10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

or

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number 000-08408

WOODWARD, INC.

(Exact name of registrant as specified in its charter)

Delaware	36-1984010
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1081 Woodward Way, Fort Collins, Colorado	80524
(Address of principal executive offices)	(Zip Code)

(970) 482-5811

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001455 per share	WWD	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller Reporting Company ☐

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of February 1, 2024, 60,298,456 shares of the registrant’s common stock with a par value of $0.001455 per share were outstanding.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Earnings	1
	Condensed Consolidated Statements of Comprehensive Earnings	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
	Forward Looking Statements	25
	Overview	26
	Results of Operations	27
	Liquidity and Capital Resources	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
	Signatures	36

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

WOODWARD, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	December 31,
	2023			2022
Net sales	$	786,730		$	618,619
Costs and expenses:
Cost of goods sold		582,381			492,663
Selling, general and administrative expenses		74,511			63,187
Research and development costs		30,794			28,634
Interest expense		11,436			11,142
Interest income		(1,473	)		(366	)
Other (income) expense, net		(20,639	)		(8,390	)
Total costs and expenses		677,010			586,870
Earnings before income taxes		109,720			31,749
Income tax expense		19,676			2,143
Net earnings	$	90,044		$	29,606
Earnings per share:
Basic earnings per share	$	1.50		$	0.50
Diluted earnings per share	$	1.46		$	0.49
Weighted Average Common Shares Outstanding:
Basic		60,021			59,667
Diluted		61,846			60,928

See accompanying Notes to Condensed Consolidated Financial Statements

1

WOODWARD, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(In thousands)

(Unaudited)

	Three Months Ended
	December 31,
	2023			2022
Net earnings	$	90,044		$	29,606
Other comprehensive earnings:
Foreign currency translation adjustments		23,841			30,227
Net (loss) on foreign currency transactions designated as hedges of net investments in foreign subsidiaries		(1,866	)		(3,625	)
Taxes on changes in foreign currency translation adjustments		(287	)		1,344
Foreign currency translation and transactions adjustments, net of tax		21,688			27,946
Unrealized (loss) on fair value adjustment of derivative instruments		(18,510	)		(32,588	)
Reclassification of net realized loss on derivatives to earnings		17,899			38,186
Taxes on changes in derivative transactions		—			(113	)
Derivative adjustments, net of tax		(611	)		5,485
Amortization of pension and other postretirement plan:
Net prior service cost		180			179
Net (gain)		(250	)		(199	)
Foreign currency exchange rate changes on pension and other postretirement benefit plan liabilities		322			441
Taxes on changes in pension and other postretirement benefit plan liability adjustments, net of foreign currency exchange rate changes		(42	)		79
Pension and other postretirement benefit plan adjustments, net of tax		210			500
Total comprehensive earnings	$	111,331		$	63,537

See accompanying Notes to Condensed Consolidated Financial Statements

2

WOODWARD, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

	December 31,			September 30,
	2023			2023
ASSETS
Current assets:
Cash and cash equivalents	$	144,348		$	137,447
Accounts receivable, less allowance for uncollectible amounts of $5,777 and $5,847, respectively		778,065			749,859
Inventories		559,673			517,843
Income taxes receivable		11,348			14,120
Other current assets		52,723			50,183
Total current assets		1,546,157			1,469,452
Property, plant and equipment, net		931,253			913,094
Goodwill		803,487			791,468
Intangible assets, net		460,986			452,363
Deferred income tax assets		59,733			58,550
Other assets		329,189			325,276
Total assets	$	4,130,805		$	4,010,203
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	65,100		$	—
Current portion of long-term debt		745			75,817
Accounts payable		253,398			234,328
Income taxes payable		51,914			44,435
Accrued liabilities		211,657			262,616
Total current liabilities		582,814			617,196
Long-term debt, less current portion		653,029			645,709
Deferred income tax liabilities		139,018			132,819
Other liabilities		565,882			543,490
Total liabilities		1,940,743			1,939,214
Commitments and contingencies (Note 21)
Stockholders' equity:
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued		—			—
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued		106			106
Additional paid-in capital		337,038			327,941
Accumulated other comprehensive losses		(49,384	)		(70,671	)
Deferred compensation		3,049			2,776
Retained earnings		2,985,409			2,908,574
		3,276,218			3,168,726
Treasury stock at cost, 12,823 shares and 13,070 shares, respectively		(1,083,107	)		(1,094,961	)
Treasury stock held for deferred compensation, at cost, 54 shares and, 55 shares, respectively		(3,049	)		(2,776	)
Total stockholders' equity		2,190,062			2,070,989
Total liabilities and stockholders' equity	$	4,130,805		$	4,010,203

See accompanying Notes to Condensed Consolidated Financial Statements

3

WOODWARD, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended December 31,
	2023			2022
Cash flows from operating activities:
Net earnings	$	90,044		$	29,606
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		28,825			29,304
Net (gain) loss on sales of assets		(9	)		33
Stock-based compensation		4,937			11,316
Deferred income taxes		44			—
Changes in operating assets and liabilities:
Trade accounts receivable		6,430			31,318
Unbilled receivables (contract assets)		(27,154	)		(12,226	)
Costs to fulfill a contract		(1,580	)		(496	)
Inventories		(36,383	)		(50,559	)
Accounts payable and accrued liabilities		(31,654	)		(30,412	)
Contract liabilities		7,502			2,065
Income taxes		8,766			890
Retirement benefit obligations		(434	)		(664	)
Other		(2,545	)		(4,773	)
Net cash provided by operating activities		46,789			5,402
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment		(41,812	)		(24,390	)
Proceeds from sale of assets and short-term investments		36			37
Business acquisition, net of cash acquired		—			878
Net cash (used in) investing activities		(41,776	)		(23,475	)
Cash flows from financing activities:
Cash dividends paid		(13,209	)		(11,355	)
Proceeds from sales of treasury stock		15,267			1,199
Payments for repurchases of common stock		—			(26,369	)
Borrowings on revolving lines of credit and short-term borrowings		728,600			413,700
Payments on revolving lines of credit and short-term borrowings		(663,500	)		(371,200	)
Payments of long-term debt and finance lease obligations		(75,249	)		(98	)
Net cash (used in) provided by financing activities		(8,091	)		5,877
Effect of exchange rate changes on cash and cash equivalents		9,979			3,687
Net change in cash and cash equivalents		6,901			(8,509	)
Cash and cash equivalents at beginning of year		137,447			107,844
Cash and cash equivalents at end of period	$	144,348		$	99,335

See accompanying Notes to Condensed Consolidated Financial Statements

4

WOODWARD, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

	Stockholders' equity
					Accumulated other comprehensive (loss) earnings
	Common stock		Additional paid-in capital		Foreign currency translation adjustments			Unrealized derivative gains (losses)			Minimum retirement benefit liability adjustments		Total accumulated other comprehensive (loss) earnings			Deferred compensation			Retained earnings			Treasury stock at cost			Treasury stock held for deferred compensation			Total stockholders' equity
Balances as of September 30, 2022	$	106	$	293,540	$	(86,494	)	$	(6,215	)	$	146	$	(92,563	)	$	6,781		$	2,727,233		$	(1,027,194	)	$	(6,781	)	$	1,901,122
Net earnings		—		—		—			—			—		—			—			29,606			—			—			29,606
Other comprehensive earnings (loss), net of tax		—		—		27,946			5,485			500		33,931			—			—			—			—			33,931
Cash dividends paid ($0.19 per share)		—		—		—			—			—		—			—			(11,355	)		—			—			(11,355	)
Sales of treasury stock		—		161		—			—			—		—			—			—			863			—			1,024
Purchase of treasury stock		—		—		—			—			—		—			—			—			(26,369	)		—			(26,369	)
Common shares issued for benefit plans		—		83		—			—			—		—			—			—			77			—			160
Stock-based compensation		—		11,316		—			—			—		—			—			—			—			—			11,316
Purchases of stock by deferred compensation		—		—		—			—			—		—			70			—			—			(70	)		—
Distribution of stock from deferred compensation		—		—		—			—			—		—			(876	)		—			—			876			—
Balances as of December 31, 2022	$	106	$	305,100	$	(58,548	)	$	(730	)	$	646	$	(58,632	)	$	5,975		$	2,745,484		$	(1,052,623	)	$	(5,975	)	$	1,939,435
Balances as of September 30, 2023	$	106	$	327,941	$	(67,393	)	$	(9,719	)	$	6,441	$	(70,671	)	$	2,776		$	2,908,574		$	(1,094,961	)	$	(2,776	)		2,070,989
Net earnings		—		—		—			—			—		—			—			90,044			—			—			90,044
Other comprehensive earnings (loss), net of tax		—		—		21,688			(611	)		210		21,287			—			—			—			—			21,287
Cash dividends paid ($0.22 per share)		—		—		—			—			—		—			—			(13,209	)		—			—			(13,209	)
Sales of treasury stock		—		4,160		—			—			—		—			—			—			11,854			—			16,014
Stock-based compensation		—		4,937		—			—			—		—			—			—			—			—			4,937
Purchases of stock by deferred compensation		—		—		—			—			—		—			32			—			—			(32	)		—
Distribution of stock from deferred compensation		—		—		—			—			—		—			241			—			—			(241	)		—
Balances as of December 31, 2023	$	106	$	337,038	$	(45,705	)	$	(10,330	)	$	6,651	$	(49,384	)	$	3,049		$	2,985,409		$	(1,083,107	)	$	(3,049	)	$	2,190,062

See accompanying Notes to Condensed Consolidated Financial Statements

5

WOODWARD, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except per share amounts)

(Unaudited)

Note 1. Basis of presentation

The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of December 31, 2023 and for the three months ended December 31, 2023 and 2022, included herein, have not been audited by an independent registered public accounting firm. These unaudited Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of December 31, 2023, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The results of operations for the three months ended December 31, 2023 and 2022 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar and share amounts contained in these unaudited Condensed Consolidated Financial Statements are in thousands, except per share amounts, unless otherwise noted.

The unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC.

Management is required to use estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the unaudited Condensed Consolidated Financial Statements included herein. Significant estimates in these unaudited Condensed Consolidated Financial Statements include allowances for credit losses; net realizable value of inventories; variable consideration including customer rebates earned and payable and early payment discounts; warranty reserves; useful lives of property and identifiable intangible assets; the evaluation of impairments of property, intangible assets, and goodwill; the provision for income tax and related valuation reserves; the valuation of derivative instruments; assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans; the valuation of stock compensation instruments granted to employees, board members and any other eligible recipients; estimates of incremental borrowing rates used when estimating the present value of future lease payments; assumptions used when including renewal options or non-exercise of termination options in lease terms; estimates of total lifetime sales used in the recognition of revenue of deferred material rights and balance sheet classification of the related contract liability; estimates of total sales contract costs when recognizing revenue under the cost-to-cost method; and contingencies. Actual results could vary from Woodward’s estimates.

Note 2. New accounting standards

From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”).

In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures." The purpose of ASU 2023-07 is to provide enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 (fiscal year 2025 for Woodward), and interim periods within fiscal years beginning after December 15, 2024 (fiscal year 2026 for Woodward), with early adoption permitted, and are to be applied on a retrospective basis to all periods presented. Woodward is currently assessing the impact on its segment reporting disclosures.

In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures." The purpose of ASU 2023-09 is to provide enhanced disclosures surrounding income taxes by requiring, consistent categories and greater disaggregation of information in the rate reconciliation, the disaggregation of income taxes paid by jurisdiction, as well as several other changes to the income tax disclosure. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 (fiscal year 2026 for Woodward), with early adoption permitted, and is required to be applied prospectively with the option of retrospective application. Woodward is currently assessing the impact on its income tax disclosures.

6

Note 3. Revenue

The amount of revenue recognized as point in time or over time follows:

	Three Months Ended December 31, 2023						Three Months Ended December 31, 2022
	Aerospace		Industrial		Consolidated		Aerospace		Industrial		Consolidated
Point in time	$	188,503	$	186,630	$	375,133	$	169,840	$	139,839	$	309,679
Over time		272,253		139,344		411,597		225,845		83,095		308,940
Total net sales	$	460,756	$	325,974	$	786,730	$	395,685	$	222,934	$	618,619

Accounts Receivable

Accounts receivable consisted of the following:

	December 31, 2023			September 30, 2023
Billed receivables
Trade accounts receivable	$	426,598		$	434,287
Other (Chinese financial institutions)		57,098			50,940
Total billed receivables		483,696			485,227
Current unbilled receivables (contract assets)		300,146			270,479
Total accounts receivable		783,842			755,706
Less: Allowance for uncollectible amounts		(5,777	)		(5,847	)
Total accounts receivable, net	$	778,065		$	749,859

As of December 31, 2023, “Other assets” on the Condensed Consolidated Balance Sheets includes $6,945 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $7,332 as of September 30, 2023.

Accounts receivable in Woodward’s Condensed Consolidated Financial Statements represent the net amount expected to be collected, and an allowance for uncollectible amounts related to credit losses is established based on expected losses. Expected losses are estimated by reviewing specific customer accounts, taking into consideration accounts receivable aging, credit risk of the customers, and historical payment history, as well as current and forecasted economic conditions and other relevant factors.

The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:

	Three Months Ended December 31,
	2023			2022
Balance, beginning	$	5,847		$	3,922
Changes in estimates		298			344
Write-offs		(459	)		(83	)
Other1		91			20
Balance, ending	$	5,777		$	4,203

(1)Includes effects of foreign exchange rate changes during the period.

Contract liabilities

Contract liabilities consisted of the following:

	December 31, 2023				September 30, 2023
	Current		Noncurrent		Current		Noncurrent
Deferred revenue from material rights from GE joint venture formation	$	6,255	$	232,553	$	6,147	$	233,997
Deferred revenue from advanced invoicing and/or prepayments from customers		9,638		4,196		6,868		2,196
Liability related to customer supplied inventory		14,357		—		14,543		—
Deferred revenue from material rights related to engineering and development funding		6,872		183,190		6,190		178,464
Net contract liabilities	$	37,122	$	419,939	$	33,748	$	414,657

7

Woodward recognized revenue of $13,033 in the three months ended December 31, 2023 from contract liabilities balances recorded as of October 1, 2023, compared to $8,885 in the three months ended December 31, 2022 from contract liabilities balances recorded as of October 1, 2022.

Remaining performance obligations

Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of December 31, 2023 was $2,435,837, compared to $2,325,533 as of September 30, 2023, the majority of which relates to Woodward’s Aerospace segment in both periods. Woodward expects to recognize almost all of these remaining performance obligations within two years after December 31, 2023.

Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2023 was $472,957, compared to $457,391 as of September 30, 2023, of which $8,865 is expected to be recognized in the remainder of fiscal year 2024, $13,291 is expected to be recognized in fiscal year 2025, and the remaining balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty years.

Disaggregation of Revenue

Woodward designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market as Woodward believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

Revenue by primary market for the Aerospace reportable segment was as follows:

	Three Months Ended December 31,
	2023		2022
Commercial OEM	$	171,354	$	138,875
Commercial aftermarket		137,544		126,643
Defense OEM		93,425		89,762
Defense aftermarket		58,433		40,405
Total Aerospace segment net sales	$	460,756	$	395,685

Revenue by primary market for the Industrial reportable segment was as follows:

	Three Months Ended December 31,
	2023		2022
Power generation	$	98,106	$	81,577
Transportation		174,469		88,915
Oil and gas		53,399		52,442
Total Industrial segment net sales	$	325,974	$	222,934

During fiscal year 2023, for purposes of how we assess performance, we determined that certain revenue was better aligned with our markets consisting of power generation, transportation, and oil and gas, rather than the reciprocating engines and industrial turbines, as previously reported. For comparability, we have reclassified revenue for the three months ended December 31, 2022 to conform to the new presentation. This reclassification of revenue had no impact on our consolidated financial results.

The customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows:

	Three Months Ended December 31, 2023	Three Months Ended December 31, 2022
Aerospace	General Electric Company, RTX Corporation, The Boeing Company	RTX Corporation, General Electric Company, The Boeing Company
Industrial	Weichai Westport, Rolls-Royce PLC, Caterpillar, Inc.	Rolls-Royce PLC, Caterpillar, Inc., Wartsila, General Electric Company

8

Note 4. Earnings per share

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock.

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:

	Three Months Ended December 31,
	2023		2022
Numerator:
Net earnings	$	90,044	$	29,606
Denominator:
Basic shares outstanding		60,021		59,667
Dilutive effect of stock options and restricted stock		1,825		1,261
Diluted shares outstanding		61,846		60,928
Income per common share:
Basic earnings per share	$	1.50	$	0.50
Diluted earnings per share	$	1.46	$	0.49

The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

	Three Months Ended December 31,
	2023		2022
Options		39		1,598
Weighted-average option price	$	114.53	$	101.18

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:

	Three Months Ended December 31,
	2023		2022
Weighted-average treasury stock shares held for deferred compensation obligations		55		131

Note 5. Leases

Lessee arrangements

Woodward has entered into operating leases for certain facilities and equipment with terms in excess of one year under agreements that expire at various dates. Some leases require the payment of property taxes, insurance, maintenance costs, or other similar costs in addition to rental payments. Woodward has also entered into finance leases for equipment with terms in excess of one year under agreements that expire at various dates.

