On November 25, 2024, Woodward Inc (WWD, Financial) released its 8-K filing reporting record financial results for its fiscal year 2024, ending September 30, 2024. The company, a leading designer and manufacturer of control solutions for aerospace and industrial markets, achieved significant milestones in both sales and earnings, reflecting robust demand and operational excellence.
Fiscal Year 2024 Financial Highlights
Woodward Inc (WWD, Financial) reported net sales of $3.3 billion for fiscal year 2024, marking a 14% increase from the previous year. The company's earnings per share (EPS) reached $6.01, a substantial 59% rise compared to fiscal year 2023. These figures exceeded the annual analyst estimates of $5.82 EPS and $3.281 billion in revenue, showcasing the company's strong performance.
In the fourth quarter alone, Woodward Inc (WWD, Financial) achieved net sales of $855 million, a 10% increase year-over-year, with an EPS of $1.36, surpassing the quarterly analyst estimate of $1.25. The adjusted EPS for the quarter was $1.41, reflecting a 6% growth from the same period last year.
Operational Achievements and Challenges
The company's success was driven by increased sales in both its Aerospace and Industrial segments. In Aerospace, both commercial and defense original equipment manufacturer (OEM) sales rose due to capacity improvements, while aftermarket sales benefited from high aircraft utilization. The Industrial segment saw growth in power generation and transportation sales.
We delivered record sales in fiscal 2024 with Woodward revenue exceeding $3 billion for the first time. Robust end market demand along with contributions from operational excellence fueled significant sales growth and earnings expansion," said Chip Blankenship, Chairman and Chief Executive Officer.
Despite these achievements, Woodward Inc (WWD, Financial) faced challenges such as inflationary pressures and a decline in sales related to China on-highway natural gas trucks, which could impact future performance.
Financial Metrics and Analysis
Key financial metrics from the income statement include a 61% increase in net earnings to $373 million and a 47% rise in adjusted net earnings to $379 million for the fiscal year. The company's effective tax rate increased to 17.8% from 15.7% in the previous year.
On the balance sheet, Woodward Inc (WWD, Financial) reported total debt of $872 million, a 21% increase from the prior year, with a debt to EBITDA leverage ratio of 1.4x. Cash from operating activities grew by 42% to $439 million, while free cash flow increased by 48% to $343 million, highlighting strong cash generation capabilities.
| Metric | Q4 2024 | FY 2024 | Year-over-Year Change |
|---|---|---|---|
| Net Sales | $855M | $3.3B | +14% |
| EPS | $1.36 | $6.01 | +59% |
| Adjusted EPS | $1.41 | $6.11 | +45% |
| Cash from Operations | $142M | $439M | +42% |
| Free Cash Flow | $118M | $343M | +48% |
Segment Performance
The Aerospace segment reported a 22% increase in revenue to $2.03 billion, with segment earnings rising by 33% to $385 million. The Industrial segment, despite a 6% decline in fourth-quarter revenue, achieved a 13% increase in annual revenue to $1.3 billion, with segment earnings up by 42% to $230 million.
Woodward Inc (WWD, Financial)'s strategic focus on operational excellence and innovation positions it well for continued growth in fiscal year 2025, despite anticipated challenges in specific markets. The company's ability to adapt and capitalize on market opportunities will be crucial in maintaining its upward trajectory.
Explore the complete 8-K earnings release (here) from Woodward Inc for further details.
