Woodward, Inc.: Woodward Reports Third Quarter Fiscal Year 2026 Results

FORT COLLINS, Colo., July 29, 2026 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today reported financial results for its third quarter ended June 30, 2026.

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. All percentages have been calculated using unrounded amounts.

Third Quarter Overview

	Third Quarter 2026		Year-to-Date 2026
Net sales	$1.1B, +21%		$3.2B, +24%
Earnings per share (EPS)	$2.40, +36%		$6.76, +36%
Adjusted EPS1	$2.52, +43%		$6.96, +45%
Net cash provided by operating activities	$147M, +17%		$352M, +48%
Free cash flow1	$87M, -12%		$196M, +23%

"We delivered outstanding third quarter results, including significant sales growth and margin expansion in both segments," said Chip Blankenship, Chairman and Chief Executive Officer. "In Aerospace, commercial services demand was resilient, while commercial OEM benefited from increasing aircraft production rates. Industrial sales and earnings performance was outstanding, with segment earnings growth of 86 percent driven by substantial sales growth across all primary markets.

"Demand across our portfolio remains durable, and our teams continue to expand capacity, improve flow, and support customers. We are raising our full-year earnings guidance and remain focused on creating long-term value for shareholders through profitable growth, operational excellence, and innovation."

Third Quarter Fiscal Year 2026 Company Results
Total Company Results (Dollars in millions, except per share amounts)
	Three Months Ended June 30,										Nine Months Ended June 30,
	2026				2025			Year over Year			2026				2025			Year over Year
Income Statement
Net sales	-		1,110		-	915			21	-		-	3,197		-	2,572			24	-
Net earnings			147			108			35	-			414			304			36	-
Adjusted net earnings1			154			108			42	-			426			294			45	-
EPS	-		2.40		-	1.76			36	-		-	6.76		-	4.96			36	-
Adjusted EPS	-		2.52		-	1.76			43	-		-	6.96		-	4.80			45	-
EBIT1			208			137			51	-			565			394			44	-
Adjusted EBIT1			217			137			58	-			581			381			53	-
EBITDA1			240			166		45		-			656			478		37		-
Adjusted EBITDA1			249			166		50		-			672			465		45		-
Effective tax rate			24.2	-		14.5	-	970 bps					21.8	-		15.8	-	600 bps
Adjusted effective tax rate1		24.2		-		14.5	-	970 bps				21.9		-		15.5	-	640 bps
Cash Flow and Financial Position
Net cash provided by operating activities	-	147			-	126		17		-		-	352		-	238			48	-
Capital expenditures		60				27		125		-			156			79		99		-
Free cash flow			87			99			-12	-			196			159			23	-
Dividends paid			19			17							55			48
Share repurchases			198			45							553			124
Total debt													1,342			933
EBITDA leverage1												1.6x			1.5x
*There were no adjustments to these measures in the third quarter of fiscal year 2025

Segment Results
Aerospace (Dollars in millions)
	Three Months Ended June 30,										Nine Months Ended June 30,
	2026			2025			Year over Year				2026			2025			Year over Year
Commercial OEM	-	234		-	175			34	-		-	640		-	497			29	-
Commercial services		268			215			24	-			788			581			36	-
Defense OEM		141			150			-6	-			430			401			7	-
Defense services		66			55			20	-			189			173			9	-
Sales		709			596			19	-			2,047			1,652			24	-
Segment earnings		170			126			35	-			476			345			38	-
Segment margin %		24.0	-		21.1	-	290 bps					23.3	-		20.9	-	240 bps

Segment earnings for the third quarter of 2026 were $170 million, or 24.0 percent of segment sales. The increase in segment earnings in the quarter was the result of price realization and increased leverage on higher sales volumes, partially offset by inflation and unfavorable mix.

Segment earnings for the first nine months of fiscal 2026 were $476 million, or 23.3 percent of segment sales. The increase in segment earnings in the first nine months of the fiscal year was the result of price realization and increased leverage on higher sales volumes, partially offset by strategic investments in manufacturing capabilities, inflation, and unfavorable mix.

Industrial (Dollars in millions)
	Three Months Ended June 30,										Nine Months Ended June 30,
	2026			2025			Year over Year				2026			2025			Year over Year
Transportation	-	180		-	129			40	-		-	523		-	368			42	-
Power generation		145			122			19	-			403			364			11	-
Oil and gas		76			68			11	-			223			188			18	-
Sales		401			319			26	-			1,150			920			25	-
Segment earnings		88			48			86	-			221			134			65	-
Segment margin %		22.1	-		14.9	-	720 bps					19.2	-		14.5	-	470 bps

Industrial segment earnings for the third quarter of 2026 were $88 million, or 22.1 percent of segment sales. Industrial segment earnings for the first nine months of 2026 were $221 million, or 19.2 percent of segment sales. The increase in segment earnings in both periods was primarily driven by increased leverage on higher sales volume and price realization, partially offset by inflation.

