Woodward Inc. to Wind Down China Natural Gas Truck Business Amid Strategic Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Strategic Restructuring: Woodward has announced plans to wind down its China natural gas truck business by the end of fiscal 2026, aiming to optimize its Industrial segment and focus on priority markets such as Transportation, Power Generation, and Oil & Gas to enhance long-term shareholder value.
- Resource Realignment: The wind-down will involve closing a small manufacturing facility supporting the China natural gas truck business and reducing a limited number of sales, engineering, and product support staff, thereby reallocating resources to areas with greater growth potential.
- Market Challenges: Despite Woodward's efforts to sell the business over several years, no viable offers have materialized due to the complex business dynamics in China, indicating that this segment has not significantly contributed to the company's overall financial performance.
- Financial Performance: In fiscal year 2025, Woodward achieved record sales and earnings, driven by strong results in its Industrial and Aerospace segments, highlighting the company's sustained growth potential in other areas.
Analyst Views on WWD
Wall Street analysts forecast WWD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WWD is 296.33 USD with a low forecast of 290.00 USD and a high forecast of 300.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 331.250
Low
290.00
Averages
296.33
High
300.00
Current: 331.250
Low
290.00
Averages
296.33
High
300.00
About WWD
Woodward, Inc. designs, manufactures, and services energy conversion and control solutions for the aerospace and industrial equipment markets. The Company’s segments include Aerospace and Industrial. The Aerospace segment offers fuel controls and airframe solutions for commercial, defense, business and general aviation. It offers aircraft engine controls, actuation and control systems, flight deck controls, and space and defense solutions. Its aircraft engine controls include fuel control systems, fuel injection and ignition systems, engine actuation systems, and air management. Its actuation and control systems include electromechanical actuation, hydraulic actuation, precision motors, and thrust reverser actuation systems. Its Industrial segment offers control solutions for reliable and clean power generation and control solutions for critical equipment in a decarbonized world. Its products include easYgen-3000XT and Aeroderivative Gas Turbine Gas Fuel Valves.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