Lease-related assets and liabilities were as follows:

	Classification on the Condensed Consolidated Balance Sheets	December 31, 2023		September 30, 2023
Assets:
Operating lease	Other assets	$	24,280	$	24,680
Finance lease	Property, plant, and equipment, net		3,089		3,337
Total lease assets			27,369		28,017
Current liabilities:
Operating lease	Accrued liabilities		4,657		4,594
Finance lease	Current portion of long-term debt		745		817
Noncurrent liabilities:
Operating lease	Other liabilities		20,250		20,685
Finance lease	Long-term debt, less current portion		2,559		2,733
Total lease liabilities		$	28,211	$	28,829

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Lease-related expenses were as follows:

	Three Months Ended December 31,
	2023		2022
Operating lease expense	$	1,632	$	1,487
Amortization of finance lease assets		248		256
Interest on finance lease liabilities		41		34
Variable lease expense		228		210
Short-term lease expense		38		57
Total lease expense	$	2,187	$	2,044

Lease-related supplemental cash flow information was as follows:

	Three Months Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,316	$	1,360
Operating cash flows for finance leases		41		34
Financing cash flows for finance leases		249		99
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		477		411
Finance leases		—		27

Lessor arrangements

Woodward has assessed its manufacturing contracts and concluded that certain of the contracts for the manufacture of customer products met the criteria to be considered a leasing arrangement (“embedded leases”) with Woodward as the lessor. The specific manufacturing contracts that met the criteria were those that utilized Woodward property, plant, and equipment and which are substantially (more than 90%) dedicated to the manufacturing of the product(s) for a single customer. Woodward has dedicated manufacturing lines with four of its customers representing embedded leases, all of which qualified as operating leases with undefined quantities of future customer purchase commitments.

Although Woodward expects to allocate some portion of future net sales to these customers to embedded lessor arrangements, it cannot provide expected future undiscounted lease payments from property, plant, and equipment leased to customers as of December 31, 2023. If, in the future, customers reduce purchases of related products from Woodward, the Company believes it will derive additional value from the underlying equipment by repurposing its use to support other customer arrangements.

Revenue from contracts with customers that included embedded operating leases, which is included in “Net sales” in the Condensed Consolidated Statements of Earnings, was $1,364 for the three months ended December 31, 2023, compared to $1,388 for the three months ended December 31, 2022.

The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” on the Condensed Consolidated Balance Sheets, follows:

	December 31, 2023			September 30, 2023
Property, plant, and equipment	$	46,835		$	45,766
Less accumulated depreciation		(29,472	)		(28,128	)
Property, plant, and equipment, net	$	17,363		$	17,638

Note 6. Joint venture

In fiscal year 2016, Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit at the time, consummated the formation of a strategic joint venture between Woodward and GE (the “JV”) to develop, manufacture, and support fuel systems for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds.

Unamortized deferred revenue from material rights in connection with the JV formation included:

	December 31, 2023		September 30, 2023
Accrued liabilities	$	6,255	$	6,147
Other liabilities		232,553		233,997

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Amortization of the deferred revenue (material right) recognized as an increase to sales was $1,335 for the three months ended December 31, 2023, and $831 for the three months ended December 31, 2022.

Other income related to Woodward’s equity interest in the earnings of the JV was as follows:

	Three Months Ended December 31,
	2023		2022
Other income	$	10,155	$	4,573

Cash distributions to Woodward from the JV, recognized in “Other, net” in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows:

	Three Months Ended December 31,
	2023		2022
Cash distributions	$	6,500	$	4,500

Net sales to the JV were as follows:

	Three Months Ended December 31,
	2023		2022
Net sales1	$	20,272	$	6,477

(1)Net sales included a reduction of $14,539 for the three months ended December 31, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $7,570 for the three months ended December 31, 2022.

The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:

	December 31, 2023		September 30, 2023
Accounts receivable	$	3,978	$	3,666
Accounts payable		8,025		6,276
Other assets		19,683		16,028

Note 7. Financial instruments and fair value measurements

The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value as defined by the U.S. GAAP fair value hierarchy.

	At December 31, 2023								At September 30, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Investments in banks and financial institutions	$	45,257	$	—	$	—	$	45,257	$	28,560	$	—	$	—	$	28,560
Equity securities		28,969		—		—		28,969		24,913		—		—		24,913
Cross-currency interest rate swaps		—		—		—		—		—		5,389		—		5,389
Total financial assets	$	74,226	$	—	$	—	$	74,226	$	53,473	$	5,389	$	—	$	58,862
Financial liabilities:
Cross-currency interest rate swaps	$	—	$	12,362	$	—	$	12,362	$	—	$	—	$	—	$	—
Total financial liabilities	$	—	$	12,362	$	—	$	12,362	$	—	$	—	$	—	$	—

Investments in banks and financial institutions: Woodward and its subsidiaries sometimes invest excess cash in various highly liquid financial instruments that Woodward believes are with creditworthy financial institutions. Such investments are reported in “Cash and cash equivalents” at fair value, with realized gains from interest income recognized in earnings. The carrying value of Woodward’s investments in term deposits with foreign banks are considered equal to the fair value given the highly liquid nature of the investments.

Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity

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securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net” on the Condensed Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds.

Cross-currency interest rate swaps: Woodward holds cross-currency interest rate swaps, which are accounted for at fair value. The swaps in an asset position are included in “Other current assets” and “Other assets,” and swaps in a liability position are included in “Accrued liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s cross-currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors.

Cash, trade accounts receivable, accounts payable, and short-term borrowings are not remeasured to fair value, as the carrying cost of each approximates its respective fair value.

The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows:

		At December 31, 2023				At September 30, 2023
	Fair Value Hierarchy Level	Estimated Fair Value		Carrying Cost		Estimated Fair Value		Carrying Cost
Assets:
Notes receivable from municipalities	2	$	7,861	$	7,333	$	7,794	$	7,688
Investments in short-term time deposits	2		6,099		6,101		6,095		6,107
Liabilities:
Long-term debt	2		619,230		654,876		661,507		722,671

In connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its Aerospace segment and Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado, Woodward received long-term notes from municipalities within the states of Illinois and Colorado. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to Woodward at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 2.4% at December 31, 2023 and 3.6% at September 30, 2023.

From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment for similar short-term time deposits of similar maturity. This was determined to be a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the short-term time deposits were 6.6% at December 31, 2023 and 6.8% at September 30, 2023.

The fair value of long-term debt was estimated based on the prices of debt of comparable type and maturity available to Woodward at the end of the period, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 4.9% at December 31, 2023 and 5.9% at September 30, 2023.

Woodward does not have expected credit losses related to any financial assets that are not required to be remeasured at fair value.

Note 8. Derivative instruments and hedging activities

Derivative instruments not designated or qualifying as hedging instruments

In May 2020, Woodward entered into a floating-rate cross-currency interest rate swap (the “2020 Floating-Rate Cross-Currency Swap”), with a notional value of $45,000, and five fixed-rate cross-currency interest rate swap agreements (the “2020 Fixed-Rate Cross-Currency Swaps”), with an aggregate notional value of $400,000, which effectively reduced the interest rates on the underlying fixed and floating-rate debt, respectively, under the 2018 Notes (as defined in Note 14, Credit Facilities, short-term borrowings and long-term debt, in the Notes to the Consolidated Financial Statements included

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in Part II, Item 8 of Woodward’s most recently filed Form 10-K) and Woodward’s then existing revolving credit agreement.

The net interest income of the cross-currency interest rate swaps is recorded as a reduction to “Interest expense” in Woodward’s Condensed Consolidated Statements of Earnings. The 2020 Floating-Rate Cross-Currency Swap expired on May 31, 2023 and, as such, is no longer recorded on the Condensed Consolidated Balance Sheets. As of December 31, 2023, the total notional value of the 2020 Fixed-Rate Cross-Currency Swaps was $400,000. See Note 7, Financial Instruments and fair value measurements for the related fair value of the derivative instruments as of December 31, 2023.

Derivatives instruments in fair value hedging relationships

In May 2020, Woodward entered into a US dollar denominated intercompany loan payable with identical terms and notional value as the 2020 Floating-Rate Cross-Currency Swap, together with a reciprocal intercompany floating-rate cross-currency interest rate swap. The agreements were entered into by Woodward Barbados Euro Financing SRL (“Euro Barbados”), a wholly owned subsidiary of Woodward. The US dollar denominated intercompany loan and reciprocal intercompany floating-rate cross-currency interest rate swap are designated as a fair value hedge under the criteria prescribed in ASC 815. The objective of the derivative instrument is to hedge against the foreign currency exchange risk attributable to the spot remeasurement of the US dollar denominated intercompany loan, as Euro Barbados maintains a Euro functional currency.

For each floating-rate intercompany cross-currency interest rate swap, only the change in the fair value related to the cross-currency basis spread, or excluded component, of the derivative instrument is recognized in accumulated other comprehensive income (“OCI”). The remaining change in the fair value of the derivative instrument is recognized in foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. The change in the fair value of the derivative instrument in foreign currency transaction gain or loss offsets the change in the spot remeasurement of the intercompany Euro and US dollar denominated loans. Hedge effectiveness is assessed based on the fair value changes of the derivative instrument, after excluding any fair value changes related to the cross-currency basis spread. The initial cost of the cross-currency basis spread is recorded in earnings each period through the swap accrual process. There are no credit-risk-related contingent features associated with the intercompany floating-rate cross-currency interest rate swap.

Derivative instruments in cash flow hedging relationships

In May 2020, Woodward entered into five US dollar intercompany loans payable, with identical terms and notional values of each tranche of the 2020 Fixed-Rate Cross-Currency Swaps, together with reciprocal fixed-rate intercompany cross-currency interest rate swaps. The agreements were entered into by Euro Barbados and are designated as cash flow hedges under the criteria prescribed in ASC 815. The objective of these derivative instruments is to hedge the risk of variability in cash flows attributable to the foreign currency exchange risk of cash flows for future principal and interest payments associated with the US dollar denominated intercompany loans over a thirteen-year period, as Euro Barbados maintains a Euro functional currency.

For each of the fixed-rate intercompany cross-currency interest rate swaps, changes in the fair values of the derivative instruments are recognized in accumulated OCI and reclassified to foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. Reclassifications out of accumulated OCI of the change in fair value occur each reporting period based upon changes in the spot rate remeasurement of the Euro and US dollar denominated intercompany loans, including associated interest. Hedge effectiveness is assessed based on the fair value changes of the derivative instruments and such hedges are deemed to be highly effective in offsetting exposure to variability in foreign exchange rates. There are no credit-risk-related contingent features associated with these fixed-rate cross-currency interest rate swaps.

Derivatives instruments in net investment hedging relationships

On September 23, 2016, Woodward and Woodward International Holding B.V., a wholly owned subsidiary of Woodward organized under the laws of The Netherlands (the “BV Subsidiary”), each entered into a note purchase agreement (the “2016 Note Purchase Agreement”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of €160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 aggregate principal amount of Woodward’s Series M Senior Notes due September 23, 2026 (the “Series M Notes”). Woodward designated the Series M Notes as a hedge of a foreign currency exposure of Woodward’s net investment in its Euro denominated functional currency subsidiaries. Related to the Series M Notes, included in foreign currency translation adjustments within total comprehensive (losses) earnings are net foreign exchange losses of $1,866 for the three months ended December 31, 2023, compared to $3,625 for the three months ended December 31, 2022.

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Impact of derivative instruments designated as qualifying hedging instruments

The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	901
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		17,899		37,285
		$	17,899	$	38,186

The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	896
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		18,510		31,692
		$	18,510	$	32,588

The following table discloses the amount of (gain) loss reclassified from accumulated OCI into earnings on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	901
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		17,899		37,285
		$	17,899	$	38,186

The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated OCI, were net losses of $10,312 as of December 31, 2023 and $9,701 as of September 30, 2023.

Note 9. Supplemental statement of cash flows information

	Three Months Ended December 31,
	2023		2022
Interest paid, net of amounts capitalized	$	13,411	$	12,334
Income taxes paid		13,032		3,725
Income tax refunds received		2,440		322
Non-cash activities:
Purchases of property, plant and equipment on account		3,121		5,821

Note 10. Inventories

	December 31, 2023			September 30, 2023
Raw materials	$	154,663		$	133,699
Work in progress		133,977			127,438
Component parts(1)		343,444			327,522
Finished goods		88,614			74,594
Customer supplied inventory		14,357			14,543
On-hand inventory for which control has transferred to the customer		(175,382	)		(159,953	)
	$	559,673		$	517,843

(1)Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.

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Note 11. Property, plant, and equipment

	December 31, 2023			September 30, 2023
Land and land improvements	$	90,073		$	89,352
Buildings and building improvements		591,776			589,735
Leasehold improvements		21,707			21,079
Machinery and production equipment		817,319			807,244
Computer equipment and software		121,329			120,290
Office furniture and equipment		42,931			41,943
Other		38,354			20,073
Construction in progress		66,357			55,487
		1,789,846			1,745,203
Less accumulated depreciation		(858,593	)		(832,109	)
Property, plant, and equipment, net	$	931,253		$	913,094

Woodward had depreciation expense as follows:

	Three Months Ended December 31,
	2023		2022
Depreciation expense	$	20,226	$	20,126

Note 12. Goodwill

	September 30, 2023		Effects of Foreign Currency Translation		December 31, 2023
Aerospace	$	455,423	$	—	$	455,423
Industrial		336,045		12,019		348,064
Consolidated	$	791,468	$	12,019	$	803,487

Woodward tests goodwill for impairment during the fourth quarter of each fiscal year and at any time there is an indication that goodwill is more-likely-than-not impaired (commonly referred to as a triggering event). Woodward’s goodwill impairment test in the fourth quarter of fiscal year 2023 resulted in no impairment.

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Note 13. Intangible assets, net

	December 31, 2023							September 30, 2023
	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Intangible assets with finite lives:
Customer relationships and contracts:
Aerospace	$	281,683	$	(238,825	)	$	42,858	$	281,683	$	(236,143	)	$	45,540
Industrial		394,516		(98,353	)		296,163		378,804		(90,084	)		288,720
Total	$	676,199	$	(337,178	)	$	339,021	$	660,487	$	(326,227	)	$	334,260
Intellectual property:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		3,139		(3,139	)		—		3,139		(3,139	)		—
Total	$	3,139	$	(3,139	)	$	—	$	3,139	$	(3,139	)	$	—
Process technology:
Aerospace	$	44,570	$	(39,788	)	$	4,782	$	44,570	$	(39,551	)	$	5,019
Industrial		86,436		(33,261	)		53,175		83,456		(31,709	)		51,747
Total	$	131,006	$	(73,049	)	$	57,957	$	128,026	$	(71,260	)	$	56,766
Other intangibles:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		574		(574	)		—		554		(524	)		30
Total	$	574	$	(574	)	$	—	$	554	$	(524	)	$	30
Intangible asset with indefinite life:
Trade name:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		64,008		—			64,008		61,307		—			61,307
Total	$	64,008	$	—		$	64,008	$	61,307	$	—		$	61,307
Total intangibles:
Aerospace	$	326,253	$	(278,613	)	$	47,640	$	326,253	$	(275,694	)	$	50,559
Industrial		548,673		(135,327	)		413,346		527,260		(125,456	)		401,804
Consolidated Total	$	874,926	$	(413,940	)	$	460,986	$	853,513	$	(401,150	)	$	452,363

Woodward tests the indefinite lived trade name intangible asset for impairment during the fourth quarter of each fiscal year and at any time there is an indication the indefinite lived trade name intangible asset is more-likely-than-not impaired (commonly referred to as a triggering event). Woodward’s impairment test for the indefinite lived trade name intangible asset in the fourth quarter of fiscal year 2023 resulted in no impairment.

Woodward recorded amortization expense associated with intangibles of the following:

	Three Months Ended December 31,
	2023		2022
Amortization expense	$	8,599	$	9,178

Future amortization expense associated with intangibles is expected to be:

Year Ending September 30:
2024 (remaining)	$	24,862
2025		28,195
2026		28,185
2027		28,137
2028		27,536
Thereafter		260,063
	$	396,978

Note 14. Credit facilities, short-term borrowings and long-term debt

Revolving credit facility

Woodward maintains a $1,000,000 revolving credit facility established under a revolving credit agreement among Woodward, a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent, which provides for the option to increase available borrowings up to $1,500,000, subject to lenders’ participation (as amended in October

16

2022, the “Second Amended and Restated Revolving Credit Agreement”). Borrowings under the Second Amended and Restated Revolving Credit Agreement can be made by Woodward and certain of its foreign subsidiaries in U.S. dollars or in foreign currencies other than the U.S. dollar and generally bear interest at the Euro Interbank Offered Rate (“Euribor”), Sterling Overnight Index Average (“SONIA”), Tokyo Interbank Offered Rate (“TIBOR”), and Secured Overnight Financing Rate (“SOFR”) base rates plus 0.875% to 1.75%. The Revolving Credit Agreement matures on October 21, 2027.

Under the Second Amended and Restated Revolving Credit Agreement, there were $65,100 in principal amount of borrowings outstanding as of December 31, 2023 at an effective interest rate of 6.46% as compared to no borrowings outstanding as of September 30, 2023. All of the borrowings outstanding were classified as short-term borrowings based on Woodward's intent and ability to pay this amount in the next twelve months.

Short-term borrowings

Woodward has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. There were no borrowings outstanding on Woodward’s foreign lines of credit and foreign overdraft facilities as of December 31, 2023 and September 30, 2023.

The Notes

On November 15, 2023, Woodward paid the entire principal balance of $75,000 on the Series H and K Notes using proceeds from borrowings under its existing revolving credit facility.

Note 15. Accrued liabilities

	December 31, 2023		September 30, 2023
Salaries and other member benefits	$	89,797	$	146,713
Product warranties and related liabilities		21,802		18,162
Interest payable		4,105		13,611
Accrued retirement benefits		2,869		2,822
Net current contract liabilities		37,122		33,748
Taxes, other than income		22,842		13,436
Other		33,120		34,124
	$	211,657	$	262,616

Product warranties and related liabilities

Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues and related liabilities for which are probable to result in future costs. Warranty costs are accrued as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists.