Nonsegment (Dollars in millions)
	Three Months Ended June 30,										Nine Months Ended June 30,
	2026			2025			Year over Year				2026			2025			Year over Year
Nonsegment expenses	-	(51	-	-	(36	-		41	-		-	(132	-	-	(85	-		56	-
Adjusted nonsegment expenses1		(42	-		(36	-		15	-			(116	-		(98	-		19	-

Fiscal Year 2026 Guidance
Based on strong third quarter performance and confidence in the fourth quarter, Woodward is raising its 2026 earnings guidance.
	Prior FY26 Guidance	Revised FY26 Guidance
	Issued on April 29, 2026	Issued on July 29, 2026
Total Company
Sales growth	up 20% - 23%	no change
Adjusted EPS3	$9.15 - $9.45	$9.30 - $9.50
Free cash flow3	$300 - $350 million	no change
Capital expenditures	~$290 million	no change
Shares	~61.5 million	no change
Adjusted effective tax rate3	~22%	~22.5%
Segment Data
Aerospace
Sales growth	up 21% - 24%	up 21% - 23%
Segment earnings (% of sales)	23% - 23.5%	~23.5%
Industrial
Sales growth	up 18% - 20%	up 19% - 21%
Segment earnings (% of sales)	18% - 18.5%	~19%

Conference Call

Woodward will hold an investor conference call at 5:00 p.m. ET on July 29, 2026, to provide an overview of the financial performance for its third quarter ended June 30, 2026, business highlights, and guidance for fiscal year 2026. 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 [phone] (U.S. domestic) or + 1 [phone] (international). Participants should call prior to the start time to allow for registration; the Conference ID is 180 854 471. 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
This release contains forward-looking statements regarding future events and Woodward's future results within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that are deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of management. Words such as "anticipate," "believe," "estimate," "seek," "goal," "expect," "forecast," "intend," "continue," "outlook," "plan," "project," "target," "strive," "can," "could," "may," "should," "will," "would," variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, forward-looking statements may include statements that refer to projections of our future performance, guidance measures, market dynamics, strategies, strategic focus areas, trends in our businesses and markets, other events or developments, or other non-historical matters. These forward-looking statements are not guarantees of future performance and are subject to several factors, risks, and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. 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, any subsequently filed Quarterly Report on Form 10-Q. 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,
	2026			2025				2026			2025
Net sales	-	1,109,705		-	915,446			-	3,196,727		-	2,571,800
Costs and expenses:
Cost of goods sold		759,799			666,287				2,238,752			1,892,908
Selling, general, and administrative expenses		106,465			88,703				303,735			242,241
Research and development costs		49,316			41,088				133,191			108,525
Restructuring charges		9,264			-				16,079			-
Interest expense		14,827			11,234				37,206			35,464
Interest income		(611	-		(838	-			(2,027	-		(3,236	-
Other income, net		(22,867	-		(17,864	-			(60,299	-		(65,755	-
Total costs and expenses		916,193			788,610				2,666,637			2,210,147
Earnings before income taxes		193,512			126,836				530,090			361,653
Income taxes		46,837			18,388				115,683			57,165
Net earnings	-	146,675		-	108,448			-	414,407		-	304,488
Earnings per share amounts:
Basic earnings per share	-	2.47		-	1.82			-	6.95		-	5.12
Diluted earnings per share	-	2.40		-	1.76			-	6.76		-	4.96
Weighted average common shares outstanding:
Basic		59,445			59,680				59,632			59,442
Diluted		61,018			61,488				61,317			61,374
Cash dividends paid per share	-	0.32			0.28				0.92			0.81

