FORT COLLINS, Colo., July 28, 2025 (GLOBE NEWSWIRE) -- Today, Woodward, Inc. (NASDAQ:WWD) reported financial results for its third quarter of fiscal year 2025.
All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are references to the Company's fiscal year unless otherwise stated.
Third Quarter Overview
| Third Quarter 2025 | Year-to-Date 2025 | |||
| Net Sales | $915M, 8% | $2.6B, 4% | ||
| Net Earnings | $108M, 6% | $304M, 5% | ||
| Adjusted Net Earnings1 | - | $294M, 1% | ||
| Earnings Per Share (EPS) | $1.76, 8% | $4.96, 7% | ||
| Adjusted EPS1 | - | $4.80, 2% | ||
| Cash from Operations | $126, -18% | $238, -20% | ||
| Free Cash Flow1 | $99, -28% | $159, -29% | ||
"We delivered strong results in the third quarter underpinned by robust demand across our end markets, coupled with disciplined execution by our global teams," said Chip Blankenship, Chairman and Chief Executive Officer. "The Aerospace segment generated substantial sales growth and margin expansion, driven by smart defense and commercial services. This was partially offset by lower commercial OEM and defense services, although both achieved sequential improvement. Our Industrial business again delivered double-digit sales growth in oil and gas and marine transportation. This was offset by an expected decrease in China on-highway natural gas truck sales.
Based on our strong year-to-date performance and solid fourth quarter outlook, we are raising our full-year sales and earnings guidance. However, given the demands to support higher sales in a dynamic supply chain and production environment, we are lowering our full-year free cash flow guidance. We remain focused on growth, operational excellence, and innovation, which continue to position Woodward to deliver sustained long-term shareholder value."
| Third Quarter and Fiscal Year 2025 Company Results | ||||||||||||||||
| Total Company Results (Dollars in millions, except per share amounts) | ||||||||||||||||
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||||||||||
| 2025 | 2024 | Year over Year | 2025 | 2024 | Year over Year | |||||||||||
| Income Statement | ||||||||||||||||
| Total Sales | $ | 915 | $ | 848 | 8.0 | % | $ | 2,572 | $ | 2,470 | 4.1 | % | ||||
| Net Earnings | 108 | 102 | 6.2 | % | 304 | 290 | 5.1 | % | ||||||||
| Adjusted Net Earnings1 | - | - | - | 294 | 293 | 0.6 | % | |||||||||
| EPS | $ | 1.76 | $ | 1.63 | 8.0 | % | $ | 4.96 | $ | 4.65 | 6.7 | % | ||||
| Adjusted EPS1 | - | - | - | $ | 4.80 | $ | 4.70 | 2.1 | % | |||||||
| EBIT | 137 | 132 | 4.1 | % | 394 | 382 | 3.0 | % | ||||||||
| Adjusted EBIT1 | - | - | - | 381 | 386 | -1.4 | % | |||||||||
| Effective Tax Rate | 14.5 | % | 16.4 | % | -190 bps | 15.8 | % | 17.8 | % | -200 bps | ||||||
| Adjusted Effective Tax Rate1 | - | - | - | 15.5 | % | 17.8 | % | -230 bps | ||||||||
| Cash Flow and Financial Position | ||||||||||||||||
| Cash from Operating Activities | $ | 126 | $ | 153 | -18.0 | % | $ | 238 | $ | 297 | -20.0 | % | ||||
| Capital Expenditures | 27 | 16 | 67.0 | % | 79 | 72 | 8.8 | % | ||||||||
| Free Cash Flow | 99 | 137 | -27.8 | % | 159 | 225 | -29.2 | % | ||||||||
| Dividends Paid | 17 | 15 | 10.7 | % | 48 | 43 | 10.9 | % | ||||||||
| Share Repurchases | 45 | 305 | - | 124 | 305 | - | ||||||||||
| Total Debt | - | - | - | 933 | 923 | 1.1 | % | |||||||||
| EBITDA1Leverage | - | - | - | 1.5x | 1.5x | - | ||||||||||
| Segment Results | ||||||||||||||||
| Aerospace (Dollars in millions) | ||||||||||||||||
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||||||||||
| 2025 | 2024 | Year over Year | 2025 | 2024 | Year over Year | |||||||||||
| Commercial OEM | $ | 175 | $ | 190 | -7.6 | % | $ | 497 | $ | 545 | -8.8 | % | ||||
