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Dec 31, 2022
Woodward Q1 2023 Earnings Report
Delivered earnings in line with expectations, but the Industrial segment had a challenging quarter.
Key Takeaways
Woodward reported a 14% increase in net sales, reaching $619 million, but profitability was impacted by ongoing industry-wide challenges. Net earnings were $30 million, or $0.49 per share.
Net sales increased by 14% to $619 million compared to the same period last year.
Net earnings were $30 million, or $0.49 per share, for the quarter.
Aerospace segment sales increased by 18%, driven by recovery in passenger traffic and increased aircraft utilization.
Industrial segment sales increased by 9%, primarily due to higher marine sales and strong industrial turbomachinery sales.
Revenue by Segment
Forward Guidance
Woodward’s fiscal 2023 outlook assumes improving operational and financial performance while continuing to navigate a challenging industry-wide environment.
Positive Outlook
- Total net sales for fiscal 2023 are expected to be between $2.60 billion and $2.75 billion.
- Aerospace sales growth percentage is expected to be between 14 and 19 percent.
- Industrial sales growth percentage is expected to be flat to up 5 percent.
- Aerospace segment earnings as a percent of segment net sales are expected to increase by approximately 150 to 200 basis points.
- Free cash flow is expected to be between $200 million and $250 million, with an anticipated free cash flow conversion rate of greater than 100 percent.
Challenges Ahead
- The supply chain and labor disruptions are anticipated to begin to subside during the second half of the fiscal year.
- The timing of improvement is uncertain and results could be negatively impacted if supply chain and labor disruptions do not improve as anticipated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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