Changes in accrued product warranties and related liabilities were as follows:

	Three Months Ended December 31,
	2023			2022
Beginning of period	$	18,162		$	40,042
Additions, net of recoveries		5,306			17,010
Reductions for settlement		(1,827	)		(7,702	)
Foreign currency exchange rate changes		161			176
End of period	$	21,802		$	49,526

Restructuring charges

In fiscal year 2022, the Company determined to implement a streamlined Aerospace and Industrial organizational and leadership structure designed to enhance the sales experience for customers, simplify operations, and increase profitability through improved execution. In connection with leadership changes arising from such reorganization, we recorded $1,083 of restructuring charges as nonsegment expenses, which were paid as of December 31, 2022.

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Note 16. Other liabilities

	December 31, 2023		September 30, 2023
Net accrued retirement benefits, less amounts recognized within accrued liabilities	$	78,117	$	72,570
Total unrecognized tax benefits		8,618		8,020
Noncurrent income taxes payable		10,714		10,714
Deferred economic incentives (1)		5,479		5,797
Noncurrent operating lease liabilities		20,250		20,685
Net noncurrent contract liabilities		419,939		414,657
Cross-currency swap derivative liability		12,362		—
Other		10,403		11,047
	$	565,882	$	543,490

(1)Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.

Note 17. Other (income) expense, net

	Three Months Ended December 31,
	2023			2022
Equity interest in the earnings of the JV	$	(10,155	)	$	(4,573	)
Rent income		(82	)		(88	)
Net gain on investments in deferred compensation program		(2,609	)		(1,191	)
Gain on non-recurring matter related to a previous acquisition		(4,803	)		—
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense		(2,919	)		(2,485	)
Other		(71	)		(53	)
	$	(20,639	)	$	(8,390	)

Note 18. Income taxes

The determination of the estimated annual effective tax rate is based upon a number of significant estimates and judgments. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, issuance of future guidance, interpretation, and rule-making, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes:

	Three Months Ended December 31,
	2023			2022
Earnings before income taxes	$	109,720		$	31,749
Income tax expense		19,676			2,143
Effective tax rate		17.9	%		6.7	%

The increase in the effective tax rate for the three months ended December 31, 2023 compared to the three months ended December 31, 2022 is primarily attributable to the release of uncertain tax positions in the prior year and projected future withholding taxes on unremitted earnings. This increase was offset by a larger stock-based compensation tax benefit in the current quarter.

Gross unrecognized tax benefits were $11,858 as of December 31, 2023, and $11,112 as of September 30, 2023. At December 31, 2023, the amount of the liability for unrecognized tax benefits that, if recognized, would impact Woodward’s effective tax rate was $7,588. At this time, Woodward believes it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $2,178 in the next twelve months due to the completion of review by tax authorities, lapses of statutes, and the settlement of tax positions. Woodward’s tax expense includes accruals for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments.

Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes

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of limitation may result in changes to tax expense. Generally, Woodward’s fiscal years remaining open to examination for U.S. Federal income taxes include fiscal years 2020 and thereafter. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2019 and thereafter. Woodward’s fiscal years remaining open to examination in significant foreign jurisdictions include 2018 and thereafter.

Note 19. Retirement benefits

Woodward provides various retirement benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits, and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location.

Defined contribution plans

Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain non-U.S. employees are also eligible to participate in similar non-U.S. plans.

The amount of expense associated with defined contribution plans was as follows:

	Three Months Ended December 31,
	2023		2022
Company costs	$	11,175	$	10,102

Defined benefit plans

Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Germany. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees, their covered dependents, and beneficiaries in the United States. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans.

U.S. GAAP requires that, for obligations outstanding as of September 30, 2023, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments.

The components of the net periodic retirement pension costs recognized are as follows:

	Three Months Ended December 31,
	United States						Other Countries						Total
	2023			2022			2023			2022			2023			2022
Service cost	$	194		$	223		$	309		$	320		$	503		$	543
Interest cost		1,899			1,824			793			750			2,692			2,574
Expected return on plan assets		(2,271	)		(2,074	)		(592	)		(551	)		(2,863	)		(2,625	)
Amortization of:
Net actuarial loss (gain)		57			73			(168	)		(148	)		(111	)		(75	)
Prior service cost		174			174			6			5			180			179
Net periodic retirement pension cost	$	53		$	220		$	348		$	376		$	401		$	596
Contributions paid	$	—		$	—		$	593		$	562		$	593		$	562

The components of net periodic retirement pension costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings.

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The components of the net periodic other postretirement benefit costs recognized are as follows:

	Three Months Ended December 31,
	2023			2022
Interest cost	$	226		$	226
Amortization of:
Net actuarial gain		(139	)		(124	)
Net periodic other postretirement cost	$	87		$	102
Contributions paid	$	412		$	441

The components of net periodic other postretirement benefit costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings.

The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2024 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2024 will be as follows:

Retirement pension benefits:
United States	$	—
United Kingdom		861
Japan		—
Germany		932
Other postretirement benefits		2,264

Note 20. Stockholders’ equity

Common stock and treasury stock

A summary of common stock and treasury stock share activity is as follows:

	Common Stock		Treasury Stock			Treasury stock held for deferred compensation
Balances as of September 30, 2022		72,960		(13,207	)		(139	)
Sales of treasury stock		—		19			—
Purchase of treasury stock		—		(274	)		—
Common shares issued for benefit plans		—		2			—
Purchases of stock by deferred compensation		—		—			(1	)
Distribution of stock from deferred compensation		—		—			18
Balances as of December 31, 2022		72,960		(13,460	)		(122	)
Balances as of September 30, 2023		72,960		(13,070	)		(55	)
Sales of treasury stock		—		247			—
Purchases of stock by deferred compensation		—		—			(1	)
Distribution of stock from deferred compensation		—		—			2
Balances as of December 31, 2023		72,960		(12,823	)		(54	)

Stock repurchase program

In January 2022, the Woodward board of directors (the "Board") authorized a program for the repurchase of up to $800,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a two-year period ending in January 2024 (the “2022 Authorization”). During the first three months of fiscal year 2024, Woodward repurchased no shares of its common stock under the 2022 Authorization, whereas during the first three months of fiscal year 2023, Woodward repurchased 274 shares of its common stock for $26,369.

In January 2024, the Board terminated the 2022 Authorization, which was nearing expiration, and concurrently authorized a new program for the repurchase of up to $600,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in January 2027 (the “2024 Authorization”).

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Stock-based compensation

Provisions governing outstanding stock option awards, restricted stock units ("RSUs"), and performance restricted stock units ("PSUs") are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”) and, with respect to outstanding stock options awarded in or prior to 2016, the 2006 Omnibus Incentive Plan (the “2006 Plan”).

The 2017 Plan was first approved by Woodward’s stockholders in January 2017 and is the successor plan to the 2006 Plan. The Board has delegated authority to administer the 2017 Plan to the Compensation Committee of the Board, including, but not limited to, the power to determine the recipients of awards and the terms of those awards. On January 25, 2023, Woodward’s stockholders approved an additional 500 shares of Woodward’s common stock to be made available for future grants. Under the 2017 Plan, there were approximately 2,661 shares of Woodward’s common stock available for future grants as of December 31, 2023 and 2,689 shares as of September 30, 2023.

Stock options

Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date the grants are awarded, a ten-year term, and generally have a four-year vesting schedule at a rate of 25% per year.

The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant.

The following is a summary of the activity for stock option awards:

	Three Months Ended December 31, 2023
	Number of options			Weighted-Average Exercise Price per Share
Beginning balance		4,842		$	80.48
Granted		6			131.66
Exercised		(235	)		71.74
Forfeited		(2	)		92.74
Ending balance		4,611		$	80.99

Changes in non-vested stock options were as follows:

	Three Months Ended December 31, 2023
	Number of options			Weighted-Average Grant Date Fair Value per Share
Beginning balance		1,393		$	33.96
Granted		6			61.03
Exercised		(572	)		32.37
Forfeited		(1	)		34.42
Ending balance		826		$	35.26

Information about stock options that have vested, or are expected to vest, and are exercisable at December 31, 2023 was as follows:

	Number of options		Weighted-Average Exercise Price		Weighted-Average Remaining Life in Years		Aggregate Intrinsic Value
Options outstanding		4,611	$	80.99		5.4	$	254,265
Options vested and exercisable		3,753		77.96		4.8		218,292
Options vested and expected to vest		4,577		80.90		5.4		252,769

Restricted stock units

For purposes of annual grants and promotional awards, the Company grants RSUs to eligible employees under its form RSU agreement (the “Standard Form RSU Agreement”). The Company has also granted RSUs to certain employees under its form attraction and retention RSU agreement (the “Form Attraction and Retention RSU Agreement”), which has from time to time been used for new hires and specific retention purposes. RSUs granted under the Form Attraction and Retention

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Agreement are generally scheduled to fully vest on the third or fourth anniversary of the respective grant dates, and in each case, subject to continued employment. RSUs granted prior to November 14, 2023, under the Standard Form RSU Agreement generally have a four-year vesting schedule at a rate of 25% per year, and RSUs to be granted thereafter under such agreement are generally expected to have a three-year vesting schedule at a rate of 33.3% per year, in each case generally subject to continued employment.

A summary of the activity for RSUs:

	Three Months Ended December 31, 2023
	Number of units			Weighted-Average Grant Date Fair Value
Beginning balance		177		$	93.46
Granted		12			131.66
Released		(19	)		85.91
Ending balance		170		$	96.95

Performance restricted stock units

In November 2023, the Company granted PSUs to certain employees under its form PSU agreement that generally will vest subject to a market condition and a service condition through the performance period. The market condition associated with the awards is based on the Company's relative total shareholder return ("TSR") compared to the TSR generated by the other companies that comprise the S&P 400 Midcap Index over a three-year performance period. Performance at target will result in vesting and issuance of the number of PSUs granted, equal to 100% payout. Performance below or above target can result in an issuance of between 0% - 150% of the target number of PSUs granted. Expense is recognized based on the weighted average grant date fair value on a straight line basis over the service period, irrespective as to whether the market condition is achieved.

The fair value of the PSUs for the November 2023 grant was determined based upon a Monte Carlo valuation method. The assumptions used in the Monte Carlo method to value the PSUs granted, which includes the grant date fair value outcome from the Monte Carlo method, were as follows:

	December 31, 2023
Expected volatility		30.2	%
Risk free interest rate		4.5	%
Expected life	3 years
Grant date fair value	$	146.47

The PSUs granted receive dividend equivalent units; therefore, no discount was applied for Woodward’s dividends.

A summary of the activity for PSUs:

	Three Months Ended December 31, 2023
	Number of units		Weighted-Average Grant Date Fair Value
Beginning balance		—	$	—
Granted		66		146.47
Forfeited		—		—
Ending balance		66	$	146.47

Stock-based compensation expense

Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option agreements, form RSU agreements, and form PSU agreements used by the Company, with terms approved by the administrator of the applicable plan, the requisite service period can be less than the vesting period defined in the award agreement based on grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some stock option grants, RSU grants, and PSU grants can be accelerated to a period of less than the vesting period, including immediate recognition of stock-based compensation expense on the date of grant.

At December 31, 2023, there was approximately $27,881 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including stock options, RSUs, and PSUs. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0.0% for members of the

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Board and 7.3% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.6 years.

Note 21. Commitments and contingencies

Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims, and alleged violations of various laws and regulations. Woodward accrues for known individual matters using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable. Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Earnings.

Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of related claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities.

While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings, and investigations will not have a material effect on Woodward’s liquidity, financial condition, or results of operations.

Under the Company’s severance and change in control agreements with its current corporate officers, Woodward would be required to pay termination benefits to any such officer if such officer’s employment is terminated without Cause (as defined therein). The amount of such benefits would vary depending on whether such termination occurs during a specified period within a change of control.

Note 22. Segment information

Woodward serves the aerospace and industrial markets through its two reportable segments – Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments.

The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. 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 non-recurring and/or non-operationally related expenses.

A summary of consolidated net sales and earnings by segment follows:

	Three Months Ended December 31,
	2023			2022
Segment external net sales:
Aerospace	$	460,756		$	395,685
Industrial		325,974			222,934
Total consolidated net sales	$	786,730		$	618,619
Segment earnings:
Aerospace	$	79,002		$	55,434
Industrial		66,881			11,402
Nonsegment expenses		(26,200	)		(24,311	)
Interest expense, net		(9,963	)		(10,776	)
Consolidated earnings before income taxes	$	109,720		$	31,749

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

	December 31, 2023		September 30, 2023
Segment assets:
Aerospace	$	1,838,875	$	1,829,410
Industrial		1,574,497		1,490,341
Unallocated corporate property, plant, and equipment, net		122,740		104,962
Other unallocated assets		594,693		585,490
Consolidated total assets	$	4,130,805	$	4,010,203

Note 23. Subsequent events

On January 24, 2024, the Board approved a cash dividend of $0.25 per share for the quarter, payable on March 5, 2024, for stockholders of record as of February 20, 2024.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements regarding future events and our 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, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characteristics of future events or circumstances are forward-looking statements. Forward-looking statements may include, among others, statements relating to:

•future sales, earnings, cash flow, uses of cash, and other measures of financial performance, including our assumptions underlying our expectations;

•trends in our business and the markets in which we operate, including expectations for those markets, our customers and their business and products;

•our ability to manage risks from operating internationally;

•expectations regarding demand for our products, in particular our expectations with respect to natural gas trucks in China;

•our expected expenses in future periods and trends in such expenses over time;

•our expectations regarding margins and the impact of specific products, product mix, and our strategic actions on margins;

•descriptions of our plans and expectations for future operations, including our strategic initiatives and impact of such initiatives;

•plans and expectations relating to the performance of our joint venture with General Electric Company;

•the expected levels of activity in particular industries or markets and the effects of changes in those levels;

•the scope, nature, or impact of acquisition activity and integration of such acquisition into our business;

•the research, development, production, and support of new products and services;

•ability to implement and realize the intended effects of any restructuring efforts;

•our plans, objectives, expectations and intentions with respect to business opportunities that may be available to us;

•our liquidity, including our ability to meet capital spending requirements and operations;

•future dividends and repurchases of common stock;

•future levels of indebtedness and capital spending;

•the stability of financial institutions, including those lending to us;

•pension and other postretirement plan assumptions and future contributions;

•our tax rate and other effects of the changes in U.S. federal tax law;

•availability of raw materials and components used in our products;

•expectations relating to environmental and emissions regulations;

•effects of data privacy, data protection, and information security regulations;

•our ability to increase automation and develop competitive technologies;

•our consolidated customer base and ability to enhance customer experience;

•our ability to manage risks related to U.S. Government contracting, including defense activity and spending patterns;

•our ability to attract, retain, and develop qualified personnel and maintain favorable labor relations;

•impact of our ability to protect our intellectual property on our business, financial condition, results of operations, and cash flows; and

•impact of any potential physical or cybersecurity attacks on our operations, business, including our financial condition, operating results, and reputation.

These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. 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, risk factors described in Woodward's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended September 30, 2023, which was filed on November 17, 2023, and other risks described in Woodward’s filings with the Securities and Exchange Commission.

We undertake no obligation to revise or update any forward-looking statements for any reason, except as required by applicable law. Unless we have indicated otherwise or the context otherwise requires, references in this Form 10-Q to “Woodward,” “the Company,” “we,” “us,” and “our” refer to Woodward, Inc. and its consolidated subsidiaries.

Except where we have otherwise indicated or the context otherwise requires, amounts presented in this Form 10-Q are in thousands, except per share amounts.

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OVERVIEW

Global Business Conditions

During the first three months of fiscal year 2024, we achieved significant sales growth and margin expansion as compared to the same period of the prior year. We continued to see strong end market demand for our products and services across the aerospace and industrial markets. We also saw improvement in our output as a result of our strategic initiatives and our supply chain has continued to stabilize. Further, we have also been able to more closely align price to the value of our products which helps to mitigate the impacts of inflation. We remain committed to growth, operational excellence, and innovation to deliver long-term success and enhanced shareholder value. We also continue to monitor the macroeconomic environment as inflation and economic uncertainty continues to impact certain aspects of our business.

Operational Highlights

Quarter to Date Highlights

	Three Months Ended December 31,
	2023			2022
Net sales:
Aerospace segment	$	460,756		$	395,685
Industrial segment		325,974			222,934
Consolidated net sales	$	786,730		$	618,619
Earnings:
Aerospace segment	$	79,002		$	55,434
Segment earnings as a percent of segment net sales		17.2	%		14.0	%
Industrial segment	$	66,881		$	11,402
Segment earnings as a percent of segment net sales		20.5	%		5.1	%
Consolidated net earnings	$	90,044		$	29,606
Adjusted net earnings	$	89,811		$	29,606
Effective tax rate		17.9	%		6.7	%
Adjusted effective tax rate		17.7	%		6.7	%
Consolidated diluted earnings per share	$	1.46		$	0.49
Consolidated adjusted diluted earnings per share	$	1.45		$	0.49
Earnings before interest and taxes ("EBIT")	$	119,683		$	42,525
Adjusted EBIT	$	119,118		$	42,525
Earnings before interest, taxes, depreciation, and amortization ("EBITDA")	$	148,508		$	71,829
Adjusted EBITDA	$	147,943		$	71,829

Adjusted net earnings, adjusted earnings per share, adjusted effective tax rate, EBIT, adjusted EBIT, EBITDA, and adjusted EBITDA are non-U.S. GAAP financial measures. A description of these measures as well as a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures can be found under the caption “Non-U.S. GAAP Financial Measures” in this Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Liquidity Highlights

Net cash provided by operating activities for the first three months of fiscal year 2024 was $46,789, compared to $5,402 for the first three months of fiscal year 2023. The increase in net cash provided by operating activities in the first three months of fiscal year 2024 compared to the first three months of the prior fiscal year is primarily attributable to increased earnings, partially offset by the above-target payout for fiscal year 2023 annual incentive compensation.

