Slide 1: Second Quarter Fiscal Year 2025 Results
Second Quarter Fiscal Year 2025 Results April 28, 2025
Slide 2: Cautionary Statement
Cautionary Statement Information in the earnings call and 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, the Company’s ability to manage tariffs and
Slide 3: Value Driver Pillars Deliver Differentiated Value For Shareholders
Value Driver Pillars Deliver Differentiated Value For Shareholders Operational Growth Excellence Our strong second quarter results were in line with our expectations, reflecting the dedication of our members in a volatile environment. Our long-term value Capital proposition remains intact, and we ar
Slide 4: Second Quarter Summary
Second Quarter Fiscal Year 2025 Summary Sales Adjusted Net Earnings1 Strong Balance Sheet Up 6% YOY Up 3% YOY Growth in Aerospace Price realization Free cash flow1 of $60M & Core Industrial Lower volume 1.5 times leverage Lower China on-highway, Unfavorable mix as expected Measured ramp from Boeing
Slide 5: Summary
Fiscal Year 2025 Summary $52M YTD Capital Expenditures Capital Allocation $111M YTD Returned to Shareholders through dividends and share repurchases 5 © WOODWARD, INC.
Slide 6: Q2 Fiscal Year 2025 Consolidated Results
Q2 Fiscal Year 2025 Consolidated Results Adjusted Earnings Adjusted Net Earnings Net Sales Reported Net Earnings Per Share (EPS)1 Free Cash Flow $98M Q2 FY24; $109M Q2 FY25 Reported EPS $1.56 Q2 FY24; $1.78 Q2 FY25 ↑ 6% ↑ 3% ↑ 4% ↓ 28% $1.62 $1.69 $83M $835M $884M $101M $103M $59M FY24 FY25 FY24 FY2
Slide 7: Q2 YTD Fiscal Year 2025 Consolidated Results
Q2 YTD Fiscal Year 2025 Consolidated Results Adjusted Earnings Adjusted Net Earnings Net Sales Reported Net Earnings Per Share (EPS) Free Cash Flow $188M YTD FY24; $196M YTD FY25 Reported EPS $3.02 YTD FY24; $3.20 YTD FY25 ↑ 2% ↓ 3% ↓ 1% ↓ 31% $1.62B $1.66B $191M $88M $186M $3.07 $3.04 $60M FY24 FY2
Slide 8: Q2 Sales & Adjusted EPS Bridge
Q2 Fiscal Year 2025 Sales & Adjusted EPS Bridge Sales ($Ms) Adjusted EPS $29 $0.31 $0.05 $64 $884 $1.69 ↑ 11% $1.62 $835 $(45) $(0.28) $(0.01) ↓ 68% ↑ 13% FY24 Aerospace Core Industrial Industrial FY25 FY24 Aerospace Core Industrial Tax and FY25 On-Highway Industrial On-Highway Other FY25 Q2 22.2% 1
Slide 9: Q2 YTD Sales & Adjusted EPS Bridge
Q2 YTD Fiscal Year 2025 Sales & Adjusted EPS Bridge Sales ($Ms) Adjusted EPS $0.51 $0.08 $97 $47 $1,656 $3.07 $0.02 $3.04 $1,622 ↑ 9% $(110) $(0.64) ↑10% ↓ 78% FY24 Aerospace Core Industrial Industrial FY25 FY24 Aerospace Core Industrial Tax and FY25 On-Highway Industrial On-Highway Other FY25 Q2 YT
Slide 10: Aerospace Overview
Aerospace Overview 10
Slide 11: Q2 Fiscal Year 2025 Aerospace Segment
Q2 Fiscal Year 2025 Aerospace Segment Sales Earnings Margin ↑ 13% ↑ 27% ↑ 240 bps $562M 22.2% $498M $125M $98M 19.8% FY24 FY25 FY24 FY25 FY24 FY25 11 © WOODWARD, INC.
Slide 12: Q2 YTD Fiscal Year 2025 Aerospace Segment
Q2 YTD Fiscal Year 2025 Aerospace Segment Sales Earnings Margin ↑ 10% ↑ 24% ↑ 230 bps $219M 20.8% $1.06B $958M $177M 18.5% FY24 FY25 FY24 FY25 FY24 FY25 12 © WOODWARD, INC.
