Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. It operates through two segments: Aerospace and Industrial. The Aerospace segment supplies fuel pumps, metering units, actuators, valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, along with flight deck controls, servocontrols, motors, and sensors for aircraft, and provides aftermarket maintenance, repair and overhaul services. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors for industrial gas turbines, steam turbines, compressors, and reciprocating engines, plus aftermarket products and related services. The company primarily serves OEMs and equipment packagers, and was founded in 1870 with headquarters in Fort Collins, Colorado.
Woodward's strong demand and raised guidance offset by cash flow and geopolitical worries
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Raised guidance on strong demand Woodward raised its fiscal 2026 guidance, driven by strong demand in Aerospace and Industrial segments. This positive news pushed shares up 4.7% as investors grew more confident in the company's growth prospects.
This is a key positive driver that directly boosted the stock price.
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Geopolitical tensions hit industrials Iran's attack near the Strait of Hormuz raised oil prices and inflation fears, causing Woodward shares to fall 4.8%. Higher oil prices can squeeze margins for fuel-heavy industries, and broader market uncertainty weighed on the stock.
This geopolitical event had a clear negative impact on the stock price.
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Q3 earnings beat and raised EPS guidance Woodward beat Q3 estimates and raised its fiscal 2026 adjusted EPS guidance to $9.30–$9.50. Sales grew 21% year-over-year, with adjusted EPS up 43%. The strong results and increased shareholder returns signal robust business momentum.
This is a major positive event that reinforces the company's financial health.
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Cash flow and valuation concerns Despite an earnings beat, the stock dropped as investors focused on a lower free cash flow margin and valuation concerns. Woodward trades at 38.6 times earnings, above its estimated fair ratio, suggesting the stock may be priced for perfection.
This explains why the stock fell despite good news, highlighting a key counterweight.
Q3 2026
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Woodward's strong demand and raised guidance offset by cash flow and geopolitical worries
▲
Raised guidance on strong demand Woodward raised its fiscal 2026 guidance, driven by strong demand in Aerospace and Industrial segments. This positive news pushed shares up 4.7% as investors grew more confident in the company's growth prospects.
This is a key positive driver that directly boosted the stock price.
▼
Geopolitical tensions hit industrials Iran's attack near the Strait of Hormuz raised oil prices and inflation fears, causing Woodward shares to fall 4.8%. Higher oil prices can squeeze margins for fuel-heavy industries, and broader market uncertainty weighed on the stock.
This geopolitical event had a clear negative impact on the stock price.
▲
Q3 earnings beat and raised EPS guidance Woodward beat Q3 estimates and raised its fiscal 2026 adjusted EPS guidance to $9.30–$9.50. Sales grew 21% year-over-year, with adjusted EPS up 43%. The strong results and increased shareholder returns signal robust business momentum.
This is a major positive event that reinforces the company's financial health.
▼
Cash flow and valuation concerns Despite an earnings beat, the stock dropped as investors focused on a lower free cash flow margin and valuation concerns. Woodward trades at 38.6 times earnings, above its estimated fair ratio, suggesting the stock may be priced for perfection.
This explains why the stock fell despite good news, highlighting a key counterweight.
News & notes movingWWD
United States
Aerospace & Aviation2
Woodward to Move Military Actuation Work to Spartanburg and Sell Santa Clarita Campus
Woodward, Inc. announced on September 21 that it will move military flight-control actuation production from Santa Clarita, California, to a new aerospace manufacturing campus in Spartanburg, South Carolina, and separately sell the Santa Clarita campus along with selected legacy commercial rotorcraft, land-systems, and business-jet product lines. The Spartanburg facility is expected to begin operating in summer 2027, with Santa Clarita operations ceasing no later than December 2027, affecting approximately 400 roles through phased transitions. The divestiture is expected to close in fiscal 2027, and the announcement disclosed neither sale proceeds nor projected net savings. Spartanburg, already in advanced construction, is also expected to manufacture A350 spoiler actuation systems, and management says the move will refine its manufacturing footprint and improve its supply chain as demand for aircraft controls increases. Woodward must transfer processes and production knowledge, staff the new site, and obtain customer or regulatory approvals while maintaining deliveries, with qualification delays, quality problems, and lower productivity cited as risks. Insider Monkey's database showed 74 hedge funds holding Woodward at the end of 2Q2026, down from 76 funds three months earlier.
