Woodward to Sell Gas Turbine Combustion Parts Business to GE Vernova

Woodward, Inc. WWD recently inked a definitive agreement to sell its heavy-duty gas turbines combustion parts business, based in Greenville, SC, to GE Vernova GEV. The deal marks a significant development in the energy and aerospace sectors, aiming to bolster GE Vernova’s operational capabilities while enabling Woodward to focus on its core growth areas. The transition aims to strengthen GE Vernova’s supply chain, ensuring it is well-equipped to meet the increasing global demand for gas turbine upgrades and services. The Greenville site, which already plays a critical role in GE Vernova’s operations, will further expand its capabilities by including Woodward’s combustion parts business. The decision to divest the heavy-duty gas turbines combustion parts business aligns with Woodward’s strategy to concentrate its resources on high-value products that drive innovation and growth. While the transaction's financial terms have not been disclosed, Woodward has determined that the deal is not financially material to its operations. By focusing on its core competencies, the company aims to position itself as a stronger player in aerospace and industrial energy control solutions.Furthermore, WWD has emphasized the importance of a seamless transition for its Greenville workforce. The agreement reflects the company’s dedication to its employees, ensuring they have opportunities to continue working under GE Vernova’s ownership. The transaction is anticipated to settle in early 2025, pending the fulfillment of customary closing conditions.Strength Across Key Sectors Fuels WWD’s GrowthWoodward is gaining healthy momentum across major end markets driven by strong sales in the Aerospace and Industrial segments. In the last reported quarter, the Aerospace unit’s sales were up 8% year over year to $518 million driven by steady growth in commercial markets and higher defense activity. For fiscal 2024, Aerospace segment revenues are anticipated to increase in the range of 12-14% amid supply chain woes.Revenues in the Industrial business rose 3% year over year to $330 million on the back of higher demand for backup power for data centers. However, flat China on-highway sales hindered Industrial unit growth. WWD expects a further decline in China on-highway sales for the fiscal fourth quarter, with projected sales between $10 million and $15 million. Reduced China on-highway deliveries, supply chain issues, delayed supplier shipments and customer pushouts continue to pose headwinds. Owing to these, management forecasts Industrial unit revenue growth of 11-13% for fiscal 2024, compared with the prior view of 13-15%. Our estimate for this metric stands at $1,289.2 million for the year.Fort Collins, CO-based WWD is an independent designer, manufacturer and service provider of energy control and optimization solutions for the aerospace and industrial markets. In addition to serving original equipment manufacturers, it engages in aftermarket repairs, replacements and other service support operations for installed products.WWD’s Zacks Rank & Stock Price PerformanceWWD currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 30.3% in the past year compared with the sub-industry’s growth of 37%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader technology space are Arista Networks, Inc. ANET and InterDigital, Inc. IDCC. IDCC presently sports a Zacks Rank #1 (Strong Buy), whereas ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%ANET provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 gigabit Ethernet switches and routers optimized for next-generation data center networks. In the last reported quarter, it delivered an earnings surprise of 7.36%.  7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks