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Revenue
 12 Months Ended
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

)

Other1

 

 

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 recognized 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 follows:

 

 

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