Woodward (WWD) AI Stock Analysis

• Market Cap: $19.59B
• Dividend Yield: 0.35%
• Average Volume (3M): 455.70K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 1.19
• Revenue Growth: 7.30%
• EPS Growth: 19.54%
• Country: US
• Employees: 9,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.17
• Shares Outstanding: 59,868,977
• 10 Day Avg. Volume: 602,021
• 30 Day Avg. Volume: 455,705
• PEG Ratio: 1.75
• Price to Book (P/B): 5.87
• Price to Sales (P/S): 4.22
• P/FCF Ratio: 44.22
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 5.85
• Enterprise Value/Gross Profit: 20.95
• Enterprise Value/Ebitda: 33.70
• 1Y Price Target: $399.00
• Price Target Upside: 7.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 8.04
• Revenue Forecast (FY): $3.97B

• Rating: 77 Outperform
• Price Target: $421.00 ▲(13.43% Upside)

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.

Conservative balance sheet and strong cash flow

Low net leverage and multi-hundred-million dollar free cash flow provide financial flexibility for capex, M&A, and shareholder returns. A conservatively positioned balance sheet reduces refinancing risk and supports sustained capital allocation through industry cycles.

Raised guidance and pricing power

Higher guidance and materially improved price realization signal durable demand and the ability to pass cost inflation to customers. This mix of volume and pricing underpins multi-quarter earnings visibility and supports planned investments in capacity and automation.

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.

Supply-chain and capacity constraints

Persistent supplier and test-stand bottlenecks restrict throughput and elongate turn times, capping near-term revenue capture despite strong order demand. These operational constraints can delay margin recovery and defer returns on capacity investments for many quarters.

China on-highway wind-down and restructuring costs

Exiting the China on-highway business sharpens strategic focus but triggers cash restructuring outflows and near-term earnings volatility. The charge and operational transition will reduce available cash for core investments during the wind-down period and may temporarily depress segment metrics.

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, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and various contractors, as well as through aftermarket sales of components, such as provisioning spares or replacements, and spare parts. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.

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 maintenance and repairs. The company benefits from long-term contracts with major aerospace manufacturers and operators, providing a stable income source. Additionally, Woodward's focus on innovation and development of advanced technologies, including digital solutions for energy management, positions it well in growing markets. Strategic partnerships with major players in the aerospace and energy sectors also contribute significantly to its earnings, enabling Woodward to leverage shared resources and access new customer bases.

Woodward Financial Statement Overview

Summary

Strong profitability and scale-up (TTM revenue ~$3.79B with ~26.8% gross margin and ~12.4% net margin) and a conservatively positioned balance sheet (low TTM debt-to-equity ~0.10, ROE ~18%). Cash generation is solid (TTM FCF ~$410M) but cash conversion is weaker than ideal (OCF to net income ~0.52) and results have shown some cyclicality/volatility.

Income Statement

Woodward shows a strong profitability profile and improving trajectory. Revenue has expanded meaningfully over the last several years (rising from ~$2.25B in 2021 to $3.79B in TTM (Trailing-Twelve-Months)), with the latest period still posting solid growth. Margins have also improved versus earlier years, with TTM (Trailing-Twelve-Months) gross margin ~26.8% and net margin ~12.4%, supporting robust earnings power. The main watchout is that growth rates have been uneven year-to-year (including a revenue decline in 2021), suggesting some cyclicality/sensitivity in demand.

Balance Sheet

The balance sheet looks conservatively positioned. Leverage is low in the latest period, with debt-to-equity around 0.10 in TTM (Trailing-Twelve-Months), and equity has grown versus prior years, supporting financial flexibility. Returns to shareholders are strong, with return on equity ~18% in TTM (Trailing-Twelve-Months). A key risk to note is that leverage has moved around historically (debt-to-equity was ~0.36–0.41 in 2022–2024), so the sustainability of today’s lighter debt load should be monitored.

