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Segment Information
 12 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 23. Segment information

Woodward’s segments are composed of similar product groupings that serve the same or similar end markets. Based on this approach, Woodward has two reportable segments that are also its operating segments: Aerospace and Industrial, as described below in further detail. Woodward uses segment information internally to manage its business, including the assessment of segment performance and decisions for the allocation of resources between segments.

Our Aerospace segment designs, manufactures, and services systems and products for the management of fuel, air, combustion, and motion control. These products include fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, as well as flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems.

Our Industrial segment designs, produces, and services systems and products for the management of energy in the form of fuel, air, fluids, gases, motion, combustion, and electricity. These products include actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors. Our products are used on industrial gas turbines (including heavy frame, aeroderivative, and small industrial gas turbines), steam turbines, compressors, and reciprocating engines (including low speed, medium speed, and high-speed engines that operate on various fuels, including natural gas, diesel, heavy fuel oil, and new lower carbon alternative fuels in both single and dual-fuel applications). The equipment on which our products are found is used to: generate power; to extract, distribute, and refine energy sources; to mine other commodities; and to convert fuel to work in transportation and freight (both marine and locomotives), mobile, and industrial equipment applications.

Nonsegment expenses consist of corporate office expenses, including compensation, benefits, depreciation, and other administrative costs.

The accounting policies of the reportable segments are the same as those of the Company. The Aerospace and Industrial segments maintain separate financial information that is reviewed by the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer. The CODM uses forecast-to-actual variances and year-over-year variances on a monthly basis when assessing segment performance and forecasts in deciding how to allocate resources among the segments. The CODM evaluates the performance of the Company’s segments based on reportable segment operating profit. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other unusual and/or non-operationally related expenses.

A summary of consolidated net sales and segment operating profit by segment follows:

 

Year Ended September 30,

 

 

2025

 

 

Aerospace

 

 

Industrial

 

 

Total

 

Net sales

$

2,312,806

 

 

$

1,254,258

 

 

$

3,567,064

 

Cost of goods sold

 

1,687,214

 

 

 

914,520

 

 

 

2,601,734

 

Selling, general and administrative expenses

 

87,136

 

 

 

107,205

 

 

 

194,341

 

Research and development costs

 

87,302

 

 

 

53,850

 

 

 

141,152

 

Other segment items1

 

(55,459

)

 

 

(3,841

)

 

 

(59,300

)

Reportable segment operating profit

$

506,613

 

 

$

182,524

 

 

$

689,137

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30,

 

 

2024

 

 

Aerospace

 

 

Industrial

 

 

Total

 

Net sales

$

2,028,618

 

 

$

1,295,631

 

 

$

3,324,249

 

Cost of goods sold

 

1,517,239

 

 

 

923,953

 

 

 

2,441,192

 

Selling, general and administrative expenses

 

85,103

 

 

 

100,758

 

 

 

185,861

 

Research and development costs

 

90,138

 

 

 

44,759

 

 

 

134,897

 

Other segment items1

 

(49,222

)

 

 

(3,696

)

 

 

(52,918

)

Reportable segment operating profit

$

385,360

 

 

$

229,857

 

 

$

615,217

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30,

 

 

2023

 

 

Aerospace

 

 

Industrial

 

 

Total

 

Net sales

$

1,768,103

 

 

$

1,146,463

 

 

$

2,914,566

 

Cost of goods sold

 

1,362,124

 

 

 

855,900

 

 

 

2,218,024

 

Selling, general and administrative expenses

 

78,910

 

 

 

87,637

 

 

 

166,547

 

Research and development costs

 

80,825

 

 

 

44,296

 

 

 

125,121

 

Other segment items1

 

(43,860

)

 

 

(2,992

)

 

 

(46,852

)

Reportable segment operating profit

$

290,104

 

 

$

161,622

 

 

$

451,726

 
(1)
Other segment items mainly includes our equity interest in the earnings of the JV, other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense, and net gain/loss on sales of assets and businesses.

