Woodward, a leading aerospace components manufacturer specializing in motion control, energy management, and fuel systems, has reported sustained demand across its aerospace segments for the second quarter of fiscal 2026. Despite geopolitical uncertainties and market fluctuations, the company increased its full-year sales guidance for the second consecutive quarter, citing strong performance in both legacy and current-generation aircraft support.
During the quarter, Woodward's sales grew by 23% year-over-year, with the aerospace segment accounting for approximately 65% of its $1.1 billion revenue. The company experienced a 36% increase in aftermarket revenue, driven by demand for replacement parts such as line replaceable units (LRUs) for large engines and the expansion of content on newer platforms like the Leap and PW1000G engine families.
Support for Current-Generation Aircraft
The company has ramped up support for key newer platforms, with a new facility in Spartanburg, South Carolina, expected to produce Airbus A350 spoiler actuation systems starting in 2027. Woodward also secured a contract last year to support electro-hydraulic actuation systems on the A350's spoilers, reflecting its role in supporting current-generation aircraft.
“Legacy services activity remains solid, and we’re seeing steady increases in volume for our control systems,”
CEO Chip Blankenship stated, highlighting that the demand for control systems on engines like the CFM Leap and Pratt & Whitney PW1000G continues to rise as deliveries increase and fleets mature. Despite some airlines indicating capacity reductions, demand for LRUs for repair has remained stable.
Woodward is also working to accelerate the support infrastructure for its Leap components, with companies like Lufthansa Technik and Air France unveiling licensed repair facilities. However, the procurement and calibration of test stands remain a significant timeline challenge, typically requiring nine to twelve months.
Driving the company's optimism, its revenues for the recent quarter surpassed $1 billion for the first time, prompting an upward revision of its sales forecast for fiscal 2026. The company expects overall growth of 20-23%, with aerospace specifically projected to grow by 21-24%, indicating a positive outlook despite ongoing market uncertainties.
