Free cash flow remains highly volatile, ranging from 0.1% to 18.2% of revenue, while capital expenditures have increased to 4.8% of revenue in 2026Q2 to support specialized manufacturing.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 564.22M | 471.29M | 439.09M | 306.31M | 193.64M | 464.67M | 349.49M | 388.37M | 299.29M | 307.54M | 435.38M | 287.43M | 268.08M | 222.59M | 141.93M | 114.62M | 184.57M | 218.65M | 125.35M | 117.72M | 80.54M | 69.43M | 85.22M | 60.77M | 91.39M | 86.99M | 55.21M | 59.9M | 43.1M | 56.1M | 52.5M |
| Operating CF Margin % | - | 13.21% | 13.21% | 10.51% | 8.13% | 20.69% | 14% | 13.39% | 12.87% | 14.65% | 21.52% | 14.1% | 13.4% | 11.5% | 7.61% | 6.7% | 12.67% | 15.29% | 9.96% | 11.29% | 9.42% | 8.39% | 12.01% | 10.36% | 13.44% | 12.82% | 9.24% | 10.04% | 8.79% | 12.69% | 12.58% |
| Operating CF Growth % | 294.84% | 7.33% | 43.35% | 58.19% | -58.33% | 32.96% | -10.01% | 29.76% | -2.68% | -29.36% | 51.47% | 7.22% | 20.44% | 56.83% | 23.82% | -37.9% | -15.59% | 74.43% | 6.49% | 46.17% | 15.99% | -18.52% | 40.21% | -33.5% | 5.06% | 57.56% | -7.83% | 38.98% | -23.17% | 6.86% | 67.62% |
| Net Income | 513.8M | 442.11M | 372.97M | 232.37M | 171.7M | 208.65M | 240.4M | 259.6M | 180.38M | 200.51M | 180.84M | 181.45M | 165.84M | 145.94M | 141.59M | 132.24M | 110.84M | 94.35M | 121.88M | 98.16M | 69.9M | 55.97M | 31.38M | 12.35M | 42.68M | 53.07M | 46.98M | 30.8M | 21.6M | 18.1M | 22.1M |
| Depreciation & Amortization | 57.84M | 113.28M | 116.17M | 119.74M | 120.63M | 129.52M | 131.16M | 142M | 116.13M | 80.92M | 69.04M | 75.23M | 77.35M | 74.23M | 68.62M | 75.39M | 75.62M | 63.95M | 35.45M | 32.92M | 29.02M | 31.54M | 32.76M | 32.42M | 32.09M | 32.73M | 30.42M | 32M | 26.6M | 22.8M | 23.4M |
| Stock-Based Compensation | 12.3M | 31.67M | 33.05M | 0 | 20.11M | 21.48M | 22.9M | 0 | 18.23M | 0 | 15.12M | 0 | 0 | 0 | 0 | 0 | 0 | 5.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -50.85M | -52.36M | -44.61M | -40.16M | -23.23M | -11.96M | 1.31M | -10.06M | -30.18M | 22.77M | -52.74M | 15.5M | -6.7M | 8.35M | -3.73M | -10.32M | 16.36M | 17.23M | 10.96M | 12.47M | -13.48M | 2.63M | -1.99M | 8.54M | 1.24M | 1.3M | -9K | 4.3M | -1M | 0 | -800K |
| Other Non-Cash Items | 206.58M | -18.73M | -457K | 22.64M | -1.77M | -4.45M | -16.18M | 17.83M | -1.44M | 13.61M | 245.64M | 6.77M | 3.35M | 4.33M | 2.64M | 3.9M | 2.04M | -2.65M | -9.33M | -6.05M | 347K | -7.57M | 2.42M | 2.92M | 4.39M | -2.35M | 451K | 4.4M | 6.4M | 10.8M | -1.2M |
| Working Capital Changes | 92.28M | -44.68M | -38.04M | -28.29M | -93.8M | 121.44M | -30.1M | -21M | 16.17M | -10.27M | -22.51M | 8.47M | 28.24M | -10.26M | -67.19M | -86.59M | -20.29M | 40.27M | -33.6M | -19.79M | -5.25M | -13.13M | 20.64M | 1.24M | 3.12M | 157K | 49K | -13.1M | -17.7M | 4.4M | 9M |
