Woodward, Inc. (NASDAQ: WWD) has just announced a substantial increase in its share repurchase authorization. The company's board of directors has approved a new $1.8 billion, three-year share repurchase authorization, which is a significant increase from the prior $600 million authorization. This move reflects the company's commitment to driving shareholder value through strategic use of its strong balance sheet.
Over the past 10 years, Woodward has returned approximately $2.0 billion to shareholders through a combination of dividends and share repurchases, representing about 78% of net earnings over that period. This demonstrates the company's dedication to delivering compelling shareholder returns.
Woodward's Chief Financial Officer, Bill Lacey, emphasized the company's strong balance sheet and its intention to use it for capital allocation priorities. These priorities include reinvesting in the business, selectively pursuing strategic mergers and acquisitions, and returning cash to shareholders through dividends and share repurchases.
The new share repurchase authorization does not obligate the company to acquire a specific dollar amount or number of shares and may be modified, suspended, or discontinued at any time. This demonstrates flexibility in the company's approach to capital deployment.
Woodward, Inc. is known as the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets. The company is headquartered in Fort Collins, Colorado, USA.
This announcement reflects Woodward's confidence in its long-term growth trajectory, robust cash generation, and its commitment to delivering value to shareholders. Following these announcements, the company's shares moved 0.69%, and are now trading at a price of $259.41. Check out the company's full 8-K submission here.
