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February 2, 2026 First Quarter Fiscal Year 2026 Results
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2 © WOODWARD, INC. Cautionary Statement Information in this presentation contains forward-looking statements regarding future events and our future results within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, the results of our ongoing focus on operational excellence, increased output, more consistent execution, and innovation, including whether such focus ultimately leads to sustained profitable growth and long-term shareholder value, our efforts to align the supply chain to support stable inventory levels and predicable component availability, improved inventory management, capacity expansion efforts, increased services offerings, the impact of our determination to wind-down our China on-highway business, our near-term strategic priorities and our ability to achieve them, our capital allocation strategy and our execution of such strategy, and statements regarding our business and guidance for fiscal year 2026, including our guidance for sales, earnings per share, segment sales growth rates, segment earnings margin growth rates, effective tax rate, free cash flow, capital expenditures, and diluted weighted average shares outstanding, as well as our assumptions regarding our guidance, anticipated trends in our business and markets, including our assumptions regarding sales, demand, and margin expansion in fiscal 2026. 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 in the financial markets that affect Woodward, its customers, and its supply chain; (2) risks related to constraints and disruptions in the global supply chain and labor markets; (3) Woodward’s long sales cycle; (4) risks related to Woodward’s concentration of revenue among a relatively small number of customers; (5) Woodward’s ability to implement and realize the intended effects of any restructuring efforts; (6) Woodward’s ability to successfully manage competitive factors including expenses and fluctuations in sales, as well as innovation and new product development; (7) changes and consolidations in the aerospace market; (8) Woodward’s financial obligations including debt obligations and tax expenses and exposures; (9) risks related to Woodward’s U.S. government contracting activities including potential changes in government spending patterns; (10) volatility with respect to the China on-highway natural gas truck market; (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, including its ability to retain key personnel or attract and retain new qualified personnel; (15) Woodward’s ability to manage various regulatory and legal matters; (16) risks from operating internationally; (17) cybersecurity, data privacy, 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, 2025, its Quarterly Report on Form 10-Q for the quarterly period ended December 31, 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.
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3 Capital Allocation Growth Operational Excellence Innovation © WOODWARD, INC. Delivering Differentiated Value For Shareholders “We delivered strong first quarter 2026 performance that exceeded our expectations. Growth was broad-based across both segments and reflected strong demand and disciplined execution by our global teams. Based on our strong start to the year, we are raising our full- year sales and earnings guidance. We remain focused on operational excellence and targeted innovation to deliver sustained profitable growth and long-term value for our shareholders. ” – Chip Blankenship Chairman and Chief Executive Officer
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4 Aerospace growth in Commercial OEM and Services, and Smart Defense Industrial growth in Transportation, Oil & Gas, and Power Generation Price realization Higher volume Favorable mix Free Cash Flow1 of $70M 1.2 times leverage © WOODWARD, INC. First Quarter 2026 Summary Operational excellence and continued strong demand Sales up 29% YOY Net Earnings up 54% YOY Strong Balance Sheet
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5 © WOODWARD, INC. First Quarter 2026 Summary Investing for growth and returning capital to shareholders $44M Capital Expenditures $146M Returned to Stockholders through dividends and share repurchasesCapital Allocation
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6 © WOODWARD, INC. Q1 Fiscal Year 2026 Consolidated Results Net Sales up 29% Adjusted Net Earnings1 up 62% Reported Net Earnings $87M Q1 FY25; $134M Q1 FY26 Adjusted EPS1 up 61% Reported EPS $1.42 Q1 FY25; $2.17 Q1 FY26 Free Cash Flow up $69M $1.35 $2.17 FY25 FY26 $773M $996M FY25 FY26 $83M $134M FY25 FY26 $1M $70M FY25 FY26
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7 7 © WOODWARD, INC. PROPRIETARY SALES ($Ms) EPS GROWTH ACROSS BOTH AEROSPACE AND INDUSTRIAL $773 $141 $61 $22 $996 FY25 Q1 Actuals Aerospace Core Industrial Industrial On-Highway FY26 Q1 Actuals ↑ 29% ↑ 22% ↑ 230% $1.35 $0.66 $0.13 $(0.16) $2.17 $0.19 FY25 Q1 Adjusted Aerospace Core Industrial Industrial On-Highway Tax and Other FY26 Q1 Adjusted FY26 Q1 Operating Margins 23.4% 17.3% Q1 Fiscal Year 2026 Sales & Adjusted EPS Bridge ↑ 29%