| Commercial Aftermarket | 215 | 166 | 30.0 | % | 581 | 467 | 24.4 | % | ||||||||
| Defense OEM | 150 | 97 | 55.7 | % | 401 | 281 | 42.7 | % | ||||||||
| Defense Aftermarket | 55 | 66 | -16.2 | % | 173 | 183 | -5.7 | % | ||||||||
| Sales | 596 | 518 | 15.2 | % | 1,652 | 1,476 | 11.9 | % | ||||||||
| Segment Earnings | 126 | 102 | 23.5 | % | 345 | 279 | 23.6 | % | ||||||||
| Segment Margin % | 21.1 | % | 19.7 | % | 140 bps | 20.9 | % | 18.9 | % | 200 bps | ||||||
The increase in Aerospace segment earnings in the third quarter was primarily a result of price realization and volume, partially offset by planned strategic investments in manufacturing capabilities to meet current and future growth, inflation, and unfavorable mix.
The increase in Aerospace segment earnings for the nine months ended June 30, 2025, was primarily a result of price realization and volume, partially offset by planned strategic investments in manufacturing capabilities to meet current and future growth, inflation, and unfavorable mix.
| Industrial (Dollars in millions) | ||||||||||||||||
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||||||||||
| 2025 | 2024 | Year over Year | 2025 | 2024 | Year over Year | |||||||||||
| Transportation | $ | 144 | $ | 163 | -12.0 | % | $ | 402 | $ | 512 | -21.4 | % | ||||
| Power Generation | 109 | 110 | -0.2 | % | 326 | 315 | 3.5 | % | ||||||||
| Oil and Gas | 66 | 57 | 16.1 | % | 193 | 168 | 14.7 | % | ||||||||
| Sales | 319 | 330 | -3.2 | % | 920 | 994 | -7.4 | % | ||||||||
| Segment Earnings | 48 | 60 | -20.3 | % | 134 | 192 | -30.3 | % | ||||||||
| Segment Margin % | 14.9 | % | 18.1 | % | -320 bps | 14.5 | % | 19.3 | % | -480 bps | ||||||
The decrease in Industrial segment earnings in the third quarter was primarily a result of lower China on-highway volume and inflation, partially offset by price realization.
The decrease in Industrial segment earnings in the nine months ended June 30, 2025, was primarily a result of lower China on-highway volume and unfavorable mix, partially offset by price realization.
| Nonsegment (Dollars in millions) | ||||||||||||||||
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||||||||||
| 2025 | 2024 | Year over Year | 2025 | 2024 | Year over Year | |||||||||||
| Nonsegment Expenses | $ | (36 | ) | $ | (30 | ) | 21.8 | % | $ | (85 | ) | $ | (89 | ) | -4.2 | % |
| Adjusted Nonsegment Expenses | - | - | - | (98 | ) | (85 | ) | 15.6 | % | |||||||
| Fiscal Year 2025 Guidance | ||
| Woodward, Inc. and Subsidiaries Revised Guidance (In millions, except per share amount and percentages) | ||
| Prior FY25 Guidance | Revised FY25 Guidance | |
| April 28, 2025 | July 28, 2025 | |
| Total Company | ||
| Sales | $3,375 - $3,500 | $3,450 - $3,525 |
| Adjusted Effective Tax Rate | ~19% | ~17% |
| Adjusted Free Cash Flow | $350 - $400 | $315 - $350 |
| Capital Expenditures | ~$115 | No change |
| Shares | ~61.5 | No change |
| Adjusted EPS | $5.95 - $6.25 | $6.50 - $6.75 |
| Segment Data | ||
| Aerospace | ||
| Sales Growth | Up 8% to 13% | Up 11% to 13% |
| Segment Earnings (% of Sales) | 20% - 21% | 21% - 21.5% |
| Industrial | ||
| Sales Growth | Down 7% to 9% | Down 5% to 7% |
| Segment Earnings (% of Sales) | 13% - 14% | ~14.5% |
Conference Call
Woodward will hold an investor conference call at 5:00 p.m. ET, July 28, 2025, to provide an overview of the financial performance for its fiscal year 2025 and third quarter ending June 30, 2025, business highlights, and guidance for fiscal 2025. You are invited to listen to the live webcast of our conference call, or a recording, and view or download accompanying presentation slides at our website, www.woodward.com2.