Cash Flow

Cash generation is solid and improving, with TTM (Trailing-Twelve-Months) free cash flow of ~$410M and strong free cash flow growth (~20%). Cash conversion is decent but not best-in-class: free cash flow is about 72% of net income in TTM (Trailing-Twelve-Months), indicating earnings are generally supported by cash. The main weakness is that operating cash flow has been relatively low versus reported earnings (operating cash flow to net income ~0.52 in TTM (Trailing-Twelve-Months)), implying working-capital swings or timing effects; additionally, free cash flow growth has been volatile year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.57B	3.32B	2.91B	2.38B	2.25B
Gross Profit	956.29M	876.48M	677.58M	525.30M	551.06M
EBITDA	680.38M	556.24M	406.09M	334.72M	383.83M
Net Income	442.11M	372.97M	232.37M	171.70M	208.65M
Balance Sheet
Total Assets	4.63B	4.37B	4.01B	3.81B	4.09B
Cash, Cash Equivalents and Short-Term Investments	327.43M	282.27M	137.45M	107.84M	448.46M
Total Debt	722.40M	895.14M	748.67M	798.86M	749.62M
Total Liabilities	2.06B	2.19B	1.94B	1.91B	1.88B
Stockholders Equity	2.57B	2.18B	2.07B	1.90B	2.21B
Cash Flow
Free Cash Flow	340.37M	342.81M	229.81M	140.77M	426.98M
Operating Cash Flow	471.29M	439.09M	306.31M	193.64M	464.67M
Investing Cash Flow	-119.55M	-89.22M	-73.55M	-65.45M	-35.30M
Financing Cash Flow	-313.93M	-218.05M	-194.24M	-442.38M	-136.32M

Woodward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 371.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 371.17 is above the 20-day moving average (MA) of 329.60, above the 50-day MA of 310.33, and above the 200-day MA of 256.53, indicating a bullish trend. The MACD of 8.14 indicates Negative momentum. The RSI at 74.65 is Negative, neither overbought nor oversold. The STOCH value of 47.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWD.

Woodward Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	77 Outperform	$19.59B	41.22	20.38%	0.35%	7.30%	19.54%
DRS	76 Outperform	$10.76B	41.03	10.35%	1.04%	12.27%	33.16%
BWXT	75 Outperform	$18.84B	61.62	26.69%	0.56%	14.01%	10.92%
CW	74 Outperform	$24.48B	54.09	18.53%	0.16%	9.51%	16.03%
TXT	68 Neutral	$15.43B	17.14	12.24%	0.09%	1.83%	-0.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KTOS	63 Neutral	$16.24B	841.78	1.20%	―	14.00%	23.78%

Woodward Corporate Events

Woodward shareholders approve directors, compensation and governance changes

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 approved, on an advisory basis, the compensation of the company’s named executive officers, ratified the appointment of Deloitte & Touche LLP as independent auditor for the fiscal year ending September 30, 2026, and backed amendments to the company’s Certificate of Incorporation to remove certain supermajority voting requirements and eliminate cumulative voting rights in director elections, signaling broad investor support for the board’s slate, executive pay structure, governance changes, and audit oversight.

The most recent analyst rating on (WWD) stock is a Buy with a $373.00 price target. To see the full list of analyst forecasts on Woodward stock, see the WWD Stock Forecast page.

Woodward Board Approves 14% Increase in Quarterly Dividend

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 as of February 19, 2026. The higher dividend underscores Woodward’s ongoing commitment to returning capital to shareholders and reflects confidence in its financial position and cash generation, which may strengthen its appeal to income-focused investors within the aerospace and industrial equipment sectors.

The most recent analyst rating on (WWD) stock is a Buy with a $362.00 price target. To see the full list of analyst forecasts on Woodward stock, see the WWD Stock Forecast page.

Woodward to Exit China Natural Gas Truck Operations

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, announced publicly on January 15, 2026, will involve closing a small manufacturing facility and eliminating a limited number of sales, engineering, and product support roles, and is intended to sharpen the strategic focus of the Industrial segment on core transportation, power generation, and oil and gas markets. The wind-down is expected to be substantially completed by the end of fiscal 2026 and will result in estimated cumulative pre-tax charges of $20 million to $25 million, of which $15 million to $20 million will be cash expenditures, primarily recognized and paid in the second and third quarters of fiscal 2026, reflecting a portfolio realignment rather than a retrenchment from Woodward’s broader growth trajectory.

The most recent analyst rating on (WWD) stock is a Buy with a $378.00 price target. To see the full list of analyst forecasts on Woodward stock, see the WWD Stock Forecast page.

Woodward Announces $1.8 Billion Share Repurchase Plan

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 shareholder value, reflecting confidence in its long-term growth and robust cash generation. Over the past decade, Woodward has returned approximately $2.0 billion to shareholders, emphasizing its strong balance sheet and capital allocation priorities, which include reinvesting in the business, pursuing strategic mergers and acquisitions, and returning cash to shareholders.

The most recent analyst rating on (WWD) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Woodward stock, see the WWD Stock Forecast page.