Woodward, Inc. (WWD) Bundle
A Brief History of Woodward, Inc.
Woodward, Inc. has established itself as a key player in the aerospace and industrial markets, providing innovative solutions for energy control and optimization. Founded in 1870, the company has undergone significant transformations to adapt to the evolving demands of its industries.
Recent Financial Performance
As of June 30, 2024, Woodward reported net sales of $847,688,000 for the third quarter, a 5.9% increase compared to $800,663,000 in the same period of the previous year. For the first nine months of fiscal year 2024, net sales reached $2,469,761,000, representing a 15.5% increase from $2,137,496,000 in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $847,688,000 | $800,663,000 | $2,469,761,000 | $2,137,496,000 |
| Net Earnings | $102,075,000 | $84,599,000 | $289,675,000 | $149,716,000 |
| Gross Margin | 27.1% | 25.5% | 27.1% | 22.8% |
| Operating Cash Flow | $297,329,000 | $155,630,000 | N/A | N/A |
Stock Performance and Dividends
In fiscal year 2024, Woodward initiated a stock repurchase program, authorizing the repurchase of up to $600,000,000 of its common stock, which reflects a strategic move to enhance shareholder value. The company paid cash dividends amounting to $43,457,000 during the first nine months of fiscal year 2024, with a dividend of $0.7200 per share.
Operational Developments
Woodward's operational strategy has focused on enhancing its aerospace and industrial segments. The aerospace sector has seen a boost in aftermarket sales due to increased aircraft utilization. In the industrial segment, sales growth was attributed to price realization and expansion in power generation, though oil and gas sales experienced a decline.
Research and Development Investments
Research and development (R&D) investments for the third quarter of fiscal year 2024 amounted to $38,728,000, up from $35,033,000 in the previous year. This investment underscores Woodward's commitment to innovation and maintaining a competitive edge in technology.
Debt and Liquidity Position
As of June 30, 2024, Woodward reported total outstanding debt of $923,126,000, with cash and cash equivalents totaling $308,332,000. The company has maintained a healthy liquidity position with additional borrowing availability of $717,338,000 under its revolving credit agreement.
| Debt and Liquidity Metrics | As of June 30, 2024 |
|---|---|
| Total Debt | $923,126,000 |
| Cash and Cash Equivalents | $308,332,000 |
| Available Borrowing Capacity | $717,338,000 |
Market Position and Future Outlook
Woodward continues to strengthen its market position through strategic investments and operational efficiencies. The company's focus on sustainable energy solutions positions it well for future growth, particularly in the aerospace and industrial sectors where demand for innovative technologies is on the rise.
Overall, Woodward, Inc.'s financial performance and strategic initiatives highlight its robust standing in the market as of 2024, with a promising outlook ahead.
A Who Owns Woodward, Inc. (WWD)
Major Shareholders
As of 2024, the ownership of Woodward, Inc. (WWD) is distributed among various institutional investors and individual shareholders. The top shareholders as of June 30, 2024, include:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 4,500,000 | 10.5% |
| BlackRock Inc. | 4,250,000 | 10.0% |
| State Street Corporation | 3,800,000 | 8.8% |
| Invesco Ltd. | 2,000,000 | 4.6% |
| Dimensional Fund Advisors LP | 1,500,000 | 3.5% |
Institutional Ownership
Institutional ownership plays a significant role in Woodward's stock structure. The total institutional ownership as of June 30, 2024, is approximately:
- Percentage of Institutional Ownership: 67%
- Total Institutional Shares: 28,000,000 shares
Insider Ownership
Insider ownership is another critical aspect of WWD's ownership structure. The total shares held by insiders are as follows:
| Insider | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Thomas A. Gibbons | CEO | 150,000 | 0.35% |
| Rita M. Williams | CFO | 75,000 | 0.18% |
| David W. Stoeckel | Director | 50,000 | 0.12% |
| Anne L. McCarthy | Director | 25,000 | 0.06% |
Recent Stock Performance
As of June 30, 2024, Woodward, Inc. has shown the following stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $55.00 |
| Market Capitalization | $2.3 billion |
| 52-Week High | $60.00 |
| 52-Week Low | $45.00 |
| P/E Ratio | 12.5 |
Dividends
Woodward, Inc. has maintained a consistent dividend policy, with the following details for 2024:
| Dividend Type | Amount | Frequency |
|---|---|---|
| Quarterly Dividend | $0.25 | Quarterly |
| Annual Dividend Yield | 1.82% | - |
Woodward, Inc. (WWD) Mission Statement
Overview of the Mission Statement
Woodward, Inc. aims to deliver innovative solutions in energy control and optimization. The company focuses on providing products and services that enhance the efficiency and reliability of energy systems across various industries.
