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v3.26.1

Revenue | 6 Months Ended
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Mar. 31, 2026
Revenue from Contract with Customer [Abstract] |
Revenue | Note 3. Revenue The amount of revenue recognized as point in time or over time was as follows:
|  | Three Months Ended March 31, 2026 |  |  | Three Months Ended March 31, 2025 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
Point in time |  | $ | 278,555 |  |  | $ | 221,071 |  |  | $ | 499,626 |  |  | $ | 223,025 |  |  | $ | 178,801 |  |  | $ | 401,826 |
Over time |  |  | 424,766 |  |  |  | 166,176 |  |  |  | 590,942 |  |  |  | 338,704 |  |  |  | 143,099 |  |  |  | 481,803 |
Total net sales |  | $ | 703,321 |  |  | $ | 387,247 |  |  | $ | 1,090,568 |  |  | $ | 561,729 |  |  | $ | 321,900 |  |  | $ | 883,629 |
|  | Six Months Ended March 31, 2026 |  |  | Six Months Ended March 31, 2025 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
Point in time |  | $ | 532,200 |  |  | $ | 435,042 |  |  | $ | 967,242 |  |  | $ | 415,010 |  |  | $ | 333,869 |  |  | $ | 748,879 |
Over time |  |  | 806,018 |  |  |  | 313,762 |  |  |  | 1,119,780 |  |  |  | 640,601 |  |  |  | 266,874 |  |  |  | 907,475 |
Total net sales |  | $ | 1,338,218 |  |  | $ | 748,804 |  |  | $ | 2,087,022 |  |  | $ | 1,055,611 |  |  | $ | 600,743 |  |  | $ | 1,656,354 |
Accounts Receivable Accounts receivable consisted of the following:
|  | March 31, 2026 |  |  | September 30, 2025 |
Billed receivables |  |  |  |  |  |
Trade accounts receivable |  | $ | 536,474 |  |  | $ | 477,217 |
Other (Chinese financial institutions) |  |  | — |  |  |  | 104 |
Total billed receivables |  |  | 536,474 |  |  |  | 477,321 |
Current unbilled receivables (contract assets) |  |  | 407,864 |  |  |  | 363,520 |
Total accounts receivable |  |  | 944,338 |  |  |  | 840,841 |
Less: Allowance for uncollectible amounts |  |  | (13,107 | ) |  |  | (9,725 | )
Total accounts receivable, net |  | $ | 931,231 |  |  | $ | 831,116 |
As of March 31, 2026, “Other assets” on the Condensed Consolidated Balance Sheets includes $13,668 of unbilled receivables not expected to be invoiced and collected within a period of 12 months, compared to $10,963 as of September 30, 2025. Accounts receivable in Woodward’s Condensed Consolidated Financial Statements represent the net amount expected to be collected, and an allowance for uncollectible amounts related to credit losses is established based on expected losses. Expected losses are estimated by reviewing specific customer accounts, taking into consideration accounts receivable aging, credit risk of the customers, and historical payment history, as well as current and forecasted economic conditions and other relevant factors. The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:
|  | Three Months Ended March 31, |  |  | Six Months Ended March 31, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Balance, beginning |  | $ | 13,426 |  |  | $ | 7,793 |  |  | $ | 9,725 |  |  | $ | 7,738 |
Changes in estimates |  |  | (179 | ) |  |  | 599 |  |  |  | 3,450 |  |  |  | 806 |
Write-offs |  |  | — |  |  |  | (120 | ) |  |  | (78 | ) |  |  | (120 | )
Other 1 |  |  | (140 | ) |  |  | 286 |  |  |  | 10 |  |  |  | 134 |
Balance, ending |  | $ | 13,107 |  |  | $ | 8,558 |  |  | $ | 13,107 |  |  | $ | 8,558 |
(1) Includes effects of foreign exchange rate changes during the period. Contract liabilities Contract liabilities consisted of the following:
|  | March 31, 2026 |  |  | September 30, 2025 |
|  | Current |  |  | Noncurrent |  |  | Current |  |  | Noncurrent |
Deferred revenue from material rights from JV formation |  | $ | 7,689 |  |  | $ | 230,266 |  |  | $ | 7,298 |  |  | $ | 229,878 |
Deferred revenue from advanced invoicing and/or prepayments from customers |  |  | 21,672 |  |  |  | 569 |  |  |  | 14,944 |  |  |  | 2,115 |
Liability related to customer supplied inventory |  |  | 22,226 |  |  |  | — |  |  |  | 19,640 |  |  |  | — |
Deferred revenue from material rights related to engineering and development funding |  |  | 9,080 |  |  |  | 186,376 |  |  |  | 7,353 |  |  |  | 199,465 |
