Woodward Acquires Safran's North American Electromechanical Unit

Woodward, Inc. WWD has completed its acquisition of Safran’s Electronics & Defense electromechanical actuation business, with operations across the United States, Mexico and Canada.

The acquisition, initially announced in December 2024, includes obtaining intellectual property, operational assets, skilled talent and long-term customer agreements related to Horizontal Stabilizer Trim Actuation (HSTA) systems. These systems play a critical role in aircraft stabilization, ensuring safe and efficient flight operations with notable applications like the Airbus A350.

The A350 HSTA stands out as one of the most sophisticated electromechanical control systems in the realm of large commercial aviation. Alongside this, the deal includes a range of other electromechanical products and electronic control units designed for both commercial and business aircraft applications.

Management highlighted that the acquisition expands the electromechanical actuation portfolio and is an important element of the Aerospace growth strategy. Woodward stated that the A350 HSTA and the accompanying technologies align seamlessly with Woodward’s existing capabilities in electromechanical and electronic controls, reinforcing the company’s presence in primary flight control solutions.

Woodward, Inc. Price and Consensus

Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote

Woodward emphasized its commitment to ensuring a smooth integration for both employees and customers. The acquisition was made in the normal course of business and is not financially material. As such, specific financial details of the transaction were not disclosed. Any additional information, if applicable, will be shared in future periodic reports in line with regulatory requirements.

Apart from acquisitions, Woodward has been investing significantly in upgrading technologies to secure fresh businesses. It is spending on new manufacturing units and automation equipment to enhance efficiency as the company intends to accelerate production. At the Rockford facility, Woodward noted that the installation of advanced automation, including cobots (collaborative robots), has improved operational efficiency.

In fiscal 2024, Woodward completed a $55 million, multi-year transformation of the Aerospace Maintenance, Repair and Overhaul (MRO) facility in Loves Park, IL, to meet Commercial aftermarket opportunities. As part of this initiative, Woodward entered into a five-year MRO Services agreement with Lufthansa Technik pertaining to specific components it makes.

WWD’s Strong Outlook

The company expects fiscal 2025 sales to be between $3,375 million and $3,500 million compared with the prior guidance of $3,300 million to $3,500 million. Adjusted earnings per share are now expected to range from $5.95 to $6.25 compared with the previous guidance of $5.85 to $6.25.

Strength in Aerospace and Core Industrial (power generation, oil & gas, and marine transportation) units is aiding Woodward’s performance. Aerospace is riding on strong defense demand and a robust commercial after-market, partially offset by softer commercial OEM (owing to Boeing work stoppage) and defense after-market sales.

For fiscal 2025, Aerospace segment revenues are anticipated to increase in the range of 8-13% compared with 6-13% predicted earlier, whereas segment earnings (as a % of revenues) are still expected to be 20-21%. Industrial segment revenues are estimated to decline in the band of 7-9% compared with 7-11% projected earlier, whereas segment earnings (as a % of revenues) are expected to be 13-14%.

Woodward plans to release its fiscal 2025 third-quarter results on July 28, 2025.

WWD’s Zacks Rank & Stock Price Performance

Woodward currently carries a Zacks Rank #2 (Buy). Shares of the company have soared 34.3% in the past six months compared with the Aerospace - Defense Equipment industry's growth of 19.7%.

Image Source: Zacks Investment Research

Other Key Picks From the Aerospace Defense Equipment Space

Some other top-ranked stocks from the Aerospace Defense Equipment space are Triumph Group, Inc. TGI, Curtiss-Wright Corporation CW and Axon Enterprise, Inc. AXON. TGI presently sport a Zacks Rank #1 (Strong Buy), whereas CW and AXON carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

TGI’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 133.5%. In the last reported quarter, Triumph delivered an earnings surprise of 54.84%. Its shares have increased 52.1% in the past year.

CW’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 13.34%. In the last reported quarter, Curtiss-Wright delivered an earnings surprise of 17.99%. Its shares have improved 69% in the past year.

AXON’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 19.76%. In the last reported quarter, Axon delivered an earnings surprise of 11.02%. Its shares have surged 135.2% in the past year.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining 100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up 209%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com