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Sep 30, 2022
Woodward Q4 2022 Earnings Report
Reported financial results for the fourth quarter and fiscal year 2022.
Key Takeaways
Woodward's Q4 2022 net sales increased by 12% to $640 million, while net earnings rose to $54 million, or $0.88 per share, compared to $50 million, or $0.76 per share in the same period last year. Profitability was impacted by labor and material inflation, as well as global supply chain and labor disruptions.
Net sales for the fourth quarter of fiscal 2022 were $640 million, a 12 percent increase compared to the prior year.
Net earnings for the fourth quarter of 2022 were $54 million, or $0.88 per share, compared to $50 million, or $0.76 per share.
Aerospace segment net sales for the fourth quarter of fiscal 2022 were $408 million, an 8 percent increase.
Industrial segment net sales for the fourth quarter of fiscal 2022 were $232 million, a 20 percent increase.
Woodward
Woodward
Forward Guidance
Woodward’s fiscal 2023 outlook assumes improving operational and financial performance throughout the year 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 fiscal year 2023, with the pace of improvement expected to increase in the second half of the year. However, the pace 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.
- Earnings per share is expected to be between $3.15 and $3.60 based on approximately 61 million of fully diluted weighted average shares outstanding.