WWD · Supply · Neutral Woodward is moving military actuation production to Spartanburg and selling Santa Clarita lines, a footprint/supply-chain shift with cited qualification and productivity risks
Gas Turbine Prices Set to Nearly Triple, Boosting GE Vernova and Siemens Energy
Natural gas power turbine prices are on track to nearly triple by the end of next year, driven by surging demand from AI data centers. Wood Mackenzie projects the per-kilowatt cost of gas turbines could be 195% higher than in 2019. GE Vernova's power division saw orders jump 134% year over year in Q2, lifting its backlog by $13 billion to $176 billion. Siemens Energy reported 18.5% revenue growth and received 15 gigawatts of new gas turbine orders in the latest quarter, expanding its backlog to 69 gigawatts. Mitsubishi Heavy Industries posted 13.3% revenue growth, while Caterpillar and Woodward are also benefiting from the trend.
Woodward has agreed to a private placement of senior unsecured notes totaling $450 million, a financing move that gives investors new information to assess the company's capital structure and funding costs. The company's latest share price of $343.26 comes after a 1-day return of 0.31%, while the 30-day return is down 18.08% and the 1-year total shareholder return is 38.90%. Analysts have a consensus price target of $444.55, with the most bullish at $511.0 and the most bearish at $390.0, implying the stock is undervalued relative to that narrative fair value.
WWD · Capital · Neutral Private placement of $450M senior notes is a financing event; impact on stock unclear without details on use of proceeds or terms.
Woodward beats Q3 estimates and raises fiscal 2026 earnings guidance
Woodward beat third-quarter earnings estimates and raised its fiscal 2026 adjusted earnings guidance to $9.30 to $9.50 per share from the prior $9.15 to $9.45. Adjusted earnings rose 43.2% year over year to $2.52 per share, beating the Zacks Consensus Estimate by 5.4%, while sales increased 21.2% to $1.11 billion. The company maintained its 20% to 23% sales growth outlook and $300 million to $350 million free cash flow forecast. Aerospace sales are expected to grow 21% to 23% with a margin of about 23.5%, and Industrial sales growth guidance moved to 19% to 21% with a margin outlook of about 19%. The results were supported by pricing and China on-highway operations, though capital spending and working-capital needs remain elevated as the company invests in capacity expansions to sustain demand into fiscal 2027.
Woodward shares drop despite earnings beat and raised guidance
Woodward reported quarterly results that topped expectations and raised its full-year guidance, yet the stock fell as investors focused on a lower free cash flow margin and valuation concerns. The most-followed analyst narrative points to a fair value of $444.55, implying the stock is 18.8% undervalued from its last close of $360.75, though the consensus price target ranges from $390.00 to $511.00. A separate price-to-earnings check shows Woodward trading at 38.6 times earnings, above its estimated fair ratio of 32 times and slightly higher than the US Aerospace & Defense industry average of 37.9 times, but below a peer average of 51.5 times. The stock’s one-year total shareholder return stands at 39.68% and its five-year return at 227.38%, reflecting strong longer-term momentum despite recent weakness.
Woodward raises 2026 adjusted EPS guidance to $9.30–$9.50 and targets 1,000 fewer hires by 2029
Woodward raised its full-year 2026 adjusted earnings per share guidance to a range of $9.30 to $9.50, up from the prior $9.15 to $9.45, while also announcing a target to reduce incremental hiring by approximately 1,000 positions by 2029 through automation. CEO Charles Blankenship reported third-quarter sales growth of 21% year-over-year and a 43% increase in adjusted EPS, with Industrial sales up 26% and Aerospace sales up 19%. CFO William Lacey detailed net sales of $1.1 billion, adjusted EPS of $2.52, and free cash flow of $87 million, and updated segment expectations to Aerospace sales growth of 21% to 23% with margins around 23.5%, and Industrial sales growth of 19% to 21% with margins around 19%. The company also expects to return approximately $700 million to shareholders through dividends and share repurchases in the fiscal year, up from a prior range of $650 million to $700 million.
