All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are references to the Company's fiscal year unless otherwise stated.
Fourth Quarter and Fiscal Year 2025 Overview
Fourth Quarter 2025
Fiscal Year 2025
Net sales
$995M, +16%
$3.6B, +7%
Net earnings
$138M, +66%
$442M, +19%
Adjusted net earnings1
$129M, +49%
$424M, +12%
Earnings per share (EPS)
$2.23, +64%
$7.19, +20%
Adjusted EPS1
$2.09, +48%
$6.89, +13%
Net cash provided by operating activities
$233M, +65%
$471M, +7%
Free cash flow1
$181M, +54%
$340M, -1%
"Woodward delivered another year of record sales in fiscal 2025, driven by strong demand and disciplined execution that expanded earnings and strengthened our foundation for growth," said Chip Blankenship, Chairman and Chief Executive Officer. "Aerospace delivered substantial sales and margin expansion supported by high aircraft utilization and robust defense activity, while Industrial achieved double-digit growth across power generation and oil & gas markets.
"Fiscal 2025 was a pivotal year for Woodward. With enhanced capabilities and deep customer partnerships, we are well positioned to capture opportunities from the next generation of aircraft and energy systems. We remain focused on growth, operational excellence, and innovation to drive sustained performance and long-term shareholder value."
Woodward's key highlights include:
Completed strategic acquisition of Safran's North American Electromechanical Actuation business, enhancing our existing portfolio with industry-leading Horizontal Stabilizer Trim Actuation technology and other complementary products
Board authorized new three-year $1.8 billion share repurchase program
Selected by Airbus to supply 12 of the 14 spoiler actuation systems for the A350, our first primary flight control system on a commercial aircraft
Broke ground on a cutting-edge facility in Spartanburg County, South Carolina. This highly automated, vertically integrated site will serve as a model for advanced precision aerospace manufacturing
Earned continued recognition as a Great Place to Work and for manufacturing excellence, including:
TIME's World's Best Companies and America's Best Mid-Size Companies 2025
Finalist for Manufacturing Institute's 2025 Manufacturing Leadership Award for Operational Excellence
Completed the divestiture of our Industrial combustion product line, aligning with our portfolio optimization strategy
Fourth Quarter and Fiscal Year 2025 Company Results
Total Company Results(Dollars in millions, except per share amounts)
Three Months EndedSeptember 30,
Year EndedSeptember 30,
2025
2024
YearoverYear
2025
2024
YearoverYear
Income Statement
Total Sales
$
995
$
855
16.5
%
$
3,567
$
3,324
7.3
%
Net Earnings
138
83
65.2
%
442
373
18.5
%
Adjusted Net Earnings
129
86
49.4
%
424
379
11.7
%
EPS
$
2.23
$
1.36
64.0
%
$
7.19
$
6.01
19.6
%
Adjusted EPS
$
2.09
$
1.41
48.2
%
$
6.89
$
6.11
12.8
%
EBIT1
169
113
49.5
%
563
495
13.6
%
Adjusted EBIT1
176
117
49.5
%
556
504
10.4
%
Effective Income Tax Rate
13.9
%
18.0
%
-410 bps
15.2
%
17.8
%
-260 bps
Adjusted Effective Income Tax Rate1
22.3
%
18.4
%
390 bps
17.7
%
18.0
%
-30 bps
Cash Flow and Financial Position
Net cash provided by operating activities
$
233
$
142
64.6
%
$
471
$
439
7.3
%
Capital Expenditures
52
24
117.5
%
131
96
36.0
%
Free cash flow
181
118
53.8
%
340
343
-0.7
%
Dividends Paid
17
15
13.2
%
65
58
11.5
%
Share Repurchases
49
86
-
173
391
-
Total Debt
-
-
-
702
872
-19.5
%
EBITDA1 Leverage
-
-
-
1.0x
1.4x
-
Segment Results
Aerospace(Dollars in millions)
Three Months Ended September 30,
Year EndedSeptember 30,
2025
2024
Year over Year
2025
2024
Year over Year
Commercial OEM
$
194
$
194
0.2
%
$
691
$
738
-6.4
%
Commercial Services
242
174
39.6
%
824
641
28.5
%
Defense OEM
160
126
27.3
%
561
407
38.0
%
Defense Services
64
59
8.3
%
237
243
-2.3
%
Sales
661
553
19.6
%
2,313
2,029
14.0
%
Segment Earnings
162
106
52.3
%
507
385
31.5
%
Segment Margin %
24.4
%
19.2
%
520 bps
21.9
%
19.0
%
290 bps
Segment earnings for the fourth quarter of 2025 were $162 million, or 24.4 percent of segment net sales. The increase in segment earnings was a result of price realization and higher sales volume, partially offset by strategic investments in manufacturing capabilities, as well as inflation.
Segment earnings for fiscal 2025 were $507 million, or 21.9 percent of segment net sales. The increase in segment earnings was a result of price realization and higher sales volume, partially offset by strategic investments in manufacturing capabilities, unfavorable mix, and inflation.
Industrial(Dollars in millions)
Three Months Ended September 30,
Year EndedSeptember 30,
2025
2024
Year over Year
2025
2024
Year over Year
Transportation
$
139
$
121
14.7
%
$
507
$
625
-18.8
%
Power generation
125
119
5.5
%
489
444
10.2
%
Oil and gas
70
62
12.9
%
258
227
13.5
%
Sales
334
302
10.6
%
1,254
1,296
-3.2
%
Segment Earnings
49
38
28.2
%
183
230
-20.6
%
Segment Margin %
14.6
%
12.6
%
200 bps
14.6
%
17.7
%
-310 bps
Based on changes in market dynamics, the Company has refined its Industrial end market presentation to better align certain sales within power generation, transportation, and oil and gas. Accordingly, sales for the quarters and years ended September 30, 2025 and 2024, have been reclassified for comparability. The reclassification had no impact on total Industrial or the consolidated financial results.
Industrial segment earnings for the fourth quarter of 2025 were $49 million, or 14.6 percent of segment net sales. The increase in segment earnings was a result of price realization, partially offset by inflation and strategic investments in manufacturing capabilities.
Industrial segment earnings for fiscal 2025 were $183 million, or 14.6 percent of segment net sales. The decrease in segment earnings was a result of lower sales volume and unfavorable mix, partially offset by price realization.
Nonsegment(Dollars in millions)
Three Months Ended September 30,
Year EndedSeptember 30,
2025
2024
Year over Year
2025
2024
Year over Year
Nonsegment Expense
$
