Woodward, Inc. (NASDAQ: WWD) announced on September 15, 2026, that its Board of Directors has approved a plan to transition production out of its Santa Clarita, California, facility. The company intends to move military fixed-wing and rotorcraft flight control actuation production to its Spartanburg, South Carolina, aerospace manufacturing campus, which is currently under construction. Additionally, Woodward plans to divest certain legacy commercial rotorcraft, land systems, and business jet product lines, along with the Santa Clarita campus itself. The divestiture is expected to close in fiscal year 2027.
The company estimates that the restructuring will result in cumulative pre-tax charges between $34 million and $47.5 million. These costs are primarily attributed to employee-related expenses, specifically severance and related benefits, which are estimated at $23 million to $29 million. The filing also notes anticipated contract termination costs of $10 million to $16.5 million and other charges of $1 million to $2 million, which include asset write-offs and moving costs.
Woodward expects to cease operations at the Santa Clarita facility no later than December 2027. The associated charges are expected to be recognized over the transition period as criteria are met, with substantial completion anticipated by the end of 2027. The company anticipates that nearly all the charges will result in future cash expenditures, with only $1 million expected to be non-cash. The Spartanburg facility is projected to go online in the summer of 2027.
The press release accompanying the filing stated that the decision will affect approximately 400 roles at the Santa Clarita site. Woodward emphasized its commitment to supporting employees through the transition. The Spartanburg campus is expected to produce Airbus A350 spoiler actuation systems, in addition to the transferred product lines and other aerospace components.
