Slide 1: Fourth Quarter and Fiscal Year 2024 Results
Fourth Quarter and Fiscal Year 2024 Results November 25, 2024
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, anticipated continued strong demand, continued improvements in our
Slide 3: Fiscal Year 2024 Summary
FISCAL YEAR 2024 SUMMARY → Robust end market demand SALES UP → Double digit growth in both Aerospace 14% YOY and Industrial CAPITAL ALLOCATION OPERATING → Price realization EARNINGS IMPROVEMENT → Volume growth in both segments $96M capital expenditures $449M STRONG → Adjusted free cash flow1 of $348
Slide 4: Q4 Fiscal Year 2024 Consolidated Results
Q4 FISCAL YEAR 2024 CONSOLIDATED RESULTS Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 NET NET SALES EARNINGS $777 $855 $83 $83 Million Million Million Million ↑10% ↑1% ADJUSTED Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 FREE CASH EARNINGS PER FLOW SHARE (EPS)1 $134 $118 REPORTED EPS: $1.36 Q4 FY24 $1.33* $1.41 Million Mill
Slide 5: Fiscal Year 2024 Consolidated Results
FISCAL YEAR 2024 CONSOLIDATED RESULTS FY23 FY24 FY23 FY24 NET NET SALES EARNINGS $2.9 $3.3 $232 $373 Billion Billion Million Million ↑14% ↑61% ADJUSTED FY23 FY24 ADJUSTED FREE FY23 FY24 EARNINGS PER CASH FLOW1 SHARE (EPS) 1 $348 REPORTED FREE CASH FLOW: $238 REPORTED EPS: $3.78 FY23 $6.01 FY24 $4.21
Slide 6: Aerospace Overview
W woopwarD AEROSPACE OVERVIEW
Slide 7: Aerospace - Commercial
AEROSPACE - COMMERCIAL WWD Commercial WWD Commercial OEM Sales Aftermarket Sales ↑ 13% GROWTH ↑ 17% GROWTH FY23 to FY24 FY23 to FY24 COMMERCIAL Strong ongoing demand COMMERCIAL Strong passenger traffic OEM AFTERMARKET External supply chain challenges High aircraft utilization 77 | © WOODWARD, INC. P
Slide 8: Aerospace - Defense
AEROSPACE - DEFENSE WWD Defense WWD Defense OEM Sales Aftermarket Sales ↑ GROWTH 10% ↑ 21% GROWTH FY23 to FY24 FY23 to FY24 FY23 to FY24 DEFENSE Improved guided weapons shipments DEFENSE Improved operational execution OEM AFTERMARKET Growth in ground vehicles Supply chain stabilization 88 | © WOODWA
Slide 9: Aerospace Segment Q4 Fiscal Year 2024
AEROSPACE SEGMENT Q4 FISCAL YEAR 2024 SALES EARNINGS MARGIN Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 $455 $553 $78 $106 17.2% 19.2% Million Million Million Million ↑22% ↑35% ↑200 bps 99 | © WOODWARD, INC. PROPRIETARY
Slide 10: Aerospace Segment Fiscal Year 2024
AEROSPACE SEGMENT FISCAL YEAR 2024 SALES EARNINGS MARGIN FY23 FY24 FY23 FY24 FY23 FY24 $1.8 $2.0 $290 $385 19.0% Billion Million 16.4% Billion Million ↑15% ↑33% ↑260 bps 1 010 | © WOODWARD, INC. PROPRIETARY
Slide 11: Industrial Overview
W woopwarpD INDUSTRIAL OVERVIEW
Slide 12: Industrial Markets FY23 vs FY24
INDUSTRIAL MARKETS FY23 VS FY24 ↑ 11% ↑ 22% SALES GROWTH SALES GROWTH ↑ 3% POWER GENERATION TRANSPORTATION SALES DECLINE Weak local economy and narrowing fuel price OIL AND GAS Robust global demand for power spread softening demand for heavy duty trucks in generation driving investment in gas China
