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Mar 31, 2021

Woodward Q2 2021 Earnings Report

Woodward's second quarter results reflected encouraging signs of market recovery with sequential improvements in sales and earnings.

Key Takeaways

Woodward reported a 19% decrease in net sales to $581 million compared to the same quarter last year. Net earnings were $68 million, or $1.04 per share, compared to $91 million, or $1.41 per share, in the prior year. The company noted encouraging signs of market recovery with sequential improvement in both Aerospace and Industrial segments.

Net sales decreased by 19% year-over-year to $581 million.

Net earnings were $68 million, or $1.04 per share, compared to $91 million, or $1.41 per share, in the prior year.

Aerospace segment net sales decreased year-over-year but increased sequentially by 13%.

Industrial segment net sales decreased year-over-year but slightly increased excluding renewable power systems and related businesses.

Total Revenue
$581M
Previous year: $720M
-19.3%
EPS
$1.04
Previous year: $1.61
-35.4%
Effective Tax Rate
13%
Previous year: 14.8%
-12.2%
Gross Profit
$147M
Previous year: $203M
-27.4%
Cash and Equivalents
$288M
Previous year: $103M
+179.6%
Free Cash Flow
$66.2M
Previous year: $12.6M
+425.4%
Total Assets
$4.02B
Previous year: $4.06B
-1.0%

Woodward

Woodward

Woodward Revenue by Segment

Forward Guidance

Woodward is withholding guidance due to the uncertain economic landscape caused by the COVID-19 pandemic, despite optimism for economic recovery driven by vaccine rollouts.

Positive Outlook

  • Ongoing rollout of vaccines across many countries is driving optimism for economic recovery.

Challenges Ahead

  • Enduring turbulence caused by the COVID-19 pandemic.
  • Significantly reduced global passenger travel.
  • New viral variants continue to cloud near-term forecasts.
  • Uncertain economic landscape.
  • COVID-19 related impacts, which could disrupt production.

Revenue & Expenses

Visualization of income flow from segment revenue to net income