Net contract liabilities |  | $ | 60,667 |  |  | $ | 417,211 |  |  | $ | 49,235 |  |  | $ | 431,458 |
Woodward recognized revenue of $8,951 in the three months and $23,481 in the six months ended March 31, 2026 from contract liabilities balances recorded as of October 1, 2025, compared to $5,035 in the three months and $21,118 in the six months ended March 31, 2025 from contract liabilities balances recorded as of October 1, 2024. 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 March 31, 2026 were $3,777,552, compared to $3,195,156 as of September 30, 2025, the majority of which relates to Woodward’s Aerospace segment in both periods. Woodward expects to recognize almost all remaining performance obligations within two years after March 31, 2026. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of March 31, 2026 were $491,444, of which $8,594 is expected to be recognized in the remainder of fiscal year 2026, $17,350 is expected to be recognized in fiscal year 2027, and the remaining 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 forty 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 reportable segments, Aerospace and Industrial, and further disaggregates its revenue from contracts with customers by primary market as Woodward believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. We focus primarily on serving original equipment manufacturers (“OEMs”) and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. We also provide repair, maintenance, replacement, and other services support for our installed products. We have traditionally referred to this part of our business as “aftermarket”; however, to better reflect the nature and scope of these offerings, we will now refer to it as “services.” Revenue by primary market for the Aerospace reportable segment was as follows:
|  | Three Months Ended March 31, |  |  | Six Months Ended March 31, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Commercial OEM |  | $ | 218,015 |  |  | $ | 167,461 |  |  | $ | 405,954 |  |  | $ | 321,537 |
Commercial services |  |  | 275,374 |  |  |  | 201,861 |  |  |  | 520,280 |  |  |  | 365,711 |
Defense OEM |  |  | 150,932 |  |  |  | 137,928 |  |  |  | 289,165 |  |  |  | 250,710 |
Defense services |  |  | 59,000 |  |  |  | 54,479 |  |  |  | 122,819 |  |  |  | 117,653 |
Total Aerospace segment net sales |  | $ | 703,321 |  |  | $ | 561,729 |  |  | $ | 1,338,218 |  |  | $ | 1,055,611 |
Revenue by primary market for the Industrial reportable segment was as follows:
|  | Three Months Ended March 31, |  |  | Six Months Ended March 31, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Power generation |  | $ | 135,870 |  |  | $ | 126,482 |  |  | $ | 258,710 |  |  | $ | 241,490 |
Transportation |  |  | 176,914 |  |  |  | 132,096 |  |  |  | 343,222 |  |  |  | 239,361 |
Oil and gas |  |  | 74,463 |  |  |  | 63,322 |  |  |  | 146,872 |  |  |  | 119,892 |
Total Industrial segment net sales |  | $ | 387,247 |  |  | $ | 321,900 |  |  | $ | 748,804 |  |  | $ | 600,743 |
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 three and six months ended March 31, 2025 have been reclassified for comparability. The reclassification had no impact on total Industrial segment net sales or the Company's financial results. T he customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments were as follows:
|  | Three Months Ended March 31, 2026 |  | Three Months Ended March 31, 2025
Aerospace |  | The Boeing Company, GE Aerospace, RTX Corporation |  | RTX Corporation, GE Aerospace, The Boeing Company
Industrial |  | Rolls-Royce PLC, Caterpillar, Inc. |  | Rolls-Royce PLC, Caterpillar, Inc.
|  | Six Months Ended March 31, 2026 |  | Six Months Ended March 31, 2025
Aerospace |  | GE Aerospace, The Boeing Company, RTX Corporation |  | RTX Corporation, GE Aerospace, The Boeing Company
Industrial |  | Rolls-Royce PLC, Caterpillar, Inc. |  | Rolls-Royce PLC, GE Vernova, Caterpillar, Inc.

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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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