-- 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.
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