A summary of consolidated earnings before income taxes was as follows:

 

 

Year Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Reportable segment operating profit

 

$

689,137

 

 

$

615,217

 

 

$

451,726

 

Nonsegment expenses

 

 

(126,226

)

 

 

(119,745

)

 

 

(130,811

)

Interest expense, net

 

 

(41,500

)

 

 

(41,501

)

 

 

(45,147

)

Consolidated earnings before income taxes

 

$

521,411

 

 

$

453,971

 

 

$

275,768

 

 

Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets, consolidated depreciation and amortization, and consolidated capital expenditures were as follows:

 

 

Year Ended September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Segment assets:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

2,110,805

 

 

$

1,936,507

 

 

$

1,829,410

 

Industrial

 

 

1,501,503

 

 

 

1,509,495

 

 

 

1,490,341

 

Unallocated corporate property, plant and equipment, net

 

 

120,502

 

 

 

120,946

 

 

 

104,962

 

Other unallocated assets

 

 

897,333

 

 

 

801,967

 

 

 

585,490

 

Consolidated total assets

 

$

4,630,143

 

 

$

4,368,915

 

 

$

4,010,203

 

 

 

 

 

 

 

 

 

 

Segment depreciation and amortization:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

51,603

 

 

$

55,305

 

 

$

59,880

 

Industrial

 

 

49,480

 

 

 

49,779

 

 

 

51,167

 

Unallocated corporate amounts

 

 

12,195

 

 

 

11,086

 

 

 

8,696

 

Consolidated depreciation and amortization

 

$

113,278

 

 

$

116,170

 

 

$

119,743

 

 

 

 

 

 

 

 

 

 

Segment capital expenditures:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

62,892

 

 

$

55,989

 

 

$

56,913

 

Industrial

 

 

42,305

 

 

 

41,930

 

 

 

21,855

 

Unallocated corporate amounts

 

 

25,731

 

 

 

(1,639

)

 

 

(2,268

)

Consolidated capital expenditures

 

$

130,928

 

 

$

96,280

 

 

$

76,500

 

Property, plant, and equipment, net by geographical area, as determined by the physical location of the assets, were as follows:

 

 

At September 30,

 

 

 

2025

 

 

2024

 

United States

 

$

841,528

 

 

$

827,242

 

Germany

 

 

109,403

 

 

 

87,970

 

Other countries

 

 

35,692

 

 

 

25,503

 

Consolidated property, plant and equipment, net

 

$

986,623

 

 

$

940,715

 

We had no customers who accounted for 10% or more of our consolidated net sales for the fiscal years ended September 30, 2025 and September 30, 2024. Sales to GE were 12% of our consolidated net sales, and sales to RTX Corporation were 10% of our consolidated net sales for the fiscal year ended September 30, 2023. Sales to GE were made by both of Woodward’s operating segments, and sales to RTX Corporation were made by our Aerospace segment.

 

U.S. Government related sales from Woodward’s reportable segments were as follows:

 

 

Direct U.S.
Government
Sales

 

 

Indirect U.S.
Government
Sales

 

 

Total U.S.
Government
Related Sales

 

Fiscal year ended September 30, 2025

 

 

 

 

 

 

 

 

 

Aerospace

 

$

95,147

 

 

$

598,254

 

 

$

693,401

 

Industrial

 

 

6,903

 

 

 

17,305

 

 

 

24,208

 

Total net external sales

 

$

102,050

 

 

$

615,559

 

 

$

717,609

 

Percentage of total net sales

 

 

3

%

 

 

17

%

 

 

20

%

 

 

 

 

 

 

 

 

 

Fiscal year ended September 30, 2024

 

 

 

 

 

 

 

 

 

Aerospace

 

$

107,978

 

 

$

443,370

 

 

$

551,348

 

Industrial

 

 

9,039

 

 

 

10,273

 

 

 

19,312

 

Total net external sales

 

$

117,017

 

 

$

453,643

 

 

$

570,660

 

Percentage of total net sales

 

 

3

%

 

 

14

%

 

 

17

%

 

 

 

 

 

 

 

 

 

Fiscal year ended September 30, 2023

 

 

 

 

 

 

 

 

 

Aerospace

 

$

99,848

 

 

$

363,835

 

 

$

463,683

 

Industrial

 

 

7,524

 

 

 

14,840

 

 

 

22,364

 

Total net external sales

 

$

107,372

 

 

$

378,675

 

 

$

486,047

 

Percentage of total net sales

 

 

4

%

 

 

13

%

 

 

17

%