For the first three months of fiscal year 2024, free cash flow was $4,977, compared to negative $18,988 for the first three months of fiscal year 2023. We define free cash flow as net cash flow from operating activities less payments for property, plant, and equipment. Adjusted free cash flow, which we define as free cash flow excluding cash payments pertaining to a non-recurring matter unrelated to the ongoing operations and cash received for a non-recurring matter related to a previous acquisition, was $2,899 for the first three months of fiscal year 2024. No adjustments were made to free cash flow for the first three months of fiscal year 2023. The increase in free cash flow and adjusted free cash flow for the first three months of fiscal year 2024 as compared to the same period of the prior fiscal year was primarily due to increased earnings, partially offset by the above-target payout for fiscal year 2023 annual incentive compensation, as well

26

as higher capital expenditures. Free cash flow and adjusted free cash flow are non-U.S. GAAP financial measures. A description of these measures as well as a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures can be found under the caption “Non-U.S. GAAP Financial Measures” in this Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations.

At December 31, 2023, we held $144,348 in cash and cash equivalents and had total outstanding debt of $718,874. We have additional borrowing availability of $927,212, net of outstanding letters of credit, under our revolving credit agreement. At December 31, 2023, we also had additional borrowing capacity of $25,110 under various foreign lines of credit and foreign overdraft facilities.

RESULTS OF OPERATIONS

The following table sets forth condensed consolidated statements of earnings data as a percentage of net sales for each period indicated:

	Three Months Ended
	December 31, 2023			% of Net Sales			December 31, 2022			% of Net Sales
Net sales	$	786,730			100	%	$	618,619			100	%
Costs and expenses:
Cost of goods sold		582,381			74.0	%		492,663			79.6	%
Selling, general, and administrative expenses		74,511			9.5	%		63,187			10.2	%
Research and development costs		30,794			3.9	%		28,634			4.6	%
Interest expense		11,436			1.5	%		11,142			1.8	%
Interest income		(1,473	)		(0.2	)%		(366	)		(0.1	)%
Other (income) expense, net		(20,639	)		(2.6	)%		(8,390	)		(1.4	)%
Total costs and expenses		677,010			86.1	%		586,870			94.9	%
Earnings before income taxes		109,720			13.9	%		31,749			5.1	%
Income tax expense		19,676			2.5	%		2,143			0.3	%
Net earnings	$	90,044			11.4	%	$	29,606			4.8	%

Other select financial data:

	December 31, 2023		September 30, 2023
Working capital	$	963,343	$	852,256
Total debt		718,874		721,526
Total stockholders' equity		2,190,062		2,070,989

Net Sales

Consolidated net sales for the first quarter of fiscal year 2024 increased by $168,111, or 27.2%, compared to the same period of fiscal year 2023.

Details of the changes in consolidated net sales are as follows:

	Three-Month Period
Consolidated net sales for the period ended December 31, 2022	$	618,619
Aerospace volume		34,493
Industrial volume		79,190
Effects of changes in price		49,805
Effects of changes in foreign currency rates		4,623
Consolidated net sales for the period ended December 31, 2023	$	786,730

In the Aerospace segment, the increase in net sales for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily attributable to higher commercial OEM production rates, continued growth in both domestic and international passenger traffic, increasing aircraft utilization, and price realization.

In the Industrial segment, the increase in net sales for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily attributable to volume increases across all markets, particularly in our on-highway natural gas truck business in China, and price realization.

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Costs and Expenses

Cost of goods sold increased by $89,718 to $582,381, or 74.0% of net sales, for the first quarter of fiscal year 2024, from $492,663, or 79.6% of net sales, for the first quarter of fiscal year 2023. The increase in cost of goods sold on an absolute basis in the first quarter of fiscal year 2024 compared to the same period of the prior fiscal year was primarily due to higher sales volume and net inflationary impacts on material and labor costs.

Gross margin (as measured by net sales less cost of goods sold, divided by net sales) was 26.0% for the first quarter of fiscal year 2024, compared to 20.4% for the first quarter of fiscal year 2023. The increase in gross margin for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily attributable to higher sales volume and price realizations, partially offset by net inflationary impacts on material and labor costs.

Selling, general, and administrative expenses increased by $11,324, or 17.9%, to $74,511 for the first quarter of fiscal year 2024, compared to $63,187 for the first quarter of fiscal year 2023. Selling, general, and administrative expenses as a percentage of net sales decreased to 9.5% for the first quarter of fiscal year 2024, compared to 10.2% for the first quarter of fiscal year 2023. The increase in selling, general, and administrative expenses on an absolute basis for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily due to increased expenses relating to business development activities, increased headcount, increased expenses relating to our deferred compensation program, and increases in our annual variable incentive compensation costs.

Research and development costs increased by $2,160, or 7.5%, to $30,794 for the first quarter of fiscal year 2024, as compared to $28,634 for the first quarter of fiscal year 2023. The increase in research and development costs for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily due to variability in the timing of projects and expenses. As a percentage of net sales, research and development costs decreased to 3.9% for the first quarter of fiscal year 2024, as compared to 4.6% for the same period of the prior fiscal year.

Our research and development activities extend across almost all of our customer base, and we anticipate ongoing variability in research and development costs due to the timing of customer business needs on current and future programs.

Interest expense increased by $294, or 2.6%, to $11,436 for the first quarter of fiscal year 2024, compared to $11,142 for the first quarter of fiscal year 2023. Interest expense as a percentage of net sales was 1.5% for the first quarter of fiscal year 2024, compared to 1.8% for the first quarter of fiscal year 2023. The increase in interest expense on an absolute basis for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily attributable to increased borrowings and interest rates on the revolving credit facility during the first quarter of fiscal year 2024.

Other income increased by $12,249 to $20,639 for the first quarter of fiscal year 2024, compared to $8,390 for the first quarter of fiscal year 2023. The increase in other income for the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily attributable to increased earnings in the joint venture with General Electric and a non-recurring gain related to a previous acquisition that was recognized during the first quarter of fiscal year 2024.

Income taxes were provided at an effective rate on earnings before income taxes of 17.9% for the first quarter of fiscal year 2024, and 6.7% for the first quarter of fiscal year 2023.

The increase in the effective tax rate for the first quarter of fiscal 2024 compared to the first quarter of fiscal year 2023, is primarily attributable to the release of uncertain tax positions in the prior year and projected future withholding taxes on unremitted earnings, partially offset by a larger stock-based compensation tax benefit in the first quarter of fiscal year 2024.

Segment Results

The following table presents sales by segment:

	Three Months Ended December 31,
	2023				2022
Net sales:
Aerospace	$	460,756	58.6	%	$	395,685	64.0	%
Industrial		325,974	41.4	%		222,934	36.0	%
Consolidated net sales	$	786,730	100	%	$	618,619	100	%

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The following table presents earnings by segment and reconciles segment earnings to consolidated net earnings:

	Three Months Ended December 31,
	2023			2022
Aerospace	$	79,002		$	55,434
Industrial		66,881			11,402
Nonsegment expenses		(26,200	)		(24,311	)
Interest expense, net		(9,963	)		(10,776	)
Consolidated earnings before income taxes		109,720			31,749
Income tax expense		(19,676	)		(2,143	)
Consolidated net earnings	$	90,044		$	29,606

The following table presents segment earnings as a percent of segment net sales:

	Three Months Ended December 31,
	2023			2022
Aerospace		17.2	%		14.0	%
Industrial		20.5	%		5.1	%

Aerospace

Aerospace segment net sales increased by $65,071, or 16.4%, to $460,756 for the first quarter of fiscal year 2024, compared to $395,685 for the first quarter of fiscal year 2023. The increase in Aerospace segment net sales in the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year is primarily attributable to higher commercial OEM production rates, continued growth in passenger traffic, increasing aircraft utilization, and price realization.

Defense OEM sales increased in the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year, primarily driven by increased demand for rotorcraft and ground vehicle components. Our defense aftermarket sales increased in the first quarter of fiscal year 2024 compared to the same period of the prior fiscal year, primarily driven by increased defense budgets resulting in operations and maintenance upgrades.

Aerospace segment earnings increased by $23,568, or 42.5%, to $79,002 for the first quarter of fiscal year 2024, compared to $55,434 for the first quarter of fiscal year 2023.

The increase in Aerospace segment earnings was due to the following:

	Three-Month Period
Earnings for the period ended December 31, 2022	$	55,434
Sales volume and mix		14,130
Price, inflation, and productivity		12,071
Other, net		(2,633	)
Earnings for the period ended December 31, 2023	$	79,002

Aerospace segment earnings as a percentage of segment net sales were 17.2% for the first quarter of fiscal year 2024, compared to 14.0% for the first quarter of fiscal year 2023.

Industrial

Industrial segment net sales increased by $103,040, or 46.2%, to $325,974 for the first quarter of fiscal year 2024, compared to $222,934 for the first quarter of fiscal year 2023. The increase in Industrial segment net sales in the first quarter of fiscal year 2024 as compared to the same period of the prior fiscal year was primarily attributable to volume increases across all markets, particularly in our on-highway natural gas truck business in China, as well as price realization.

Industrial segment earnings increased by $55,479, or 486.6%, to $66,881 for the first quarter of fiscal year 2024, compared to $11,402 for the first quarter of fiscal year 2023.

The increase in Industrial segment earnings was due to the following:

	Three-Month Period
Earnings for the period ended December 31, 2022	$	11,402
Sales volume and mix		43,745
Price, inflation, and productivity		13,918
Other, net		(2,184	)
Earnings for the period ended December 31, 2023	$	66,881

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Industrial segment earnings as a percentage of segment net sales were 20.5% for the first quarter of fiscal year 2024, compared to 5.1% for the first quarter of fiscal year 2023. Industrial earnings benefited significantly from increased demand for on-highway natural gas trucks in China as well as from operational improvements including increased output and other efficiency gains, and favorable product mix.

Nonsegment

Nonsegment expenses increased by $1,889 to $26,200 for the first quarter of fiscal year 2024, compared to $24,311 for the first quarter of fiscal year 2023. The increase in nonsegment expenses for the first quarter of fiscal year 2024 as compared to the first quarter of fiscal year 2023 was primarily due to business development activity costs of $4,238 and a non-recurring gain of $4,803 related to a previous acquisition, each of which did not occur in the prior fiscal year. Excluding these charges from 2024, nonsegment expenses increased $2,454.

LIQUIDITY AND CAPITAL RESOURCES

Historically, we have satisfied our working capital needs, as well as capital expenditures, product development, and other liquidity requirements associated with our operations, with cash flow provided by operating activities and borrowings under our credit facilities. From time to time, we have also issued debt to supplement our cash needs, repay our other indebtedness, or finance our acquisitions. We continue to expect that cash generated from our operating activities, together with borrowings under our revolving credit facility and other borrowing capacity, will be sufficient to fund our continuing operating needs for the foreseeable future.

In addition to our revolving credit facility, we have various foreign credit facilities, some of which are tied to net amounts on deposit at certain foreign financial institutions. These foreign credit facilities are reviewed annually for renewal. We use borrowings under these foreign credit facilities to finance certain local operations on a periodic basis. For further discussion of our revolving credit facility and our other credit facilities, see Note 14, Credit facilities, short-term borrowings and long-term debt in the Notes to the Condensed Consolidated Financial Statements included in Part I, Item I of this Form 10-Q.

At December 31, 2023, we had total outstanding debt of $718,874 consisting of various series of unsecured notes due between 2025 and 2033 and obligations under our finance leases.

At December 31, 2023, we had $65,100 outstanding on our revolving credit facility, all of which is classified as short-term borrowings based on our intent and ability to repay this amount in the next twelve months. Revolving credit facility and short-term borrowing activity during the three months ended December 31, 2023 were as follows:

Maximum daily balance during the period	$	270,400
Average daily balance during the period	$	174,426
Weighted average interest rate on average daily balance		6.43	%

At December 31, 2023, we had additional borrowing availability of $927,212 under our revolving credit facility, net of outstanding letters of credit, and additional borrowing availability of $25,110 under various foreign credit facilities.

To our knowledge, we were in compliance with all our debt covenants as of December 31, 2023. See Note 15, Credit facilities, short-term borrowings and long-term debt in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of our most recently filed Form 10-K, for more information about our covenants.

In addition to utilizing our cash resources to fund the working capital needs of our business, we evaluate additional strategic uses of our funds, including the repurchase of our common stock, payment of dividends, significant capital expenditures, strategic acquisitions, and other potential uses of cash.

From time to time, the Company enters into various factoring agreements with third-party financial institutions to sell certain of its receivables. Factoring activity resulted in a decrease of approximately $5,161 in cash provided by operating activities during the three months ended December 31, 2023, compared to an increase in cash provided by operating activities of approximately $4,736 during the three months ended December 31, 2022.

Our ability to service our long-term debt, to remain in compliance with the various restrictions and covenants contained in our debt agreements, and to fund working capital, capital expenditures and product development efforts will depend on our ability to generate cash from operating activities, which in turn is subject to, among other things, future operating performance as well as general economic, financial, competitive, legislative, regulatory, and other conditions, some of which may be beyond our control.

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We believe that cash flows from operations, along with our contractually committed borrowings and other borrowing capability, will continue to be sufficient to fund anticipated capital spending requirements and our operations for the foreseeable future. However, we could be adversely affected if the financial institutions providing our capital requirements refuse to honor their contractual commitments, cease lending, or declare bankruptcy. We believe the lending institutions participating in our credit arrangements are financially stable and do not currently foresee adverse impacts to financial institutions supporting our capital requirements.

Cash Flows

	Three Months Ended December 31,
	2023			2022
Net cash provided by operating activities	$	46,789		$	5,402
Net cash (used in) investing activities		(41,776	)		(23,475	)
Net cash (used in) provided by financing activities		(8,091	)		5,877
Effect of exchange rate changes on cash and cash equivalents		9,979			3,687
Net change in cash and cash equivalents		6,901			(8,509	)
Cash and cash equivalents at beginning of year		137,447			107,844
Cash and cash equivalents at end of period	$	144,348		$	99,335

Net cash flows provided by operating activities for the first three months of fiscal year 2024 was $46,789, compared to $5,402 for the same period of fiscal year 2023. The increase in net cash provided by operating activities in the first three months of fiscal year 2024 as compared to the first three months of the prior fiscal year is primarily attributable to increased earnings, partially offset by the above-target payout for fiscal year 2023 annual incentive compensation.

Net cash flows used in investing activities for the first three months of fiscal year 2024 was $41,776, compared to $23,475 for the same period of fiscal year 2023. The increase in cash flows used in investing activities in the first three months of fiscal year 2024 as compared to the first three months of the prior fiscal year is primarily due to increased payments for property, plant, and equipment.

Net cash flows used in financing activities for the first three months of fiscal year 2024 was $8,091, compared to net cash flows provided by financing activities of $5,877 for the same period of fiscal year 2023. The decrease in net cash flows used in financing activities in the first three months of fiscal year 2024 as compared to the first three months of the prior fiscal year is primarily attributable to the decrease in repurchases of common stock and an increase in net debt payments as compared to net borrowings. During the first three months of fiscal year 2024, we did not repurchase any common stock. During the first three months of fiscal year 2023, we repurchased $26,369 of common stock. During the first three months of fiscal year 2024, we had net debt payments in the amount of $10,149, compared to net debt borrowings of $42,402 in the first three months of fiscal year 2023.

Non-U.S. GAAP Financial Measures

Adjusted net earnings, adjusted earnings per share, adjusted effective tax rate, EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, free cash flow, and adjusted free cash flow are financial measures not prepared and presented in accordance with U.S. GAAP. However, we believe these non-U.S. GAAP financial measures provide additional information that enables readers to evaluate our business from the perspective of management.

Earnings based non‐U.S. GAAP financial measures

Adjusted net earnings is defined by the Company as net earnings excluding, as applicable, (i) a non-recurring gain related to a previous acquisition, and (ii) costs related to business development activities. 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. Management uses adjusted net earnings to evaluate the Company’s performance excluding these infrequent or unusual period expenses that are not necessarily indicative of the Company’s operating performance for the period. Management defines adjusted earnings per share as adjusted net earnings, as defined above, divided by the weighted‐average number of diluted shares of common stock outstanding for the period. Management uses both adjusted net earnings and adjusted earnings per share when comparing operating performance to other periods which may not have similar, infrequent or unusual charges.

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The reconciliation of net earnings and earnings per share to adjusted net earnings and adjusted earnings per share, respectively, is shown in the tables below:

	Three Months Ended December 31,
	2023						2022
	Net Earnings			Earnings Per Share			Net Earnings		Earnings Per Share
Net earnings (U.S. GAAP)	$	90,044		$	1.46		$	29,606	$	0.49
Non-U.S. GAAP adjustments, net of tax:
Non-recurring gain related to a previous acquisition		(3,433	)		(0.06	)		—		—
Business development activities		3,200			0.05			—		—
Non-U.S. GAAP adjustments		(233	)		(0.01	)		—		—
Adjusted net earnings (Non-U.S. GAAP)	$	89,811		$	1.45		$	29,606	$	0.49

Management uses EBIT to evaluate Woodward’s performance without financing and tax related considerations, as these elements do not fluctuate with operating results. Management uses 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. Securities analysts, investors, and others frequently use EBIT and EBITDA in their evaluation of companies, particularly those with significant property, plant, and equipment, and intangible assets subject to amortization. The Company believes that EBIT and EBITDA are useful measures to the investor when measuring operating performance as they eliminate the impact of financing and tax expenses, which are non-operating expenses and may be driven by factors outside of the Company’s operations, such as changes in tax laws or regulations, and, in the case of EBITDA, the noncash charges associated with depreciation and amortization. Further, as interest from financing, income taxes, depreciation, and amortization can vary dramatically between companies and between periods, management believes that the removal of these items can improve comparability.

