Woodward’s $1.8B Buyback Signals Confidence in Aerospace & Industrial Growth

NEW YORK, NY – November 20, 2025

Expanding Shareholder Returns

Woodward, Inc. (NASDAQ: WWD) announced today a new $1.8 billion share repurchase authorization, replacing and significantly expanding its previous $600 million program which was completed ahead of schedule. The move, signaling robust financial health and confidence in future performance, comes as the aerospace and industrial sectors navigate a period of both opportunity and complexity. The company intends to use the authorization over the next three years.

This isn’t simply about returning capital to shareholders; it’s a statement about Woodward’s positioning within a shifting landscape,” said one industry analyst. “The fact that they accelerated the previous buyback and are now committing to nearly three times that amount demonstrates a high degree of conviction in their long-term prospects.”

Navigating a Competitive Landscape

Woodward operates as a global leader in energy conversion and control solutions, serving critical applications in both aerospace and industrial markets. The company designs, manufactures, and services systems used in demanding environments, including fluid, combustion, electrical, propulsion, and motion control. The increased repurchase program comes amid growing competition from players like Eaton, Honeywell, and Parker Hannifin, all of whom are actively deploying capital to reward shareholders or fund strategic growth initiatives.

Eaton, for example, recently announced its own equity buyback plan, and Honeywell is committed to repurchasing at least $3 billion of its stock this year. Parker Hannifin has also been active in share repurchases and dividend increases. “Woodward’s move isn't happening in a vacuum,” explained a financial strategist. “They’re responding to the broader trends in capital allocation within the industry, while also demonstrating their own financial strength.”

Financial Health and Strategic Allocation

The decision to expand the share repurchase program is underpinned by Woodward’s strong financial performance. The company has exceeded $3 billion in revenue for the first time in fiscal year 2024, and analysts project continued growth in fiscal year 2025, with revenues expected to reach $3.426 billion. The company also boasts a significantly improved EBIT margin, up 820 basis points to 15.1%.

“Woodward has shown consistent and disciplined financial management,” said another industry expert. “They’re prioritizing shareholder returns alongside investments in innovation and strategic acquisitions.” The company's capital allocation priorities are clear: reinvest in the business, pursue selective M&A, and return cash to shareholders. “This isn’t a knee-jerk reaction to market conditions; it's a deliberate and strategic approach to value creation.”

Analysts currently estimate Woodward's earnings for fiscal year 2025 at around $387.78 million. The increase in repurchase authorization is expected to enhance earnings per share by reducing the number of outstanding shares. Woodward’s average analyst price target currently sits around $279, representing a potential upside from current trading levels.

Importantly, the company completed its previous $600 million repurchase program ahead of schedule, highlighting its efficient capital allocation. “They didn’t just announce a buyback; they executed on their commitment,” said one market observer. “That speaks volumes about their operational discipline.” The company is slated to report its fourth quarter and full-year results on November 24, offering a more detailed look into its recent performance and future outlook.

While prioritizing share repurchases, Woodward remains committed to innovation and strategic acquisitions. The company continuously invests in research and development to enhance its product offerings and expand its market reach.