| Change in Receivables | 17.27M | -49.95M | -15.37M | -137M | -98.83M | 24.75M | 30.07M | -30.51M | -6.49M | -53.15M | -9.19M | 14.85M | 30.88M | -9.77M | -59.06M | -49.39M | -40.69M | 37.76M | -26.47M | -20.77M | -8.73M | -9.21M | -9.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -42K | -49.62M | -84.94M | 3.23M | -110.2M | 18.87M | 61.02M | -49.19M | -7.66M | -10.86M | -17.66M | -8.82M | -27.79M | -1.49M | -18.7M | -76.64M | 5.9M | 52.59M | -36.66M | -8.59M | 1.14M | -11.12M | -10.59M | 13.72M | 9.03M | -25.13M | -3.75M | 2.1M | -8.3M | 7.3M | -600K |
| Change in Payables | 70.88M | 56.82M | 63.66M | 67.45M | 122.96M | 61.79M | -153.32M | 48M | -2.28M | 64.66M | 17.46M | 1.43M | 24.07M | 16.06M | 11.69M | 27.68M | 34.43M | -47.68M | 6.08M | 16.96M | -2.51M | 6.42M | 26.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -214.88M | -119.55M | -89.22M | -73.55M | -65.45M | -35.3M | -6.88M | -102.53M | -896.57M | -91.87M | -173.95M | -284.08M | -205.83M | -340.04M | -64.62M | -87.14M | -52.13M | -714.13M | -35.91M | -67.05M | -31.02M | -22.91M | -20.27M | -75.7M | -48.21M | -61.7M | 15.74M | -18M | -207.9M | -28.6M | -20.1M |
| Capital Expenditures | -175.66M | -130.93M | -96.28M | -76.5M | -52.87M | -37.69M | -47.09M | -99.07M | -127.14M | -92.34M | -175.69M | -286.61M | -207.11M | -141.6M | -64.9M | -48.26M | -28.1M | -28.95M | -37.52M | -31.98M | -31.71M | -26.61M | -18.7M | -18.8M | -22.9M | -30.89M | -27.42M | -22.9M | -202.7M | -21.2M | -21.2M |
| CapEx % of Revenue | 4.39% | 3.67% | 2.9% | 2.62% | 2.22% | 1.68% | 1.89% | 3.42% | 5.47% | 4.4% | 8.68% | 14.06% | 10.35% | 7.31% | 3.48% | 2.82% | 1.93% | 2.02% | 2.98% | 3.07% | 3.71% | 3.22% | 2.63% | 3.2% | 3.37% | 4.55% | 4.59% | 3.84% | 41.33% | 4.79% | 5.08% |
| Acquisitions | -39.3M | 8.43M | 4.09M | 1.37M | -15.51M | 154K | 40.62M | 1.01M | -769.19M | 3.74M | 6.66M | 2.53M | 0 | -198.44M | 283K | -47.1M | -24.34M | -685.18M | 1.61M | -35.06M | 698K | 3.71M | -1.57M | -57.67M | -25.75M | -31.21M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 65K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.28M | 0 | 0 | 8.22M | 312K | 0 | 0 | 0 | 0 | 0 | 0 | 770K | 439K | 404K | 43.15M | 4.9M | -5.2M | -7.4M | 1.1M |
| Cash from Financing | -221.89M | -313.93M | -218.05M | -194.24M | -442.38M | -136.32M | -290.24M | -263.36M | 606M | -211.81M | -260.99M | -25.45M | 9.48M | 102.47M | -88.28M | -55.98M | -128.99M | 487.94M | -48.9M | -66.5M | -51.43M | -10.5M | -39.9M | 8.32M | -24.51M | -23.22M | -70.79M | -43M | 162.6M | -25.2M | -31.4M |
| Debt Issued (Net) | 200.89M | -180.67M | 141.18M | -67.58M | 66M | -101.64M | -264.2M | -150.03M | 636.41M | -124.51M | -124.74M | 141M | 158.71M | 156.06M | -33.09M | -36.6M | -106.38M | 504.97M | -17.72M | -18.44M | -22.54M | 1.98M | -30.39M | 27.49M | -13.89M | -13.38M | -61.48M | -32.1M | 177.7M | -11.3M | -19.7M |
| Equity Issued (Net) | -353.41M | -68.28M | -300.94M | -75.63M | -463.4M | 1.36M | 11.62M | -74.27M | 9.13M | -57.56M | -109.65M | -148.76M | -131.72M | -37.38M | -37.82M | -4.36M | -2.51M | 3.77M | -30.36M | -43.1M | -18.14M | -618K | 1.33M | -8.46M | 103K | 381K | 649K | -700K | -5M | -3.6M | -1.3M |