You may also listen to the call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international). Participants should call prior to the start time to allow for registration; the Conference ID is 4675940. The call and presentation will be available on the website by selecting "Investors/Events & Presentations" from the menu and will remain accessible on the company's website for one year.
About Woodward, Inc.
Woodward is the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets. Our purpose is to design and deliver energy control solutions our partners count on to power a clean future. Our innovative fluid, combustion, electrical, propulsion and motion control systems perform in some of the world's harshest environments. Woodward is a global company headquartered in Fort Collins, Colorado, USA. Visit our website at www.woodward.com.
Cautionary Statement
Information in this press release 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, including the outcome of such efforts on our long-term success and shareholder value; statements regarding our business, expectations and guidance for the fourth quarter and fiscal year 2025, our guidance for sales, segment sales growth as compared to the prior fiscal year, adjusted earnings per share, segment earnings margin, adjusted effective tax rate, free cash flow, capital expenditures, and diluted weighted average shares outstanding, as well as our assumptions and expectations regarding our guidance and the factors that may impact guidance, and anticipated trends in our business and markets. Factors that could cause actual results and the timing of certain events to differ materially from the forward-looking statements include, but are not limited to: (1) global economic uncertainty and instability, including a potential global or regional recession, inflation and the impact on customer demand and our costs and expenses; (2) changes in or uncertainty with respect to global trade and economic policy, including tariff levels and retaliatory measures; (3) risks related to constraints and disruptions in the global supply chain and labor markets; (4) Woodward's long sales cycle; (5) risks related to Woodward's concentration of revenue among a relatively small number of customers; (6) Woodward's ability to implement and realize the intended effects of any restructuring efforts; (7) Woodward's ability to successfully manage competitive factors including expenses and fluctuations in sales; (8) changes and consolidations in the aerospace market; (9) Woodward's financial obligations including debt obligations and tax expenses and exposures; (10) risks related to Woodward's U.S. government contracting activities including potential changes in government spending patterns; (11) Woodward's ability to protect its intellectual property rights and avoid infringing the intellectual property rights of others; (12) changes in the estimates of fair value of reporting units or of long-lived assets; (13) environmental risks; (14) Woodward's continued access to a stable workforce and favorable labor relations with its employees; (15) Woodward's ability to manage various regulatory and legal matters; (16) risks from operating internationally; (17) cybersecurity and other technological risks; and other risk factors and risks described in Woodward's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, any subsequently filed Quarterly Report on Form 10-Q, as well as its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which we expect to file shortly, and other risks described in Woodward's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof and Woodward assumes no obligation to update such statements, except as required by applicable law.
