v3.26.1
Segment Information
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

Note 23. Segment information

Woodward’s segments are composed of similar product groupings that serve the same or similar end markets. Based on this approach, Woodward has two reportable segments that are also its operating segments: Aerospace and Industrial, as described below in further detail. Woodward uses segment information internally to manage its business, including the assessment of segment performance and decisions for the allocation of resources between segments.

Our Aerospace segment designs, manufactures, and services systems and products for the management of fuel, air, combustion, and motion control. These products include fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, as well as flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems.

Our Industrial segment designs, produces, and services systems and products for the management of energy in the form of fuel, air, fluids, gases, motion, combustion, and electricity. These products include actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors. Our products are used on industrial gas turbines (including heavy frame, aeroderivative, and small industrial gas turbines), steam turbines, compressors, and reciprocating engines (including low speed, medium speed, and high-speed engines that operate on various fuels, including natural gas, diesel, heavy fuel oil, and new lower carbon alternative fuels in both single and dual-fuel applications). The equipment on which our products are found is used to: generate power; to extract, distribute, and refine energy sources; to mine other commodities; and to convert fuel to work in transportation and freight (both marine and locomotives), mobile, and industrial equipment applications.

Nonsegment expenses consist of corporate office expenses, including compensation, benefits, depreciation, restructuring charges, and other administrative costs.

The accounting policies of the reportable segments are the same as those of the Company. The Aerospace and Industrial segments maintain separate financial information that is reviewed by the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer. The CODM uses forecast-to-actual variances and year-over-year variances on a monthly basis when assessing segment performance and forecasts in deciding how to allocate resources among the segments. The CODM evaluates the performance of the Company’s segments based on reportable segment operating profit. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other unusual and/or non-operationally related expenses.

A summary of consolidated net sales and segment operating profit by segment follows:

 

Three Months Ended June 30, 2026

 

 

Nine Months Ended June 30, 2026

 

 

Aerospace

 

 

Industrial

 

 

Total

 

 

Aerospace

 

 

Industrial

 

 

Total

 

Net sales

$

708,673

 

 

$

401,032

 

 

$

1,109,705

 

 

$

2,046,891

 

 

$

1,149,836

 

 

$

3,196,727

 

Cost of goods sold

 

489,027

 

 

 

269,090

 

 

 

758,117

 

 

 

1,448,885

 

 

 

787,523

 

 

 

2,236,408

 

Selling, general and administrative expenses

 

34,235

 

 

 

29,721

 

 

 

63,956

 

 

 

90,766

 

 

 

99,998

 

 

 

190,764

 

Research and development costs

 

32,724

 

 

 

14,674

 

 

 

47,398

 

 

 

84,158

 

 

 

43,852

 

 

 

128,010

 

Other segment items1

 

(17,333

)

 

 

(937

)

 

 

(18,270

)

 

 

(53,408

)

 

 

(2,736

)

 

 

(56,144

)

Reportable segment operating profit

$

170,020

 

 

$

88,484

 

 

$

258,504

 

 

$

476,490

 

 

$

221,199

 

 

$

697,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2025

 

 

Nine Months Ended June 30, 2025

 

 

Aerospace

 

 

Industrial

 

 

Total

 

 

Aerospace

 

 

Industrial

 

 

Total

 

Net sales

$

595,990

 

 

$

319,456

 

 

$

915,446

 

 

$

1,651,601

 

 

$

920,199

 

 

$

2,571,800

 

Cost of goods sold

 

436,516

 

 

 

229,166

 

 

 

665,682

 

 

 

1,219,331

 

 

 

671,789

 

 

 

1,891,120

 

Selling, general and administrative expenses

 

21,353

 

 

 

30,221

 

 

 

51,574

 

 

 

62,318

 

 

 

78,138

 

 

 

140,456

 

Research and development costs

 

25,732

 

 

 

13,832

 

 

 

39,564

 

 

 

64,583

 

 

 

39,470

 

 

 

104,053

 

Other segment items1

 

(13,351

)

 

 

(1,385

)

 

 

(14,736

)

 

 

(39,712

)

 

 

(2,984

)

 

 

(42,696

)

Reportable segment operating profit

$

125,740

 

 

$

47,622

 

 

$

173,362

 

 

$

345,081

 

 

$

133,786

 

 

$

478,867

 
(1)
Other segment items mainly includes our equity interest in the earnings of the JV, other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense, and net gain/loss on sales of assets and businesses.

A summary of consolidated earnings before income taxes was as follows:

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Reportable segment operating profit

 

$

258,504

 

 

$

173,362

 

 

$

697,689

 

 

$

478,867

 

Nonsegment expenses

 

 

(50,776

)

 

 

(36,130

)

 

 

(132,420

)

 

 

(84,986

)

Interest expense, net

 

 

(14,216

)

 

 

(10,396

)

 

 

(35,179

)

 

 

(32,228

)

Consolidated earnings before income taxes

 

$

193,512

 

 

$

126,836

 

 

$

530,090

 

 

$

361,653

 

Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets was as follows:

 

 

June 30, 2026

 

 

September 30, 2025

 

Segment assets:

 

 

 

 

 

 

Aerospace

 

$

2,529,518

 

 

$

2,110,805

 

Industrial

 

 

1,507,634

 

 

 

1,501,503

 

Unallocated corporate property, plant, and equipment, net

 

 

129,115

 

 

 

120,502

 

Other unallocated assets

 

 

1,030,134

 

 

 

897,333

 

Consolidated total assets

 

$

5,196,401

 

 

$

4,630,143

 

A summary of consolidated capital expenditures was as follows:

 

 

Nine Months Ended June 30,

 

 

 

2026

 

 

2025

 

Segment capital expenditures:

 

 

 

 

 

 

Aerospace

 

$

115,069

 

 

$

32,188

 

Industrial

 

 

28,783

 

 

 

21,786

 

Unallocated corporate amounts

 

 

12,485

 

 

 

24,563

 

Consolidated capital expenditures

 

$

156,337

 

 

$

78,537

 

 

A summary of consolidated depreciation and amortization was as follows:

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Segment depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

15,742

 

 

$

13,198

 

 

$

42,039

 

 

$

38,539

 

Industrial

 

 

12,837

 

 

 

12,476

 

 

 

38,746

 

 

 

36,591

 

Unallocated corporate amounts

 

 

3,490

 

 

 

2,980

 

 

 

10,228

 

 

 

8,966

 

Consolidated depreciation and amortization

 

$

32,069

 

 

$

28,654

 

 

$

91,013

 

 

$

84,096