| Dividends Paid | -69.38M | -64.97M | -58.29M | -51.03M | -44.98M | -36.04M | -37.66M | -39.07M | -34M | -29.75M | -26.61M | -24.65M | -21.26M | -21.87M | -21.35M | -18.58M | -17.09M | -16.29M | -15.87M | -14.75M | -13.74M | -11.86M | -10.83M | -10.71M | -10.73M | -10.53M | -10.47M | -10.5M | -10.5M | -10.7M | -10.8M |
| Share Repurchases | -448.66M | -172.86M | -390.82M | -126.38M | -485.3M | -33.34M | -13.35M | -110.31M | 0 | -71.75M | -125.54M | -158.76M | -141.49M | -45.75M | -44.11M | -6.84M | -4.51M | -866K | -39.8M | -50.95M | -22.31M | -7.29M | -1.55M | -9.5M | -286K | 0 | -1.76M | -1M | -5.2M | -3.8M | -1.7M |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.54M | 0 | 0 | 6.96M | 3.75M | 5.66M | 3.99M | 3.56M | -3M | -4.5M | 15.05M | 9.79M | 2.99M | 0 | 0 | 0 | 0 | 303K | 507K | 300K | 400K | 400K | 400K |
| Net Change in Cash | 137.03M | 45.16M | 144.82M | 29.6M | -340.62M | 295.19M | 54.2M | 15.48M | -3.96M | 6.46M | -1.11M | -33.09M | 66.73M | -13.27M | -12.71M | -31.04M | 4.72M | -8.97M | 38.2M | -12.08M | -879K | 35.7M | 24.84M | -5.77M | 19.29M | 1.23M | -1.13M | -2M | -2.5M | 1.9M | 600K |
| Free Cash Flow | 388.56M | 340.37M | 342.81M | 229.81M | 140.77M | 426.98M | 302.4M | 289.3M | 172.15M | 215.2M | 259.69M | 817K | 60.98M | 80.99M | 77.03M | 66.37M | 156.47M | 189.71M | 87.84M | 85.73M | 48.82M | 42.82M | 66.52M | 41.97M | 68.5M | 56.1M | 27.79M | 37M | -159.6M | 34.9M | 31.3M |
| FCF Margin % | 9.72% | 9.54% | 10.31% | 7.88% | 5.91% | 19.01% | 12.12% | 9.98% | 7.4% | 10.25% | 12.84% | 0.04% | 3.05% | 4.18% | 4.13% | 3.88% | 10.74% | 13.26% | 6.98% | 8.23% | 5.71% | 5.17% | 9.37% | 7.15% | 10.07% | 8.27% | 4.65% | 6.2% | -32.54% | 7.89% | 7.5% |
| FCF Growth % | 23.22% | -0.71% | 49.17% | 63.25% | -67.03% | 41.2% | 4.53% | 68.05% | -20% | -17.13% | 31685.43% | -98.66% | -24.71% | 5.15% | 16.06% | -57.58% | -17.52% | 115.97% | 2.45% | 75.6% | 14.03% | -35.63% | 58.48% | -38.72% | 22.09% | 101.85% | -24.88% | 123.18% | -557.31% | 11.5% | 153.79% |
| FCF per Share | 6.32 | 5.54 | 5.52 | 3.74 | 2.23 | 6.51 | 4.71 | 4.49 | 2.70 | 3.39 | 4.09 | 0.01 | 0.90 | 1.16 | 1.10 | 0.95 | 2.24 | 2.75 | 1.26 | 1.22 | 0.69 | 0.61 | 0.96 | 0.61 | 0.99 | 0.81 | 0.41 | 0.55 | -2.34 | 0.51 | 0.45 |
| FCF Conversion (FCF/Net Income) | 0.76x | 1.07x | 1.18x | 1.32x | 1.13x | 2.23x | 1.45x | 1.50x | 1.66x | 1.53x | 2.41x | 1.58x | 1.62x | 1.53x | 1.00x | 0.87x | 1.67x | 2.32x | 1.03x | 1.20x | 1.15x | 1.24x | 2.72x | 4.92x | 2.14x | 1.64x | 1.18x | 1.94x | 2.00x | 4.71x | 2.38x |
| Interest Paid | 15.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -31.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial statements, Woodward's operating cash flow to net income ratio has fluctuated significantly, reaching a low of 0.40 in 2025Q1 and a high of 1.70 in 2025Q4, indicating that reported earnings are frequently decoupled from actual cash generation due to timing differences.
The wide variance in the OCF/NI ratio suggests that accrual-based accounting for long-term aerospace contracts creates substantial quarterly noise. Investors should monitor whether this volatility reflects genuine operational shifts or merely the timing of milestone payments within the company's complex engine program delivery schedules.
