Woodward (WWD)
NASDAQ:WWD
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Woodward
(NASDAQ:WWD)
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Rating:69Neutral
Price Target:
$392.00
▼(-0.72% Downside)
Action:Downgraded
Date:05/29/26
The score is driven primarily by solid financial fundamentals and a notably strong earnings-call update with raised FY2026 guidance. These positives are tempered by a rich valuation (high P/E, low yield) and softer near-term technical momentum, alongside recent TTM margin and cash-conversion cooling.
Positive Factors
Revenue Growth & Guidance
Raised full-year guidance and recent record quarterly sales signal durable demand across Aerospace and Industrial. Higher guided top-line and EPS enable multi-year capacity planning, justify strategic investments and support repeatable cash generation tied to program ramps and aftermarket growth.
Negative Factors
Margin & Cash-Conversion Cooling
A decline in trailing margins and softer free cash flow conversion reduces internal funding capacity and heightens sensitivity to cost pressure. Sustained margin erosion would impair ability to finance capex, share returns and M&A, making execution on cost and pricing essential for durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Guidance
Raised full-year guidance and recent record quarterly sales signal durable demand across Aerospace and Industrial. Higher guided top-line and EPS enable multi-year capacity planning, justify strategic investments and support repeatable cash generation tied to program ramps and aftermarket growth.
Read all positive factors
Woodward (WWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.32B
Dividend Yield0.35%
Average Volume (3M)787.13K
Price to Earnings (P/E)41.6
Beta (1Y)1.16
Revenue Growth19.03%
EPS Growth34.44%
CountryUS
Employees9,300
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)8.60
Shares Outstanding59,582,863
10 Day Avg. Volume721,881
30 Day Avg. Volume787,129
Financial Highlights & Ratios
PEG Ratio1.75
Price to Book (P/B)5.87
Price to Sales (P/S)4.22
P/FCF Ratio44.22
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue5.38
Enterprise Value/Gross Profit18.95
Enterprise Value/Ebitda28.52
Forecast
1Y Price Target
$437.22Price Target Upside10.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)9.34
Revenue Forecast (FY)$4.30B
Woodward Business Overview & Revenue Model
Company Description
Woodward, Inc. (WWD) stands as a prominent global entity, specializing in the engineering, production, and maintenance of advanced control solutions for both the aerospace and industrial sectors. The company organizes its operations into two disti...
How the Company Makes Money
Woodward makes money mainly by selling engineered components and systems—along with aftermarket spares and services—into two primary segments:
1) Aerospace revenue streams
- Original equipment (OE) sales: Woodward supplies aircraft and defense pl...
Woodward Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum with record quarterly sales, double-digit top-line growth across Aerospace and Industrial, margin expansion, raised full‑year guidance, strategic M&A and partnership progress, and improved cash generation. Notable challenges include capacity and supply-chain constraints, targeted strategic investments and inflation that tempered flow-through, a product-performance reserve that compressed Industrial margins in the quarter, elevated inventory and working capital needs, and geopolitical/aftermarket visibility risks. Overall, the positives (record results, guidance raise, strong segment performance, balance-sheet strength and strategic actions) materially outweigh the near-term and manageable challenges.Positive Updates
Record Quarterly Sales
Net sales reached $1.1 billion in Q2, the first time Woodward surpassed $1 billion in a quarter, representing a 23% year-over-year increase.
Negative Updates
Capacity and Supply Chain Constraints
Management noted demand at times outstripped capacity and supply-chain activities (e.g., dual sourcing projects, additional test stands, procurement, installation and calibration), constraining output in the quarter and requiring capacity and supply chain expansion.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Sales
Net sales reached $1.1 billion in Q2, the first time Woodward surpassed $1 billion in a quarter, representing a 23% year-over-year increase.