| Woodward, Inc. and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited – In thousands) | ||||||||||||
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Net sales | $ | 915,446 | $ | 847,688 | $ | 2,571,800 | $ | 2,469,761 | ||||
| Costs and expenses: | ||||||||||||
| Cost of goods sold | 666,287 | 617,702 | 1,892,908 | 1,801,037 | ||||||||
| Selling, general, and administrative expenses | 88,703 | 73,812 | 242,241 | 229,770 | ||||||||
| Research and development costs | 41,088 | 38,728 | 108,525 | 105,987 | ||||||||
| Interest expense | 11,234 | 11,516 | 35,464 | 34,482 | ||||||||
| Interest income | (838 | ) | (1,728 | ) | (3,236 | ) | (4,494 | ) | ||||
| Other (income) expense, net | (17,864 | ) | (14,438 | ) | (65,755 | ) | (49,461 | ) | ||||
| Total costs and expenses | 788,610 | 725,592 | 2,210,147 | 2,117,321 | ||||||||
| Earnings before income taxes | 126,836 | 122,096 | 361,653 | 352,440 | ||||||||
| Income taxes | 18,388 | 20,021 | 57,165 | 62,765 | ||||||||
| Net earnings | $ | 108,448 | $ | 102,075 | $ | 304,488 | $ | 289,675 | ||||
| Earnings per share amounts: | ||||||||||||
| Basic earnings per share | $ | 1.82 | $ | 1.69 | $ | 5.12 | $ | 4.80 | ||||
| Diluted earnings per share | $ | 1.76 | $ | 1.63 | $ | 4.96 | $ | 4.65 | ||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 59,680 | 60,425 | 59,442 | 60,290 | ||||||||
| Diluted | 61,488 | 62,522 | 61,374 | 62,295 | ||||||||
| Cash dividends paid per share | $ | 0.28 | $ | 0.25 | $ | 0.81 | $ | 0.72 | ||||
| Woodward, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited – In thousands) | ||||||
| June 2025 | September 2025 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 473,159 | $ | 282,270 | ||
| Accounts receivable | 829,581 | 770,066 | ||||
| Inventories | 657,121 | 609,092 | ||||
| Income taxes receivable | 35,883 | 22,016 | ||||
| Other current assets | 65,413 | 60,167 | ||||
| Total current assets | 2,061,157 | 1,743,611 | ||||
| Property, plant, and equipment, net | 942,103 | 940,715 | ||||
| Goodwill | 813,779 | 806,643 | ||||
| Intangible assets, net | 435,057 | 440,419 | ||||
| Deferred income tax assets | 85,714 | 84,392 | ||||
| Other assets | 374,040 | 353,135 | ||||
| Total assets | $ | 4,711,850 | $ | 4,368,915 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities: | ||||||
| Short-term debt | $ | 353,000 | $ | 217,000 | ||
| Current portion of long-term debt | 76,020 | 85,719 | ||||
| Accounts payable | 284,029 | 287,457 | ||||
| Income taxes payable | 35,768 | 40,692 | ||||
| Accrued liabilities | 261,381 | 292,642 | ||||
| Total current liabilities | 1,010,198 | 923,510 | ||||
| Long-term debt, less current portion | 503,851 | 569,751 | ||||
| Deferred income tax liabilities | 127,744 | 121,858 | ||||
| Other liabilities | 601,491 | 577,380 | ||||
| Total liabilities | 2,243,284 | 2,192,499 | ||||
| Stockholders' equity | 2,468,566 | 2,176,416 | ||||
| Total liabilities and stockholders' equity | $ | 4,711,850 | $ | 4,368,915 | ||
| Woodward, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited – In thousands) | ||||||
| Nine Months Ended June 30 | ||||||
| 2025 | 2024 | |||||
| Net cash provided by operating activities | $ | 237,976 | $ | 297,329 | ||
| Cash flows from investing activities: | ||||||
| Payments for purchase of property, plant, and equipment | (78,537 | ) | (72,193 | ) | ||
| Proceeds from sale of assets | 41 | 84 | ||||
| Proceeds from business divestitures | 48,043 | 900 | ||||
| Payments for short-term investments | - | (6,767 | ) | |||
| Proceeds from sales of short-term investments | 2,935 | 9,737 | ||||
| Net cash used in investing activities | (27,518 | ) | (68,239 | ) | ||
