Woodward, Inc. · NASDAQ:WWD
Woodward — Q1 FY2025 Earnings Presentation
23 slides from Woodward's earnings presentation, Feb 3, 2025
Slide 1: First Quarter Fiscal Year 2025 Results
First Quarter Fiscal Year 2025 Results February 3, 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 and commitment to growth, operational excellence and
Slide 3: Value Driver Pillars Continue to Deliver Differentiated Value for Shareholders
Value Driver Pillars Continue to Deliver Differentiated Value for Shareholders “We’re pleased with our strong OPERATIONAL GROWTH EXCELLENCE INNOVATION start to 2025, as our first quarter results were in line with our expectations. We remain committed to operational excellence, innovation, and CAPITA
Slide 4: First Quarter Fiscal Year 2025 Summary
First Quarter Fiscal Year 2025 Summary › Growth in Aerospace & core Industrial SALES DOWN 2% › Lower China on-highway, as expected YOY › Boeing work stoppage CAPITAL ALLOCATION OPERATING › Lower volume EARNINGS DOWN 7% › Unfavorable mix $34M YOY › Price realization capital expenditures $50M STRONG ›
Slide 5: Q1 Fiscal Year 2025 Consolidated Results
Q1 Fiscal Year 2025 Consolidated Results NET Q1 FY24 Q1 FY25 ADJUSTED Q1 FY24 Q1 FY25 SALES NET EARNINGS1 $787 $773 $90 $83 Million Million REPORTED EARNINGS: Million Million $90M Q1 FY24 ↑ 8% ↑ 2% $87M Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 ADJUSTED FREE CASH EARNINGS FLOW PER SHARE $5 $1 $1.45 $1
Slide 6: Q1 Fiscal Year 2025 Bridge
Q1 Fiscal Year 2025 Bridge SALES EPS FY24 Q1 ACTUAL TO FY25 Q1 ACTUAL FY24 Q1 ADJUSTED TO FY25 Q1 ADJUSTED $18 $33 $0.19 $0.04 $787 ↑~7% $1.45 $773 $0.03 $1.35 ↑~7% $(65) $(0.36) ↓~87% FY24 Q1 Aerospace Core Industrial China FY25 Q1 FY24 Q1 Aerospace Core China Tax and FY25 Q1 Actuals on-highway Act
Slide 7: Aerospace Overview
Aerospace Overview 7 2/3/2025 PROPRIETARY
Slide 8: Aerospace Segment Q1 Fiscal Year 2025
Aerospace Segment Q1 Fiscal Year 2025 SALES EARNINGS MARGIN Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 $461 $494 $79 $95 17.2% 19.2% Million Million Million Million ↑7% ↑20% ↑200 bps 8 2/3/2025 PROPRIETARY
Slide 9: Aerospace Commercial
Aerospace Commercial WWD Commercial WWD Commercial OEM Sales Aftermarket Sales Q1 FY24 to Q1 FY25 Q1 FY24 to Q1 FY25 10% ↑ ↑ 19% DECLINE GROWTH COMMERCIAL OEM COMMERCIAL AFTERMARKET MARKET UPDATE MARKET UPDATE › Boeing work stoppage › Strong passenger traffic › Industry supply chain challenges › Hig
Slide 10: Aerospace Defense
Aerospace Defense WWD Defense WWD Defense OEM Sales Aftermarket Sales Q1 FY24 to Q1 FY25 Q1 FY24 to Q1 FY25 ↑ 21% GROWTH ↑ 8% GROWTH DEFENSE OEM DEFENSE AFTERMARKET MARKET UPDATE MARKET UPDATE › Strong demand for defense products › Improved operational execution › Robust smart defense order activity
Slide 11: Industrial Overview
Industrial Overview 11 2/3/2025 PROPRIETARY
Slide 12: Industrial Segment Q1 Fiscal Year 2025
Industrial Segment Q1 Fiscal Year 2025 SALES EARNINGS MARGIN Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 $326 $279 $67 $40 14.4% Million Million Million Million 20.5% 15% 40% 610 bps ↑ ↑ ↑ 12 2/3/2025 PROPRIETARY
Slide 13: Industrial Sales and Market
Industrial Sales and Market Q1 FY24 to Q1 FY25 ↑ 7% ↑ 33% ↑ 7% SALES GROWTH SALES DECLINE SALES GROWTH POWER GENERATION TRANSPORTATION OIL AND GAS MARKET UPDATE MARKET UPDATE MARKET UPDATE › Robust global demand for power › Local economic challenges › Low commodity prices impacting generation dampen
Slide 14: Woodward Select Financial Results
Woodward Select Financial Results Q1 FY24 Q1 FY25 CHANGE GROSS MARGIN*: % OF SALES 26.0% 24.5% (150) bps SG&A EXPENSES: % OF SALES 9.5% 9.0% (50) bps R&D EXPENSES: % OF SALES 3.9% 3.9% 0 bps EFFECTIVE TAX RATE 17.9% 14.5% 340 bps A D J U S T E D E F F E C T I V E T A X R A T E1 17.7% 14.0% 370 bps E
Slide 15: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance 15 2/3/2025 PROPRIETARY
Slide 16: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance (in millions, except EPS and percentages) Prior Revised FY25 Guidance issued on FY25 Guidance issued on November 25, 2024 February 3, 2025 Sales $3,300 – $3,500 No change A d j u s t e d E f f e c t i v e Ta x R a t e ~20% ~19% Free Cash Flow $350 – $400 No change WOODWARD
Slide 17: Appendix
Appendix 17 2/3/2025 PROPRIETARY
Slide 18: Non-U.S. GAAP Reconciliations
APPEN DIX 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 December 31, 2024 2023 Earnings Per Earnings Per Net Earnings Share Net Earnings Share Net earnings
Slide 19: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA1 1 (Unaudited - in thousands) Three Months Ended December 31, 2024 2023 Net earnings (U.S. GAAP) $ 87,091 $ 90,044 Income tax expense 14,763 19,676 Interest expense 12
Slide 20: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW1 (Unaudited - in thousands) Three Months Ended December 31, 2024 2023 Net cash provided by operating activities (U.S. GAAP) $ 34,516 $ 46,789 Payments for p
Slide 21: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF INDUSTRIAL NET SALES (Unaudited - in thousands) Three Months Ended December 31, 2024 2023 China on highway natural gas truck sales $ 9,633 $ 74,338 Core Industrial sales 269,210 251,636 Industrial segment net s
Slide 22: Non-U.S. GAAP Measures
APPEN DIX NON-U.S. GAAP MEASURES 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, Management also uses free cash flow, which is derived from net cash provided by or used in operating adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, and a
Slide 23: Powering a clean future
Powering a clean future AVS WOODWARD