Woodward beats third-quarter earnings estimates with $2.52 per share
Woodward reported quarterly earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.39 per share and marking a 5.44% earnings surprise. Revenue came in at $1.11 billion, slightly below the consensus estimate by 0.42% but up from $915.45 million a year ago. The company has now beaten consensus EPS estimates in all of the last four quarters. Woodward shares have gained about 35.8% year-to-date, outperforming the S&P 500's 8.5% advance.
StockStory Highlights Three Profitable Stocks on Its Watchlist
StockStory has identified three profitable companies with strong operating margins that balance profitability with reinvestment for long-term growth. Woodward, with a trailing 12-month GAAP operating margin of 14.8%, has achieved 13% annual revenue growth over five years and 19.9% annual EPS growth over two years, trading at 39.7x forward P/E. Kratos, at a 1.7% margin, posted 14.6% organic revenue growth over two years and 15.8% annual EPS growth, with a 29.9% sales growth outlook, trading at 58.2x forward P/E. Gulfport Energy, boasting a 49.1% margin and 69.6% gross margin, saw 9.2% annual revenue growth over ten years and trades at 6.2x forward P/E.
Valmont, Woodward, and ATI Stocks Fall as Hormuz Attack Hits Industrials
Valmont, Woodward, and ATI stocks fell sharply in afternoon trading after Iran's missile attack on commercial tankers near the Strait of Hormuz pushed oil prices higher and revived inflation fears, dealing a double blow to the industrial sector. The Industrial Select Sector SPDR fell about 2%, with airlines, machinery, and transports leading the losses, while Brent crude rose toward $75 and WTI to around $71. Building materials company Valmont fell 4.6%, aerospace company Woodward fell 4.8%, and aerospace company ATI fell 4.7%. The attack ended a brief truce and reasserted the fragility of the U.S.–Iran interim peace, injecting a geopolitical risk premium into energy prices that compresses operating margins for fuel-heavy sub-sectors. The oil-driven inflation impulse also came as new Fed Chair Kevin Warsh turned hawkish, with the June FOMC stripping the easing bias and nine of eighteen officials penciling in a 2026 hike, pushing the 10-year Treasury yield to roughly 4.47% and raising capital costs for rate-sensitive industrials.
Energy Transition & Power Demand › Natural Gas Value Chain ▲Geopolitics
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▼Pricing
BRENT · Geopolitics · Positive Iran's attack on tankers near Hormuz injects geopolitical risk premium, pushing Brent toward $75.
WTI · Geopolitics · Positive Iran's attack on tankers near Hormuz injects geopolitical risk premium, pushing WTI toward $71.
ATI · Geopolitics · Negative Iran's attack on tankers near Hormuz raises oil prices and inflation fears, compressing margins for aerospace company ATI.
VMI · Geopolitics · Negative Iran's attack on tankers near Hormuz raises oil prices and inflation fears, compressing margins for building materials company Valmont.
WWD · Geopolitics · Negative Iran's attack on tankers near Hormuz raises oil prices and inflation fears, compressing margins for aerospace company Woodward.
Woodward Joins Russell Growth Indices and Affirms $0.32 Dividend
Woodward has been reclassified into multiple Russell growth indices and its board affirmed a quarterly cash dividend of $0.32 per share payable on September 3, 2026. The move shifts the company out of several value benchmarks and into growth-focused ones, coinciding with a recent upgrade to a Zacks Rank #1 (Strong Buy). The dividend affirmation signals management's intent to balance reinvestment in higher-tech programs with ongoing cash returns, even as the company faces capital-intensive growth and execution risks. Analysts project Woodward could reach $4.9 billion in revenue and $719.4 million in earnings by 2029, with some optimistic estimates as high as $885.7 million.
Woodward has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting a positive shift in its earnings outlook. The upgrade is driven by a 9.7% increase in the Zacks Consensus Estimate for the company over the past three months, with analysts now expecting earnings of $9.34 per share for the fiscal year ending September 2026. The Zacks Rank system, which places only the top 5% of covered stocks in the Strong Buy category, suggests that Woodward may see buying pressure and near-term price appreciation.
WWD · Capital · Positive Upgraded to Zacks Rank #1 (Strong Buy) based on rising earnings estimates, indicating positive analyst sentiment and expected buying pressure.