Slide 13: Aerospace Commercial
Aerospace Commercial Woodward Commercial Woodward Commercial OEM Sales Aftermarket Sales Q2 FY24 to Q2 FY25 Q2 FY24 to Q2 FY25 9% 23% Decline Growth Commercial OEM Commercial Aftermarket Market Update Market Update → OEM build rates continue to improve → High legacy aircraft utilization → Industry s
Slide 14: Aerospace Defense
Aerospace Defense Woodward Defense Woodward Defense OEM Sales Aftermarket Sales Q2 FY24 to Q2 FY25 Q2 FY24 to Q2 FY25 52% 8% Growth Decline Defense OEM Defense Aftermarket Market Update Market Update → Strong demand for defense products → Large growing installed base → Robust smart defense order act
Slide 15: Industrial Overview
Industrial Overview 15
Slide 16: Q2 Fiscal Year 2025 Industrial Segment
Q2 Fiscal Year 2025 Industrial Segment Sales Earnings Margin ↓ 5% ↓ 30% → Insert text↓ 500 bps $338M $322M $65M 19.3% → Insert text $46M 14.3% → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 16 © WOODWARD, INC.
Slide 17: Q2 Fiscal Year 2025 Core Industrial
Q2 Fiscal Year 2025 Core Industrial Sales Earnings Margin ↑11% ↑10% → Insert text↓10 bps $272M $301M → Insert text 14.9% 14.8% $44M $40M → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 17 © WOODWARD, INC.
Slide 18: Q2 YTD Fiscal Year 2025 Industrial Segment
Q2 YTD Fiscal Year 2025 Industrial Segment Sales Earnings Margin ↓ 10% ↓ 35% → Insert text↓ 560 bps $664M $132M $601M 19.9% → Insert text $86M 14.3% → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 18 © WOODWARD, INC.
Slide 19: Q2 YTD Fiscal Year 2025 Core Industrial
Q2 YTD Fiscal Year 2025 Core Industrial Sales Earnings Margin ↑9% ↑9% → Insert text Flat $570M $86M 15.0% 15.0% $524M $79M → Insert text → Insert text → Insert text FY24 FY25 FY24 FY25 FY24 FY25 19 © WOODWARD, INC.
Slide 20: Industrial: Power Gen, Transportation, Oil & Gas
Industrial 4% Growth 18% Decline 21% Growth Woodward Power Gen Sales Woodward Transportation Sales Woodward Oil & Gas Sales Q2 FY24 to Q2 FY25 Q2 FY24 to Q2 FY25 Q2 FY24 to Q2 FY25 Power Generation Transportation Oil & Gas Market Update Market Update Market Update → Robust global demand for power ge
Slide 21: Woodward Select Financial Results
Woodward Select Financial Results In millions, except bps and percentages Quarter-to-Date Year -to-Date Q2 FY24 Q2 FY25 Change Q2 FY24 Q2 FY25 Change Gross Margin: % of Sales 28.1% 27.2% (90) bps 27.0% 25.9% (111) bps SG&A Expenses: % of Sales 9.8% 9.5% 30 bps 9.6% 9.3% (30) bps R&D Expenses: % of S
Slide 22: Guidance
Fiscal Year 2025 Guidance 22 © WOODWARD, INC.
Slide 23: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance In millions, except EPS and percentages Prior Revised FY25 Guidance Issued FY25 Guidance Issued on on Revised Guidance February 3, 2025 April 28, 2025 Assumptions Sales $3,300-$3,500 $3,375-$3,500 Adjusted Effective Tax Rate ~19% No change Includes Free Cash Flow $350-$400
Slide 24: Appendix
Appendix ] 24 | ©WOODWARD, INC. MW woopwarpD
Slide 25: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS1 (Unaudited - in thousands, except per share amounts) Three Months Ended March 31, 2025 2024 Earnings Per Earnings Per Net Earnings Share Net Earnings Share Net earnings (U.
Slide 26: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries 1 1 RECONCILIATION OF NET EARNINGS TO EBIT AND ADJUSTED EBIT (Unaudited - in thousands) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Net earnings (U.S. GAAP) $ 108,949 $ 97,556 $ 196,040 $ 187,600 I
Slide 27: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries RECONCILIATION OF NONSEGMENT EXPENSES TO ADJUSTED NONSEGMENT EXPENSES1 (Unaudited - in thousands) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Nonsegment expenses (U.S. GAAP) $ 26,752 $ 32,834 $ 48,
Slide 28: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries RECONCILIATION OF INDUSTRIAL NET SALES (Unaudited - in thousands) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 China on highway natural gas truck sales $ 20,916 $ 65,967 $ 30,549 $ 140,305 Core Indu
Slide 29: Non-U.S. GAAP Reconciliations
Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries RECONCILIATION OF INCOME TAX EXPENSE TO ADJUSTED INCOME TAX EXPENSE1 (Unaudited - in thousands) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Income tax expense (U.S. GAAP) $ 24,014 $ 23,068 $ 38,777
Slide 30: 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 31: Powering a clean future
Powering a clean future AVS WOODWARD