Latest news with #Aerospace
Globe and Mail
14 hours ago
- Business
- Globe and Mail
ETFs in Focus in Light of Aerospace & Defense Q2 Earnings Boost
The uptrend in the Aerospace & Defense industry is mapped by the performance of the S&P Aerospace & Defense Select Industry Index, which has added 33% year to date, surpassing the S&P 500's 8.9% gain in the same period. The increase in military spending by global economies gives a significant boost to the U.S. Aerospace – Defense Industry. According to Statista, between 2020 and 2024, the United States commanded about 43% of the global market share, maintaining its position as the world's largest exporter of major weapons. Below, we highlight Q2 earnings results of a few renowned U.S. Aerospace – Defense Industry players. Earnings in Focus Northrop Grumman Northrop Grumman Corporation NOC reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%. Including one-time items, the company reported GAAP earnings of $8.15 per share, which improved 28% from the year-ago quarter's reported number of $6.36. The year-over-year improvement can be attributed to strong segment operating performance and a net after-tax benefit related to the divestiture of the company's training services business. The company's total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% year over company updated its 2025 guidance. NOC now expects its revenues in the range of $42.05-$42.25 billion, narrower than the previous guidance in the band of $42.00-$42.50 billion. NOC now expects adjusted earnings in the band of $25.00-$25.40 per share, higher than its earlier guided band of $24.95-$25.35. RTX Corporation RTX Corporation 's RTX second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter's level of $1.41, driven by growth in adjusted operating profit. RTX's second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024. Lockheed Martin Lockheed Martin Corporation LMT reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11. Including one-time items, the company reported GAAP earnings of $1.46 per share, lower than the prior-year quarter's recorded earnings of $6.85. The year-over-year deterioration in earnings was mainly due to lower consolidated operating profit generated in the second quarter of 2025 compared to the prior-year quarter. Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter. The company partially updated its 2025 guidance. Lockheed still expects to generate sales in the range of $73.75-$74.75 billion in 2025. ETFs to Consider The aerospace and defense industry maintains a moderately optimistic outlook. Given the current geopolitical climate, the trend of rising military spending is likely to persist. For investors looking to take a bet on Q2 results as well as a continued surge in military spending, the following Aerospace – Defense ETFs provide a great opportunity. Investors can consider iShares U.S. Aerospace & Defense ETF ITA, Invesco Aerospace & Defense ETF PPA, SPDR S&P Aerospace & Defense ETF XAR, Global X Defense Tech ETF SHLD and U.S. Global Technology and Aerospace & Defense ETF WAR. Boost Your Portfolio with Our Top ETF Insights Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week. Don't miss out on this valuable resource. It's free! Get it now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Global X Defense Tech ETF (SHLD): ETF Research Reports iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Invesco Aerospace & Defense ETF (PPA): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports RTX Corporation (RTX): Free Stock Analysis Report
Yahoo
18 hours ago
- Business
- Yahoo
Woodward Inc (WWD) Q3 2025 Earnings Call Highlights: Record Sales and Strategic Aerospace Advances
Revenue: Record net sales of $915 million, an increase of 18% year-over-year. Earnings Per Share (EPS): $1.76, up from $1.63 year-over-year. Aerospace Segment Sales: $596 million, a 15% increase year-over-year. Aerospace Margins: Expanded 140 basis points to 21.1%. Industrial Segment Sales: $319 million, a decrease of 3% year-over-year. Core Industrial Sales Growth: Excluding China on-highway and combustion, grew by 9%. Industrial Margins: Core Industrial margins expanded to 15.6% of sales, up 90 basis points. Free Cash Flow: $159 million for the first nine months, down from $225 million year-over-year. Debt Leverage: 1.5 times EBITDA as of June 30, 2025. Shareholder Returns: $172 million returned in the first nine months, including $124 million in share repurchases and $48 million in dividends. 2025 Sales Guidance: Revised to $3.45 billion to $3.525 billion. 2025 Adjusted EPS Guidance: Revised to $6.50 to $6.75. 2025 Free Cash Flow Guidance: Revised to $315 million to $350 million. Warning! GuruFocus has detected 6 Warning Sign with CDNS. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Woodward Inc (NASDAQ:WWD) reported record sales for the third quarter of 2025, with an 8% year-over-year increase. Aerospace segment sales reached a record $596 million, marking a 15% increase, driven by strong defense OEM sales and commercial services. The company secured a significant contract with Airbus to provide spoiler control actuators for the A350, enhancing its position in the aerospace market. Woodward Inc (NASDAQ:WWD) completed the acquisition of Safran's North American electromechanical actuation business, strengthening its capabilities in the aerospace sector. The company raised its full-year sales and earnings guidance based on strong year-to-date performance and a stable macro environment. Negative Points Industrial segment sales declined by 3%, primarily due to a significant drop in China on-highway sales. Free cash flow decreased to $159 