Woodward, Inc. (NASDAQ: WWD) has approved a new $1.8 billion share repurchase authorization that will span the next three years. The board’s decision follows the completion of a $600 million program earlier in November, underscoring the company’s disciplined approach to returning capital to shareholders.
The authorization comes on the heels of a record fiscal year 2024, in which Woodward generated more than $3 billion in revenue and posted its highest earnings per share to date. The company’s cash‑generating ability is strong, with a robust balance sheet that has supported a history of capital returns—approximately $2 billion has been returned to shareholders over the past decade, representing about 78% of net earnings.
Chief Executive Officer Chip Blankenship said the new program reflects the board’s confidence in Woodward’s long‑term growth trajectory, robust cash generation, and commitment to delivering compelling shareholder returns. Chief Financial Officer Bill Lacey added that the company’s capital allocation priorities are first to reinvest in the business, second to selectively pursue strategic M&A, and third to return cash to shareholders through dividends and share repurchases.
Woodward’s two main business segments—Aerospace and Industrial—continue to drive growth. Aerospace revenue rose on strong demand from commercial and defense aftermarket customers, while the Industrial segment benefited from increased activity in power generation, oil & gas, and marine transportation. The mix shift toward higher‑margin aerospace contracts has helped support earnings growth despite modest cost pressures in the industrial side.
The $1.8 billion authorization provides Woodward with additional flexibility to manage its capital structure and enhance earnings per share. By reducing the number of outstanding shares, the company can lift EPS and signal confidence in its cash‑flow generation. The move also aligns with the board’s broader strategy of balancing reinvestment, selective acquisitions, and shareholder returns, positioning Woodward to capitalize on opportunities in both core markets while maintaining a strong balance sheet.
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