Woodward, Inc. (WWD)

Woodward is an independent designer, manufacturer, and service provider of control solutions for the aerospace and industrial markets. Its fluid energy, combustion control, electrical energy, and motion control systems are meant to help customers offer cleaner, more reliable, and more efficient equipment. The company focuses on energy control and optimization, and it also provides aftermarket repair, maintenance, replacement, and other service support for its installed products. It was established in 1870 and incorporated in 1902.

The company reports two segments. Aerospace designs, manufactures, and services fuel, air, combustion, and motion control products. These include fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, as well as flight deck controls, servocontrols, motors, and sensors. They are used on commercial and private aircraft, rotorcraft, military aircraft, guided weapons, and other defense systems, on platforms such as the Airbus A320neo, Boeing 737 MAX and 787, F-35, and Apache and Blackhawk helicopters. Industrial designs, produces, and services actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors. They are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines that run on fuels such as natural gas, diesel, heavy fuel oil, and lower carbon alternatives. This equipment serves power generation, oil and gas, mining, marine, locomotive, and other industrial applications.

Customers are mainly original equipment manufacturers (OEMs), equipment packagers, and end users. Aerospace sells to OEMs, tier-one suppliers, prime contractors, airlines, repair facilities, and military depots. Industrial sells mainly to OEMs, and also through independent distributors, authorized system integrators, and repair and overhaul facilities, and directly to end users. In fiscal 2024 the five largest customers made up about 35% of net sales, and no customer reached 10%. RTX Corporation was the largest at about 9%. Sales to the U.S. Government, direct or indirect, were about 17% of sales. Aerospace competitors include divisions of Eaton, Honeywell, Moog, Parker Hannifin, and RTX. Industrial competitors include Emerson, EControls, Heinzmann, Hoerbiger, Meggitt, Robert Bosch, and Triconix. Some OEM customers can make similar products internally. Certification requirements act as barriers to entry.

Woodward is headquartered in Fort Collins, Colorado, and operates manufacturing and assembly plants primarily in the United States, Europe, and Asia. Its products are mechanical, electronic, and electromechanical systems. The main raw materials are aluminum, iron, and steel, with smaller amounts of gold, copper, and nickel. It uses global strategic sourcing and generally has numerous suppliers available. It funds research and development mainly with its own money, working closely with customers on programs such as the CFM LEAP and Pratt & Whitney GTF engines. As of October 31, 2024, it employed about 9,300 full-time members, roughly 2,880 of them outside the United States, mostly in Germany, Poland, and China.