Woodward shares fall as strong Q3 results overshadowed by cash flow concerns

Published 28/07/2025, 21:10
Woodward shares fall as strong Q3 results overshadowed by cash flow concerns

Investing.com -- Woodward , Inc. (NASDAQ:WWD) reported third-quarter earnings that exceeded analyst expectations, but shares fell 3.3% as the company lowered its full-year free cash flow guidance despite raising its earnings outlook.

The aerospace and industrial systems manufacturer posted earnings per share of $1.76, beating the analyst estimate of $1.63, while revenue reached $915 million, surpassing the consensus estimate of $887.06 million. Revenue increased 8% compared to the same quarter last year. The company raised its full-year EPS guidance to $6.50-$6.75 from the previous $5.95-$6.25, above the consensus of $6.38, and narrowed its revenue forecast to $3.45-3.525 billion.

Despite the strong quarterly performance, Woodward lowered its full-year free cash flow guidance to $315-350 million from the previous $350-400 million, citing "demands to support higher sales in a dynamic supply chain and production environment."

"We delivered strong results in the third quarter underpinned by robust demand across our end markets, coupled with disciplined execution by our global teams," said Chip Blankenship, Chairman and Chief Executive Officer.

The company’s Aerospace segment was the standout performer with sales increasing 15.2% YoY to $596 million, driven by a 30% surge in commercial aftermarket sales and a 55.7% jump in defense OEM sales. Aerospace segment margins expanded to 21.1% from 19.7% a year earlier.

In contrast, the Industrial segment saw sales decline 3.2% YoY to $319 million, with segment earnings falling 20.3%. The decrease was primarily due to lower China on-highway volume, though this was partially offset by 16.1% growth in oil and gas sales.

The company maintained its capital expenditure guidance of approximately $115 million for the fiscal year, while lowering its adjusted effective tax rate forecast to approximately 17% from 19% previously.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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