Overview

* Woodward fiscal Q3 sales rise 8%, beating analyst expectations, per LSEG data

* Aerospace segment drives substantial sales growth and margin expansion

* Co lowers full-year free cash flow guidance

Outlook

* Woodward raises FY25 sales guidance to $3.45 bln-$3.525 bln

* Company lowers FY25 adjusted free cash flow guidance to $315 mln-$350 mln

* Woodward expects FY25 adjusted EPS of $6.50-$6.75

* Company sees Aerospace sales growth of 11%-13% for FY25

Result Drivers

* AEROSPACE GROWTH - Aerospace segment saw substantial sales growth and margin expansion driven by smart defense and commercial services, despite lower commercial OEM and defense services

* INDUSTRIAL SEGMENT - Double-digit sales growth in oil and gas and marine transportation offset by decreased China on-highway natural gas truck sales

* GUIDANCE ADJUSTMENT - Co raised full-year sales and earnings guidance due to strong year-to-date performance and solid Q4 outlook, but lowered free cash flow guidance due to supply chain and production demands

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $915 mln $890.10

mln (9

Analysts

)

Q3 EPS $1.76

Q3 Net $108 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for Woodward Inc ( WWD ) is $266.50, about 3.5% above its July 25 closing price of $257.26

* The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)