Woodward’s third quarter results were well received by the market, with management highlighting strong execution across both its aerospace and industrial businesses. The quarter benefited from robust demand in commercial aerospace services and defense original equipment manufacturing, as well as successful price realization and operational improvements. CEO Charles Blankenship credited the company’s ability to capture higher-than-expected commercial services demand and double-digit growth in oil and gas and power generation in the industrial segment. Management also pointed to the positive impact of increased automation and improved supply chain performance on margins and productivity.
Is now the time to buy WWD? Find out in our full research report (it’s free for active Edge members).
Woodward (WWD) Q3 CY2025 Highlights:
- Revenue: $995.3 million vs analyst estimates of $939.6 million (16.5% year-on-year growth, 5.9% beat)
- EPS (GAAP): $2.23 vs analyst estimates of $1.88 (18.6% beat)
- Adjusted EBITDA: $204.7 million vs analyst estimates of $188.8 million (20.6% margin, 8.5% beat)
- EPS (GAAP) guidance for the upcoming financial year 2026 is $7.75 at the midpoint, missing analyst estimates by 2.2%
- Operating Margin: 15.1%, up from 11.2% in the same quarter last year
- Organic Revenue rose 16% year on year vs analyst estimates of 10% growth (599.3 basis point beat)
- Market Capitalization: $17.96 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Woodward’s Q3 Earnings Call
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Scott Stephen Mikus (Melius Research) asked about aftermarket channel dynamics for LEAP and GTF engines, specifically on pricing and structural margin differences. CEO Charles Blankenship explained that there are no structural differences, as contracting principles are similar between legacy and next-generation platforms.
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Scott Deuschle (Deutsche Bank) inquired about growth assumptions for legacy narrow-body engine aftermarket in 2026 and whether the EPS guide accounts for share repurchases. CFO William Lacey stated single-digit growth is expected and confirmed the authorization’s impact is reflected in guidance.
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Kyle (Jefferies, for Sheila Kahyaoglu) questioned the LEAP and GTF aftermarket crossover with legacy engines and the impact of recent pull-forward demand. Blankenship clarified that strong repair growth is forecast for LEAP and GTF, but large end-item orders seen recently are not planned for 2026.
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Noah Poponak (Goldman Sachs) pressed for quantification of the pull-forward in aerospace aftermarket revenue and the mix effects on margins. CFO Lacey said it’s difficult to isolate the exact amount but noted the impact was significant, and Blankenship indicated that future growth will rely more on recurring MRO rather than lumpy spares.
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Gavin Parsons (UBS) asked about the normalization of airframe destocking and the capacity of the new Spartanburg facility to support future programs. Blankenship said destocking should be largely resolved by mid-2026 and the facility is designed with potential expansion in mind for next-generation single-aisle programs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the ramp-up in aerospace OEM production rates and the corresponding impact on segment mix and profitability, (2) execution and productivity gains from automation and the Spartanburg facility build-out, and (3) growth in industrial aftermarket and regional service expansion. Progress on these milestones will indicate whether Woodward can sustain its growth trajectory while managing the effects of elevated investment and evolving demand patterns.
Woodward currently trades at $300.15, up from $265.14 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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