million for the first nine months of 2025, down from $225 million, due to increased working capital. The company anticipates increased capital expenditures in 2026 and 2027 to support growth initiatives, which may impact free cash flow. Aerospace margins were impacted by an unfavorable mix due to growth in lower-margin defense OEM products. Supply chain challenges continue to affect aircraft deliveries, impacting the commercial OEM sales performance. Q & A Highlights Q: Chip, I thought I heard you say that LEAP and GTF aftermarket volumes are now close to legacy volumes. Could you clarify? A: Charles Blankenship, CEO: Yes, LEAP and GTF volumes are now in the same neighborhood as legacy volumes, though still short of the total. We forecast the crossover around 2028. The growth in LEAP and GTF is having a meaningful impact on our commercial Aero services revenue and margin. Q: Bill, can you explain the sequential margin decline in Aerospace in the third quarter and the expected improvement in the fourth quarter? A: William Lacey, CFO: The decline was due to strong growth in defense OE, which has lower profit margins, causing an unfavorable mix. For the fourth quarter, we expect incrementals to return to first-half levels, driven by smart defense program pricing and strong commercial aftermarket business. Q: Can you elaborate on the investments impacting the third quarter margin and the free cash flow reduction? A: William Lacey, CFO: Investments were made to drive productivity, including team leaders, operations supervisors, and manufacturing engineers. The free cash flow reduction is due to increased inventory to meet customer demands and improve supply chain visibility. Q: Regarding the A350 spoiler win, is this a broader play for future actuation wins on next-gen narrow-body aircraft? A: Charles Blankenship, CEO: The A350 spoiler actuator business is substantial, with 12 actuators per aircraft. The investment is significant but manageable, and we see it as a strategic move to position ourselves for future opportunities. Q: How do you view the growth in power generation over the coming years relative to OEMs like GE Vernova and Rolls-Royce? A: Charles Blankenship, CEO: We see similar growth to OEMs, but it can vary based on which platforms win applications. Our products are on various gas turbines and reciprocating engines, so our growth aligns with OEM forecasts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Globe and Mail
a day ago
- Business
- Globe and Mail
Woodward Q3 Sales Up 15 Percent
Key Points - Aerospace segment drove strong growth, with sales up 15.2% (GAAP) in Q3 FY2025 and margin expanding to 21.1%. - Free cash flow (non-GAAP) fell 27.8% year over year, - Management raised sales and adjusted EPS guidance for FY2025, but lowered adjusted free cash flow targets to $315–$350 million due to higher capital needs. These 10 stocks could mint the next wave of millionaires › Woodward (NASDAQ:WWD), a leading provider of control solutions for aerospace and industrial markets, released its earnings results for the third quarter of fiscal 2025 on July 28, 2025. The company reported revenue of $915 million (GAAP) for Q3 FY2025, outpacing consensus expectations of $886.15 million (GAAP). Earnings per share (EPS, GAAP) reached $1.76 for Q3 FY2025, also above the $1.63 analyst forecast (GAAP). This quarter was marked by a standout performance in the aerospace segment, despite ongoing difficulties in the industrial division and a marked drop in free cash flow. Overall, the company delivered improved profits and revenue (GAAP), but flagged soft spots and revised a key cash flow target downward. Metric Q3 2025 Q3 2025 Estimate Q3 2024 Y/Y Change EPS (GAAP) $1.76 $1.63 $1.63 8.0 % Revenue $915 million $886.15 million $847.7 million 8.0% EBIT (Non-GAAP) $137.2 million $131.9 million 4.0 % Free Cash Flow (Non-GAAP) $99 million $137 million (27.8 %) Revenue – Aerospace segment $596 million $518 million 15.2 % Revenue – Industrial segment $319 million $330 million -3.3 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report. About Woodward: Business Overview and Focus Areas Woodward designs and manufactures advanced control systems for the aerospace and industrial markets. The company develops technology to manage and optimize energy use, including systems for controlling the flow of fluids, combustion, and electrical power, as well as devices for precision movement in critical machines. The company's success depends on several key focus areas. A strong presence in aerospace and defense, especially through involvement in platforms like the Boeing 787 and F-35, is vital. In the industrial sector, Woodward's controls are used in power generation, oil and gas, and transportation—sectors sensitive to broad economic and regulatory trends. The company invests heavily in research and development to meet new efficiency and emissions standards. Long-standing relationships with major customers also remain central to its growth strategy. Quarterly Highlights: Segment Trends, Financials, and Key Events Woodward's quarterly results drew strength from the aerospace division. Aerospace sales rose 15.2% compared to the prior year, led by strong demand in defense original equipment (OEM, meaning items provided to plane makers and the military) and commercial aftermarket (spare parts and servicing). Defense OEM sales were up more than 55% for the three months ended June 30, 2025 versus the prior year, while commercial aftermarket revenue jumped 30% (GAAP). Segment margin—a percentage showing how much profit is left after costs within the division—expanded to 21.1%, from 19.7% last