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.
First Quarter Overview
First Quarter 2026
Net sales
$996M, +29%
Net earnings
$134M, +54%
Earnings per share (EPS)
$2.17, +53%
Net cash provided by operating activities
$114M, +$80M
Free cash flow1
$70M, +$69M
"We delivered strong first quarter 2026 performance that exceeded our expectations," said Chip Blankenship, Chairman and Chief Executive Officer. "Year-over-year growth was broad-based across both segments and reflected strong demand and disciplined execution by our global teams. In Aerospace, margin expansion was driven by higher mix of commercial services activity and robust defense OEM demand. Industrial performance was driven by strength in power generation, transportation, and oil and gas. Our focus on operational excellence continues to drive output improvements and more consistent execution across our portfolio.
"Based on a strong start to the year, we are raising our full-year sales and earnings guidance. We remain focused on operational excellence and targeted innovation to deliver sustained profitable growth and long-term value for our shareholders."
First Quarter Fiscal Year 2026 Company Results
Total Company Results(Dollars in millions, except per share amounts)
Three Months Ended December 31,
2025
2024
Year over Year
Income Statement
Net sales
$
996
$
773
29
%
Net earnings
134
87
54
%
Adjusted net earnings1*
$
134
$
83
62
%
EPS
$
2.17
$
1.42
53
%
Adjusted EPS1*
$
2.17
$
1.35
61
%
EBIT
179
113
59
%
Adjusted EBIT1*
$
179
$
107
67
%
Effective tax rate
20.9
%
14.5
%
640 bps
Adjusted effective tax rate1*
20.9
%
14.0
%
690 bps
Cash Flow and Financial Position
Net cash provided by operating activities
$
114
$
35
Capital expenditures
44
34
Free cash flow
70
1
Dividends paid
17
15
Share repurchases
129
35
Total debt
888
902
EBITDA1leverage
1.2x
1.5x
* There were no adjustments to these measures in the first quarter of fiscal year 2026
Segment Results
Aerospace(Dollars in millions)
Three Months Ended December 31,
2025
2024
Year over Year
Commercial OEM
$
188
$
154
22
%
Commercial services
245
164
50
%
Defense OEM
138
113
23
%
Defense services
64
63
1
%
Sales
635
494
29
%
Segment earnings
148
95
57
%
Segment margin %
23.4
%
19.2
%
420 bps
Aerospace segment earnings for the first quarter of 2026 were $148 million, or 23.4 percent of segment net sales. The increase in segment earnings was a result of price realization, favorable mix, and higher sales volume, partially offset by strategic investments in manufacturing capabilities and inflation.
Industrial(Dollars in millions)
Three Months Ended December 31,
2025
2024
Year over Year
Transportation
$
166
$
107
55
%
Power generation
123
115
7
%
Oil and gas
72
57
28
%
Sales
362
279
30
%
Segment earnings
67
40
67
%
Segment margin %
18.5
%
14.4
%
410 bps
Industrial segment earnings for the first quarter of 2026 were $67 million, or 18.5 percent of segment net sales. The increase in segment earnings was a result of higher sales volume, price realization, and favorable mix, partially offset by inflation.
Nonsegment(Dollars in millions)
Three Months Ended December 31,
2025
2024
Year over Year
Nonsegment expense
$
(37
)
$
(22
)
66
%
Adjusted nonsegment expenses
(37
)
(28
)
31
%
Fiscal Year 2026 Guidance
Based on the strong first quarter performance, Woodward is raising its fiscal 2026 sales and earnings guidance. This guidance assumes a sustained strong demand environment, supporting continued sales growth and further margin expansion.
Prior FY26 GuidanceIssued on November 24, 2025
Revised FY26 GuidanceIssued on February 2, 2026
Total Company
Sales growth
up 7% to 12%
up 14% to 18%
EPS
$7.50 - $8.00
$8.20 - $8.60
Free cash flow3
$300 - $350 million
No change
Capital expenditures
~$290 million
No change
Shares
~61 million
No change
Effective tax rate
~22%
No change
Segment Data
