Woodward stock soars after record earnings and strong 2025 outlook

Woodward, Inc. witnessed a significant boost in its stock price following the release of record-breaking financial results for its fiscal year 2024 and an optimistic forecast for 2025. The Fort Collins-based company reported substantial revenue growth, robust earnings, and ongoing success in its aerospace and industrial segments, leading shares to jump by 10% in after-hours trading.

Fiscal 2024 financial performance

For the fiscal year ending September 30, 2024, Woodward achieved a remarkable $3.3 billion in revenue, representing a 14% year-over-year increase. Net earnings surged by 61% to $373 million, while adjusted earnings per share (EPS) rose 45% to $6.11, compared to $4.21 in fiscal 2023. Fourth-quarter revenue also climbed by 10% to $855 million, with adjusted EPS of $1.41 exceeding analyst expectations of $1.26, according to FactSet.

CEO Chip Blankenship attributed the strong performance to robust market demand and operational efficiencies. In the aerospace segment, both commercial and defense sales grew due to increased aircraft utilization and capacity improvements. Meanwhile, the industrial division benefited from higher power generation and transportation sales, despite a decline in the China natural gas truck market.

Strategic achievements

Woodward highlighted several milestones in fiscal 2024, including the $55 million transformation of its Aerospace Maintenance, Repair, and Overhaul (MRO) facility in Illinois. The company also secured key agreements, such as an exclusive MRO contract with Alliance Airlines and expanded partnerships with Lufthansa Technik and Turkish Technic. These moves position Woodward for continued growth in the aftermarket sector.

The company’s involvement in next-generation aircraft projects further underscores its focus on innovation. Notable collaborations include being selected as the rotary actuation technology provider for NASA and Boeing’s X-66A aircraft and developing a Trim Control Module for JetZero’s Blended Wing Body Demonstrator.

Fiscal 2025 guidance

Looking ahead, Woodward projects sales between $3.3 billion and $3.5 billion for fiscal 2025, with an EPS range of $5.75 to $6.25. Aerospace revenue is expected to grow by 6% to 13%, driven by strength in commercial and defense markets. However, the industrial segment faces headwinds, with sales anticipated to decline by 7% to 11%, largely due to a sharp drop in demand from China’s natural gas truck market.

Despite these challenges, Woodward anticipates free cash flow of $350 million to $400 million and plans to invest $115 million in capital expenditures to support growth initiatives. The company also targets operational improvements, particularly in automation and efficiency.

Market reaction and stock performance

Following the earnings announcement, Woodward’s shares surged to $197.05 in after-hours trading, marking a 32% increase year-to-date. This jump reflects investor confidence in the company’s ability to deliver sustained growth and navigate market challenges effectively.

Expert outlook

Woodward’s record fiscal 2024 results and strategic positioning in high-demand markets highlight its resilience and innovation. While the industrial segment’s challenges may temper overall growth, the aerospace division’s robust pipeline and margin expansion could drive shareholder value in the coming year.