Woodward, Inc. and Subsidiaries? Condensed Consolidated Balance Sheets (Unaudited - In thousands)
	June 30, 2026			September 30, 2025
Assets
Current assets:
Cash and cash equivalents	-	474,851		-	327,431
Accounts receivable		1,012,481			831,116
Inventories		724,803			654,608
Income taxes receivable		43,880			1,553
Assets held for sale		19,953			-
Other current assets		62,590			69,706
Total current assets		2,338,558			1,884,414
Property, plant, and equipment, net		1,087,764			986,623
Goodwill		893,956			832,288
Intangible assets, net		447,263			428,080
Deferred income tax assets		39,504			118,711
Other assets		389,356			380,027
Total assets	-	5,196,401		-	4,630,143
Liabilities and stockholders' equity
Current liabilities:
Short-term debt	-	592,426		-	122,300
Current portion of long-term debt		131,779			122,934
Accounts payable		328,957			289,417
Income taxes payable		65,196			59,655
Accrued liabilities		299,255			313,083
Liabilities held for sale		3,589			-
Total current liabilities		1,421,202			907,389
Long-term debt, less current portion		617,730			456,968
Deferred income tax liabilities		109,023			107,669
Other liabilities		574,652			591,727
Total liabilities		2,722,607			2,063,753
Stockholders' equity		2,473,794			2,566,390
Total liabilities and stockholders' equity	-	5,196,401		-	4,630,143

Woodward, Inc. and Subsidiaries? Condensed Consolidated Statements of Cash Flows (Unaudited - In thousands)
	Nine Months Ended June 30,
	2026			2025
Net cash provided by operating activities	-	351,937		-	237,976
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment		(156,337	-		(78,537	-
Proceeds from sales of assets		-			41
Proceeds from sales of investments		81			-
Proceeds from business divestitures		1,239			48,043
Payments for acquisitions, net of cash acquired		(131,778	-		2,935
Net cash used in investing activities		(286,795	-		(27,518	-
Cash flows from financing activities:
Cash dividends paid		(54,902	-		(48,195	-
Proceeds from sales of treasury stock		55,070			96,064
Payments for repurchases of common stock		(553,438	-		(124,276	-
Borrowings on long-term debt		250,000			-
Borrowings on revolving lines of credit and short-term borrowings		3,002,740			1,957,900
Payments on revolving lines of credit and short-term borrowings		(2,532,353	-		(1,821,900	-
Payments of debt financing costs		(2,583	-		-
Payments of long-term debt and finance lease obligations		(75,765	-		(85,719	-
Net cash provided by (used in) financing activities		88,769			(26,126	-
Effect of exchange rate changes on cash and cash equivalents		(6,491	-		6,557
Net change in cash and cash equivalents		147,420			190,889
Cash and cash equivalents at beginning of year		327,431			282,270
Cash and cash equivalents at end of period	-	474,851		-	473,159

Woodward, Inc. and Subsidiaries? Segment Net Sales and Net Earnings (Unaudited - In thousands)
	Three Months Ended June 30,							Nine Months Ended June 30,
	2026			2025				2026			2025
Segment net sales:
Aerospace		708,673			595,990				2,046,891			1,651,601
Industrial		401,032			319,456				1,149,836			920,199
Total consolidated net sales	-	1,109,705		-	915,446			-	3,196,727		-	2,571,800
Segment earnings*:
Aerospace		170,020			125,740				476,490			345,081
As a percent of segment net sales		24.0	-		21.1	-			23.3	-		20.9	-
Industrial		88,484			47,622				221,199			133,786
As a percent of segment net sales		22.1	-		14.9	-			19.2	-		14.5	-
Total segment earnings	-	258,504		-	173,362			-	697,689		-	478,867
Nonsegment expenses		(50,776	-		(36,130	-			(132,420	-		(84,986	-
EBIT	-	207,728		-	137,232			-	565,269		-	393,881
Interest expense, net		(14,216	-		(10,396	-			(35,179	-		(32,228	-
Consolidated earnings before income taxes	-	193,512		-	126,836			-	530,090		-	361,653
*This schedule reconciles segment earnings, which exclude certain costs, to consolidated earnings before taxes.
Payments for property, plant and equipment	-	59,617		-	26,547			-	156,337		-	78,537
Depreciation expense	-	22,501		-	21,482			-	66,679		-	63,238

Woodward, Inc. and Subsidiaries? Reconciliation of Net Earnings and EPS to Adjusted Net Earnings1? and Adjusted EPS1 (Unaudited - In thousands, except per share amounts)
-	Three Months Ended June 30,
-	2026						2025
-	Net Earnings			Earnings Per Share			Net Earnings			Earnings Per Share
Net earnings (U.S. GAAP)?	-	146,675		-	2.40		-	108,448		-	1.76
Non-U.S. GAAP adjustments?	-			-			-			-
Restructuring charges		9,264			0.15			-			-
Tax effect of non-U.S. GAAP ?net earnings adjustments		(2,311	-		(0.03	-		-			-
Total non-U.S. GAAP adjustments?		6,953			0.12			-			-
Adjusted net earnings? (non-U.S. GAAP)	-	153,628		-	2.52		-	108,448		-	1.76

