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Woodward, Inc. Is Rebuilding for Takeoff—Will Automation and Aerospace Demand Fuel the Next Upswing?

Woodward, Inc. presented a strong start to its fiscal year 2026 with notable financial performance, reflecting robust demand across its Aerospace and Industrial segments. The company’s first-quarter results showcased a 29% increase in sales year-over-year, reaching $996 million, and a 54% rise in earnings per share, a notable achievement against a backdrop of global supply chain challenges. However, Woodward acknowledged lingering inefficiencies in inventory management and supply chain alignment, which may restrict potential improvements until late 2026 or even 2027. In the Aerospace segment, sales rose by 29%, driven primarily by a 50% increase in commercial services sales. This growth in services was due to heightened activity supporting legacy aircraft, as well as increased volumes in LEAP and GTF engines. The segment’s profitability improved with a 420 basis point margin expansion, attributed to solid price realization and increased volumes.