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Revenue | 12 Months Ended
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Sep. 30, 2025
Revenue from Contract with Customer [Abstract] |
Revenue | Note 3. Revenue Sales of products Woodward primarily generates revenue through the manufacture and sale of engineered aerospace and industrial products, including revenue derived from MRO performance obligations performed on products originally manufactured by Woodward and subsequently returned by OEM or other end-user customers. The majority of Woodward’s costs incurred to satisfy MRO performance obligations are related to replacing and/or refurbishing component parts of the returned products to restore the units back to a condition generally comparable to that of the unit upon its initial sale to an OEM customer. Therefore, Woodward considers almost all of its revenue to be derived from product sales, including those related to MRO.
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Manufactured products |  |  | 81 | % |  |  | 83 | % |  |  | 84 | %
MRO |  |  | 17 | % |  |  | 15 | % |  |  | 14 | %
Services |  |  | 2 | % |  |  | 2 | % |  |  | 2 | %
Point in time and over time revenue recognition The amount of revenue recognized as point in time or over time follows:
|  | For the Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
Point in time |  | $ | 916,671 |  |  | $ | 712,627 |  |  | $ | 1,629,298 |  |  | $ | 853,728 |  |  | $ | 780,794 |  |  | $ | 1,634,522 |  |  | $ | 748,278 |  |  | $ | 708,458 |  |  | $ | 1,456,736 |
Over time |  |  | 1,396,135 |  |  |  | 541,631 |  |  |  | 1,937,766 |  |  |  | 1,174,890 |  |  |  | 514,837 |  |  |  | 1,689,727 |  |  |  | 1,019,825 |  |  |  | 438,005 |  |  |  | 1,457,830 |
Total net sales |  | $ | 2,312,806 |  |  | $ | 1,254,258 |  |  | $ | 3,567,064 |  |  | $ | 2,028,618 |  |  | $ | 1,295,631 |  |  | $ | 3,324,249 |  |  | $ | 1,768,103 |  |  | $ | 1,146,463 |  |  | $ | 2,914,566 |
Material rights and costs to fulfill a contract Amounts recognized related to changes in estimated total lifetime sales for material rights and costs to fulfill contracts with customers follows:
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Revenue |  | $ | 1,462 |  |  | $ | 17,154 |  |  | $ | 1,460 |
Cost of goods sold |  |  | 1,855 |  |  |  | 15,486 |  |  |  | 1,736 |
Amounts recognized related to amortization of costs to fulfill contracts and contract liabilities, which were not related to changes in estimate, follows:
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Revenue |  | $ | 4,521 |  |  | $ | 7,230 |  |  | $ | 6,741 |
Cost of goods sold |  |  | 3,717 |  |  |  | 3,112 |  |  |  | 5,559 |
As of September 30, 2025, “Other assets” on the Consolidated Balance Sheets included $203,171 of capitalized costs to fulfill contracts with customers, compared to $185,102 as of September 30, 2024. Accounts receivable and contract assets Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in “Accounts receivable” in Woodward’s Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms, which are generally tied to shipment of the products to the customer, or as work progresses in accordance with contractual terms. Billed accounts receivable are typically due within 60 days. Woodward’s contracts with customers generally have no financing components. Accounts receivable consisted of the following:
|  | September 30, 2025 |  |  | September 30, 2024 |
Billed receivables |  |  |  |  |  |
Trade accounts receivable |  | $ | 477,217 |  |  | $ | 455,831 |
Other (Chinese financial institutions) |  |  | 104 |  |  |  | 1,403 |
Total billed receivables |  |  | 477,321 |  |  |  | 457,234 |
Current unbilled receivables (contract assets) |  |  | 363,520 |  |  |  | 320,570 |
Total accounts receivable |  |  | 840,841 |  |  |  | 777,804 |
Less: Allowance for uncollectible amounts |  |  | (9,725 | ) |  |  | (7,738 | )
Total accounts receivable, net |  | $ | 831,116 |  |  | $ | 770,066 |
As of September 30, 2025, “Other assets” on the Consolidated Balance Sheets includes $10,963 of unbilled receivables not expected to be invoiced and collected within a period of 12 months, compared to $11,237 as of September 30, 2024. Unbilled receivables not expected to be invoiced and collected within a period of 12 months are primarily attributable to the timing of revenue recognized in excess of billings in the Aerospace segment. Billed and unbilled accounts receivable from the U.S. Government were less than 10% of total billed and unbilled accounts receivable at September 30, 2025 and September 30, 2024. The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Balance, beginning |  | $ | 7,738 |  |  | $ | 5,847 |  |  | $ | 3,922 |
Changes in estimates |  |  | 1,879 |  |  |  | 3,219 |  |  |  | 7,211 |
Write-offs |  |  | (347 | ) |  |  | (586 | ) |  |  | (5,305 | )
Other 1 |  |  | 455 |  |  |  | (742 | ) |  |  | 19 |
Balance, ending |  | $ | 9,725 |  |  | $ | 7,738 |  |  | $ | 5,847 |
(1) Includes effects of foreign exchange rate changes during the period. Contract liabilities Contract liabilities consisted of the following:
|  | September 30, 2025 |  |  | September 30, 2024 |
|  | Current |  |  | Noncurrent |  |  | Current |  |  | Noncurrent |
Deferred revenue from material rights from JV formation |  | $ | 7,298 |  |  | $ | 229,878 |  |  | $ | 6,580 |  |  | $ | 232,164 |
