Woodward Reports Third Quarter Fiscal Year 2026 Results

Raising Earnings Guidance Based on Strong Third Quarter and Confidence in the Fourth Quarter FORT COLLINS, Colo., July 29, 2026 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today reported financial results for its third quarter ended June 30, 2026. All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are references to the Company’s fiscal year unless otherwise stated. All percentages have been calculated using unrounded amounts. Third Quarter Overview Third Quarter 2026 Year-to-Date 2026 Net sales $1.1B, +21% $3.2B, +24% Earnings per share (EPS) $2.40, +36% $6.76, +36% Adjusted EPS 1 $2.52, +43% $6.96, +45% Net cash provided by operating activities $147M, +17% $352M, +48% Free cash flow 1 $87M, -12% $196M, +23% “We delivered outstanding third quarter results, including significant sales growth and margin expansion in both segments,” said Chip Blankenship, Chairman and Chief Executive Officer. “In Aerospace, commercial services demand was resilient, while commercial OEM benefited from increasing aircraft production rates. Industrial sales and earnings performance was outstanding, with segment earnings growth of 86 percent driven by substantial sales growth across all primary markets. “Demand across our portfolio remains durable, and our teams continue to expand capacity, improve flow, and support customers. We are raising our full-year earnings guidance and remain focused on creating long-term value for shareholders through profitable growth, operational excellence, and innovation.” Third Quarter Fiscal Year 2026 Company Results Total Company Results (Dollars in millions, except per share amounts) Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 Year over Year 2026 2025 Year over Year Income Statement Net sales $ 1,110 $ 915 21 % $ 3,197 $ 2,572 24 % Net earnings 147 108 35 % 414 304 36 % Adjusted net earnings 1 * 154 108 42 % 426 294 45 % EPS $ 2.40 $ 1.76 36 % $ 6.76 $ 4.96 36 % Adjusted EPS * $ 2.52 $ 1.76 43 % $ 6.96 $ 4.80 45 % EBIT 1 208 137 51 % 565 394 44 % Adjusted EBIT 1 * 217 137 58 % 581 381 53 % EBITDA 1 240 166 45 % 656 478 37 % Adjusted EBITDA 1 * 249 166 50 % 672 465 45 % Effective tax rate 24.2 % 14.5 % 970 bps 21.8 % 15.8 % 600 bps Adjusted effective tax rate 1 * 24.2 % 14.5 % 970 bps 21.9 % 15.5 % 640 bps Cash Flow and Financial Position Net cash provided by operating activities $ 147 $ 126 17 % $ 352 $ 238 48 % Capital expenditures 60 27 125 % 156 79 99 % Free cash flow 87 99 -12 % 196 159 23 % Dividends paid 19 17 55 48 Share repurchases 198 45 553 124 Total debt 1,342 933 EBITDA leverage 1 1.6x 1.5x *There were no adjustments to these measures in the third quarter of fiscal year 2025 Segment Results Aerospace (Dollars in millions) Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 Year over Year 2026 2025 Year over Year Commercial OEM $ 234 $ 175 34 % $ 640 $ 497 29 % Commercial services 268 215 24 % 788 581 36 % Defense OEM 141 150 -6 % 430 401 7 % Defense services 66 55 20 % 189 173 9 % Sales 709 596 19 % 2,047 1,652 24 % Segment earnings 170 126 35 % 476 345 38 % Segment margin % 24.0 % 21.1 % 290 bps 23.3 % 20.9 % 240 bps Segment earnings for the third quarter of 2026 were $170 million, or 24.0 percent of segment sales. The increase in segment earnings in the quarter was the result of price realization and increased leverage on higher sales volumes, partially offset by inflation and unfavorable mix. Segment earnings for the first nine months of fiscal 2026 were $476 million, or 23.3 percent of segment sales. The increase in segment earnings in the first nine months of the fiscal year was the result of price realization and increased leverage on higher sales volumes, partially offset by strategic investments in manufacturing capabilities, inflation, and unfavorable