Woodward Inc (WWD) Reports Strong Fiscal Year 2023 Results with Robust Sales and Earnings Growth
Woodward Inc (NASDAQ:WWD) sees a 21% increase in Q4 net sales, reaching $777 million.
Fiscal Year 2023 net earnings rise to $232 million, with a 22% surge in net sales totaling $2.91 billion.
Free cash flow for the fiscal year stands at $232 million, marking a significant improvement from the previous year.
The company anticipates continued strong demand, aiming for solid revenue growth and expanded earnings per share in Fiscal Year 2024.
On November 16, 2023, Woodward Inc (NASDAQ:WWD) released its 8-K filing, announcing its financial results for the fiscal year 2023, which ended on September 30, 2023. The company reported a 22% increase in net sales, which rose to $2.91 billion, compared to $2.38 billion in the previous fiscal year. Net earnings also saw a significant increase, reaching $232 million, or $3.78 per share, up from $172 million, or $2.71 per share, in the prior year.
Financial Performance Highlights
Woodward Inc (NASDAQ:WWD) experienced robust growth across its aerospace and industrial end markets, contributing to the impressive financial results. The company's Aerospace segment reported an 11% increase in net sales for the fourth quarter, while the Industrial segment saw a remarkable 39% increase. For the full fiscal year, the Aerospace segment's net sales grew by 16%, and the Industrial segment's net sales surged by 33%.
The company's earnings before interest and taxes (EBIT) for the fourth quarter stood at $108 million, a substantial increase from $67 million in the same quarter of the previous year. For the full fiscal year, EBIT reached $321 million, compared to $233 million in the prior year. Woodward Inc (NASDAQ:WWD) also reported a strong cash position, with net cash provided by operating activities totaling $309 million, and free cash flow of $232 million for the fiscal year.
Operational Excellence and Strategic Investments
Woodward Inc (NASDAQ:WWD)'s Chairman and Chief Executive Officer, Chip Blankenship, highlighted the company's strategic investments in operational excellence, which have led to reduced complexity, improved productivity, and increased output. These improvements have supported double-digit revenue growth and significant margin expansion. Blankenship expressed confidence in the company's ability to deliver solid revenue growth, expanded earnings per share, and robust cash flow in the coming fiscal year.
"We delivered strong results in fiscal 2023 driven by robust demand across our aerospace and industrial end markets as well as improved operational performance. Our Aerospace business continued to perform well throughout the year. In the second half of the year, our Industrial business began to realize the benefits from our strategic investments in operational excellence including reduced complexity, improved productivity, and increased output. These sustainable improvements supported double digit revenue growth and significant margin expansion," said Chip Blankenship, Chairman and Chief Executive Officer.
Fiscal Year 2024 Outlook
Looking ahead to fiscal year 2024, Woodward Inc (NASDAQ:WWD) expects continued strong demand for its products and services, with an outlook that includes increasing revenue and margin expansion in the Aerospace segment, and broad-based market strength and improving operational performance in the Industrial segment. The company's guidance for fiscal year 2024 forecasts sales between $3.10 billion and $3.25 billion, an effective tax rate of approximately 21%, free cash flow between $275 million and $325 million, capital expenditures of around $100 million, and earnings per share between $4.70 and $5.15.
Woodward Inc (NASDAQ:WWD) remains committed to delivering long-term sustainable growth and enhancing value for its shareholders, driven by a focus on operational excellence, talent development, and innovation.
For more detailed information on Woodward Inc (NASDAQ:WWD)'s financial performance and outlook, investors and interested parties are invited to listen to the live webcast of the company's investor conference call or access the recording and presentation slides on Woodward's website.
As Woodward Inc (NASDAQ:WWD) continues to navigate the complexities of the global market, its strong fiscal year 2023 performance and positive outlook for 2024 position the company for ongoing success and shareholder value creation.
Explore the complete 8-K earnings release (here) from Woodward Inc for further details.
This article first appeared on GuruFocus.