Woodward, Inc. and Subsidiaries? Reconciliation of Net Earnings and EPS to Adjusted Net Earnings1? and Adjusted EPS1 (Unaudited - In thousands, except per share amounts)
-	Nine Months Ended June 30,
-	2026						2025
-	Net Earnings			Earnings Per Share			Net Earnings			Earnings Per Share
Net earnings (U.S. GAAP)	-	414,407		-	6.76		-	304,488		-	4.96
Non-U.S. GAAP adjustments?	-						-			-
Restructuring charges		16,079			0.26			-			-
Product rationalizationa		-			-			(20,524	-		(0.33	-
Business development activitiesb		-			-			7,310			0.12
Tax effect of non-U.S. GAAP net earnings adjustments		(4,013	-		(0.06	-		3,130			0.05
Total non-U.S. GAAP adjustments		12,066			0.20			(10,084	-		(0.16	-
Adjusted net earnings (non-U.S. GAAP)	-	426,473		-	6.96		-	294,404		-	4.80

1. Presented in the line item "Other income, net" in Woodward's Condensed Consolidated Statement of Earnings.
2. Presented in the line 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)
-	Three Months Ended June 30,
-	2026			2025
Income tax expense (U.S. GAAP)?	-	46,837		-	18,388
Tax effect of non-U.S. GAAP ?net earnings adjustments		2,311			-
Adjusted income tax expense (non-U.S. GAAP)	-	49,148		-	18,388
Adjusted effective tax rate (non-U.S. GAAP)		24.2	-		14.5	-

Woodward, Inc. and Subsidiaries? Reconciliation of Income Tax Expense ? to Adjusted Income Tax Expense1 (Unaudited - In thousands)
-	Nine Months Ended June 30,
-	2026			2025
Income tax expense (U.S. GAAP)?	-	115,683		-	57,165
Tax effect of non-U.S. GAAP ?net earnings adjustments		4,013			(3,130	-
Adjusted income tax expense (non-U.S. GAAP)	-	119,696		-	54,035
Adjusted effective tax rate (non-U.S. GAAP)		21.9	-		15.5	-

Woodward, Inc. and Subsidiaries? Reconciliation of Net Earnings to EBIT1 and Adjusted EBIT1? (Unaudited - In thousands)
-	Three Months Ended June 30,
-	2026			2025
Net earnings (U.S. GAAP)?	-	146,675		-	108,448
Income tax expense		46,837			18,388
Interest expense		14,827			11,234
Interest income		(611	-		(838	-
EBIT (non-U.S. GAAP)		207,728			137,232
Total non-U.S. GAAP adjustments		9,264			-
Adjusted EBIT (non-U.S. GAAP)	-	216,992		-	137,232

Woodward, Inc. and Subsidiaries? Reconciliation of Net Earnings to EBIT1 and Adjusted EBIT1? (Unaudited - In thousands)
-	Nine Months Ended June 30,
-	2026			2025
Net earnings (U.S. GAAP)?	-	414,407		-	304,488
Income tax expense		115,683			57,165
Interest expense		37,206			35,464
Interest income		(2,027	-		(3,236	-
EBIT (non-U.S. GAAP)		565,269			393,881
Total non-U.S. GAAP adjustments		16,079			(13,214	-
Adjusted EBIT (non-U.S. GAAP)	-	581,348		-	380,667

Woodward, Inc. and Subsidiaries? Reconciliation of Net Earnings to EBITDA1 and Adjusted EBITDA1? (Unaudited - In thousands)
-	Three Months Ended June 30,
-	2026			2025
Net earnings (U.S. GAAP)?	-	146,675		-	108,448
Income tax expense		46,837			18,388
Interest expense		14,827			11,234
Interest income		(611	-		(838	-
Amortization of intangible assets?		9,568			7,172
Depreciation expense?		22,501			21,482
EBITDA (non-U.S. GAAP)		239,797			165,886
Total non-U.S. GAAP adjustments		9,264			-
Adjusted EBITDA (non-U.S. GAAP)	-	249,061		-	165,886

Woodward, Inc. and Subsidiaries? Reconciliation of Net Earnings to EBITDA1 and Adjusted EBITDA1? (Unaudited - In thousands)
-			Nine Months Ended June 30,
-			2026					2025
Net earnings (U.S. GAAP)?			-	414,407				-		304,488
Income tax expense				115,683						57,165
Interest expense				37,206						35,464
Interest income				(2,027		-				(3,236	-
Amortization of intangible assets?				24,334						20,858
Depreciation expense?				66,679						63,238
EBITDA (non-U.S. GAAP)				656,282						477,977
Total non-U.S. GAAP adjustments				16,079						(13,214	-
Adjusted EBITDA (non-U.S. GAAP)			-	672,361				-		464,763

