Woodward, which was founded in 1870 and headquartered in Fort Collins, Colorado, designs, manufactures, and services advanced control solutions and system components for aircraft engines, industrial turbines, power generation, and mobile industrial equipment. The company operates in two segments, namely: Aerospace and Industrial. Geographically, it is segmented into US, Europe, China, Germany, Asia, and Others.

Woodward expands in South Carolina

On September 16, 2025, Woodward, Inc. announced an investment of $200m to build a 300,000 square feet manufacturing facility in Greer, South Carolina, for precision production of servo-hydraulic actuation systems for aircraft. This strategic investment reinforces its Tier-1 Airbus supplier role, expands its flight control capabilities, and supports future growth. Enhanced automation and vertical integration at the new site are expected to support efficiency, cost reduction, and margin improvement, driving long-term shareholder value.

Continued growth momentum

Woodward demonstrated decent performance over FY 21-24, achieving a revenue CAGR of 14%, reaching $3.3bn in FY 24, primarily driven by demand across aerospace and industrial markets, higher OEM and aftermarket sales, and strategic investments in facility upgrades. EBIT rose at a CAGR of 20.1% to $440.0m, with margins expanding by 192bp to 13.2%.

Over FY 21-24, ROA rose from 4.0% to 6.6%, and ROE rose from 9.9% to 17.6%.

Over Q3 25, Woodward experienced decent revenue growth, on account of the increase in Aerospace segment sales, attributed to price realization and increased volume. However, the operating margin contracted by 74bp to 13.1%.

In comparison, TransDigm Group Inc., a local peer, achieved a revenue CAGR of 18.3%, reaching $7.9bn over FY 21-24. EBIT grew at a CAGR of 28.3% to $3.6bn, with its margin expanding from 37.0% to 45.3%.

Strong stock returns

Over the past year, Woodward's stock rose by 60.1%, indicating robust performance and investor gains over the period. In comparison, TransDigm delivered negative returns of 3.7%. The company paid an annual dividend of exactly $1 in FY 24, resulting in a dividend yield of 0.6%.

Woodward is currently trading at P/E of 38.5x, based on the FY 25 estimated EPS of $6.8, which is higher than its 3-year historical average of 30.3x but lower than TransDigm (39.4x). The company is currently trading at an EV/EBIT of 29.8x, based on the FY 25 estimated EBIT of $540.4m, which is higher than its 3-year historical average of 22.5x and that of TransDigm Group, which is trading at 23.4x.

The stock is monitored by 10 analysts with six having 'Buy' ratings and four having 'Hold' ratings for a target price of $298.8, reflecting 13.9% upside potential over the current market price.

Analysts' views are supported by an estimated revenue CAGR of 7.5%, reaching $4.1bn over FY 24-27. EBIT is expected to rise at a CAGR of 12.9% to $724.2m with margin expansion of 239bp to 17.5% in FY 27. In addition, analysts estimate a net profit CAGR of 14.0% to $553.2m. Likewise, for TransDigm, the analysts estimate an EBIT CAGR of 13.9% and a net profit CAGR of 21.4% over FY 24-27.

Overall, Woodward has delivered strong historical growth, driven by robust demand and operational excellence in its aerospace business, solidifying its market leadership. With strategic investments in expanded capabilities, the company is well-positioned for continued performance momentum. However, it faces risks from supply chain disruptions, weakness in industrial markets, inflation and unfavorable product mix shifts.