year. Management cited pricing power and higher sales volumes as drivers behind these gains, noting some investments in manufacturing and innovation that partly offset that growth. However, executives also warned that the unusually strong surge in aftermarket sales, particularly spare parts, is not likely to repeat at the same level in coming quarters. The industrial division faced persistent weakness. Segment sales fell 3.2% year over year for the three months ended June 30, 2025, pressured by a continued drop in China on-highway natural gas truck demand—a key issue for the transportation business line. Transportation-related revenue fell 12.0% (GAAP). Oil and gas saw double-digit growth, while power generation revenue was roughly flat. The industrial margin dropped to 14.9 %, from 18.1 % in the prior year, reflecting reduced volumes and lower profit contribution from China business. Management acknowledged the "lumpy" nature of these industrial markets, with results swinging on the timing of large orders and projects. Research and development spending (GAAP) continued to rise, reaching $41.1 million, as Woodward pushed forward on new offerings. Among highlights was the MicroNet XT, an advanced turbine control system for marine and industrial engines, which began deliveries to the U.S. Navy for use in destroyer-class ships. Free cash flow (non-GAAP)—a metric that subtracts capital spending from operating cash generation—fell 27.8% compared to the same period last year. Management linked the decrease to higher working capital requirements. The company returned $45 million to shareholders through share repurchases and paid $17 million in dividends for the period. Looking Ahead: Guidance and Investor Focus Woodward raised its full-year sales guidance (GAAP) to the range of $3,450–3,525 million, up from the previous forecast of $3,375–3,500 million. Adjusted EPS (non-GAAP) guidance was also lifted to $6.50–6.75, up from $5.95–6.25. However, management lowered its full-year adjusted free cash flow target to $315–350 million, down from $350–400 million. Key risks for investors include whether aerospace aftermarket and defense OEM demand can be sustained, and risks remain around continued China transportation weakness, tariff pressures of $10–15 million, and customer concentration, with the top five customers still accounting for a large share of total sales. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,041%* — a market-crushing outperformance compared to 183% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 28, 2025
Yahoo
2 days ago
- Business
- Yahoo
Boeing (BA) To Report Earnings Tomorrow: Here Is What To Expect
Aerospace and defense company Boeing (NYSE:BA) will be reporting results this Tuesday before the bell. Here's what investors should know. Boeing missed analysts' revenue expectations by 0.6% last quarter, reporting revenues of $19.5 billion, up 17.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Is Boeing a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Boeing's revenue to grow 28.5% year on year to $21.67 billion, a reversal from the 14.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.31 per share. Heading into earnings, analysts covering the company have mixed opinions about the business, with revenue estimates seeing 7 upward and 9 downward revisions over the last 30 days. Boeing has missed Wall Street's revenue estimates five times over the last two years. Looking at Boeing's peers in the aerospace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts' expectations by 8.6%, and Textron reported revenues up 5.4%, topping estimates by 2.4%. AAR traded up 13.4% following the results while Textron was down 8.9%. Read our full analysis of AAR's results here and Textron's results here. There has been positive sentiment among investors in the aerospace segment, with share prices up 6.8% on average over the last month. Boeing is up 11.3% during the same time and is heading into earnings with an average analyst price target of $240.08 (compared to the current share price of $233.27). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
3 days ago
- Business
- Yahoo
Woodward (WWD) Reports Earnings Tomorrow: What To Expect
Aerospace and defense company Woodward (NASDAQ:WWD) will be reporting results this Monday after market hours. Here's what to look for. Woodward beat analysts' revenue expectations by 5.7% last quarter, reporting revenues of $883.6 million, up 5.8% year on year. It was a strong quarter for the company, with a solid beat of analysts' organic revenue estimates and an impressive beat of analysts' EBITDA estimates. Is Woodward a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Woodward's revenue to grow 4.4% year on year to $885.2 million, slowing from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.64 per share. Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 10 analysts). Woodward has missed Wall Street's revenue estimates twice over the last two years. Looking at Woodward's peers in the aerospace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts' expectations by 8.6%, and Textron reported revenues up 5.4%, topping estimates by 2.4%. AAR traded up 13.4% following the results while Textron was down 8.9%. Read our full analysis of AAR's results here and Textron's results here. There has been positive sentiment among investors in the aerospace segment, with share prices up 6.7% on average over the last month. Woodward is up 5.3% during the same time and is heading into earnings with an average analyst price target of $266.31 (compared to the current share price of $259). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