Deferred revenue from advanced invoicing and/or prepayments from customers |  |  | 14,944 |  |  |  | 2,115 |  |  |  | 23,706 |  |  |  | 6,437 |
Liability related to customer supplied inventory |  |  | 19,640 |  |  |  | — |  |  |  | 20,563 |  |  |  | — |
Deferred revenue from material rights related to engineering and development funding |  |  | 7,353 |  |  |  | 199,465 |  |  |  | 5,942 |  |  |  | 186,008 |
Net contract liabilities |  | $ | 49,235 |  |  | $ | 431,458 |  |  | $ | 56,791 |  |  | $ | 424,609 |
The current portion of contract liabilities is included in “Accrued liabilities” and the noncurrent portion is included in “Other liabilities” of Woodward’s Consolidated Balance Sheets. Woodward recognized revenue of $31,998 in the year ended September 30, 2025 from contract liabilities balances recorded as of September 30, 2024, compared to $44,398 in the year ended September 30, 2024 from contract liabilities balances recorded as of September 30, 2023. The amount of revenue recognized related to noncash consideration received from customers follows:
|  | For the Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Aerospace |  | $ | 68,059 |  |  | $ | 61,323 |  |  | $ | 50,329 |
Industrial |  |  | 3,089 |  |  |  | 4,974 |  |  |  | 1,939 |
Consolidated |  | $ | 71,148 |  |  | $ | 66,297 |  |  | $ | 52,268 |
Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of September 30, 2025 was $3,195,156, compared to $2,932,793 as of September 30, 2024, the majority of which in both periods relate to Woodward’s Aerospace segment. Woodward expects to recognize almost all of these remaining performance obligations within two years after September 30, 2025. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of September 30, 2025 was $513,570, of which $13,517 is expected to be re cognized in fiscal year 2026, and the balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as 40 years. Disaggregation of revenue Woodward designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market and by geographical area as Woodward believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows:
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Commercial OEM |  | $ | 690,962 |  |  | $ | 738,394 |  |  | $ | 651,275 |
Commercial services |  |  | 823,547 |  |  |  | 640,823 |  |  |  | 547,625 |
Defense OEM |  |  | 561,288 |  |  |  | 406,810 |  |  |  | 368,653 |
Defense services |  |  | 237,009 |  |  |  | 242,591 |  |  |  | 200,550 |
Total Aerospace segment net sales |  | $ | 2,312,806 |  |  | $ | 2,028,618 |  |  | $ | 1,768,103 |
Revenue by primary market for the Industrial reportable segment was as follows:
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Power generation |  | $ | 488,940 |  |  | $ | 443,667 |  |  | $ | 382,536 |
Transportation |  |  | 507,376 |  |  |  | 624,762 |  |  |  | 527,498 |
Oil and gas |  |  | 257,942 |  |  |  | 227,202 |  |  |  | 236,429 |
Total Industrial segment net sales |  | $ | 1,254,258 |  |  | $ | 1,295,631 |  |  | $ | 1,146,463 |
Based on changes in market dynamics, the Company has refined its Industrial end market presentation to better align certain sales within power generation, transportation, and oil and gas. Accordingly, sales for the years ended September 30, 2025 and 2024 have been reclassified for comparability. The reclassification had no impact on total Industrial or the consolidated financial results. The customers who account for 10% or more of net sales of each of Woodward’s reportable segments are as follo ws:
|  | For the Year Ended September 30,
|  | 2025 |  | 2024 |  | 2023
Aerospace |  | RTX Corporation, GE Aerospace, The Boeing Company |  | RTX Corporation, The Boeing Company |  | RTX Corporation, General Electric Company, The Boeing Company
Industrial |  | Rolls-Royce PLC, Caterpillar Inc., GE Vernova |  | Weichai Power, Rolls-Royce PLC |  | Rolls-Royce PLC, Caterpillar Inc., Weichai Power
Net sales by geographic area, as determined based on the location of the customer, were as follows:
|  | Year Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
United States |  | $ | 1,585,173 |  |  | $ | 329,108 |  |  | $ | 1,914,281 |  |  | $ | 1,404,223 |  |  | $ | 294,033 |  |  | $ | 1,698,256 |  |  | $ | 1,254,954 |  |  | $ | 283,121 |  |  | $ | 1,538,075 |
Germany |  |  | 72,883 |  |  |  | 202,539 |  |  |  | 275,422 |  |  |  | 72,583 |  |  |  | 196,775 |  |  |  | 269,358 |  |  |  | 80,450 |  |  |  | 193,392 |  |  |  | 273,842 |
Europe, excluding Germany |  |  | 224,302 |  |  |  | 341,286 |  |  |  | 565,588 |  |  |  | 202,421 |  |  |  | 297,517 |  |  |  | 499,938 |  |  |  | 163,222 |  |  |  | 273,757 |  |  |  | 436,979 |
China |  |  | 148,192 |  |  |  | 137,678 |  |  |  | 285,870 |  |  |  | 96,136 |  |  |  | 293,908 |  |  |  | 390,044 |  |  |  | 56,773 |  |  |  | 186,713 |  |  |  | 243,486 |
Asia, excluding China |  |  | 61,965 |  |  |  | 187,240 |  |  |  | 249,205 |  |  |  | 59,103 |  |  |  | 163,603 |  |  |  | 222,706 |  |  |  | 37,107 |  |  |  | 162,922 |  |  |  | 200,029 |
Other countries |  |  | 220,291 |  |  |  | 56,407 |  |  |  | 276,698 |  |  |  | 194,152 |  |  |  | 49,795 |  |  |  | 243,947 |  |  |  | 175,597 |  |  |  | 46,558 |  |  |  | 222,155 |
Total net sales |  | $ | 2,312,806 |  |  | $ | 1,254,258 |  |  | $ | 3,567,064 |  |  | $ | 2,028,618 |  |  | $ | 1,295,631 |  |  | $ | 3,324,249 |  |  | $ | 1,768,103 |  |  | $ | 1,146,463 |  |  | $ | 2,914,566 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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