Woodward, Inc. · NASDAQ:WWD
Woodward — Q3 2024 Earnings Presentation
19 slides from Woodward's earnings presentation, Jul 29, 2024
Slide 1: Fiscal Year 2024 Third Quarter Results
Fiscal Year 2024 Third Quarter Results July 29, 2024
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements include, but are not limited to, our focus on growth, operational excellence an
Slide 3: Q3 Fiscal Year 2024 Summary
Q3 FISCAL YEAR 2024 SUMMARY SALES UP → Robust end market demand 6% YOY → Strong Aerospace aftermarket CAPITAL ALLOCATION YOY → Price realization partially offset by OPERATING EARNINGS inflation $72M YTD → Strong Aerospace aftermarket IMPROVEMENT capital expenditures $348M YTD STRONG → YTD adjusted f
Slide 4: Q3 Fiscal Year 2024 Consolidated Results
Q3 FISCAL YEAR 2024 CONSOLIDATED RESULTS FY 24 FY 24 FY 23 FY 23 NET SALES $801 $848 NET EARNINGS $85 $102 Million Million Million Million ↑6% ↑21% FY 24YTD FY 24 ADJUSTED FREE FY 23YTD FY 23 EARNINGS PER CASH FLOW1 REPORTED FREE $103 $230 SHARE (EPS) $1.37 $1.63 CASH FLOW: Million Million $225 MILL
Slide 5: Aerospace Overview
W woopwarD AEROSPACE OVERVIEW
Slide 6: Aerospace - Commercial
AEROSPACE - COMMERCIAL WWD Commercial WWD Commercial OEM Sales Aftermarket Sales ↑ 19% GROWTH ↑ 2% GROWTH Q3’FY23 to Q3’FY24 Q3’FY23 to Q3’FY24 COMMERCIAL COMMERCIAL Strong passenger traffic OEM Industry supply chain challenges AFTERMARKET High aircraft utilization 66 | © WOODWARD, INC. PROPRIETARY
Slide 7: Aerospace - Defense
AEROSPACE - DEFENSE WWD Defense WWD Defense OEM Sales Aftermarket Sales ↑ 22% GROWTH Q3’FY23 to Q3’FY24 ↑ Q3’FY23 to Q3’FY24 4% DECLINE Increased output DEFENSE Program delays in fixed and rotor wing DEFENSE OEM AFTERMARKET Supply chain stabilization Improved guided weapons shipments Upgrade activit
Slide 8: Aerospace Segment Q3 Fiscal Year 2024
AEROSPACE SEGMENT Q3 FISCAL YEAR 2024 SALES EARNINGS MARGIN FY 24 FY 24 FY 24 FY 23 FY 23 FY 23 $481 $518 $83 $102 17.3% 19.7% Million Million Million Million ↑8% ↑23% ↑240 bps 88 | © WOODWARD, INC. PROPRIETARY
Slide 9: Industrial Overview
W woopwarpD INDUSTRIAL OVERVIEW
Slide 10: Industrial – Primary Markets
INDUSTRIAL – PRIMARY MARKETS Q3’FY23 VS Q3’FY24 WWD Power Generation WWD Transportation Sales WWD Oil & Gas Sales Sales ↑ 8% GROWTH ↑ 3% GROWTH ↑ 6% DECLINE POWER GENERATION TRANSPORTATION OIL AND GAS Rising global power demand driving Softened demand for heavy duty trucks in China, investment in ga
Slide 11: Industrial Segment Q3 Fiscal Year 2024
INDUSTRIAL SEGMENT Q3 FISCAL YEAR 2024 SALES EARNINGS MARGIN FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 $320 $330 $58 $60 18.2% 18.1% Million Million Million Million ↑3% ↑3% 10 bps ↑ 1 111 | © WOODWARD, INC. PROPRIETARY
Slide 12: Woodward Select Financial Results
WOODWARD SELECT FINANCIAL RESULTS Quarter-to-date Year-to-date Q3 FY 23 Q3 FY 24 CHANGE Q3 FY 23 Q3 FY 24 CHANGE GROSS MARGIN* 25.5% 27.1% 160 bps 22.8% 27.1% 430 bps SG&A EXPENSES: % OF SALES 8.1% 8.7% 60 bps 9.5% 9.3% (20) bps R&D EXPENSES: % OF SALES 4.4% 4.6% 20 bps 4.7% 4.3% (40) bps E F F E C
Slide 13: FY24 Revised Guidance
W woopwarD FY24 REVISED GUIDANCE
Slide 14: Revised Fiscal 2024 Guidance
REVISED FISCAL 2024 GUIDANCE PRIOR REVISED (in millions, except per share amount and percentages) FY24 Guidance issued on FY24 Guidance issued on Apr 29, 2024 Jul 29, 2024 Sales $3,250-$3,350 $3,250-$3,300 A d j u s t e d E f f e c t i v e Ta x R a t e ~20% ~18.5% Adjusted Free Cash Flow $325-$375 $
Slide 15: Appendix
Appendix
Slide 16: Non-U.S. GAAP Reconciliations
APPENDIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries 1 RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS (Unaudited - in thousands, except per share amounts) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Before Income Net of Income Per Share, Net of Before
Slide 17: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBIT1 AND ADJUSTED EBIT1 (Unaudited - in thousands) Three-Months Ended June 30, Nine-Months Ended June 30, 2024 2023 2024 2023 Net earnings (U.S. GAAP) $ 102,075 $ 84,599 $ 289,675 $ 149,716 Inc
Slide 18: 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 AND ADJUSTED FREE CASH FLOW1 (Unaudited - in thousands) Nine Months Ended June 30, 2024 2023 Net cash provided by operating activities (U.S. GAAP) $ 297,32
Slide 19: 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, adjusted presented in accordance with accounting principles generally accepted in the United States of America (U.S. EBIT, adjusted EBITDA, adjusted effective tax rate