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Woodward
🇺🇸 NASDAQ:WWD
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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.

Total Revenue
$619M
Previous year: $542M
+14.2%
EPS
$0.49
Previous year: $0.56
-12.5%
Effective Tax Rate
6.7%
Gross Profit
$126M
Previous year: $122M
+2.9%
Cash and Equivalents
$99.3M
Previous year: $427M
-76.7%
Free Cash Flow
-$19M
Previous year: $26M
-173.0%
Total Assets
$3.89B
Previous year: $730M
+433.5%

Woodward

Woodward

Woodward 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.
  • EBIT is expected to include approximately $60 million of annual variable incentive compensation costs, an increase of approximately $50 million over fiscal year 2022.
  • The effective tax rate is expected to be approximately 19 percent.
  • Capital expenditures are expected to be approximately $80 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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