Woodward (WWD) to Wind Down On-Highway Natural Gas Truck Business in China by Fiscal Year-End
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: seekingalpha
- Business Wind-Down Decision: Woodward plans to close its on-highway natural gas truck business in China by the end of the fiscal year, aiming to sharpen its focus on the Industrial segment, reflecting a strategic adjustment in response to market evaluations.
- Market Challenges: After years of assessment, Woodward has not found viable sale options, highlighting competitive pressures and uncertainties in the Chinese market, which have prevented this business from making a material contribution to overall financial performance.
- Layoffs and Facility Closure: The wind-down will involve closing a small manufacturing facility and reducing related sales, engineering, and support staff, which is expected to impact operational efficiency in the short term.
- Financial Performance Highlights: Despite challenges in the Chinese market, Woodward reported record sales and earnings in fiscal 2025, driven by strong performance in its Industrial and Aerospace segments, indicating growth potential in other areas.
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Analyst Views on WWD
Wall Street analysts forecast WWD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WWD is 360.00 USD with a low forecast of 329.00 USD and a high forecast of 400.00 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.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 325.940
Low
329.00
Averages
360.00
High
400.00
Current: 325.940
Low
329.00
Averages
360.00
High
400.00
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.
Woodward, Inc. to Report Q1 Fiscal 2026 Results on February 2
- Earnings Release Schedule: Woodward, Inc. expects to report its fiscal Q1 2026 financial results at approximately 4:00 p.m. ET on February 2, 2026, with a news release and conference call to showcase the company's business and financial performance.
- Conference Call Details: The conference call is scheduled for 5:00 p.m. ET on the same day, allowing investors to listen live via the company’s website, with the presentation accessible for one year, enhancing information transparency.
- Participation Instructions: Investors can join the call by dialing 1 (800) 715-9871 (U.S. domestic) or 1 (646) 307-1963 (international), with a recommendation to call in advance for registration; the Conference ID is 4675940 to ensure smooth participation.
- Company Overview: Woodward, Inc. is a global leader in energy conversion and control solutions for aerospace and industrial equipment markets, committed to delivering reliable energy control solutions that support a clean future, highlighting its significant position in the industry.
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Woodward, Inc. to Wind Down China Natural Gas Truck Operation, Focus on Industrial Growth
- Strategic Focus: Woodward announced it will wind down its China natural gas truck operation by fiscal year-end, aiming to redirect resources towards priority markets such as Transportation, Power Generation, and Oil & Gas, thereby enhancing competitiveness in its Industrial segment.
- Market Challenges: The company stated that after years of evaluation, it failed to find buyers for full or partial divestitures, ultimately deciding to orderly wind down the business due to difficult conditions in the Chinese market, demonstrating keen insight into market dynamics.
- Financial Context: Woodward achieved record sales and earnings in fiscal 2025, despite the China natural gas truck unit failing to deliver steady results, indicating strong performance in other segments.
- Stock Reaction: Following this announcement, Woodward's stock fell 1.41% to $331.25 in premarket trading on Friday, reflecting market caution regarding the company's strategic adjustments.
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