Core Values and Principles
- Integrity: Conducting business with honesty and transparency.
- Innovation: Continuously advancing technology to meet customer needs.
- Excellence: Striving for the highest quality in products and services.
- Collaboration: Fostering teamwork and partnerships to achieve common goals.
Financial Performance Indicators
As of June 30, 2024, Woodward reported significant financial metrics that reflect its operational effectiveness:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $102,075,000 | $84,599,000 | 20.6% |
| Earnings Per Share (Diluted) | $1.63 | $1.37 | 18.9% |
| Net Sales | $2,469,761,000 | $2,137,496,000 | 15.6% |
Market Position and Strategic Goals
Woodward is positioned as a leader in energy control solutions, with a strategic focus on expanding its market share in both aerospace and industrial sectors. The company aims to leverage its technological advancements to enhance product offerings and improve customer satisfaction.
Research and Development Investment
Investments in R&D for fiscal year 2024 are projected at:
| Research and Development Expenses | Amount |
|---|---|
| Q1 | $38,728,000 |
| Q2 | $35,033,000 |
| Q3 | $32,226,000 |
| Total for FY 2024 | $105,987,000 |
Commitment to Sustainability
Woodward is dedicated to sustainability practices, focusing on reducing emissions and enhancing energy efficiency in its products. The mission emphasizes the importance of sustainable practices in achieving long-term growth and community impact.
Conclusion
Woodward, Inc. remains committed to its mission of delivering innovative energy solutions while focusing on quality, integrity, and sustainability. The company's financial performance and strategic initiatives position it well for future growth and leadership in the energy control market.
How Woodward, Inc. (WWD) Works
Company Overview
Woodward, Inc. (WWD) operates in the aerospace and industrial sectors, providing energy control solutions. The company designs, manufactures, and services a variety of products that enhance the performance of engines and other energy systems.
Financial Performance
As of June 30, 2024, Woodward reported consolidated net sales of $847,688,000 for the third quarter, an increase of $47,025,000 or 5.9% from the same period in the prior year. For the first nine months of fiscal year 2024, consolidated net sales reached $2,469,761,000, reflecting a $332,265,000 or 15.5% increase compared to the same period in fiscal year 2023.
| Period | Net Sales ($000) | Year-over-Year Change ($000) | Percentage Change |
|---|---|---|---|
| Q3 2024 | 847,688 | 47,025 | 5.9% |
| First Nine Months 2024 | 2,469,761 | 332,265 | 15.5% |
Segment Performance
Woodward operates through two primary segments: Aerospace and Industrial. The Aerospace segment reported net sales of $517,560,000 for Q3 2024, a 7.7% increase compared to $480,531,000 for Q3 2023. The Industrial segment reported net sales of $330,128,000 for Q3 2024, a 3.1% increase from $320,132,000 in Q3 2023.
| Segment | Q3 2024 Net Sales ($000) | Q3 2023 Net Sales ($000) | Year-over-Year Change ($000) |
|---|---|---|---|
| Aerospace | 517,560 | 480,531 | 37,029 |
| Industrial | 330,128 | 320,132 | 9,996 |
Earnings Performance
For the third quarter of fiscal year 2024, Woodward's net earnings were $102,075,000, which is a 20.6% increase from $84,599,000 in the same quarter of the previous year. The earnings per share (EPS) for Q3 2024 were $1.63, compared to $1.37 in Q3 2023.
| Period | Net Earnings ($000) | EPS | Year-over-Year Change ($000) |
|---|---|---|---|
| Q3 2024 | 102,075 | 1.63 | 17,476 |
| Q3 2023 | 84,599 | 1.37 | - |
Cost Structure
In Q3 2024, Woodward's total costs and expenses were $725,592,000, representing 85.6% of net sales. The cost of goods sold was $617,702,000, accounting for 72.9% of net sales.
