Woodward, Inc. (NASDAQ:WWD) stock fell in Friday premarket trading.
The company said it will wind down its China on-highway natural gas truck operation by the fiscal year-end.
The update comes after UBS analyst Gavin Parsons reiterated a Buy rating on Woodward. Parsons also raised his price forecast to $378 from $345.
The company said the move sharpens focus inside its Industrial segment.
Woodward said it will streamline its portfolio around priority markets and longer-run growth.
“Winding down the China OH business is a strategic step in aligning our Industrial portfolio with our priority end-markets and long-term growth opportunities,” said Randy Hobbs.
Hobbs added that the decision lets Woodward redirect resources toward controls solutions across key end-markets.
Those markets include Transportation, Power Generation, and Oil & Gas, Woodward said.
Why Now
Woodward said it had reviewed options for the China OH business for years.
The company said it explored full and partial divestitures, but buyers never emerged.
Woodward cited difficult conditions in China as it chose an orderly wind-down.
The plan includes closing a small manufacturing site in China.
Woodward also expects limited cuts across sales, engineering, and product support roles.
The company said the action only affects the China on-highway natural gas truck unit.
Financial Context
Woodward said the China OH unit has not delivered meaningful, steady results.
In fiscal 2025, Woodward posted record sales and earnings, the company said.
Woodward credited strength across both its Industrial and Aerospace segments.
WWD Price Action: Woodward shares are trading lower by 1.41% to $331.25 premarket at last check Friday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