| Cash flows from financing activities: | ||||||
| Cash dividends paid | (48,195 | ) | (43,457 | ) | ||
| Proceeds from sales of treasury stock | 96,064 | 90,142 | ||||
| Payments for repurchases of common stock | (124,276 | ) | (304,811 | ) | ||
| Borrowings on revolving lines of credit and short-term borrowings | 1,957,900 | 2,258,600 | ||||
| Payments on revolving lines of credit and short-term borrowings | (1,821,900 | ) | (1,983,800 | ) | ||
| Payments of long-term debt and finance lease obligations | (85,719 | ) | (75,644 | ) | ||
| Net cash used in financing activities | (26,126 | ) | (58,970 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 6,557 | 765 | ||||
| Net change in cash and cash equivalents | 190,889 | 170,885 | ||||
| Cash and cash equivalents at beginning of year | 282,270 | 137,447 | ||||
| Cash and cash equivalents at end of period | $ | 473,159 | $ | 308,332 | ||
| Woodward, Inc. and Subsidiaries Segment Net Sales and Net Earnings (Unaudited – In thousands) | ||||||||||||
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Segment net sales: | ||||||||||||
| Aerospace | 595,990 | 517,560 | 1,651,601 | 1,475,828 | ||||||||
| Industrial | 319,456 | 330,128 | 920,199 | 993,933 | ||||||||
| Total consolidated net sales | $ | 915,446 | $ | 847,688 | $ | 2,571,800 | $ | 2,469,761 | ||||
| Segment earnings*: | ||||||||||||
| Aerospace | 125,740 | 101,842 | 345,081 | 279,295 | ||||||||
| As a percent of segment net sales | 21.1 | % | 19.7 | % | 20.9 | % | 18.9 | % | ||||
| Industrial | 47,622 | 59,717 | 133,786 | 191,842 | ||||||||
| As a percent of segment net sales | 14.9 | % | 18.1 | % | 14.5 | % | 19.3 | % | ||||
| Total segment earnings | $ | 173,362 | $ | 161,559 | $ | 478,867 | $ | 471,137 | ||||
| Nonsegment expenses | (36,130 | ) | (29,675 | ) | (84,986 | ) | (88,709 | ) | ||||
| EBIT | $ | 137,232 | $ | 131,884 | $ | 393,881 | $ | 382,428 | ||||
| Interest expense, net | (10,396 | ) | (9,788 | ) | (32,228 | ) | (29,988 | ) | ||||
| Consolidated earnings before income taxes | $ | 126,836 | $ | 122,096 | $ | 361,653 | $ | 352,440 | ||||
| *This schedule reconciles segment earnings, which exclude certain costs, to consolidated earnings before taxes. | ||||||||||||
| Payments for property, plant and equipment | $ | 26,547 | $ | 15,892 | $ | 78,537 | $ | 72,193 | ||||
| Depreciation expense | $ | 21,482 | $ | 20,661 | $ | 63,238 | $ | 61,494 | ||||
There were no adjustments to net earnings, earnings per share, adjusted effective tax rate, adjusted nonsegment, and adjusted income tax expense in the three months ended June 30, 2025 or the three months ended 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 | 2024 | ||||||||||
| | Net Earnings | Earnings Per Share | Net Earnings | Earnings Per Share | ||||||||
| Net Earnings (U.S. GAAP) | $ | 304,488 | $ | 4.96 | $ | 289,675 | $ | 4.65 | ||||
| Non-U.S. GAAP Adjustments | | | | |||||||||
| Product rationalization1 | (20,524 | ) | (0.33 | ) | - | - | ||||||
| Non-recurring gain related to a previous acquisition1 | - | - | (4,803 | ) | (0.08 | ) | ||||||
| Business development activities1 | 7,310 | 0.12 | 5,902 | 0.09 | ||||||||
| Certain non-restructuring separation costs2 | - | - | 2,666 | 0.05 | ||||||||
| Tax Effect of Non-U.S. GAAP Net Earnings Adjustments | 3,130 | 0.05 | (729 | ) | (0.01 | ) | ||||||
| Total non-U.S. GAAP Adjustments | (10,084 | ) | (0.16 | ) | 3,036 | 0.05 | ||||||
| Adjusted Net Earnings(Non-U.S. GAAP) | $ | 294,404 | $ | 4.80 | $ | 292,711 | $ | 4.70 | ||||
- Presented in the line item "Other (income) expense, net" in Woodward's Condensed Consolidated Statement of Earnings.
