Woodward (NASDAQ: WWD) takes $20–25M charges to exit China truck unit

Rhea-AI Filing Summary

Woodward, Inc. approved a plan to wind down its on-highway natural gas truck manufacturing operations in China, a business that has not consistently contributed to overall financial performance. The wind-down, which affects the Industrial segment portfolio, is expected to be substantially completed by the end of fiscal year 2026.

The company expects cumulative pre-tax charges of approximately $20 million to $25 million. This includes $3 million to $4 million of non-cash facility and other asset-related charges, $5 million to $7 million in employee-related severance and benefits, and $12 million to $14 million related to anticipated contract termination costs, inventory write-downs, and other exit costs. About $15 million to $20 million of these charges are expected to result in future cash expenditures, with most charges recognized and most cash payments occurring in the second and third quarters of fiscal 2026.

Insights

Equity restructuring and industrials analyst

Woodward is exiting a small underperforming China business and taking $20–25M in related charges.

Woodward, Inc. plans to wind down its on-highway natural gas truck manufacturing operations in China, a business that has not significantly contributed to overall results on a consistent basis. Management frames this as a strategic move to better align the Industrial segment with priority end markets and longer-term growth opportunities.

The company estimates cumulative pre-tax charges of $20 million to $25 million, broken into non-cash facility and asset charges of $3 million to $4 million, employee-related severance and benefits of $5 million to $7 million, and $12 million to $14 million of contract termination, inventory write-down, and other exit costs. About $15 million to $20 million of these charges will require cash outlays, largely in the second and third quarters of fiscal 2026, which may temporarily pressure near-term earnings and cash flow while simplifying the portfolio over time.

8-K Event Classification

3 items: 2.05, 7.01, 9.01

3 items

Item 2.05 Costs Associated with Exit or Disposal Activities Financial

The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  January 12, 2026

_______________________________

Woodward, Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware	001-39265	36-1984010
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1081 Woodward Way

Fort Collins, Colorado 80524

(Address of Principal Executive Offices) (Zip Code)

(970) 482-5811

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001455	WWD	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05. Costs Associated with Exit or Disposal Activities.

On January 12, 2026, Woodward, Inc. (the “Company”) approved a plan to wind down its on-highway natural gas truck manufacturing operations in China (the “China OH business”). This decision follows prior unsuccessful efforts to divest the China OH business and is a strategic step to align the Company’s Industrial segment portfolio with priority end-markets and long-term growth opportunities. The China OH business has not significantly contributed to the Company’s overall financial performance on a consistent basis. The wind-down is expected to be substantially completed by the end of the Company’s fiscal year 2026.

In connection with this action, the Company expects to incur material charges under generally accepted accounting principles. The Company currently estimates that it will recognize cumulative pre-tax charges of approximately $20 million to $25 million, including $3 million to $4 million of non-cash charges for facility and other asset-related charges, $5 million to $7 million in employee-related costs for severance and other benefits, and $12 million to $14 million of charges related to anticipated contract termination costs, inventory write-downs, and other exit costs. The Company anticipates approximately $15 million to $20 million of the charges to result in future cash expenditures. The majority of these charges are expected to be recognized in the second and third quarters of the Company’s fiscal year 2026, with the majority of cash payments occurring through the Company’s third quarter of fiscal year 2026.

Item 7.01. Regulation FD Disclosure.

On January 15, 2026, the Company issued a press release announcing its decision to wind down the China OH business. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company’s plans to wind down the China OH business, the expected timing of completion of the wind-down, and anticipated costs and charges associated with the wind-down. These statements are based on current expectations and assumptions and are not guarantees of future performance. Actual results may differ materially from those expressed or implied due to various risks and uncertainties, including, but not limited to, unexpected delays or difficulties in implementing the wind down, the amount and timing of costs and charges, and other factors described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, except as required by law.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1		Press Release of Woodward, Inc. dated January 15, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Woodward, Inc.
Dated: January 15, 2026	By:	/s/ William F. Lacey
		William F. Lacey
		Executive Vice President, Chief Financial Officer

FAQ

What action did Woodward (WWD) announce regarding its China operations?

Woodward approved a plan to wind down its on-highway natural gas truck manufacturing operations in China, referred to as the China OH business, as a strategic step to better align its Industrial segment with priority end markets and long-term growth opportunities.

How much does Woodward (WWD) expect in total charges from winding down the China OH business?

The company currently estimates cumulative pre-tax charges of approximately $20 million to $25 million associated with winding down the China OH business.

What types of costs make up Woodward’s expected $20–25 million in wind-down charges?

The expected charges include $3 million to $4 million of non-cash facility and other asset-related charges, $5 million to $7 million in employee-related severance and other benefits, and $12 million to $14 million for anticipated contract termination costs, inventory write-downs, and other exit costs.

How much of Woodward’s China OH wind-down charges will require cash payments?

Woodward anticipates that approximately $15 million to $20 million of the total wind-down charges will result in future cash expenditures.

When does Woodward (WWD) expect to recognize most of the China OH wind-down charges and cash outflows?

The majority of the charges are expected to be recognized in the second and third quarters of Woodward’s fiscal year 2026, with most cash payments also occurring through the company’s third quarter of fiscal year 2026.

By when does Woodward expect to substantially complete the China OH business wind-down?

The wind-down of the China OH business is expected to be substantially completed by the end of Woodward’s fiscal year 2026.

Did Woodward issue a press release about the China OH wind-down?

Yes. On January 15, 2026, Woodward issued a press release announcing its decision to wind down the China OH business, which is furnished as Exhibit 99.1.