Woodward Q3 adjusted EPS beats estimates, raises FY profit view

Overview

• US energy control systems maker's fiscal Q3 revenue grew 21%, meeting analyst expectations

• Adjusted EPS for fiscal Q3 rose 43%, beating analyst expectations

• Company raised full-year adjusted EPS guidance on strong aerospace and industrial demand

Outlook

• Woodward raises FY26 adjusted EPS guidance to $9.30-$9.50 from $9.15-$9.45

• Company maintains FY26 sales growth outlook at up 20%-23%

• Woodward expects FY26 free cash flow of $300-$350 mln

Result Drivers

• AEROSPACE DEMAND - Co said commercial services demand was resilient and commercial OEM benefited from increasing aircraft production rates

• INDUSTRIAL SALES GROWTH - Co said industrial segment earnings rose due to substantial sales growth across transportation, power generation, and oil and gas markets

• PRICE REALIZATION AND VOLUME LEVERAGE - Co attributed segment earnings growth to price realization and increased leverage on higher sales volumes, partially offset by inflation and unfavorable mix

Company press release: ID:nGNX1BQjR2

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "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 $450.00, about 9.6% above its July 28 closing price of $410.55

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 37 three months ago

Reuters Recommended Reads

• July 28 - Jet engine maker Safran raises targets after record first-half margin

• July 28 - Illinois Tool Works raises annual profit forecast on strong industrial demand

• July 29 - Jet deliveries and defence demand lift Airbus Q2 profit

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)