AAR Hits 52-Week High After Earnings Beat and Upgraded Forecasts
AAR Corp. hit a new 52-week high after its latest quarterly results beat analyst estimates, continuing a pattern of positive surprises that has led to upgraded earnings forecasts. The company also announced a preferred distribution agreement with Woodward for LEAP, GEnx, and CF34 engine consumables, expanding its parts distribution footprint. Analysts project AAR will reach $4.1 billion in revenue and $228.5 million in earnings by 2029, though some fair value estimates suggest an 8% downside from the current price. The stock's performance reinforces confidence in its execution, but its fortunes remain tied to commercial aviation cycles.
AIR · Capital · Positive AAR beat earnings estimates and received upgraded forecasts, driving the stock to a 52-week high.
AIR · Demand · Positive AAR announced a preferred distribution agreement with Woodward for engine consumables, expanding its parts distribution footprint.
WWD · Demand · Positive Woodward's preferred distribution agreement with AAR expands market reach for its engine consumables.
Several companies announced quarterly dividends. AZZ declared a first quarter cash dividend of $0.24 per share, payable on July 30, 2026 to shareholders of record on July 9, 2026. Lennar declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock, payable on July 24, 2026 to holders of record on July 10, 2026. Matson declared a third quarter dividend of $0.38 per common share, a two-cent or 5.6% increase over the previous quarter, payable on September 3, 2026 to shareholders of record on August 6, 2026. Marvell Technology announced a quarterly dividend of $0.06 per share of common stock, payable on July 30, 2026 to stockholders of record on July 10, 2026. Woodward declared a cash dividend of $0.32 per share for the quarter, payable on September 3, 2026 to stockholders of record on August 20, 2026.
Atkore Faces Headwinds While MYR Group and Woodward Shine as Cash Producers
Atkore is flagged as a sell due to declining sales and shrinking free cash flow margins, while MYR Group and Woodward are highlighted for their strong cash generation and shareholder returns. Atkore's sales fell 7.8% annually over the last two years, and its free cash flow margin dropped by 9.2 percentage points over five years to 5%. In contrast, MYR Group expanded its free cash flow margin by 4.5 percentage points to 6% and boosted earnings per share through buybacks. Woodward posted a 9.7% free cash flow margin, with 13% annual revenue growth over five years and improved operating efficiency.
Woodward, Inc. announced that its Board of Directors declared a cash dividend of $0.32 per share for the quarter. The dividend is payable on September 3, 2026, to stockholders of record as of August 20, 2026.
Aerospace Stocks Post Strong Q1 With Revenue Beats Across the Board
The 15 aerospace stocks tracked by StockStory reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 1.9%. AAR led with revenues of $845.1 million, up 25.3% year on year and exceeding expectations by 4.1%, while Rocket Lab delivered the fastest revenue growth among its peers at $200.3 million, a 63.5% increase that beat estimates by 4.9%. Woodward reported $1.09 billion in revenues, up 23.4% and surpassing expectations by 8.5%, and Curtiss-Wright posted $913.7 million, up 13.4% and beating by 5.1%. AerSale was the weakest performer, with revenues of $70.61 million falling short of analysts' expectations by 18.9%. Next quarter's revenue guidance for the group came in 0.7% below estimates, but aerospace stocks have performed well, with share prices up 13.2% on average since the latest earnings results.
Woodward shares jump 4.7% on raised fiscal 2026 guidance
Woodward shares surged 4.7% to close at $421.54 on higher-than-average volume. The gain extends the stock's advance to 15.2% over the past four weeks, driven by strong momentum in both its Aerospace and Industrial businesses. The Aerospace segment delivered 25% year-over-year sales growth in the second quarter of fiscal 2026, prompting management to raise its fiscal 2026 Aerospace sales growth guidance to 21-24%. The Industrial business also saw its fiscal 2026 sales growth outlook lifted to 18-20%, supported by robust demand for power generation equipment, marine transportation, and oil and gas markets. Woodward is investing in manufacturing capacity and new technologies, including a new actuation platform for reciprocating engines set to enter service in 2027, which is strengthening its long-term growth outlook.
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