Adjusted EBIT and adjusted EBITDA represent further non-U.S. GAAP adjustments to EBIT and EBITDA, in each case adjusted to exclude, as applicable, (i) a non-recurring gain related to a previous acquisition, and (ii) costs related to business development activities. As these charges are infrequent or unusual items that can be variable from period to period and do not fluctuate with operating results, management believes removing these gains and charges from EBIT and EBITDA improves comparability of past, present, and future operating results and provides consistency when comparing EBIT and EBITDA between periods.

EBIT and adjusted EBIT reconciled to net earnings were as follows:

	Three Months Ended December 31,
	2023			2022
Net earnings (U.S. GAAP)	$	90,044		$	29,606
Income tax expense		19,676			2,143
Interest expense		11,436			11,142
Interest income		(1,473	)		(366	)
EBIT (Non-U.S. GAAP)		119,683			42,525
Non-U.S. GAAP adjustments:
Non-recurring gain related to a previous acquisition		(4,803	)		—
Business development activities		4,238			—
Total non-U.S. GAAP adjustments		(565	)		—
Adjusted EBIT (Non-U.S. GAAP)	$	119,118		$	42,525

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EBITDA and adjusted EBITDA reconciled to net earnings were as follows:

	Three Months Ended December 31,
	2023			2022
Net earnings (U.S. GAAP)	$	90,044		$	29,606
Income tax expense		19,676			2,143
Interest expense		11,436			11,142
Interest income		(1,473	)		(366	)
Amortization of intangible assets		8,599			9,178
Depreciation expense		20,226			20,126
EBITDA (Non-U.S. GAAP)		148,508			71,829
Non-U.S. GAAP adjustments:
Non-recurring gain related to a previous acquisition		(4,803	)		—
Business development activities		4,238			—
Total non-U.S. GAAP adjustments		(565	)		—
Adjusted EBITDA (Non-U.S. GAAP)	$	147,943		$	71,829

The use 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. As adjusted net earnings, adjusted net earnings per share, adjusted effective tax rate, EBIT, adjusted EBIT, EBITDA, and adjusted EBITDA exclude certain financial information compared with net earnings, the most directly comparable U.S. GAAP financial measure, users of this financial information should consider the information that is excluded. Our calculations of adjusted net earnings, adjusted net earnings per share, adjusted effective tax rate, EBIT, adjusted EBIT, EBITDA, and adjusted EBITDA may differ from similarly titled measures used by other companies, limiting their usefulness as comparative measures.

Cash flow‐based non‐U.S. GAAP financial measures

Management uses free cash flow, which is defined by the Company as net cash flows provided by operating activities less payments for property, plant, and equipment, in reviewing the financial performance of and cash generation by Woodward’s various business groups and evaluating cash levels. We believe free cash flow is a useful measure for investors because it portrays our ability to grow organically and generate cash from our businesses for purposes such as paying interest on our indebtedness, repaying maturing debt, funding business acquisitions, purchasing our common stock, paying dividends, and investing in additional research and development. In addition, securities analysts, investors, and others frequently use free cash flow in their evaluation of companies. Adjusted free cash flow represents a further non-U.S. GAAP adjustment to free cash flow to exclude the effect of cash payments pertaining to a non-recurring matter unrelated to the ongoing operations, and cash received for a non-recurring matter related to a previous acquisition. Management believes that excluding these infrequent or unusual items from free cash flow better portrays our ability to generate cash, as such items are not indicative of the Company’s operating performance for the period.

The use of these non‐U.S. GAAP financial measures is not intended to be considered in isolation of, or as substitutes for, the financial information prepared and presented in accordance with U.S. GAAP. Free cash flow and adjusted free cash flow do not necessarily represent funds available for discretionary use and are not necessarily a measure of our ability to fund our cash needs. Our calculation of free cash flow and adjusted free cash flow may differ from similarly titled measures used by other companies, limiting their usefulness as comparative measures.

Free cash flow and adjusted free cash flow reconciled to net cash provided by operating activities were as follows:

	Three Months Ended December 31,
	2023			2022
Net cash provided by operating activities (U.S. GAAP)	$	46,789		$	5,402
Payments for property, plant and equipment		(41,812	)		(24,390	)
Free cash flow (Non-U.S. GAAP)		4,977			(18,988	)
Cash received for a non-recurring matter related to a previous acquisition		(4,803	)		—
Cash paid for a non-recurring matter unrelated to the ongoing operations of the business		2,725			—
Adjusted free cash flow (Non-U.S. GAAP)	$	2,899		$	(18,988	)

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CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires us to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Note 1, Operations and summary of significant accounting policies in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of our most recently filed Form 10-K, describes the significant accounting policies and methods used in the preparation of the Consolidated Financial Statements. Our critical accounting estimates, identified in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our most recently filed Form 10-K, include the discussion of estimates used for revenue recognition, inventory valuation, reviews for impairment of goodwill and other indefinitely lived intangible assets, and our provision for income taxes. Such accounting estimates require significant judgments and assumptions to be used in the preparation of the Condensed Consolidated Financial Statements included in this Form 10-Q, and actual results could differ materially from the amounts reported.

New Accounting Standards

From time to time, the FASB or other standards-setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification are communicated through issuance of an Accounting Standards Update.

To understand the impact of recently issued guidance, whether adopted or to be adopted, please review the information provided in Note 2, New accounting standards in the Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q. Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our Condensed Consolidated Financial Statements upon adoption.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

In the normal course of business, we have exposures to interest rate risk from our long-term and short-term debt and our postretirement benefit plans, and foreign currency exchange rate risk related to our foreign operations and foreign currency transactions. We are also exposed to various market risks that arise from transactions entered into in the normal course of business related to items such as the cost of raw materials and changes in inflation. Certain contractual relationships with customers and vendors mitigate risks from changes in raw material costs and foreign currency exchange rate changes that arise from normal purchasing and normal sales activities.

These market risks are discussed more fully in “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our most recent Form 10-K. These market risks have not materially changed since the date our most recent Form 10-K was filed with the SEC.

Item 4. Controls and Procedures

We have established disclosure controls and procedures, which are designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Act”) is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. These disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Act is accumulated and communicated to management, including our Principal Executive Officer (Charles (“Chip”) P. Blankenship, Jr., Chairman of the Board, Chief Executive Officer and President) and Principal Financial and Accounting Officer (William F. Lacey, Chief Financial Officer), as appropriate, to allow timely decisions regarding required disclosures.

Chip P. Blankenship, Jr. and William F. Lacey evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15 under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluations, they concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of December 31, 2023.

There have not been any changes in our internal controls over financial reporting during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations, and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims, and alleged violations of various laws and regulations. Woodward accrues for known individual matters using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable.

While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings, and investigations will not have a material effect on Woodward's liquidity, financial condition, or results of operations.

Item 1A. Risk Factors

Investment in our securities involves risk. An investor or potential investor should consider the risks summarized under the caption “Risk Factors” in Part I, Item 1A of our most recent Form 10-K when making investment decisions regarding our securities. The risk factors that were disclosed in our most recent Form 10-K have not materially changed since the date our most recent Form 10-K was filed with the SEC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Sales of Unregistered Securities

None.

Issuer Purchases of Equity Securities (In thousands, except for shares and per share amounts)	Total Number of Shares Purchased		Weighted Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)		Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased under the Plans or Programs at Period End (1)
October 1, 2023 through October 31, 2023 (2)		160	$	124.70		—	$	227,578
November 1, 2023 through November 30, 2023 (2)		89		135.18		—		227,578
December 1, 2023 through December 31, 2023 (2)		—		136.13		—		227,578

(1)In January 2022, the Board authorized a program for the repurchase of up to $800,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a two-year period ending in January 2024 (the “2022 Authorization”). In January 2024, the Board terminated the 2022 Authorization, which was nearing expiration, and concurrently authorized a new program for the repurchase of up to $600,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in January 2027 (the “2024 Authorization”).

(2)Under a trust established for the purposes of administering the Woodward Executive Benefit Plan, shares of common stock were acquired on the open market related to the deferral of compensation by certain eligible members of Woodward’s management who irrevocably elected to invest some or all of their deferred compensation in Woodward common stock. In addition, 89 shares of common stock were acquired in November 2023 on the open market related to the reinvestment of dividends for shares of treasury stock held for deferred compensation. Shares owned by the trust, which is a separate legal entity, are included in "Treasury stock held for deferred compensation" in the Condensed Consolidated Balance Sheets.

Item 5. Other Information

During the three months ended December 31, 2023, no directors or officers, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.

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Item 6. Exhibits

Exhibits filed as part of this Report are listed in the Exhibit Index.

WOODWARD, INC.

EXHIBIT INDEX

	Exhibit Number	Description
*	10.1	Randall Hobbs Offer Letter, Dated October 7, 2022
*	31.1	Rule 13a-14(a)/15d-14(a) certification of Charles P. Blankenship, Jr.
*	31.2	Rule 13a-14(a)/15d-14(a) certification of William F. Lacey
*	32.1	Section 1350 certifications
*	101	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Earnings, (iii) Condensed Consolidated Statements of Comprehensive Earnings, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Condensed Consolidated Financial Statements.
*	104	Cover page Interactive Data File (embedded within the Inline XBRL document and are contained in Exhibit 101)

* Filed as an exhibit to this Report

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	WOODWARD, INC.
Date: February 2, 2024	/s/ Charles P. Blankenship, Jr.
	Charles P. Blankenship, Jr.
	Chairman of the Board, Chief Executive Officer, and President (on behalf of the registrant and as the registrant’s Principal Executive Officer)
Date: February 2, 2024	/s/ William F. Lacey
	William F. Lacey
	Chief Financial Officer (on behalf of the registrant and as the registrant’s Principal Financial and Accounting Officer)

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EX-10.1

Exhibit 10.1

October 7, 2022

Randy Hobbs

Subject: Job Offer

Dear Randy:

We are pleased to offer you the opportunity to join Woodward as President, Industrial, with an anticipated start date of December 5, 2022. This is an exempt position based in Fort Collins, CO reporting to Chip Blankenship, Chairman, Chief Executive Officer and President.

Details of the offer are as follows:

COMPENSATION

Base Pay

•Your base salary will be $21,923 bi-weekly or $570,000 annually. Pay periods are bi-weekly and in the form of direct deposit and subject to deductions for taxes and other withholdings as required by law or the policies of the Company.

Annual Short Term Incentive Compensation (STI)

•You will participate in Woodward's annual short-term incentive plan (STI)). Your annual incentive pay target will be 75% of eligible wages (or $427,500). Any STI payout will be pro­ rated for fiscal year 2023. The STI payouts can reach a maximum of 200% of target. STI payouts are subject to approval by the Compensation Committee of the Board of Directors and, when applicable, are typically paid out in November after the close of the fiscal year, which is September 30. Incentive target bonuses are set by Company objectives and financial performance.

Annual Long Term Incentive Compensation (LTI)

•This position qualifies for Stock Options as part of our annual equity grant process. Your first annual stock option grant, with a grant date fair value of approximately $433,920, is anticipated to be awarded on October 2, 2023, which is the first business day of our fiscal year 2024 (but see below for fiscal year 2023 LTI grant). The granting of future Stock Options, and timing thereof, is not a guarantee and is subject to Board of Directors approval.

•Beginning October 1, 2023, you will participate in the Woodward Cash LTI Program (or any replacement program thereafter, such as awards of performance based stock units) at a target of 35% of base salary. This is a cash incentive compensation plan for selected top executives of the Company. The plan currently consists of a three-year performance period, with a new performance period starting at the beginning of each fiscal year. To the extent that the designated goals are achieved or exceeded, some multiple of the target award will be paid at the end of the performance period. The Cash LTI payouts can reach a maximum of 200% of target. Please review the enclosed Cash LTI At-a-Glance for further details.

Total Target Annual Compensation

•$570,000 (Base)+ $427,500 (STI) + $710,000 (LTI) = $1,707,500 (Total)

Exhibit 10.1

SPECIAL SIGN-ON INCENTIVE PROVISIONS

In recognition of the significant pension benefit from your current employer that you would be forfeiting in order to join Woodward, and as an additional inducement for you to accept this position, we will offer you the following sign-on consideration:

Cash Bonus

•The Company will pay you a cash sign-on bonus in the amount of $700,000. The sign-on bonus will be payable in your first regular paycheck in accordance with the Company's standard payroll practice and subject to applicable withholdings. Should you voluntarily resign from the Company within two years of your hire date, you will be responsible for reimbursing this amount to the Company.

Sign-On RSUs

You will also be given two Sign-On RSU grants:

•A grant of Sign-On restricted stock units (RSUs) on your start date with a grant date fair value of $500,000. This grant will fully cliff vest three years following the grant date.

•An additional grant of Sign-On RSUs, also on your start date, with a grant date fair value of $3,500,000. This award will vest at a rate of 50% at the end of three years following the grant date, and 50% at the end of four years after the grant date.

•The two above Sign-On RSU grants be awarded pursuant to the Company's previously approved Form Attraction and Retention RSU Agreement (which provide for accelerated vesting upon death or disability) but with a modification that, should the Company terminate your employment other than for Cause, as such term is defined in such form agreement (a "Company Termination Without Cause"), any unvested RSUs under these Sign-On RSU grants would thereupon immediately vest.

Deferred Compensation Contribution

•The Company will contribute the amount of $2,500,000 on your behalf into the Executive Benefit Plan, the Company's non-qualified deferred compensation plan, upon date of hire, with vesting to be 100% at the end of four years, with you having full investment authority and related appreciation benefits or depreciation risk.

•In the event of (i) a Company Termination Without Cause, (ii) termination due to death; or (iii) termination due to Disability (as defined in the Company's existing form Non-Qualified Stock Option Award Agreement), the foregoing deferred compensation contribution benefit, if not yet vested at such time, shall thereupon immediately vest.

•In the event (i) you voluntarily terminate your employment or (ii) the Company terminates your employment for Cause (as defined above), the foregoing deferred compensation contribution benefit, if not yet vested at such time, shall be forfeited in its entirety.

Annual LTl-equivalent grant

•As of your start date, you will be awarded an equity grant with a grant date fair value of $710,000, which is the grant date fair value of our FY23 LTI award for your level. This grant will be delivered in the form of:

oNon-qualified stock options ("options") with a grant date fair value of $433,920 and a vest rate of 25% per year; and

oRSUs with a grant date fair value of $276,080, also with a vest rate of 25% per year. For the avoidance of doubt, this RSU grant would be awarded under the previously approved Form Attraction and Retention RSU Agreement without the aforementioned modification related to a Company Termination Without Cause.

Exhibit 10.1

EXECUTIVE SEVERANCE AND CHANGE IN CONTROL AGREEMENT

We will prepare for you our standard form Executive Severance and Change in Control Agreement for Company officers, which provides for severance benefits in the event of a qualifying termination, both in the event of a change in control ("CIC") and outside of a CIC scenario.

BENEFITS

Woodward has an outstanding benefits package that distinguishes us in the labor market. Please review the enclosed Benefits Program Summary. Some benefits to highlight:

•You and any eligible dependents will be able to fully participate in the WW Blue HPN (Colorado) (medical, dental and vision) programs after thirty days of continued employment.

•After thirty days of continued employment, you will become eligible for company-funded life insurance in the amount equal to the lesser of (a} $1,000,000, and (b) two times your base annual salary. Additional life insurance for yourself or your dependents may be purchased during the annual enrollment period, which is each October/November.

•You may also elect to participate in our 401K plan upon employment. You can contribute between 0-50% of your bi-weekly pay, and Woodward will match 100% on contributions from 0-3% of your pay and 50% on contributions from 3-6% of your pay (maximum Company match of 4.5%). Any amounts contributed by the Company in excess of the applicable IRS limit will be provided in the form of a supplemental contribution to your account in the Company's non-qualified deferred compensation plan (the Executive Benefit Plan). You will be 100% vested at the time of enrollment.

•You will become a participant in the Woodward Stock Plan (the Company contributes 5% of eligible wages on your behalf) upon your date of hire and will be immediately vested.

•You will also be eligible to participate in the Executive Benefit Plan. This is a nonqualified deferred compensation plan that allows you, as part of a select group of Woodward executives, to save extra pre-tax compensation for your retirement. These savings are in addition to the amount you can save through the qualified Woodward Retirement Program, which includes the 401(k) deferrals and matching contributions and the Woodward Stock Plan. Please review the attached program description.

RELOCATION AND TRANSITION BENEFITS

We will authorize a comprehensive relocation program to assist you and your family in moving from your current home to the Fort Collins area. Please review the attached Woodward Relocation Policy Guidelines for a full description of the relocation benefits and program rules. The following highlights some of the benefits that will be provided to you:

•Pre-move house hunting trip for you and your spouse

•Moving of household goods

•Final move expenses

•Temporary housing in Fort Collins

•Assistance in the sale of your home

•Closing costs on your new home

PERFORMANCE

Your performance will be reviewed annually by Chip Blankenship. This review typically occurs in the first quarter of each fiscal year (October - December) with any pay adjustments effective the first pay period in January.

Exhibit 10.1

CONTINGENCY

Our job offer is contingent upon:

•The successful completion of a pre-employment drug screen

•The position being in existence at the time of your established start date

•No evidence of false or misleading information on your application or subsequent information you provide

•The successful completion of a background check and Restricted Party Screening

•Approval by the Board of Directors of the Company of your appointment as a Company Officer, which we anticipate obtaining shortly

This letter does not create an employment agreement with Woodward and contains the entirety of any offers with respect to your employment with the Company. It supersedes any and all other offers or agreements, either oral or in writing, with respect to the employment relationship. You and Woodward acknowledge and agree that no agreement, statement or promise (other than the terms of this offer) shall be valid or binding. The terms of employment, as set out in this letter, may not be modified or amended by oral agreement or course of conduct, but only by an agreement signed by both you and the Company.