Slide 13: Industrial Segment Q4 Fiscal Year 2024
INDUSTRIAL SEGMENT Q4 FISCAL YEAR 2024 SALES EARNINGS MARGIN Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 $322 $302 $54 $38 16.9% 12.6% Million Million Million Million 6% 430 bps ↑ 30% ↑ ↑ 1 313 | © WOODWARD, INC. PROPRIETARY
Slide 14: Industrial Segment Fiscal Year 2024
INDUSTRIAL SEGMENT FISCAL YEAR 2024 SALES EARNINGS MARGIN FY23 FY24 FY23 FY24 FY23 FY24 $1.1 $1.3 $162 $230 17.7% Billion Billion Million Million 14.1% ↑13% ↑42% ↑360 bps 1 414 | © WOODWARD, INC. PROPRIETARY
Slide 15: Woodward Select Financial Results
WOODWARD SELECT FINANCIAL RESULTS Fourth Quarter Fiscal Year Q4 FY23 Q4 FY24 CHANGE FY23 FY24 CHANGE GROSS MARGIN* 24.4% 24.3% (10) bps 23.2% 26.4% 320 bps SG&A EXPENSES: % OF SALES 8.5% 9.1% 60 bps 9.3% 9.3% 0 bps R&D EXPENSES: % OF SALES 4.1% 4.1% 0 bps 4.5% 4.2% (30) bps EFFECTIVE TAX RATE 15.7%
Slide 16: FY25 Guidance
4 - to =69W woopwarpD x ey r) FY25 GUIDANCE
Slide 17: Fiscal 2025 Guidance
FISCAL 2025 GUIDANCE (in millions, except EPS and percentages) Sales $3,300 – $3,500 E f f e c t i v e Ta x R a t e ~20% Free Cash Flow $350 – $400 WO O DWA R D Capital Expenditures ~$115 Shares ~61.5 EPS $5.75 – $6.25 Sales Up 6–13% A E R O S PA C E Segment Earnings (% of Sales) 20–21% Sales Down 7
Slide 18: Fiscal 2025 Guidance: Sales and EPS
FISCAL 2025 GUIDANCE SALES EPS FY24 ACTUAL TO FY25 GUIDANCE MIDPOINT FY24 ADJUSTED TO FY25 GUIDANCE MIDPOINT $54 $0.21 $0.93 $196 ↑ 5.0% $3,400 $6.11 ($175) $6.00 $3,324 ($1.15) ↓ 81.1% ($0.10) ↑ 9.7% FY24 Actuals Aerospace Core Industrial Industrial FY25 Midpoint FY24 Adjusted Aerospace Core Indust
Slide 19: Appendix
Appendix
Slide 20: Non-U.S. GAAP Reconciliations
APPENDIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF EARNINGS TO ADJUSTED NET EARNINGS1 (Unaudited - in thousands, except per share amounts) Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Before Income Net of Income Per Share, Net of B
Slide 21: 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 September 30, Year Ended September 30, 2024 2023 2024 2023 Net earnings (U.S. GAAP) $ 83,296 $ 82,652 $ 372,971 $ 232,368 I
Slide 22: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILATION OF CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW1 AND ADJUSTED FREE CASH FLOW1 (Unaudited - in thousands) Three Months Ended September 30, Year Ended September 30, 2024 2023 2024 2023 Net cash provided by o
Slide 23: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF INDUSTRIAL SEGMENT SALES (Unaudited - in thousands) Three Months Ended September 30, Year Ended September 30, 2024 2023 2024 2023 China on highway natural gas truck sales $ 22,380 $ 45,000 $ 215,770 $ 126,455 C
Slide 24: 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 less payments for property, plant, and equipment, as well as adjusted free cash flow (as described above), in EBIT, adjusted EBITDA, adjusted effective tax ra