Woodward, Inc. Announces Closure and Transition of Santa Clarita Facility with Up to $47.5M in Pre-Tax Charges

Executive Summary

On September 15, 2026, the Board of Directors of Woodward, Inc. approved a comprehensive operational plan to transition production out of its Santa Clarita, California facility. The initiative is part of an effort to streamline the company's portfolio and optimize its aerospace manufacturing footprint.

Strategic Footprint Realignment

• Production Relocation: Production of military fixed-wing and rotorcraft flight control actuation will move to Woodward's new aerospace manufacturing campus in Spartanburg, South Carolina, which is currently under construction and scheduled to go online in summer 2027.
• Asset & Portfolio Divestiture: Woodward plans to divest the Santa Clarita campus along with certain legacy commercial rotorcraft, land systems, and business jet product lines primarily produced at the facility. These product lines will not transition to Spartanburg. The transaction is projected to close in fiscal year 2027.
• Operational Timeline & Headcount Impact: Operations at Santa Clarita will cease no later than December 2027, impacting approximately 400 positions through a phased transition.

Financial Impact and Restructuring Costs

Woodward estimates total cumulative pre-tax charges of $34.0 million to $47.5 million, expected to be recognized over the transition period through December 2027:

• Severance and Employee-Related Costs: $23.0 million to $29.0 million
• Contract Termination Costs: $10.0 million to $16.5 million
• Other Charges (Write-offs, moving, exit costs): $1.0 million to $2.0 million

Nearly all charges represent future cash outlays; only approximately $1.0 million is expected to be non-cash.

Market Implications

While the plan entails near-term cash restructuring outlays and severance charges through FY2027, the consolidation into the modern Spartanburg campus is positioned to improve operational efficiencies, optimize supply chain coordination, and eliminate lower-margin legacy product lines.