On December 19, 2024, Woodward entered into a share and asset purchase agreement to acquire the Safran Electronics & Defense electromechanical actuation business based in the United States, Mexico, and Canada ("Safran Acquisition"). As part of the transaction, Woodward acquired all of the outstanding equity interests of Safran Electronics and Defense Canada, Inc. and certain net assets related to the electromechanical actuation business in the United States and Mexico. Woodward also acquired intellectual property, operations assets, talent, and long-term customer agreements for Horizontal Stabilizer Trim Actuation (HSTA) systems for aircraft stabilization to support safe and efficient flight, notably used for the Airbus A350. The Safran Acquisition closed on July 21, 2025 (the “Closing”) and we paid aggregate cash consideration of $45,809, subject to post-Closing adjustments. The cash consideration was financed through the use of cash on hand.

As the Closing was completed subsequent to June 30, 2025, we have not yet completed the accounting for the business combination, including the opening balance sheet. Accordingly, the Company is unable to provide amounts recognized as of the acquisition dates for major classes of assets and liabilities. This information, at least on a provisional basis, will be available in the Form 10-K to be filed for the year ended September 30, 2025.

The Company periodically reviews its business and from time to time may sell businesses, assets, or product lines as part of business rationalization. Any gain or loss recognized due to divestitures is recorded within the line item “Other (income) expense, net” in the Condensed Consolidated Statements of Earnings.

In connection with certain product rationalization activities, during the nine months ended June 30, 2025, the Company sold certain product lines and its heavy-duty gas turbine combustion parts product line, included in the Industrial segment, to third parties. The Company received cash proceeds of $48,043 and receivables of $4,011 included in “Other current assets” and “Other assets” in the Condensed Consolidated Balance Sheets and recognized a pretax gain of $20,524.

The sale of the heavy-duty gas turbine combustion parts product line was completed on March 3, 2025. The carrying value of the assets and liabilities sold were as follows:


	March 31, 2025
Assets:
Inventories	$	20,110
Property, plant, and equipment		2,904
Goodwill		5,772
Intangible assets		2,269
Other assets		2,608
Total assets	$	33,663

Liabilities:
Accrued liabilities	$	1,566
Accounts payable		459
Other noncurrent liabilities		2,474
Total liabilities	$	4,499