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8 Aerospace Overview
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9 Sales up 29% Earnings up 57% © WOODWARD, INC. Q1 Fiscal Year 2026 Aerospace Segment Earnings growth driven primarily by price realization, favorable mix, and higher sales volume $494M $635M FY25 FY26 $95M $148M FY25 FY26 Margin up 420 bps 19.2% 23.4% FY25 FY26
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10 © WOODWARD, INC. Aerospace Commercial Woodward Commercial OEM Sales Q1 FY25 to Q1 FY26 Woodward Commercial Services Sales Q1 FY25 to Q1 FY26 Commercial OEM Market Update Commercial Services Market Update → OEM build rates continue to improve → Industry supply chain challenges → OEMs managing inventory → Air traffic remains solid → High legacy aircraft utilization → Current generation MRO ramping 50% Growth 22% Growth
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11 © WOODWARD, INC. Aerospace Defense Woodward Defense OEM Sales Q1 FY25 to Q1 FY26 Woodward Defense Services Sales Q1 FY25 to Q1 FY26 Defense OEM Market Update Defense Services Market Update → Strong demand for defense products → Robust smart defense order activity → Solid demand environment → Steady operations tempo 1% Growth 23% Growth
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12 Industrial Overview
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13 → Insert text → Insert text → Insert text → Insert text Sales up 30% Earnings up 67% © WOODWARD, INC. Q1 Fiscal Year 2026 Industrial Segment Earnings growth driven by higher sales volume, price realization, and favorable mix $279M $362M FY25 FY26 $40M $67M FY25 FY26 Margin up 410 bps 14.4% 18.5% FY25 FY26
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14 → Insert text → Insert text → Insert text → Insert text Sales up 22% Earnings up 39% © WOODWARD, INC. Q1 Fiscal Year 2026 Core Industrial Earnings growth driven by higher sales volume and price realization $269M $330M FY25 FY26 $41M $57M FY25 FY26 Margin up 200 bps 15.3% 17.3% FY25 FY26
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15 © WOODWARD, INC. Industrial Power Generation Market Update → Robust global demand for power generation → Increasing investment in gas-powered generation for both primary and backup power for grid stability → Growing demand for data centers and associated backup power Transportation Market Update → Healthy global marine market with shipyards at capacity and high utilization → Alternative fuel orders strong Oil & Gas Market Update → Recent oil production declines on lower commodity prices → Production efficiency gains impacting upstream services → Positive outlook related to continued investment in refining and petrochemical activities in India and the Middle East Woodward Power Gen Sales Q1 FY25 to Q1 FY26 7% Growth Woodward Transportation Sales Q1 FY25 to Q1 FY26 55% Growth Woodward Oil & Gas Sales Q1 FY25 to Q1 FY26 28% Growth
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16 © WOODWARD, INC. Woodward Select Financial Results In millions, except bps and percentages Q1 FY25 Q1 FY26 Change Gross Margin: % of Sales 24.5% 29.3% 480 bps SG&A Expenses: % of Sales 9.0% 9.5% 50 bps R&D Expenses: % of Sales 3.9% 3.8% (10) bps Effective Tax Rate 14.5% 20.9% 640 bps Adjusted Effective Tax Rate1 14.0% 20.9% 690 bps EBITDA1 $141 $208 $67 Adjusted EBITDA1 $135 $208 $73 Cash From Operations $35 $114 $80 Capital Expenditures $34 $44 $10 Free Cash Flow $1 $70 $69
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17 © WOODWARD, INC. Fiscal Year 2026 Guidance
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18 © WOODWARD, INC. Raising sales & EPS guidance based on first quarter outperformance In millions, except EPS and percentages Prior FY26 Guidance Issued on November 24, 2025 Revised FY26 Guidance Issued on February 2, 2026 Woodward Sales Growth Up 7 to12% Up 14 to 18% EPS $7.50-$8.00 $8.20-$8.60 Free Cash Flow3 $300-$350 No change Capital Expenditures ~$290 No change Shares ~61 No change Effective Tax Rate ~22% No change Aerospace Sales Growth Up 9 to15% Up 15 to 20% Segment Earnings (% of Sales) 22-23% No change Industrial Sales Growth Up 5 to 9% Up 11 to 14% Segment Earnings (% of Sales) 14.5-15.5% 16-17%
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19 © WOODWARD, INC. Appendix
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20 © WOODWARD, INC. Appendix Non-U.S. GAAP Reconciliations A. Presented in the line item "Other income, net" in Woodward's Condensed Consolidated Statement of Earnings. B. Presented in the line item "Selling, general, and administrative expenses" in Woodward's Condensed Consolidated Statement of Earnings. Woodward, Inc. and Subsidiaries Reconciliation of Net Earnings and EPS to Adjusted Earnings1 and Adjusted EPS1 (Unaudited – In thousands, except per share amounts) Three Months Ended December 31, 2025 2024 Net Earnings Earnings Per Share Net Earnings Earnings Per Share Net Earnings (U.S. GAAP) $ 133,719 $ 2.17 $ 87,091 $ 1.42 Non-U.S. GAAP Adjustments Product rationalizationa - - (9,361) (0.15) Business development activitiesb - - 3,518 0.06 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments - - 1,319 0.02 Total non-U.S. GAAP Adjustments - - (4,524) (0.07) Adjusted Net Earnings (Non-U.S. GAAP) $ 133,719 $ 2.17 $ 82,567 $ 1.35
