Woodward, Inc. · NASDAQ:WWD
Woodward — Q3 2025 Earnings Presentation
33 slides from Woodward's earnings presentation, Jul 28, 2025
Slide 1: Third Quarter Fiscal Year 2025 Results
Third Quarter Fiscal Year 2025 Results July 28, 2025
Slide 2: Cautionary Statement
Cautionary Statement Information in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, our focus on growth, operational excellence and innovation, includ
Slide 3: Value Driver Pillars Deliver Differentiated Value For Shareholders
Value Driver Pillars Deliver Differentiated Value For Shareholders Operational Growth Excellence We delivered strong results in the third quarter underpinned by robust demand across our end markets, coupled with disciplined execution by our global teams. We remain focused on growth, Capital operatio
Slide 4: Third Quarter Fiscal Year 2025 Summary
Third Quarter Fiscal Year 2025 Summary Sales Net Earnings Strong Balance Sheet Up 8% YOY Up 6% YOY Aerospace growth in Commercial Price realization YTD Free cash flow1 of $159M Services and Defense OEM Higher volume 1.5 times leverage Core Industrial growth in Marine Unfavorable mix Transportation a
Slide 5: Fiscal Year 2025 Summary
Fiscal Year 2025 Summary $79M YTD Capital Expenditures Capital Allocation $172M YTD Returned to Stockholders through dividends and share repurchases 5 © WOODWARD, INC.
Slide 6: Q3 Consolidated Results
Q3 Fiscal Year 2025 Consolidated Results Earnings Net Sales Net Earnings Free Cash Flow Per Share (EPS) ↑ 8% ↑ 6% ↑ 8% ↓ 28% $915M $137 $848M $102M $108M $1.76 $1.63 M $99M FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 6 © WOODWARD, INC.
Slide 7: Q3 YTD Consolidated Results
Q3 YTD Fiscal Year 2025 Consolidated Results Adjusted Net Earnings1 Adjusted EPS1 Net Sales Reported Net Earnings Reported EPS Free Cash Flow $290M YTD FY24; $304M YTD FY25 $4.65 YTD FY24; $4.96 YTD FY25 ↑ 4% ↑ 1% ↑ 2% ↓ 29% $2.47B $2.57B $293M $294M $225M $4.70 $4.80 $159M FY24 FY25 FY24 FY25 FY24
Slide 8: Q3 Sales & EPS Bridge
Q3 Fiscal Year 2025 Sales & EPS Bridge SALES ($Ms) EPS $26 $78 $0.29 $0.08 $915 ↑ 9% $(37) $1.76 $1.63 $(0.23) $(0.01) $848 ↓ 69% ↑ 15% FY24 Q3 Aerospace Core Industrial Industrial FY25 Q3 FY24 Q3 Aerospace Core Industrial Tax and FY25 Q3 Actuals On-Highway Actuals Industrial On-Highway Other FY25 Q
Slide 9: Q3 YTD Sales & Adjusted EPS Bridge
Q3 YTD Fiscal Year 2025 Sales & Adjusted EPS Bridge SALES ($Ms) Adjusted EPS $0.79 $0.16 $176 $72 $2,572 $4.70 $0.01 $4.80 $2,470 ↑ 9% $(146) $(0.86) ↑12% ↓ 76% FY24 Q3 YTD Aerospace Core Industrial Industrial FY25 Q3 YTD FY24 Q3 YTD Aerospace Core Industrial Tax and FY25 Q3 YTD Actuals On-Highway A
Slide 10: Aerospace Overview
Aerospace Overview 10
Slide 11: Q3 Aerospace Segment
Q3 Fiscal Year 2025 Aerospace Segment Sales Earnings Margin ↑ 15% ↑ 24% ↑ 140 bps $596M $126M 21.1% 19.7% $518M $102M FY24 FY25 FY24 FY25 FY24 FY25 11 © WOODWARD, INC.
Slide 12: Q3 YTD Aerospace Segment
Q3 YTD Fiscal Year 2025 Aerospace Segment Sales Earnings Margin ↑ 12% ↑ 24% ↑ 200 bps $1.65B $345M 20.9% $1.48B $279M 18.9% FY24 FY25 FY24 FY25 FY24 FY25 12 © WOODWARD, INC.
Slide 13: Aerospace Commercial
Aerospace Commercial Woodward Commercial Woodward Commercial OEM Sales Services Sales Q3 FY24 to Q3 FY25 Q3 FY24 to Q3 FY25 8% 30% Decline Growth Commercial OEM Commercial Services Market Update Market Update → OEM build rates continue to improve → Air traffic remains solid → Industry supply chain c
Slide 14: Aerospace Defense
Aerospace Defense Woodward Defense Woodward Defense OEM Sales Services Sales Q3 FY24 to Q3 FY25 Q3 FY24 to Q3 FY25 56% 16% Growth Decline Defense OEM Defense Services Market Update Market Update → Strong demand for defense products → Solid demand environment → Robust smart defense order activity → S
Slide 15: Executing Aerospace Strategy
Executing Aerospace Strategy A350 spoiler actuation system win with Airbus Acquired Safran’s North America Electromechanical Actuation business Woodward’s first primary flight control on a Brings advanced electromechanical products and commercial platform electronic control units including the A
Slide 16: Industrial Overview
Industrial Overview 16
Slide 17: Q3 Industrial Segment
Q3 Fiscal Year 2025 Industrial Segment Sales Earnings Margin ↓3% ↓ 20% → Insert text↓ 320 bps 18.1% $330M $319M $60M → Insert text 14.9% $48M → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 17 © WOODWARD, INC.