Although we look forward to this being a long and mutually rewarding association, Colorado is an at will state. Your employment will be at will. You may leave your employment at any time. Woodward may transfer, reassign, suspend or demote, or may terminate your employment, at any time, for any reason, with or without cause, and with or without notice.

We look forward to discussing the offer in more detail. Should any questions arise regarding this offer, feel free to contact me.

If you accept this job offer on the terms and conditions set forth in this letter, please sign below and return the original of this letter to Paul Benson either via Adobe Sign or email (paul.benson@woodward.com).

Randy, we are really looking forward to having you join Woodward. This is an exciting time to be with the company as we are positioned extremely well for profitable growth. We look forward to a long and productive relationship with you.

Sincerely,

_______________________

Chip Blankenship

Accepted:

__________________________________ _____________

Randall Hobbs Date

EX-31.1

Exhibit 31.1

Woodward, Inc.

Rule 13a-14(a)/15d-14(a) certifications

CERTIFICATION

I, Charles P. Blankenship, Jr., certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the period ended December 31, 2023, of Woodward, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 2, 2024	/s/ Charles P. Blankenship, Jr.
	Charles P. Blankenship, Jr.
	Chairman of the Board,  Chief Executive Officer, and President (Principal Executive Officer)

A signed original of this written statement required by Rule 13a-14(a)/15d-14(a), or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Rule 13a-14(a)/15d-14(a), has been provided to Woodward and will be retained by Woodward and furnished to the Securities and Exchange Commission or its staff upon request.

EX-31.2

Exhibit 31.2

Woodward, Inc.

Rule 13a-14(a)/15d-14(a) certifications

CERTIFICATION

I, William F. Lacey, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the period ended December 31, 2023, of Woodward, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 2, 2024	/s/ William F. Lacey
	William F. Lacey
	Chief Financial Officer (Principal Financial and Accounting Officer)

A signed original of this written statement required by Rule 13a-14(a)/15d-14(a), or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Rule 13a-14(a)/15d-14(a), has been provided to Woodward and will be retained by Woodward and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.1

Exhibit 32.1

Woodward, Inc.

Section 1350 certifications

We hereby certify, pursuant to 18 U.S.C. Section 1350, that the accompanying Quarterly Report on Form 10-Q for the period ended December 31, 2023 (the “Quarterly Report”), of Woodward, Inc., fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of Woodward, Inc.

Date:	February 2, 2024	/s/ Charles P. Blankenship, Jr. Charles P. Blankenship, Jr.Chairman of the Board, Chief Executive Officer, and President
Date:	February 2, 2024	/s/ William F. Lacey William F. Lacey Chief Financial Officer

A signed original of this written statement required by Rule 13a-14(b)/15d-14(b) and 18 U.S.C. Section 1350, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement, has been provided to Woodward and will be retained by Woodward and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2023	Feb. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	000-08408
Entity Registrant Name	WOODWARD, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-1984010
Entity Address, Address Line One	1081 Woodward Way
Entity Address, City or Town	Fort Collins
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80524
City Area Code	970
Local Phone Number	482-5811
Title of 12(b) Security	Common Stock, par value $0.001455 per share
Trading Symbol	WWD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,298,456
Amendment Flag	false
Entity Central Index Key	0000108312
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024

XML

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net sales	$ 786,730	$ 618,619
Costs and expenses:
Cost of goods sold	582,381	492,663
Selling, general and administrative expenses	74,511	63,187
Research and development costs	30,794	28,634
Interest expense	11,436	11,142
Interest income	(1,473)	(366)
Other (income) expense, net	(20,639)	(8,390)
Total costs and expenses	677,010	586,870
Earnings before income taxes	109,720	31,749
Income tax expense	19,676	2,143
Net earnings	$ 90,044	$ 29,606
Earnings per share:
Basic earnings per share	$ 1.5	$ 0.5
Diluted earnings per share	$ 1.46	$ 0.49
Weighted Average Common Shares Outstanding:
Basic	60,021	59,667
Diluted	61,846	60,928

XML

Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Condensed Consolidated Statements of Comprehensive Earnings
Net earnings	$ 90,044	$ 29,606
Other comprehensive earnings:
Foreign currency translation adjustments	23,841	30,227
Net (loss) on foreign currency transactions designated as hedges of net investments in foreign subsidiaries	(1,866)	(3,625)
Taxes on changes in foreign currency translation adjustments	(287)	1,344
Foreign currency translation and transactions adjustments, net of tax	21,688	27,946
Unrealized (loss) on fair value adjustment of derivative instruments	(18,510)	(32,588)
Reclassification of net realized loss on derivatives to earnings	17,899	38,186
Taxes on changes in derivative transactions		(113)
Derivative adjustments, net of tax	(611)	5,485
Amortization of pension and other postretirement plan:
Net prior service cost	180	179
Net (gain)	(250)	(199)
Foreign currency exchange rate changes on pension and other postretirement benefit plan liabilities	322	441
Taxes on changes in pension and other postretirement benefit plan liability adjustments, net of foreign currency exchange rate changes	(42)	79
Pension and other postretirement benefit plan adjustments, net of tax	210	500
Total comprehensive earnings	$ 111,331	$ 63,537

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 144,348	$ 137,447
Accounts receivable, less allowance for uncollectible amounts of $5,777 and $5,847, respectively	778,065	749,859
Inventories	559,673	517,843
Income taxes receivable	11,348	14,120
Other current assets	52,723	50,183
Total current assets	1,546,157	1,469,452
Property, plant and equipment, net	931,253	913,094
Goodwill	803,487	791,468
Intangible assets, net	460,986	452,363
Deferred income tax assets	59,733	58,550
Other assets	329,189	325,276
Total assets	4,130,805	4,010,203
Current liabilities:
Short-term debt	65,100
Current portion of long-term debt	745	75,817
Accounts payable	253,398	234,328
Income taxes payable	51,914	44,435
Accrued liabilities	211,657	262,616
Total current liabilities	582,814	617,196
Long-term debt, less current portion	653,029	645,709
Deferred income tax liabilities	139,018	132,819
Other liabilities	565,882	543,490
Total liabilities	1,940,743	1,939,214
Commitments and contingencies (Note 21)
Stockholders' equity:
Preferred stock, par value $0.003 per share,10,000 shares authorized, no shares issued
Common stock, par value $0.001455 per share,150,000 shares authorized, 72,960 shares issued	106	106
Additional paid-in capital	337,038	327,941
Accumulated other comprehensive losses	(49,384)	(70,671)
Deferred compensation	3,049	2,776
Retained earnings	2,985,409	2,908,574
Stockholders' equity	3,276,218	3,168,726
Treasury stock at cost, 12,823 shares and 13,070 shares, respectively	(1,083,107)	(1,094,961)
Treasury stock held for deferred compensation, at cost, 54 shares and, 55 shares, respectively	(3,049)	(2,776)
Total stockholders' equity	2,190,062	2,070,989
Total liabilities and stockholders' equity	$ 4,130,805	$ 4,010,203

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Allowance, accounts receivable	$ 5,777	$ 5,847
Stockholders' equity:
Preferred stock, par value	$ 0.003	$ 0.003
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001455	$ 0.001455
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	72,960,000	72,960,000
Treasury stock, shares	12,823,000	13,070,000
Treasury stock held for deferred compensation, shares	54,000	55,000

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net earnings	$ 90,044	$ 29,606
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	28,825	29,304
Net (gain) loss on sales of assets	(9)	33
Stock-based compensation	4,937	11,316
Deferred income taxes	44
Changes in operating assets and liabilities:
Trade accounts receivable	6,430	31,318
Unbilled receivables (contract assets)	(27,154)	(12,226)
Costs to fulfill a contract	(1,580)	(496)
Inventories	(36,383)	(50,559)
Accounts payable and accrued liabilities	(31,654)	(30,412)
Contract liabilities	7,502	2,065
Income taxes	8,766	890
Retirement benefit obligations	(434)	(664)
Other	(2,545)	(4,773)
Net cash provided by operating activities	46,789	5,402
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment	(41,812)	(24,390)
Proceeds from sale of assets and short-term investments	36	37
Business acquisition, net of cash acquired		878
Net cash (used in) investing activities	(41,776)	(23,475)
Cash flows from financing activities:
Cash dividends paid	(13,209)	(11,355)
Proceeds from sales of treasury stock	15,267	1,199
Payments for repurchases of common stock		(26,369)
Borrowings on revolving lines of credit and short-term borrowings	728,600	413,700
Payments on revolving lines of credit and short-term borrowings	(663,500)	(371,200)
Payments of long-term debt and finance lease obligations	(75,249)	(98)
Net cash (used in) provided by financing activities	(8,091)	5,877
Effect of exchange rate changes on cash and cash equivalents	9,979	3,687
Net change in cash and cash equivalents	6,901	(8,509)
Cash and cash equivalents at beginning of year	137,447	107,844
Cash and cash equivalents at end of period	$ 144,348	$ 99,335

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Foreign Currency Translation Adjustments [Member]	Unrealized Derivative Gains (Losses) [Member]	Minimum Retirement Benefit Liability Adjustments [Member]	Total Accumulated Other Comprehensive (Loss) Earnings [Member]	Deferred Compensation [Member]	Retained Earnings [Member]	Treasury Stock at Cost [Member]	Treasury Stock Held for Deferred Compensaton [Member]
Balances at Sep. 30, 2022	$ 1,901,122	$ 106	$ 293,540	$ (86,494)	$ (6,215)	$ 146	$ (92,563)	$ 6,781	$ 2,727,233	$ (1,027,194)	$ (6,781)
Net earnings	29,606								29,606
Other comprehensive earnings (loss), net of tax	33,931			27,946	5,485	500	33,931
Cash dividends paid	(11,355)								(11,355)
Sales of treasury stock	1,024		161							863
Purchases of treasury stock	(26,369)									(26,369)
Common shares issued for benefit plans	160		83							77
Stock-based compensation	11,316		11,316
Purchases of stock by/ deferred compensation								70			(70)
Distribution of stock from deferred compensation								(876)			876
Balances at Dec. 31, 2022	1,939,435	106	305,100	(58,548)	(730)	646	(58,632)	5,975	2,745,484	(1,052,623)	(5,975)
Balances at Sep. 30, 2023	2,070,989	106	327,941	(67,393)	(9,719)	6,441	(70,671)	2,776	2,908,574	(1,094,961)	(2,776)
Net earnings	90,044								90,044
Other comprehensive earnings (loss), net of tax	21,287			21,688	(611)	210	21,287
Cash dividends paid	(13,209)								(13,209)
Sales of treasury stock	16,014		4,160							11,854
Stock-based compensation	4,937		4,937
Purchases of stock by/ deferred compensation								32			(32)
Distribution of stock from deferred compensation								241			(241)
Balances at Dec. 31, 2023	$ 2,190,062	$ 106	$ 337,038	$ (45,705)	$ (10,330)	$ 6,651	$ (49,384)	$ 3,049	$ 2,985,409	$ (1,083,107)	$ (3,049)

XML

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends per share	$ 0.22	$ 0.19

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 90,044	$ 29,606

XML

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Basis of Presentation

3 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1. Basis of presentation

The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of December 31, 2023 and for the three months ended December 31, 2023 and 2022, included herein, have not been audited by an independent registered public accounting firm. These unaudited Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of December 31, 2023, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The results of operations for the three months ended December 31, 2023 and 2022 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar and share amounts contained in these unaudited Condensed Consolidated Financial Statements are in thousands, except per share amounts, unless otherwise noted.

The unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC.

Management is required to use estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the unaudited Condensed Consolidated Financial Statements included herein. Significant estimates in these unaudited Condensed Consolidated Financial Statements include allowances for credit losses; net realizable value of inventories; variable consideration including customer rebates earned and payable and early payment discounts; warranty reserves; useful lives of property and identifiable intangible assets; the evaluation of impairments of property, intangible assets, and goodwill; the provision for income tax and related valuation reserves; the valuation of derivative instruments; assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans; the valuation of stock compensation instruments granted to employees, board members and any other eligible recipients; estimates of incremental borrowing rates used when estimating the present value of future lease payments; assumptions used when including renewal options or non-exercise of termination options in lease terms; estimates of total lifetime sales used in the recognition of revenue of deferred material rights and balance sheet classification of the related contract liability; estimates of total sales contract costs when recognizing revenue under the cost-to-cost method; and contingencies. Actual results could vary from Woodward’s estimates.

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New Accounting Standards

3 Months Ended

Dec. 31, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Standards

Note 2. New accounting standards

From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”).

In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures." The purpose of ASU 2023-07 is to provide enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 (fiscal year 2025 for Woodward), and interim periods within fiscal years beginning after December 15, 2024 (fiscal year 2026 for Woodward), with early adoption permitted, and are to be applied on a retrospective basis to all periods presented. Woodward is currently assessing the impact on its segment reporting disclosures.

In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures." The purpose of ASU 2023-09 is to provide enhanced disclosures surrounding income taxes by requiring, consistent categories and greater disaggregation of information in the rate reconciliation, the disaggregation of income taxes paid by jurisdiction, as well as several other changes to the income tax disclosure. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 (fiscal year 2026 for Woodward), with early adoption permitted, and is required to be applied prospectively with the option of retrospective application. Woodward is currently assessing the impact on its income tax disclosures.

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Revenue

3 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Note 3. Revenue

The amount of revenue recognized as point in time or over time follows:

	Three Months Ended December 31, 2023						Three Months Ended December 31, 2022
	Aerospace		Industrial		Consolidated		Aerospace		Industrial		Consolidated
Point in time	$	188,503	$	186,630	$	375,133	$	169,840	$	139,839	$	309,679
Over time		272,253		139,344		411,597		225,845		83,095		308,940
Total net sales	$	460,756	$	325,974	$	786,730	$	395,685	$	222,934	$	618,619

Accounts Receivable

Accounts receivable consisted of the following:

	December 31, 2023			September 30, 2023
Billed receivables
Trade accounts receivable	$	426,598		$	434,287
Other (Chinese financial institutions)		57,098			50,940
Total billed receivables		483,696			485,227
Current unbilled receivables (contract assets)		300,146			270,479
Total accounts receivable		783,842			755,706
Less: Allowance for uncollectible amounts		(5,777	)		(5,847	)
Total accounts receivable, net	$	778,065		$	749,859

As of December 31, 2023, “Other assets” on the Condensed Consolidated Balance Sheets includes $6,945 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $7,332 as of September 30, 2023.

Accounts receivable in Woodward’s Condensed Consolidated Financial Statements represent the net amount expected to be collected, and an allowance for uncollectible amounts related to credit losses is established based on expected losses. Expected losses are estimated by reviewing specific customer accounts, taking into consideration accounts receivable aging, credit risk of the customers, and historical payment history, as well as current and forecasted economic conditions and other relevant factors.

The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:

	Three Months Ended December 31,
	2023			2022
Balance, beginning	$	5,847		$	3,922
Changes in estimates		298			344
Write-offs		(459	)		(83	)
Other1		91			20
Balance, ending	$	5,777		$	4,203

(1)Includes effects of foreign exchange rate changes during the period.

Contract liabilities

Contract liabilities consisted of the following:

	December 31, 2023				September 30, 2023
	Current		Noncurrent		Current		Noncurrent
Deferred revenue from material rights from GE joint venture formation	$	6,255	$	232,553	$	6,147	$	233,997
Deferred revenue from advanced invoicing and/or prepayments from customers		9,638		4,196		6,868		2,196
Liability related to customer supplied inventory		14,357		—		14,543		—
Deferred revenue from material rights related to engineering and development funding		6,872		183,190		6,190		178,464
Net contract liabilities	$	37,122	$	419,939	$	33,748	$	414,657

Woodward recognized revenue of $13,033 in the three months ended December 31, 2023 from contract liabilities balances recorded as of October 1, 2023, compared to $8,885 in the three months ended December 31, 2022 from contract liabilities balances recorded as of October 1, 2022.

Remaining performance obligations

Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of December 31, 2023 was $2,435,837, compared to $2,325,533 as of September 30, 2023, the majority of which relates to Woodward’s Aerospace segment in both periods. Woodward expects to recognize almost all of these remaining performance obligations within two years after December 31, 2023.

Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2023 was $472,957, compared to $457,391 as of September 30, 2023, of which $8,865 is expected to be recognized in the remainder of fiscal year 2024, $13,291 is expected to be recognized in fiscal year 2025, and the remaining balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty years.

Disaggregation of Revenue

Woodward designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market as Woodward believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

Revenue by primary market for the Aerospace reportable segment was as follows:

	Three Months Ended December 31,
	2023		2022
Commercial OEM	$	171,354	$	138,875
Commercial aftermarket		137,544		126,643
Defense OEM		93,425		89,762
Defense aftermarket		58,433		40,405
Total Aerospace segment net sales	$	460,756	$	395,685

Revenue by primary market for the Industrial reportable segment was as follows:

	Three Months Ended December 31,
	2023		2022
Power generation	$	98,106	$	81,577
Transportation		174,469		88,915
Oil and gas		53,399		52,442
Total Industrial segment net sales	$	325,974	$	222,934

During fiscal year 2023, for purposes of how we assess performance, we determined that certain revenue was better aligned with our markets consisting of power generation, transportation, and oil and gas, rather than the reciprocating engines and industrial turbines, as previously reported. For comparability, we have reclassified revenue for the three months ended December 31, 2022 to conform to the new presentation. This reclassification of revenue had no impact on our consolidated financial results.

The customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows:

	Three Months Ended December 31, 2023	Three Months Ended December 31, 2022
Aerospace	General Electric Company, RTX Corporation, The Boeing Company	RTX Corporation, General Electric Company, The Boeing Company
Industrial	Weichai Westport, Rolls-Royce PLC, Caterpillar, Inc.	Rolls-Royce PLC, Caterpillar, Inc., Wartsila, General Electric Company

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Earnings Per Share

3 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Note 4. Earnings per share

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock.

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:

	Three Months Ended December 31,
	2023		2022
Numerator:
Net earnings	$	90,044	$	29,606
Denominator:
Basic shares outstanding		60,021		59,667
Dilutive effect of stock options and restricted stock		1,825		1,261
Diluted shares outstanding		61,846		60,928
Income per common share:
Basic earnings per share	$	1.50	$	0.50
Diluted earnings per share	$	1.46	$	0.49

The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

	Three Months Ended December 31,
	2023		2022
Options		39		1,598
Weighted-average option price	$	114.53	$	101.18

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:

	Three Months Ended December 31,
	2023		2022
Weighted-average treasury stock shares held for deferred compensation obligations		55		131

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Leases

3 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease

Note 5. Leases

Lessee arrangements

Woodward has entered into operating leases for certain facilities and equipment with terms in excess of one year under agreements that expire at various dates. Some leases require the payment of property taxes, insurance, maintenance costs, or other similar costs in addition to rental payments. Woodward has also entered into finance leases for equipment with terms in excess of one year under agreements that expire at various dates.

Lease-related assets and liabilities were as follows:

	Classification on the Condensed Consolidated Balance Sheets	December 31, 2023		September 30, 2023
Assets:
Operating lease	Other assets	$	24,280	$	24,680
Finance lease	Property, plant, and equipment, net		3,089		3,337
Total lease assets			27,369		28,017
Current liabilities:
Operating lease	Accrued liabilities		4,657		4,594
Finance lease	Current portion of long-term debt		745		817
Noncurrent liabilities:
Operating lease	Other liabilities		20,250		20,685
Finance lease	Long-term debt, less current portion		2,559		2,733
Total lease liabilities		$	28,211	$	28,829

Lease-related expenses were as follows:

	Three Months Ended December 31,
	2023		2022
Operating lease expense	$	1,632	$	1,487
Amortization of finance lease assets		248		256
Interest on finance lease liabilities		41		34
Variable lease expense		228		210
Short-term lease expense		38		57
Total lease expense	$	2,187	$	2,044

Lease-related supplemental cash flow information was as follows:

	Three Months Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,316	$	1,360
Operating cash flows for finance leases		41		34
Financing cash flows for finance leases		249		99
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		477		411
Finance leases		—		27

Lessor arrangements

Woodward has assessed its manufacturing contracts and concluded that certain of the contracts for the manufacture of customer products met the criteria to be considered a leasing arrangement (“embedded leases”) with Woodward as the lessor. The specific manufacturing contracts that met the criteria were those that utilized Woodward property, plant, and equipment and which are substantially (more than 90%) dedicated to the manufacturing of the product(s) for a single customer. Woodward has dedicated manufacturing lines with four of its customers representing embedded leases, all of which qualified as operating leases with undefined quantities of future customer purchase commitments.

Although Woodward expects to allocate some portion of future net sales to these customers to embedded lessor arrangements, it cannot provide expected future undiscounted lease payments from property, plant, and equipment leased to customers as of December 31, 2023. If, in the future, customers reduce purchases of related products from Woodward, the Company believes it will derive additional value from the underlying equipment by repurposing its use to support other customer arrangements.

Revenue from contracts with customers that included embedded operating leases, which is included in “Net sales” in the Condensed Consolidated Statements of Earnings, was $1,364 for the three months ended December 31, 2023, compared to $1,388 for the three months ended December 31, 2022.

The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” on the Condensed Consolidated Balance Sheets, follows:

	December 31, 2023			September 30, 2023
Property, plant, and equipment	$	46,835		$	45,766
Less accumulated depreciation		(29,472	)		(28,128	)
Property, plant, and equipment, net	$	17,363		$	17,638

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Joint Venture

3 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Joint Venture

Note 6. Joint venture

In fiscal year 2016, Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit at the time, consummated the formation of a strategic joint venture between Woodward and GE (the “JV”) to develop, manufacture, and support fuel systems for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds.

Unamortized deferred revenue from material rights in connection with the JV formation included:

	December 31, 2023		September 30, 2023
Accrued liabilities	$	6,255	$	6,147
Other liabilities		232,553		233,997

Amortization of the deferred revenue (material right) recognized as an increase to sales was $1,335 for the three months ended December 31, 2023, and $831 for the three months ended December 31, 2022.

Other income related to Woodward’s equity interest in the earnings of the JV was as follows:

	Three Months Ended December 31,
	2023		2022
Other income	$	10,155	$	4,573

Cash distributions to Woodward from the JV, recognized in “Other, net” in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows:

	Three Months Ended December 31,
	2023		2022
Cash distributions	$	6,500	$	4,500

Net sales to the JV were as follows:

	Three Months Ended December 31,
	2023		2022
Net sales1	$	20,272	$	6,477

(1)Net sales included a reduction of $14,539 for the three months ended December 31, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $7,570 for the three months ended December 31, 2022.

The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:

	December 31, 2023		September 30, 2023
Accounts receivable	$	3,978	$	3,666
Accounts payable		8,025		6,276
Other assets		19,683		16,028

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Financial Instruments and Fair Value Measurements

3 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

Note 7. Financial instruments and fair value measurements

The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value as defined by the U.S. GAAP fair value hierarchy.

	At December 31, 2023								At September 30, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Investments in banks and financial institutions	$	45,257	$	—	$	—	$	45,257	$	28,560	$	—	$	—	$	28,560
Equity securities		28,969		—		—		28,969		24,913		—		—		24,913
Cross-currency interest rate swaps		—		—		—		—		—		5,389		—		5,389
Total financial assets	$	74,226	$	—	$	—	$	74,226	$	53,473	$	5,389	$	—	$	58,862
Financial liabilities:
Cross-currency interest rate swaps	$	—	$	12,362	$	—	$	12,362	$	—	$	—	$	—	$	—
Total financial liabilities	$	—	$	12,362	$	—	$	12,362	$	—	$	—	$	—	$	—

Investments in banks and financial institutions: Woodward and its subsidiaries sometimes invest excess cash in various highly liquid financial instruments that Woodward believes are with creditworthy financial institutions. Such investments are reported in “Cash and cash equivalents” at fair value, with realized gains from interest income recognized in earnings. The carrying value of Woodward’s investments in term deposits with foreign banks are considered equal to the fair value given the highly liquid nature of the investments.

Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity

securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net” on the Condensed Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds.

Cross-currency interest rate swaps: Woodward holds cross-currency interest rate swaps, which are accounted for at fair value. The swaps in an asset position are included in “Other current assets” and “Other assets,” and swaps in a liability position are included in “Accrued liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s cross-currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors.

Cash, trade accounts receivable, accounts payable, and short-term borrowings are not remeasured to fair value, as the carrying cost of each approximates its respective fair value.

The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows:

		At December 31, 2023				At September 30, 2023
	Fair Value Hierarchy Level	Estimated Fair Value		Carrying Cost		Estimated Fair Value		Carrying Cost
Assets:
Notes receivable from municipalities	2	$	7,861	$	7,333	$	7,794	$	7,688
Investments in short-term time deposits	2		6,099		6,101		6,095		6,107
Liabilities:
Long-term debt	2		619,230		654,876		661,507		722,671

In connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its Aerospace segment and Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado, Woodward received long-term notes from municipalities within the states of Illinois and Colorado. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to Woodward at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 2.4% at December 31, 2023 and 3.6% at September 30, 2023.

From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment for similar short-term time deposits of similar maturity. This was determined to be a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the short-term time deposits were 6.6% at December 31, 2023 and 6.8% at September 30, 2023.

The fair value of long-term debt was estimated based on the prices of debt of comparable type and maturity available to Woodward at the end of the period, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 4.9% at December 31, 2023 and 5.9% at September 30, 2023.

Woodward does not have expected credit losses related to any financial assets that are not required to be remeasured at fair value.

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Derivative Instruments and Hedging Activities

3 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedges, Assets [Abstract]

Derivative Instruments and Hedging Activities

Note 8. Derivative instruments and hedging activities

Derivative instruments not designated or qualifying as hedging instruments

In May 2020, Woodward entered into a floating-rate cross-currency interest rate swap (the “2020 Floating-Rate Cross-Currency Swap”), with a notional value of $45,000, and five fixed-rate cross-currency interest rate swap agreements (the “2020 Fixed-Rate Cross-Currency Swaps”), with an aggregate notional value of $400,000, which effectively reduced the interest rates on the underlying fixed and floating-rate debt, respectively, under the 2018 Notes (as defined in Note 14, Credit Facilities, short-term borrowings and long-term debt, in the Notes to the Consolidated Financial Statements included

in Part II, Item 8 of Woodward’s most recently filed Form 10-K) and Woodward’s then existing revolving credit agreement.

The net interest income of the cross-currency interest rate swaps is recorded as a reduction to “Interest expense” in Woodward’s Condensed Consolidated Statements of Earnings. The 2020 Floating-Rate Cross-Currency Swap expired on May 31, 2023 and, as such, is no longer recorded on the Condensed Consolidated Balance Sheets. As of December 31, 2023, the total notional value of the 2020 Fixed-Rate Cross-Currency Swaps was $400,000. See Note 7, Financial Instruments and fair value measurements for the related fair value of the derivative instruments as of December 31, 2023.

Derivatives instruments in fair value hedging relationships

In May 2020, Woodward entered into a US dollar denominated intercompany loan payable with identical terms and notional value as the 2020 Floating-Rate Cross-Currency Swap, together with a reciprocal intercompany floating-rate cross-currency interest rate swap. The agreements were entered into by Woodward Barbados Euro Financing SRL (“Euro Barbados”), a wholly owned subsidiary of Woodward. The US dollar denominated intercompany loan and reciprocal intercompany floating-rate cross-currency interest rate swap are designated as a fair value hedge under the criteria prescribed in ASC 815. The objective of the derivative instrument is to hedge against the foreign currency exchange risk attributable to the spot remeasurement of the US dollar denominated intercompany loan, as Euro Barbados maintains a Euro functional currency.

For each floating-rate intercompany cross-currency interest rate swap, only the change in the fair value related to the cross-currency basis spread, or excluded component, of the derivative instrument is recognized in accumulated other comprehensive income (“OCI”). The remaining change in the fair value of the derivative instrument is recognized in foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. The change in the fair value of the derivative instrument in foreign currency transaction gain or loss offsets the change in the spot remeasurement of the intercompany Euro and US dollar denominated loans. Hedge effectiveness is assessed based on the fair value changes of the derivative instrument, after excluding any fair value changes related to the cross-currency basis spread. The initial cost of the cross-currency basis spread is recorded in earnings each period through the swap accrual process. There are no credit-risk-related contingent features associated with the intercompany floating-rate cross-currency interest rate swap.

Derivative instruments in cash flow hedging relationships

In May 2020, Woodward entered into five US dollar intercompany loans payable, with identical terms and notional values of each tranche of the 2020 Fixed-Rate Cross-Currency Swaps, together with reciprocal fixed-rate intercompany cross-currency interest rate swaps. The agreements were entered into by Euro Barbados and are designated as cash flow hedges under the criteria prescribed in ASC 815. The objective of these derivative instruments is to hedge the risk of variability in cash flows attributable to the foreign currency exchange risk of cash flows for future principal and interest payments associated with the US dollar denominated intercompany loans over a thirteen-year period, as Euro Barbados maintains a Euro functional currency.

For each of the fixed-rate intercompany cross-currency interest rate swaps, changes in the fair values of the derivative instruments are recognized in accumulated OCI and reclassified to foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. Reclassifications out of accumulated OCI of the change in fair value occur each reporting period based upon changes in the spot rate remeasurement of the Euro and US dollar denominated intercompany loans, including associated interest. Hedge effectiveness is assessed based on the fair value changes of the derivative instruments and such hedges are deemed to be highly effective in offsetting exposure to variability in foreign exchange rates. There are no credit-risk-related contingent features associated with these fixed-rate cross-currency interest rate swaps.

Derivatives instruments in net investment hedging relationships

On September 23, 2016, Woodward and Woodward International Holding B.V., a wholly owned subsidiary of Woodward organized under the laws of The Netherlands (the “BV Subsidiary”), each entered into a note purchase agreement (the “2016 Note Purchase Agreement”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of €160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 aggregate principal amount of Woodward’s Series M Senior Notes due September 23, 2026 (the “Series M Notes”). Woodward designated the Series M Notes as a hedge of a foreign currency exposure of Woodward’s net investment in its Euro denominated functional currency subsidiaries. Related to the Series M Notes, included in foreign currency translation adjustments within total comprehensive (losses) earnings are net foreign exchange losses of $1,866 for the three months ended December 31, 2023, compared to $3,625 for the three months ended December 31, 2022.

Impact of derivative instruments designated as qualifying hedging instruments

The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	901
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		17,899		37,285
		$	17,899	$	38,186

The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	896
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		18,510		31,692
		$	18,510	$	32,588

The following table discloses the amount of (gain) loss reclassified from accumulated OCI into earnings on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	901
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		17,899		37,285
		$	17,899	$	38,186

The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated OCI, were net losses of $10,312 as of December 31, 2023 and $9,701 as of September 30, 2023.

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Supplemental Statement of Cash Flows Information

3 Months Ended

Dec. 31, 2023

Supplemental Cash Flow Information [Abstract]

Supplemental Statement of Cash Flows Information

Note 9. Supplemental statement of cash flows information

	Three Months Ended December 31,
	2023		2022
Interest paid, net of amounts capitalized	$	13,411	$	12,334
Income taxes paid		13,032		3,725
Income tax refunds received		2,440		322
Non-cash activities:
Purchases of property, plant and equipment on account		3,121		5,821

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Inventories

3 Months Ended

Dec. 31, 2023

Inventory, Net [Abstract]

Inventories

Note 10. Inventories

	December 31, 2023			September 30, 2023
Raw materials	$	154,663		$	133,699
Work in progress		133,977			127,438
Component parts(1)		343,444			327,522
Finished goods		88,614			74,594
Customer supplied inventory		14,357			14,543
On-hand inventory for which control has transferred to the customer		(175,382	)		(159,953	)
	$	559,673		$	517,843

(1)Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.

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Property, Plant, and Equipment

3 Months Ended

Dec. 31, 2023

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment

Note 11. Property, plant, and equipment

	December 31, 2023			September 30, 2023
Land and land improvements	$	90,073		$	89,352
Buildings and building improvements		591,776			589,735
Leasehold improvements		21,707			21,079
Machinery and production equipment		817,319			807,244
Computer equipment and software		121,329			120,290
Office furniture and equipment		42,931			41,943
Other		38,354			20,073
Construction in progress		66,357			55,487
		1,789,846			1,745,203
Less accumulated depreciation		(858,593	)		(832,109	)
Property, plant, and equipment, net	$	931,253		$	913,094

Woodward had depreciation expense as follows:

	Three Months Ended December 31,
	2023		2022
Depreciation expense	$	20,226	$	20,126

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Goodwill

3 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Note 12. Goodwill

	September 30, 2023		Effects of Foreign Currency Translation		December 31, 2023
Aerospace	$	455,423	$	—	$	455,423
Industrial		336,045		12,019		348,064
Consolidated	$	791,468	$	12,019	$	803,487

Woodward tests goodwill for impairment during the fourth quarter of each fiscal year and at any time there is an indication that goodwill is more-likely-than-not impaired (commonly referred to as a triggering event). Woodward’s goodwill impairment test in the fourth quarter of fiscal year 2023 resulted in no impairment.

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Intangible Assets, Net

3 Months Ended

Dec. 31, 2023

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets, Net

Note 13. Intangible assets, net

	December 31, 2023							September 30, 2023
	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Intangible assets with finite lives:
Customer relationships and contracts:
Aerospace	$	281,683	$	(238,825	)	$	42,858	$	281,683	$	(236,143	)	$	45,540
Industrial		394,516		(98,353	)		296,163		378,804		(90,084	)		288,720
Total	$	676,199	$	(337,178	)	$	339,021	$	660,487	$	(326,227	)	$	334,260
Intellectual property:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		3,139		(3,139	)		—		3,139		(3,139	)		—
Total	$	3,139	$	(3,139	)	$	—	$	3,139	$	(3,139	)	$	—
Process technology:
Aerospace	$	44,570	$	(39,788	)	$	4,782	$	44,570	$	(39,551	)	$	5,019
Industrial		86,436		(33,261	)		53,175		83,456		(31,709	)		51,747
Total	$	131,006	$	(73,049	)	$	57,957	$	128,026	$	(71,260	)	$	56,766
Other intangibles:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		574		(574	)		—		554		(524	)		30
Total	$	574	$	(574	)	$	—	$	554	$	(524	)	$	30
Intangible asset with indefinite life:
Trade name:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		64,008		—			64,008		61,307		—			61,307
Total	$	64,008	$	—		$	64,008	$	61,307	$	—		$	61,307
Total intangibles:
Aerospace	$	326,253	$	(278,613	)	$	47,640	$	326,253	$	(275,694	)	$	50,559
Industrial		548,673		(135,327	)		413,346		527,260		(125,456	)		401,804
Consolidated Total	$	874,926	$	(413,940	)	$	460,986	$	853,513	$	(401,150	)	$	452,363

Woodward tests the indefinite lived trade name intangible asset for impairment during the fourth quarter of each fiscal year and at any time there is an indication the indefinite lived trade name intangible asset is more-likely-than-not impaired (commonly referred to as a triggering event). Woodward’s impairment test for the indefinite lived trade name intangible asset in the fourth quarter of fiscal year 2023 resulted in no impairment.

