This strategic move underscores the company’s commitment to sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.