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21 © WOODWARD, INC. Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries Reconciliation of Net Earnings to EBIT1 and Adjusted EBIT1 (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 Net Earnings (U.S. GAAP) $ 133,719 $ 87,091 Income Tax Expense 35,432 14,763 Interest Expense 10,344 12,341 Interest Income (701 ) (1,377 ) EBIT (Non-U.S. GAAP) 178,794 112,818 Total non-U.S. GAAP Adjustments - (5,843 ) Adjusted EBIT (Non-U.S. GAAP) $ 178,794 $ 106,975 Woodward, Inc. and Subsidiaries Reconciliation of Net Earnings to EBITDA1 and Adjusted EBITDA1 (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 Net Earnings (U.S. GAAP) $ 133,719 $ 87,091 Income Tax Expense 35,432 14,763 Interest Expense 10,344 12,341 Interest Income (701 ) (1,377 ) Amortization of intangible assets 7,342 6,914 Depreciation Expense 21,696 20,962 EBITDA (Non-U.S. GAAP) 207,832 140,694 Total non-U.S. GAAP Adjustments - (5,843 ) Adjusted EBITDA (Non-U.S. GAAP) $ 207,832 $ 134,851
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22 © WOODWARD, INC. Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries Reconciliation of Income Tax Expense to Adjusted Income Tax Expense1 (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 Income tax expense (U.S. GAAP) $ 35,432 $ 14,763 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments - (1,319 ) Adjusted Income Tax Expense (Non-U.S. GAAP) $ 35,432 $ 13,444 Adjusted Effective Income Tax Rate (Non-U.S. GAAP) 20.9 % 14.0 % Woodward, Inc. and Subsidiaries Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow1 (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 Net cash provided by operating activities (U.S. GAAP) $ 114,43 $ 34,516 Payments for property, plant, and equipment (44,129) (33,574) Free cash flow (Non-U.S. GAAP) $ 70,308 $ 942 Woodward, Inc. and Subsidiaries Reconciliation of Non-Segment Expenses to Adjusted Non-Segment Expenses1 (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 Non-Segment Expenses (U.S. GAAP) $ (36,595) $ (22,104) Product rationalization - (9,361) Business development activities - 3,518 Adjusted Non-Segment Expenses (Non-U.S. GAAP) $ (36,595) $ (27,947)
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23 © WOODWARD, INC. Appendix Non-U.S. GAAP Reconciliations Woodward, Inc. and Subsidiaries Reconciliation of Industrial Net Sales (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 China on highway natural gas truck sales $ 31,834 $ 9,633 Core Industrial sales 329,723 269,210 Industrial segment net sales (U.S. GAAP) $ 361,557 $ 278,843 Woodward, Inc. and Subsidiaries Reconciliation of Industrial Segment Earnings (Unaudited – In thousands) Three Months Ended December 31, 2025 2024 China on highway natural gas truck earnings (loss) $ 9,992 $ (941) Core Industrial earnings 57,002 41,138 Industrial segment earnings (U.S. GAAP) $ 66,994 $ 40,197
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24 © WOODWARD, INC. Appendix Non-U.S. GAAP Measures 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted income tax expense, adjusted effective income tax rate, EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, and adjusted nonsegment expenses exclude, as applicable, (i) product rationalization and (ii) costs related to business development activities. The product rationalization adjustment pertains to the elimination and divestiture 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. EBIT (earnings before interest and taxes), adjusted EBIT, EBITDA (earnings before interest, taxes, depreciation and amortizat ion), adjusted EBITDA, free cash flow, adjusted net earnings, adjusted earnings per share, adjusted income tax expenses, adjusted effective income tax rate, and adjusted nonsegment expenses are financial measu res 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 de cisions, 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 business segments and evalua ting 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 financia l 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. Management’s calculations of EBIT, EBITDA, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective income 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. EBITDA leverage is calculated by taking a rolling twelve month EBITDA divided by total debt. 2Website, Facebook: Woodward has used, and intends to continue to use, its Investor Relations website and its Facebook page as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. 3FY26 Free Cash Flow: Information reconciling our FY26 free cash flow guidance to forward-looking net cash provided by operating activities is not available without unreasonable effort due primarily to uncertainty of timing for capital expenditures.