Based on the latest quarterly data, Woodward's free cash flow margin has shown extreme inconsistency, ranging from a negligible 0.1% in 2025Q1 to a peak of 18.2% in 2025Q4, highlighting a lack of predictable cash conversion despite the company's strong competitive position in aerospace components.
This erratic FCF trajectory appears to be driven by the interplay between heavy R&D investment and the lumpy nature of working capital requirements. The inability to maintain a stable FCF margin suggests that the company's cash profile remains highly sensitive to the timing of OEM production cycles.
According to recent SEC filings, Woodward's capital expenditures have trended upward, with CapEx as a percentage of revenue reaching 4.8% in 2026Q2, which suggests a sustained commitment to maintaining specialized manufacturing capabilities required for high-precision flight-critical components in a competitive aerospace environment.
The recent increase in capital intensity may indicate that the company is investing in capacity expansion to meet the demands of narrowbody aircraft production. Analysts should evaluate whether these investments are yielding commensurate returns or if they represent a defensive necessity to preserve the firm's technical moat.
As indicated by the quarterly cash flow data, working capital changes have been a major source of volatility, with a significant $130.9 million inflow in 2026Q2 following a $130.9 million outflow in 2026Q1, reflecting the company's struggle to manage inventory and receivables effectively.
The rapid swings in working capital suggest that supply chain bottlenecks or shifts in OEM delivery schedules are forcing the company to carry higher inventory levels. This instability in cash flow management warrants further investigation into the firm's ability to optimize its cash conversion cycle amid production constraints.
Based on reported figures, Woodward has prioritized share repurchases, with $225.9 million deployed in 2026Q2 alone, which appears aggressive relative to the company's fluctuating free cash flow and suggests a management preference for returning capital to shareholders over building a larger cash reserve.
The scale of these buybacks, particularly when FCF is inconsistent, may indicate a high level of confidence in future cash flows or a desire to offset dilution. Investors should consider whether this capital allocation strategy limits the firm's flexibility to pursue strategic acquisitions or respond to potential industry downturns.
Quick answers to the most common questions about buying WWD stock.
Woodward, Inc. (WWD) generated $471.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Woodward, Inc. (WWD) generated $340.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Woodward, Inc. (WWD) spent $130.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Woodward, Inc. (WWD) returned $65.0M to shareholders via cash dividends and spent $172.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.