Read all positive updates
Company Guidance
Woodward raised its fiscal 2026 outlook after a strong Q2, now expecting total sales growth of 20–23% (Aerospace up 21–24% with margins of 23.0–23.5% and Industrial up 18–20% with margins of 18.0–18.5%), adjusted EPS of $9.15–$9.45, free cash flow of $300–$350 million, and capital expenditures of approximately $290 million; the company also reiterated a targeted Aerospace flow‑through of ~30–35%, said adjusted effective tax rate guidance is unchanged, expects to maintain higher inventory levels (with initiatives to improve 2027 FCF), and forecasts average diluted shares of ~61.5 million while continuing to return $650–$700 million to shareholders via dividends and buybacks.Woodward Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.00B | 3.57B | 3.32B | 2.91B | 2.38B | 2.25B |
| Gross Profit | 1.13B | 956.29M | 876.48M | 677.58M | 525.30M | 551.06M |
| EBITDA | 753.83M | 680.38M | 556.24M | 406.09M | 334.72M | 383.83M |
| Net Income | 513.80M | 442.11M | 372.97M | 232.37M | 171.70M | 208.65M |
Balance Sheet | ||||||
| Total Assets | 4.97B | 4.63B | 4.37B | 4.01B | 3.81B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 501.17M | 327.43M | 282.27M | 137.45M | 107.84M | 448.46M |
| Total Debt | 1.15B | 722.40M | 895.14M | 748.67M | 798.86M | 749.62M |
| Total Liabilities | 2.44B | 2.06B | 2.19B | 1.94B | 1.91B | 1.88B |
| Stockholders Equity | 2.53B | 2.57B | 2.18B | 2.07B | 1.90B | 2.21B |
Cash Flow | ||||||
| Free Cash Flow | 388.56M | 340.37M | 342.81M | 229.81M | 140.77M | 426.98M |
| Operating Cash Flow | 564.22M | 471.29M | 439.09M | 306.31M | 193.64M | 464.67M |
| Investing Cash Flow | -214.88M | -119.55M | -89.22M | -73.55M | -65.45M | -35.30M |
| Financing Cash Flow | -221.89M | -313.93M | -218.05M | -194.24M | -442.38M | -136.32M |
Woodward Technical Analysis
Positive
394.83
Price Trends
366.63
Negative
366.17
Negative
317.38
Positive
Market Momentum
-4.02
Negative
49.46
Neutral
70.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWD, the sentiment is Positive. The current price of 394.83 is above the 20-day moving average (MA) of 356.30, above the 50-day MA of 366.63, and above the 200-day MA of 317.38, indicating a neutral trend. The MACD of -4.02 indicates Negative momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 70.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWD.
Woodward Risk Analysis
Woodward disclosed 29 risk factors in its most recent earnings report. Woodward reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Woodward Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $27.08B | 52.93 | 19.64% | 0.16% | 12.22% | 21.44% | |
73 Outperform | $15.84B | 17.18 | 12.13% | 0.09% | 9.48% | 18.21% | |
71 Outperform | $12.31B | 42.22 | 10.79% | 1.04% | 10.46% | 23.24% | |
69 Neutral | $21.32B | 41.58 | 20.25% | 0.35% | 19.03% | 34.44% | |
68 Neutral | $17.04B | 49.45 | 27.91% | 0.56% | 21.39% | 19.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $10.97B | 351.92 | 1.26% | ― | 21.82% | 34.38% |
* Industrials Sector Average
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Woodward Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Woodward Strengthens Liquidity with New Credit Facilities
Positive
May 28, 2026
On May 28, 2026, Woodward, Inc. entered into a Third Amended and Restated Credit Agreement, preserving a $1 billion revolving credit facility and extending its maturity from October 21, 2027 to May 28, 2031. That same day, the company drew $413 mi...
Dividends
Woodward Declares Quarterly Dividend, Signaling Ongoing Stability
Positive
Apr 27, 2026
On April 22, 2026, Woodward, Inc.’s board approved a quarterly cash dividend of $0.32 per share, reinforcing its practice of returning capital to shareholders through regular distributions. The dividend, announced publicly on April 27, 2026,...
Business Operations and StrategyExecutive/Board Changes
Woodward Adds Veteran Aerospace Leader to Board of Directors
Positive
Apr 24, 2026
On April 22, 2026, Woodward’s board elected veteran industrial and aerospace executive Frederico Fleury Curado to its Board of Directors and Audit Committee, effective June 1, 2026. The move expands the board from nine to 10 members and plac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.