Woodward shares fall 4% as top-line misses estimates in Q1

Published 03/02/2025, 22:18
Woodward shares fall 4% as top-line misses estimates in Q1

FORT COLLINS, Colo. - Woodward , Inc. (NASDAQ:WWD) reported first quarter fiscal year 2025 results that beat earnings expectations but fell short on revenue, causing shares to drop 4.3% in after-hours trading Monday.

The aerospace and industrial control systems manufacturer posted adjusted earnings per share of $1.35, surpassing the analyst estimate of $1.17. However, revenue for the quarter came in at $773 million, slightly below the consensus estimate of $774.17 million and down 2% YoY.

Woodward’s Chairman and CEO Chip Blankenship commented, "We’re pleased with our strong start to 2025, as our first quarter results were in line with our expectations. Our Aerospace segment performed well with growth in both sales and margin despite a pause in deliveries for some Boeing (NYSE:BA) product lines and a reduced delivery rate in others."

The company reaffirmed its fiscal year 2025 revenue guidance of $3.3-3.5 billion, compared to the analyst consensus of $3.412 billion. Woodward narrowed its adjusted earnings per share guidance to $5.85-6.25, with the midpoint slightly above the consensus of $6.06.

Blankenship added, "First quarter results reflect the effective execution of our strategy, reinforcing our confidence in our ability to achieve our full-year guidance."

Cash from operations decreased 26% to $35 million, while free cash flow fell 81% to $1 million compared to the same quarter last year.

Woodward’s Aerospace segment saw growth, driven by strong commercial and defense aftermarket demand due to high aircraft utilization. The Industrial segment experienced broad-based strength in power generation, oil & gas, and marine transportation, offset by an expected decline in sales related to China on-highway natural gas trucks.

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