- Presented in item "Selling, general and administrative" expenses in Woodward's Condensed Consolidated Statement of Earnings.
| Woodward, Inc. and Subsidiaries Reconciliation of Income Tax Expense to Adjusted Income Tax Expense1 (Unaudited – In thousands) | ||||||
| | Nine Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Income tax expense (U.S. GAAP) | $ | 57,165 | $ | 62,765 | ||
| Tax Effect of Non-U.S. GAAP Net Earnings Adjustments | (3,130 | ) | 729 | |||
| Adjusted Income Tax Expense (Non-U.S. GAAP) | $ | 54,035 | $ | 63,494 | ||
| Adjusted Income Tax Rate (Non-U.S. GAAP) | 15.5 | % | 17.8 | % | ||
| Woodward, Inc. and Subsidiaries Reconciliation of Net Earning to EBIT1 (Unaudited – In thousands) | ||||||
| | Three Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Net Earnings (U.S. GAAP) | $ | 108,448 | $ | 102,075 | ||
| Income Tax Expense | 18,388 | 20,021 | ||||
| Interest Expense | 11,234 | 11,516 | ||||
| Interest Income | (838 | ) | (1,728 | ) | ||
| EBIT (Non-U.S. GAAP) | 137,232 | 131,884 | ||||
| Woodward, Inc. and Subsidiaries Reconciliation of Net Earning to EBIT1and Adjusted EBIT1 (Unaudited – In thousands) | ||||||
| | Nine Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Net Earnings (U.S. GAAP) | $ | 304,488 | $ | 289,675 | ||
| Income Tax Expense | 57,165 | 62,765 | ||||
| Interest Expense | 35,464 | 34,482 | ||||
| Interest Income | (3,236 | ) | (4,494 | ) | ||
| EBIT (Non-U.S. GAAP) | 393,881 | 382,428 | ||||
| Total non-U.S. GAAP Adjustments | (13,214 | ) | 3,765 | |||
| Adjusted EBIT (Non-U.S. GAAP) | $ | 380,667 | $ | 386,193 | ||
| Woodward, Inc. and Subsidiaries Reconciliation of Net Earning to EBITDA1 (Unaudited – In thousands) | ||||||
| | Three Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Net Earnings (U.S. GAAP) | $ | 108,448 | $ | 102,075 | ||
| Income Tax Expense | 18,388 | 20,021 | ||||
| Interest Expense | 11,234 | 11,516 | ||||
| Interest Income | (838 | ) | (1,728 | ) | ||
| Amortization of intangible assets | 7,172 | 8,131 | ||||
| Depreciation Expanse | 21,482 | 20,661 | ||||
| EBITDA (Non-U.S. GAAP) | 165,886 | 160,676 | ||||
| Woodward, Inc. and Subsidiaries Reconciliation of Net Earning to EBITDA1and Adjusted EBITDA1 (Unaudited – In thousands) | ||||||
| | Nine Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Net Earnings (U.S. GAAP) | $ | 304,488 | $ | 289,675 | ||
| Income Tax Expense | 57,165 | 62,765 | ||||
| Interest Expense | 35,464 | 34,482 | ||||
| Interest Income | (3,236 | ) | (4,494 | ) | ||
| Amortization of Intangible Assets | 20,858 | 25,348 | ||||
| Depreciation Expanse | 63,238 | 61,494 | ||||
| EBITDA (Non-U.S. GAAP) | 477,977 | 469,270 | ||||
| Total non-U.S. GAAP Adjustments | (13,214 | ) | 3,765 | |||
| Adjusted EBITDA (Non-U.S. GAAP) | $ | 464,763 | $ | 473,035 | ||
| Woodward, Inc. and Subsidiaries Reconciliation of Non-Segment Expenses to Adjusted Non-Segment Expenses1 (Unaudited – In thousands) | ||||||
| | Nine Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Non-Segment Expenses (U.S. GAAP) | $ | (84,986 | ) | $ | (88,709 | ) |
| Product rationalization | (20,524 | ) | - | |||
| Non-recurring gain related to a previous acquisition | - | (4,803 | ) | |||
| Business development activities | 7,310 | 5,902 | ||||
| Certain non-restructuring separation costs | - | 2,666 | ||||
| Adjusted Non-Segment Expenses (Non-U.S. GAAP) | $ | (98,200 | ) | $ | (84,944 | ) |
