Woodward Q3 Sales Up 15 Percent
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From an analytical perspective, Woodward (WWD 0. Moreover, 48%), a leading vider of control solutions for aerospace and industrial, released its earnings results for the third quarter of fiscal 2025...
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July 28, 2025
04:21 PM
The Motley Fool
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From an analytical perspective, Woodward (WWD 0
Moreover, 48%), a leading vider of control solutions for aerospace and industrial, released its earnings results for the third quarter of fiscal 2025 on July 28, 2025
This analysis suggests that company reported revenue of $915 million (GAAP) for Q3 FY2025, outpacing consensus expectations of $886
On the other hand, 15 million (GAAP)
Earnings per (EPS, GAAP) reached $1 (this bears monitoring)
Moreover, In contrast, 76 for Q3 FY2025, also above the $1
At the same time, 63 analyst forecast (GAAP)
Additionally, This quarter was marked by a standout performance in the aerospace segment, despite difficulties in the industrial division and a marked drop in free cash flow, in light of current trends
Overall, the company dered imved fits and revenue (GAAP), but flagged soft spots and revised a key cash flow target downward, in this volatile climate
Additionally, MetricQ3 2025Q3 2025 EstimateQ3 2024Y/Y ChangeEPS (GAAP)$1. 0 %Revenue$915 million$886, in light of current trends. 15 million$847, given current economic conditions. 7 million8, in this volatile climate. 0%EBIT (Non-GAAP)$137. 2 million$131
Furthermore, 0 %Free Cash Flow (Non-GAAP)$99 million$137 million(27. 8 %)Revenue – Aerospace segment$596 million$518 million15. 2 %Revenue – Industrial segment$319 million$330 million-3. 3 % Source: Analyst estimates vided by FactSet
Management expectations based on management's guidance, as vided in Q2 2025 earnings report
Woodward: Overview and Focus AreasWoodward designs and manufactures advanced control systems for the aerospace and industrial
Nevertheless, The company develops nology to manage and optimize energy use, including systems for controlling the flow of fluids, combustion, and electrical power, as well as devices for precision movement in critical machines, given current economic conditions
This tells us that company's success depends on several key focus areas
A strong presence in aerospace and defense, especially through involvement in platforms the Boeing 787 and F-35, is vital
In the industrial sector, Woodward's controls are used in power generation, oil and gas, and transportation—sectors sensitive to broad economic and regulatory trends, in this volatile climate
On the other hand, The company invests heavily in re and development to meet new efficiency and emissions standards
Long-standing relationships with major customers also remain central to its growth strategy
Quarterly Highlights: Segment Trends, Financials, and Key EventsWoodward's quarterly results drew strength from the aerospace division
Aerospace sales rose 15
Furthermore, 2% compared to the prior year, led by strong demand in defense original equipment (OEM, meaning items vided to plane makers and the military) and commercial aftermarket (spare parts and servicing) (something worth watching)
Defense OEM sales were up more than 55% for the three months June 30, 2025 versus the prior year, while commercial aftermarket revenue jumped 30% (GAAP)
Moreover, Segment margin—a percentage showing how much fit is left after costs within the division—expanded to 21
Furthermore, 1%, from 19 (this bears monitoring)
Moreover, 7% last year
Management cited pricing power and higher sales volumes as drivers behind these gains, noting some investments in manufacturing and innovation that partly offset that growth
However, However, However, executives also warned that the unusually strong surge in aftermarket sales, particularly spare parts, is not ly to repeat at the same level in coming quarters
Market analysis shows industrial division faced persistent weakness
Segment sales fell 3. 2% year over year for the three months June 30, 2025, pressured by a continued drop in China on-highway natural gas truck demand—a key issue for the transportation line
Transportation-related revenue fell 12
In contrast, Oil and gas saw double-digit growth, while power generation revenue was roughly flat
Furthermore, The industrial margin dropped to 14
Moreover, 9 %, from 18
Nevertheless, 1 % in the prior year, reflecting reduced volumes and lower fit contribution from China
Nevertheless, Meanwhile, Management acknowledged the "lumpy" nature of these industrial, with results swinging on the timing of large orders and jects
Re and development spending (GAAP) continued to rise, reaching $41. 1 million, as Woodward pushed forward on new offerings, in today's financial world
Among highlights was the MicroNet XT, an advanced turbine control system for marine and industrial engines, which began deries to the U
Navy for use in destroyer-class ships
Free cash flow (non-GAAP)—a metric that subtracts capital spending from operating cash generation—fell 27, in today's financial world. 8% compared to the same period last year
Management linked the decrease to higher working capital requirements
What the data shows is company returned $45 million to holders through repurchases and paid $17 million in dividends for the period
Looking Ahead: Guidance and Investor FocusWoodward raised its full-year sales guidance (GAAP) to the range of $3,450–3,525 million, up from the previous forecast of $3,375–3,500 million, in light of current trends
At the same time, Adjusted EPS (non-GAAP) guidance was also lifted to $6. 75, up from $5
Meanwhile, However, management lowered its full-year adjusted free cash flow target to $315–350 million, down from $350–400 million
Key risks for investors include whether aerospace aftermarket and defense OEM demand can be sustained, and risks remain around continued China transportation weakness, tariff pressures of $10–15 million, and customer concentration, with the top five customers still accounting for a large of total sales
Moreover, Revenue and net income presented using U
Generally accepted accounting principles (GAAP) unless otherwise noted.
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