Woodward Q2 Sales Rise 23% and EPS Beats, Raises Annual Guidance
Woodward posted Q2 sales of $1.09 billion, up 23%, with net income of $134 million and adjusted EPS of $2.27, beating analyst estimates. The company raised its full-year sales growth forecast to 20%–23% and lifted adjusted EPS guidance to a $9.15–$9.45 range.
1. Second-Quarter Financial Results
In Q2 fiscal 2026 Woodward recorded net sales of $1.091 billion, up 23% year-over-year, and net earnings of $134 million, a 23% increase. Adjusted earnings per share rose 34% to $2.27, outpacing the prior-year $1.69 figure.
2. Segment Performance
Aerospace segment revenue climbed 25% to $703 million, driven by 30% OEM growth and 36% commercial services gains, with segment margin at 22.5%. Industrial sales rose 20% to $387 million, supported by 34% transportation growth and 18% oil and gas increase, lifting margin to 17.0%.
3. Guidance Increase
Based on stronger-than-expected first-half performance, management raised full-year sales growth guidance to 20%–23% and adjusted EPS outlook to $9.15–$9.45, up from prior ranges of 14%–18% growth and $8.20–$8.60 EPS.
4. Cash Flow and Capital Allocation
Operating cash flow totaled $91 million, a 17% increase, while free cash flow declined 36% to $38 million due to higher capital expenditures. The company repurchased $226 million of shares and increased dividends by 14%, signaling strong capital return priorities.