Wire
Woodward Faces Long-Term Earnings Upside From Growing LEAP, GTF Engine Repair Activity, RBC Says
Woodward (WWD) faces long-term earnings upside from growing LEAP and GTF jet engine maintenance, repair overhaul activity, with the engines representing revenues of about $850 million by 2030 and over $3 billion in 2040, RBC Capital Markets said in a research note emailed Friday.RBC said that Woodward is estimated to generate about half of its 2026 earnings before interest and taxes from aftermarket services, and its revenue will include 44% contribution from commercial aerospace, 22% from defense, and 34% from industrial business.Woodward is further slated to see its commercial aftermarket mix grow from about 23% in fiscal 2025 revenue to 27% in fiscal 2028, driving a structurally higher aftermarket mix and margin profile, RBC said.Additionally, RBC said it expects elevated near-term capital expenditure, supporting Woodward's Airbus A350 spoiler actuation contract win and other investments, and continued buybacks from the company.RBC initiated coverage on Woodward's stock with an outperform rating and a $450 price target.Price: $395.91, Change: $+21.00, Percent Change: +5.60%
$WWD