Woodward (WWD) investor relations material

Executive summary

• First quarter fiscal 2026 delivered net sales of $996 million, up 29% year-over-year, and EPS of $2.17, up 54%, with strong cash generation and robust demand across both Aerospace and Industrial segments.

• Growth was driven by disciplined execution, operational excellence, and supply chain improvements, with a focus on innovation and capital allocation for long-term shareholder value.

• Margin expansion in Aerospace was supported by higher commercial services and defense OEM demand; Industrial benefited from power generation, transportation, and oil & gas strength.

• Strategic decision made to wind down the China On-Highway product lines by year-end, aligning with long-term industrial growth strategy.

Financial highlights

• Net sales reached $996 million, up 29% year-over-year; EPS was $2.17 versus $1.42 in the prior year; net earnings rose 54% to $134 million.

• Adjusted net earnings were $134 million, up 62%; adjusted EPS was $2.17, up 61%.

• Free cash flow for the quarter was $70 million, compared to $1 million a year ago.

• Aerospace segment sales were $635 million, up 29%, with commercial services sales up 50%.

• Industrial segment sales were $362 million, up 30%; core industrial sales (excluding China On-Highway) rose 22%.

Outlook and guidance

• Full-year consolidated sales growth guidance raised to 14%-18%; EPS guidance increased to $8.20-$8.60.

• Aerospace sales growth expected at 15%-20% with margins of 22%-23%; industrial sales growth at 11%-14% with margins of 16%-17%.

• Free cash flow guidance maintained at $300 million-$350 million, with higher inventory levels expected to persist.

• Capital returns through dividends and share repurchases expected between $650 million and $700 million for the year.

• Capital expenditures expected at approximately $290 million for the year.