Woodward, Inc. and Subsidiaries: Reconciliation of Net Earnings to EBITDA1 (Unaudited - In thousands)
-	Twelve Months Ended June 30,
-	2026						2025
Net earnings (U.S. GAAP)?	-	552,029					-		387,783
Income tax expense		137,818							75,401
Interest expense		47,431							48,941
Interest income		(2,980			-				(5,199		-
Amortization of intangible assets?		88,495							84,321
Depreciation expense?		31,701							29,102
EBITDA (non-U.S. GAAP)	-	854,494					-		620,349

Woodward, Inc. and Subsidiaries: Calculation of EBITDA1Leverage (Unaudited - In thousands)
-	Twelve Months Ended June 30,
-	2026			2025
Rolling twelve-month EBITDA1	-	854,494		-	620,349
Total debt		1,341,935			932,871
EBITDA Leverage		1.6			1.5

Woodward, Inc. and Subsidiaries? Reconciliation of Nonsegment Expenses ? to Adjusted Nonsegment Expenses1 (Unaudited - In thousands)
-	Three Months Ended June 30,
-	2026			2025
Nonsegment expenses (U.S. GAAP)	-	(50,776	-	-	(36,130	-
Restructuring charges		9,264			-
Adjusted nonsegment expenses (non-U.S. GAAP)	-	(41,512	-	-	(36,130	-

Woodward, Inc. and Subsidiaries? Reconciliation of Nonsegment Expenses ? to Adjusted Nonsegment Expenses1 (Unaudited - In thousands)
-	Nine Months Ended June 30,
-	2026			2025
Nonsegment expenses (U.S. GAAP)	-	(132,420	-	-	(84,986	-
Restructuring charges		16,079			-
Product rationalization		-			(20,524	-
Business development activities		-			7,310
Adjusted nonsegment expenses (non-U.S. GAAP)	-	(116,341	-	-	(98,200	-

Woodward, Inc. and Subsidiaries? Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow1 (Unaudited - In thousands)
-		Three Months Ended June 30,
-		2026		2025
Net cash provided by operating activities (U.S. GAAP)	-	146,673		-	125,635
Payments for property, plant, and equipment		(59,617	-		(26,547	-
Free cash flow (non-U.S. GAAP)	-	87,056		-	99,088

Woodward, Inc. and Subsidiaries: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow1 (Unaudited - In thousands)
-	Nine Months Ended June 30,
-	2026			2025
Net cash provided by operating activities (U.S. GAAP)	-	351,937		-	237,976
Payments for property, plant, and equipment		(156,337	-		(78,537	-
Free cash flow (non-U.S. GAAP)	-	195,600		-	159,439

¹Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted income tax expense, adjusted effective tax rate, adjusted EBIT, adjusted EBITDA, and adjusted nonsegment expenses exclude, as applicable, (i) product rationalization, (ii) costs related to business development activities, and (iii) restructuring charges. 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. Guidance with respect to non-U.S. GAAP measures as provided in this release excludes, as applicable, restructuring charges.

EBIT (earnings before interest and taxes), adjusted EBIT, EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EBITDA, adjusted net earnings, adjusted earnings per share, adjusted income tax expenses, adjusted effective tax rate, adjusted nonsegment expenses, EBITDA leverage, and free cash flow 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. EBITDA leverage is calculated by taking a rolling twelve-month EBITDA divided by total debt. Management uses EBITDA leverage to assess Woodward's earnings capacity relative to its total debt, monitor financial flexibility, evaluate capital structure impacts of strategic scenarios, and assist in capital allocation decisions. 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 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, adjusted EBITDA, and EBITDA leverage 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. Management's calculations of EBIT, EBITDA, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, adjusted nonsegment expenses, EBITDA leverage and free cash flow may differ from similarly titled measures used by other companies, limiting their usefulness as comparative measures.

²Website, Social Media: Woodward has used, and intends to continue to use, its Investor Relations website, its Facebook page, and LinkedIn as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

³FY26 Adjusted EPS, Free Cash Flow- and Adjusted Effective Tax Rate: Information reconciling our FY26 adjusted EPS, free cash flow and adjusted effective tax rate guidance to the most directly comparable GAAP financial measures on a forward-looking basis is not available without unreasonable effort primarily due to the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Contact:
Dan Provaznik
Director, Investor Relations
970-498-3849
[e-mail]