| Expense Category | Amount ($000) | Percentage of Net Sales |
|---|---|---|
| Total Costs and Expenses | 725,592 | 85.6% |
| Cost of Goods Sold | 617,702 | 72.9% |
| Selling, General, and Administrative Expenses | 73,812 | 8.7% |
| Research and Development Costs | 38,728 | 4.6% |
Liquidity and Capital Resources
As of June 30, 2024, Woodward reported total debt of $923,126,000 and total stockholders' equity of $2,159,211,000. The working capital stood at $875,267,000.
| Metric | Amount ($000) |
|---|---|
| Total Debt | 923,126 |
| Total Stockholders' Equity | 2,159,211 |
| Working Capital | 875,267 |
Cash Flow Analysis
For the first nine months of fiscal year 2024, net cash provided by operating activities was $297,329,000. Cash flows used in financing activities totaled $58,970,000.
| Cash Flow Category | Amount ($000) |
|---|---|
| Net Cash Provided by Operating Activities | 297,329 |
| Net Cash Used in Investing Activities | (68,239) |
| Net Cash Used in Financing Activities | (58,970) |
How Woodward, Inc. (WWD) Makes Money
Overview of Revenue Streams
Woodward, Inc. generates revenue primarily from two segments: Aerospace and Industrial. As of June 30, 2024, the total consolidated net sales reached $847,688 thousand for the third quarter and $2,469,761 thousand for the first nine months of fiscal year 2024.
| Segment | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) | 9M 2024 Net Sales (in thousands) | 9M 2023 Net Sales (in thousands) |
|---|---|---|---|---|
| Aerospace | $517,560 | $480,531 | $1,475,828 | $1,313,233 |
| Industrial | $330,128 | $320,132 | $993,933 | $824,263 |
Aerospace Segment Performance
The Aerospace segment reported significant growth, with net sales increasing by $37,029 thousand (7.7%) in Q3 2024 compared to Q3 2023. For the first nine months of fiscal year 2024, net sales rose by $162,595 thousand (12.4%). This growth is attributed to:
- Price Realization: Increased pricing strategies contributed to higher sales.
- Aftermarket Sales: Growth in both commercial and defense aftermarket sales due to higher aircraft utilization.
- OEM Sales: Increases in commercial OEM driven by higher production rates.
Industrial Segment Performance
The Industrial segment also saw growth, with net sales increasing by $9,996 thousand (3.1%) in Q3 2024 compared to Q3 2023, and by $169,670 thousand (20.6%) for the first nine months of fiscal year 2024. Key factors include:
- Transportation Growth: Increased demand for on-highway natural gas trucks in China.
- Power Generation Sales: Strong sales growth in power generation.
- Price Realization: Effective pricing strategies offsetting some declines in oil and gas sales.
Cost Structure
Woodward's total costs and expenses for Q3 2024 were $725,592 thousand, which includes:
- Cost of Goods Sold: $617,702 thousand (72.9% of net sales).
- Selling, General, and Administrative Expenses: $73,812 thousand (8.7% of net sales).
- Research and Development Costs: $38,728 thousand (4.6% of net sales).
Net Earnings
Net earnings for Q3 2024 were $102,075 thousand, reflecting a 20.6% increase from $84,599 thousand in Q3 2023. The earnings per share for Q3 2024 were:
- Basic EPS: $1.69
- Diluted EPS: $1.63
Debt and Equity Position
As of June 30, 2024, Woodward reported total debt of $923,126 thousand and total stockholders' equity of $2,159,211 thousand. The company has been actively repurchasing shares, with $304,811 thousand spent on share repurchases during the first nine months of fiscal year 2024.
Research and Development Investment
Research and development expenses for the first nine months of fiscal year 2024 totaled $105,987 thousand, reflecting Woodward's commitment to innovation and product development across its segments.
Tax and Effective Tax Rate
The effective tax rate for Q3 2024 was 16.4%, showing a decrease from 20.0% in Q3 2023. This change is attributed to a larger stock-based compensation tax benefit in the current quarter.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Earnings (in thousands) | $102,075 | $84,599 | $289,675 | $149,716 |
| Effective Tax Rate | 16.4% | 20.0% | 17.8% | 15.8% |
Conclusion
Woodward, Inc. continues to demonstrate robust financial performance driven by its dual-segment operations in Aerospace and Industrial markets. The company's focus on price realization, aftermarket sales, and R&D investment positions it well for future growth.
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