Slide 18: Q3 Core Industrial
Q3 Fiscal Year 2025 Core Industrial Sales Earnings Margin ↑ 9% ↑ 16% → Insert text↑ 90 bps $277M $303M → Insert text 14.7% 15.6% $47M $41M → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 18 © WOODWARD, INC.
Slide 19: Q3 YTD Industrial Segment
Q3 YTD Fiscal Year 2025 Industrial Segment Sales Earnings Margin ↓ 7% ↓ 30% → Insert text ↓ 480 bps $994M $192M 19.3% $920M → Insert text 14.5% $134M → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 19 © WOODWARD, INC.
Slide 20: Q3 YTD Core Industrial Segment
Q3 YTD Fiscal Year 2025 Core Industrial Segment Sales Earnings Margin ↑ 9% ↑ 11% → Insert text↑ 30 bps $133M $873M $119M $801M → Insert text 14.9% 15.2% → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 20 © WOODWARD, INC.
Slide 21: Industrial
Industrial ~ Flat 12% Decline 16% Growth Woodward Power Gen Sales Woodward Transportation Sales Woodward Oil & Gas Sales Q3 FY24 to Q3 FY25 Q3 FY24 to Q3 FY25 Q3 FY24 to Q3 FY25 Power Generation Transportation Oil & Gas Market Update Market Update Market Update → Robust global demand for power gener
Slide 22: Woodward Select Financial Results
Woodward Select Financial Results In millions, except bps and percentages Quarter-to-Date Year -to-Date Q3 FY24 Q3 FY25 Change Q3 FY24 Q3 FY25 Change Gross Margin: % of Sales 27.1% 27.2% 10 bps 27.1% 26.4% (70) bps SG&A Expenses: % of Sales 8.7% 9.7% 100 bps 9.3% 9.4% 10 bps R&D Expenses: % of Sales
Slide 23: Guidance
Fiscal Year 2025 Guidance 23 © WOODWARD, INC.
Slide 24: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance In millions, except EPS and percentages Prior Revised FY25 Guidance Issued FY25 Guidance Issued on on April 28, 2025 July 28, 2025 Sales $3,375-$3,500 $3,450-$3,525 Adjusted Effective Tax Rate ~19% ~17% Free Cash Flow $350-$400 $315-$350 Woodward Capital Expenditures ~$115
Slide 25: Appendix
Appendix ] 25 | ©WOODWARD, INC. MW woopwarpD
Slide 26: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Note that there were no adjustments in the three months ended June 30, 2025 or June 30, 2024 Woodward, Inc. and Subsidiaries Reconciliation of Net Earnings to Adjusted Earnings1 (Unaudited – In thousands, except per share amounts) Nine Months Ended June 30 2025
Slide 27: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Note that there were no adjustments in the three months ended June 30, 2025 or June 30, 2024 Woodward, Inc. and Subsidiaries Woodward, Inc. and Subsidiaries Reconciliation of Net Earning to EBIT1 Reconciliation of Net Earning to EBITDA1 (Unaudited – In thousand
Slide 28: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Note that there were no adjustments in the three months ended June 30, 2025 or June 30, 2024 Woodward, Inc. and Subsidiaries Woodward, Inc. and Subsidiaries Reconciliation of Net Earning to EBIT1 and Adjusted EBIT1 Reconciliation of Net Earning to EBITDA1 and A
Slide 29: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries Woodward, Inc. and Subsidiaries Reconciliation of Income Tax Expense Reconciliation of Cash Flow from Operating Activities to Adjusted Income Tax Expense1 to Free Cash Flow1 (Unaudited – In thousands) (Unaudited – In thousands) N
Slide 30: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries Woodward, Inc. and Subsidiaries Reconciliation of Industrial Net Sales Reconciliation of Industrial Segment Earnings (Unaudited – In thousands) (Unaudited – In thousands) Three Months Ended June 30 Three Months Ended June 30 2
Slide 31: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Note that there were no adjustments in the three months ended June 30, 2025 or June 30, 2024 Woodward, Inc. and Subsidiaries Reconciliation of Non-Segment Expenses to Adjusted Non-Segment Expenses1 (Unaudited – In thousands) Nine Months Ended June 30 2025 20
Slide 32: Non-U.S. GAAP Measures
Appendix Non-U.S. GAAP Measures 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted income tax expense, adjusted effective tax rate, and adjusted nonsegment expenses exclude, as applicable (i) product rationaliz
Slide 33: Powering a clean future
Powering a clean future AVS WOODWARD