| Woodward, Inc. and Subsidiaries Reconciliation of Cash Flow from Operating Activities to Free Cash Flow1 (Unaudited – In thousands) | ||||||
| | Nine Months Ended June 30 | |||||
| | 2025 | 2024 | ||||
| Net cash provided by operating activities (U.S. GAAP) | $ | 237,976 | $ | 297,329 | ||
| Payments for property, plant, and equipment | (78,537 | ) | (72,193 | ) | ||
| Free cash flow (Non-U.S. GAAP) | $ | 159,439 | $ | 225,136 | ||
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 rationalization, (ii) a non-recurring gain related to a previous acquisition, (iii) costs related to business development activities, and (iv) certain non-restructuring separation costs. The product rationalization adjustment pertains to gains related to the elimination of certain product lines. The Company believes that these excluded items are short‐term in nature, not directly related to the ongoing operations of the business, and therefore, the exclusion of them illustrates more clearly how the underlying business of Woodward is performing. Guidance with respect to non-U.S. GAAP measures as provided in this release excludes, as applicable, (i) product rationalization, and (ii) business development activities.
EBIT (earnings before interest and taxes), EBITDA (earnings before interest, taxes, depreciation and amortization), free cash flow, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted income tax expense, adjusted effective tax rate, and adjusted nonsegment expenses are financial measures not prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Management uses EBIT and adjusted EBIT to evaluate Woodward's operating performance without the impacts of financing and tax related considerations. Management uses EBITDA and adjusted EBITDA in evaluating Woodward's operating performance, making business decisions, including developing budgets, managing expenditures, forecasting future periods, and evaluating capital structure impacts of various strategic scenarios. Management also uses free cash flow, which is derived from net cash provided by or used in operating activities less payments for property, plant, and equipment in reviewing the financial performance of Woodward's various business segments and evaluating cash generation levels. Securities analysts, investors, and others frequently use EBIT, EBITDA, and free cash flow in their evaluation of companies, particularly those with significant property, plant, and equipment, and intangible assets that are subject to amortization. The use of any of these non-U.S. GAAP financial measures is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. Because adjusted net earnings, adjusted earnings per share, EBIT, EBITDA, adjusted EBIT, and adjusted EBITDA exclude certain financial information compared with net earnings, the most comparable U.S. GAAP financial measure, users of this financial information should consider the information that is excluded. Free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. Woodward's calculations of EBIT, EBITDA, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, adjusted nonsegment expenses, and free cash flow may differ from similarly titled measures used by other companies, limiting their usefulness as comparative measures.
2Website, Facebook, LinkedIn: Woodward has used, and intends to continue to use, its Investor Relations website, LinkedIn page, and Facebook page as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
| Contact: | Dan Provaznik Director, Investor Relations 970-498-3849 [email protected] |
