Q3 2026 Woodward Inc Earnings Call Transcript
Key Points
- Woodward Inc (WWD) delivered another outstanding quarter with sales up 21% year-over-year and adjusted EPS increasing 43%.
- Significant margin expansion was driven by strong price realization and productivity gains from the lean transformation.
- Industrial sales grew 26% with strong performance across all primary markets, including power generation and marine transportation.
- Aerospace sales increased 19%, with commercial OEM aligned with airframer build rates and sustained commercial services growth.
- The company raised its fiscal year 2026 earnings guidance, reflecting confidence in continued strong execution.
- Defense OEM sales declined 6% due to a one-time revenue recognition adjustment.
- The company is carrying higher inventory levels to support demand, impacting free cash flow.
- Supply chain disruptions persist, particularly with castings, forgings, and rare earth metals.
- Commercial aftermarket revenue declined sequentially due to shipment timing from the prior quarter.
- Free cash flow guidance remained unchanged despite higher EPS, due to working capital build and inventory investments.
Thank you for standing by. Welcome to the Woodward, Inc. third-quarter fiscal year 2026 earnings call. At this time, I would like to inform you that this call is being recorded for rebroadcast and that all participants are in a listen-only mode. Following the presentation, you are invited in a question-and-answer session.
Joining us today from the company are Chip Blankenship, Chairman and Chief Executive Officer; Bill Lacey, Chief Financial Officer; and Dan Provaznik, Director of Investor Relations. I would now like to turn the call over to Dan Provaznik.
Thank you, operator. We would like to welcome all of you to Woodward's third-quarter fiscal year 2026 earnings call. In today's call, Chip will comment on our strategies and related markets. Bill will then discuss our financial results as outlined in our earnings release.
At the end of the presentation, we will take questions. For those who have not seen today's earnings release and presentation materials, you can find them on
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