Woodward recorded amortization expense associated with intangibles of the following:

	Three Months Ended December 31,
	2023		2022
Amortization expense	$	8,599	$	9,178

Future amortization expense associated with intangibles is expected to be:

Year Ending September 30:
2024 (remaining)	$	24,862
2025		28,195
2026		28,185
2027		28,137
2028		27,536
Thereafter		260,063
	$	396,978

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Credit Facilities, Short-term Borrowings and Long-term Debt

3 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Credit Facilities, Short-term Borrowings and Long-term Debt

Note 14. Credit facilities, short-term borrowings and long-term debt

Revolving credit facility

Woodward maintains a $1,000,000 revolving credit facility established under a revolving credit agreement among Woodward, a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent, which provides for the option to increase available borrowings up to $1,500,000, subject to lenders’ participation (as amended in October

2022, the “Second Amended and Restated Revolving Credit Agreement”). Borrowings under the Second Amended and Restated Revolving Credit Agreement can be made by Woodward and certain of its foreign subsidiaries in U.S. dollars or in foreign currencies other than the U.S. dollar and generally bear interest at the Euro Interbank Offered Rate (“Euribor”), Sterling Overnight Index Average (“SONIA”), Tokyo Interbank Offered Rate (“TIBOR”), and Secured Overnight Financing Rate (“SOFR”) base rates plus 0.875% to 1.75%. The Revolving Credit Agreement matures on October 21, 2027.

Under the Second Amended and Restated Revolving Credit Agreement, there were $65,100 in principal amount of borrowings outstanding as of December 31, 2023 at an effective interest rate of 6.46% as compared to no borrowings outstanding as of September 30, 2023. All of the borrowings outstanding were classified as short-term borrowings based on Woodward's intent and ability to pay this amount in the next twelve months.

Short-term borrowings

Woodward has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. There were no borrowings outstanding on Woodward’s foreign lines of credit and foreign overdraft facilities as of December 31, 2023 and September 30, 2023.

The Notes

On November 15, 2023, Woodward paid the entire principal balance of $75,000 on the Series H and K Notes using proceeds from borrowings under its existing revolving credit facility.

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Accrued Liabilities

3 Months Ended

Dec. 31, 2023

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

Note 15. Accrued liabilities

	December 31, 2023		September 30, 2023
Salaries and other member benefits	$	89,797	$	146,713
Product warranties and related liabilities		21,802		18,162
Interest payable		4,105		13,611
Accrued retirement benefits		2,869		2,822
Net current contract liabilities		37,122		33,748
Taxes, other than income		22,842		13,436
Other		33,120		34,124
	$	211,657	$	262,616

Product warranties and related liabilities

Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues and related liabilities for which are probable to result in future costs. Warranty costs are accrued as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists.

Changes in accrued product warranties and related liabilities were as follows:

	Three Months Ended December 31,
	2023			2022
Beginning of period	$	18,162		$	40,042
Additions, net of recoveries		5,306			17,010
Reductions for settlement		(1,827	)		(7,702	)
Foreign currency exchange rate changes		161			176
End of period	$	21,802		$	49,526

Restructuring charges

In fiscal year 2022, the Company determined to implement a streamlined Aerospace and Industrial organizational and leadership structure designed to enhance the sales experience for customers, simplify operations, and increase profitability through improved execution. In connection with leadership changes arising from such reorganization, we recorded $1,083 of restructuring charges as nonsegment expenses, which were paid as of December 31, 2022.

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Other Liabilities

3 Months Ended

Dec. 31, 2023

Other Liabilities, Noncurrent [Abstract]

Other Liabilities

Note 16. Other liabilities

	December 31, 2023		September 30, 2023
Net accrued retirement benefits, less amounts recognized within accrued liabilities	$	78,117	$	72,570
Total unrecognized tax benefits		8,618		8,020
Noncurrent income taxes payable		10,714		10,714
Deferred economic incentives (1)		5,479		5,797
Noncurrent operating lease liabilities		20,250		20,685
Net noncurrent contract liabilities		419,939		414,657
Cross-currency swap derivative liability		12,362		—
Other		10,403		11,047
	$	565,882	$	543,490

(1)Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.

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Other (Income) Expense, Net

3 Months Ended

Dec. 31, 2023

Nonoperating Income (Expense) [Abstract]

Other (Income) Expense, Net

Note 17. Other (income) expense, net

	Three Months Ended December 31,
	2023			2022
Equity interest in the earnings of the JV	$	(10,155	)	$	(4,573	)
Rent income		(82	)		(88	)
Net gain on investments in deferred compensation program		(2,609	)		(1,191	)
Gain on non-recurring matter related to a previous acquisition		(4,803	)		—
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense		(2,919	)		(2,485	)
Other		(71	)		(53	)
	$	(20,639	)	$	(8,390	)

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Income Taxes

3 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 18. Income taxes

The determination of the estimated annual effective tax rate is based upon a number of significant estimates and judgments. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, issuance of future guidance, interpretation, and rule-making, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes:

	Three Months Ended December 31,
	2023			2022
Earnings before income taxes	$	109,720		$	31,749
Income tax expense		19,676			2,143
Effective tax rate		17.9	%		6.7	%

The increase in the effective tax rate for the three months ended December 31, 2023 compared to the three months ended December 31, 2022 is primarily attributable to the release of uncertain tax positions in the prior year and projected future withholding taxes on unremitted earnings. This increase was offset by a larger stock-based compensation tax benefit in the current quarter.

Gross unrecognized tax benefits were $11,858 as of December 31, 2023, and $11,112 as of September 30, 2023. At December 31, 2023, the amount of the liability for unrecognized tax benefits that, if recognized, would impact Woodward’s effective tax rate was $7,588. At this time, Woodward believes it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $2,178 in the next twelve months due to the completion of review by tax authorities, lapses of statutes, and the settlement of tax positions. Woodward’s tax expense includes accruals for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments.

Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes

of limitation may result in changes to tax expense. Generally, Woodward’s fiscal years remaining open to examination for U.S. Federal income taxes include fiscal years 2020 and thereafter. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2019 and thereafter. Woodward’s fiscal years remaining open to examination in significant foreign jurisdictions include 2018 and thereafter.

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Retirement Benefits

3 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Retirement Benefits

Note 19. Retirement benefits

Woodward provides various retirement benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits, and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location.

Defined contribution plans

Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain non-U.S. employees are also eligible to participate in similar non-U.S. plans.

The amount of expense associated with defined contribution plans was as follows:

	Three Months Ended December 31,
	2023		2022
Company costs	$	11,175	$	10,102

Defined benefit plans

Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Germany. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees, their covered dependents, and beneficiaries in the United States. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans.

U.S. GAAP requires that, for obligations outstanding as of September 30, 2023, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments.

The components of the net periodic retirement pension costs recognized are as follows:

	Three Months Ended December 31,
	United States						Other Countries						Total
	2023			2022			2023			2022			2023			2022
Service cost	$	194		$	223		$	309		$	320		$	503		$	543
Interest cost		1,899			1,824			793			750			2,692			2,574
Expected return on plan assets		(2,271	)		(2,074	)		(592	)		(551	)		(2,863	)		(2,625	)
Amortization of:
Net actuarial loss (gain)		57			73			(168	)		(148	)		(111	)		(75	)
Prior service cost		174			174			6			5			180			179
Net periodic retirement pension cost	$	53		$	220		$	348		$	376		$	401		$	596
Contributions paid	$	—		$	—		$	593		$	562		$	593		$	562

The components of net periodic retirement pension costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings.

The components of the net periodic other postretirement benefit costs recognized are as follows:

	Three Months Ended December 31,
	2023			2022
Interest cost	$	226		$	226
Amortization of:
Net actuarial gain		(139	)		(124	)
Net periodic other postretirement cost	$	87		$	102
Contributions paid	$	412		$	441

The components of net periodic other postretirement benefit costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings.

The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2024 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2024 will be as follows:

Retirement pension benefits:
United States	$	—
United Kingdom		861
Japan		—
Germany		932
Other postretirement benefits		2,264

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Stockholders' Equity

3 Months Ended

Dec. 31, 2023

Equity [Abstract]

Stockholders' Equity

Note 20. Stockholders’ equity

Common stock and treasury stock

A summary of common stock and treasury stock share activity is as follows:

	Common Stock		Treasury Stock			Treasury stock held for deferred compensation
Balances as of September 30, 2022		72,960		(13,207	)		(139	)
Sales of treasury stock		—		19			—
Purchase of treasury stock		—		(274	)		—
Common shares issued for benefit plans		—		2			—
Purchases of stock by deferred compensation		—		—			(1	)
Distribution of stock from deferred compensation		—		—			18
Balances as of December 31, 2022		72,960		(13,460	)		(122	)
Balances as of September 30, 2023		72,960		(13,070	)		(55	)
Sales of treasury stock		—		247			—
Purchases of stock by deferred compensation		—		—			(1	)
Distribution of stock from deferred compensation		—		—			2
Balances as of December 31, 2023		72,960		(12,823	)		(54	)

Stock repurchase program

In January 2022, the Woodward board of directors (the "Board") authorized a program for the repurchase of up to $800,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a two-year period ending in January 2024 (the “2022 Authorization”). During the first three months of fiscal year 2024, Woodward repurchased no shares of its common stock under the 2022 Authorization, whereas during the first three months of fiscal year 2023, Woodward repurchased 274 shares of its common stock for $26,369.

In January 2024, the Board terminated the 2022 Authorization, which was nearing expiration, and concurrently authorized a new program for the repurchase of up to $600,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in January 2027 (the “2024 Authorization”).

Stock-based compensation

Provisions governing outstanding stock option awards, restricted stock units ("RSUs"), and performance restricted stock units ("PSUs") are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”) and, with respect to outstanding stock options awarded in or prior to 2016, the 2006 Omnibus Incentive Plan (the “2006 Plan”).

The 2017 Plan was first approved by Woodward’s stockholders in January 2017 and is the successor plan to the 2006 Plan. The Board has delegated authority to administer the 2017 Plan to the Compensation Committee of the Board, including, but not limited to, the power to determine the recipients of awards and the terms of those awards. On January 25, 2023, Woodward’s stockholders approved an additional 500 shares of Woodward’s common stock to be made available for future grants. Under the 2017 Plan, there were approximately 2,661 shares of Woodward’s common stock available for future grants as of December 31, 2023 and 2,689 shares as of September 30, 2023.

Stock options

Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date the grants are awarded, a ten-year term, and generally have a four-year vesting schedule at a rate of 25% per year.

The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant.

The following is a summary of the activity for stock option awards:

	Three Months Ended December 31, 2023
	Number of options			Weighted-Average Exercise Price per Share
Beginning balance		4,842		$	80.48
Granted		6			131.66
Exercised		(235	)		71.74
Forfeited		(2	)		92.74
Ending balance		4,611		$	80.99

Changes in non-vested stock options were as follows:

	Three Months Ended December 31, 2023
	Number of options			Weighted-Average Grant Date Fair Value per Share
Beginning balance		1,393		$	33.96
Granted		6			61.03
Exercised		(572	)		32.37
Forfeited		(1	)		34.42
Ending balance		826		$	35.26

Information about stock options that have vested, or are expected to vest, and are exercisable at December 31, 2023 was as follows:

	Number of options		Weighted-Average Exercise Price		Weighted-Average Remaining Life in Years		Aggregate Intrinsic Value
Options outstanding		4,611	$	80.99		5.4	$	254,265
Options vested and exercisable		3,753		77.96		4.8		218,292
Options vested and expected to vest		4,577		80.90		5.4		252,769

Restricted stock units

For purposes of annual grants and promotional awards, the Company grants RSUs to eligible employees under its form RSU agreement (the “Standard Form RSU Agreement”). The Company has also granted RSUs to certain employees under its form attraction and retention RSU agreement (the “Form Attraction and Retention RSU Agreement”), which has from time to time been used for new hires and specific retention purposes. RSUs granted under the Form Attraction and Retention

Agreement are generally scheduled to fully vest on the third or fourth anniversary of the respective grant dates, and in each case, subject to continued employment. RSUs granted prior to November 14, 2023, under the Standard Form RSU Agreement generally have a four-year vesting schedule at a rate of 25% per year, and RSUs to be granted thereafter under such agreement are generally expected to have a three-year vesting schedule at a rate of 33.3% per year, in each case generally subject to continued employment.

A summary of the activity for RSUs:

	Three Months Ended December 31, 2023
	Number of units			Weighted-Average Grant Date Fair Value
Beginning balance		177		$	93.46
Granted		12			131.66
Released		(19	)		85.91
Ending balance		170		$	96.95

Performance restricted stock units

In November 2023, the Company granted PSUs to certain employees under its form PSU agreement that generally will vest subject to a market condition and a service condition through the performance period. The market condition associated with the awards is based on the Company's relative total shareholder return ("TSR") compared to the TSR generated by the other companies that comprise the S&P 400 Midcap Index over a three-year performance period. Performance at target will result in vesting and issuance of the number of PSUs granted, equal to 100% payout. Performance below or above target can result in an issuance of between 0% - 150% of the target number of PSUs granted. Expense is recognized based on the weighted average grant date fair value on a straight line basis over the service period, irrespective as to whether the market condition is achieved.

The fair value of the PSUs for the November 2023 grant was determined based upon a Monte Carlo valuation method. The assumptions used in the Monte Carlo method to value the PSUs granted, which includes the grant date fair value outcome from the Monte Carlo method, were as follows:

	December 31, 2023
Expected volatility		30.2	%
Risk free interest rate		4.5	%
Expected life	3 years
Grant date fair value	$	146.47

The PSUs granted receive dividend equivalent units; therefore, no discount was applied for Woodward’s dividends.

A summary of the activity for PSUs:

	Three Months Ended December 31, 2023
	Number of units		Weighted-Average Grant Date Fair Value
Beginning balance		—	$	—
Granted		66		146.47
Forfeited		—		—
Ending balance		66	$	146.47

Stock-based compensation expense

Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option agreements, form RSU agreements, and form PSU agreements used by the Company, with terms approved by the administrator of the applicable plan, the requisite service period can be less than the vesting period defined in the award agreement based on grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some stock option grants, RSU grants, and PSU grants can be accelerated to a period of less than the vesting period, including immediate recognition of stock-based compensation expense on the date of grant.

At December 31, 2023, there was approximately $27,881 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including stock options, RSUs, and PSUs. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0.0% for members of the

Board and 7.3% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.6 years.

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Commitments and Contingencies

3 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 21. Commitments and contingencies

Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims, and alleged violations of various laws and regulations. Woodward accrues for known individual matters using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable. Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Earnings.

Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of related claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities.

While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings, and investigations will not have a material effect on Woodward’s liquidity, financial condition, or results of operations.

Under the Company’s severance and change in control agreements with its current corporate officers, Woodward would be required to pay termination benefits to any such officer if such officer’s employment is terminated without Cause (as defined therein). The amount of such benefits would vary depending on whether such termination occurs during a specified period within a change of control.

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Segment Information

3 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 22. Segment information

Woodward serves the aerospace and industrial markets through its two reportable segments – Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments.

The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. 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 non-recurring and/or non-operationally related expenses.

A summary of consolidated net sales and earnings by segment follows:

	Three Months Ended December 31,
	2023			2022
Segment external net sales:
Aerospace	$	460,756		$	395,685
Industrial		325,974			222,934
Total consolidated net sales	$	786,730		$	618,619
Segment earnings:
Aerospace	$	79,002		$	55,434
Industrial		66,881			11,402
Nonsegment expenses		(26,200	)		(24,311	)
Interest expense, net		(9,963	)		(10,776	)
Consolidated earnings before income taxes	$	109,720		$	31,749

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

	December 31, 2023		September 30, 2023
Segment assets:
Aerospace	$	1,838,875	$	1,829,410
Industrial		1,574,497		1,490,341
Unallocated corporate property, plant, and equipment, net		122,740		104,962
Other unallocated assets		594,693		585,490
Consolidated total assets	$	4,130,805	$	4,010,203

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Subsequent Events

3 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 23. Subsequent events

On January 24, 2024, the Board approved a cash dividend of $0.25 per share for the quarter, payable on March 5, 2024, for stockholders of record as of February 20, 2024.

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Revenue (Tables)

3 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue Recognition Time

The amount of revenue recognized as point in time or over time follows:

	Three Months Ended December 31, 2023						Three Months Ended December 31, 2022
	Aerospace		Industrial		Consolidated		Aerospace		Industrial		Consolidated
Point in time	$	188,503	$	186,630	$	375,133	$	169,840	$	139,839	$	309,679
Over time		272,253		139,344		411,597		225,845		83,095		308,940
Total net sales	$	460,756	$	325,974	$	786,730	$	395,685	$	222,934	$	618,619

Schedule of Accounts Receivable

Accounts receivable consisted of the following:

	December 31, 2023			September 30, 2023
Billed receivables
Trade accounts receivable	$	426,598		$	434,287
Other (Chinese financial institutions)		57,098			50,940
Total billed receivables		483,696			485,227
Current unbilled receivables (contract assets)		300,146			270,479
Total accounts receivable		783,842			755,706
Less: Allowance for uncollectible amounts		(5,777	)		(5,847	)
Total accounts receivable, net	$	778,065		$	749,859

Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables

The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:

	Three Months Ended December 31,
	2023			2022
Balance, beginning	$	5,847		$	3,922
Changes in estimates		298			344
Write-offs		(459	)		(83	)
Other1		91			20
Balance, ending	$	5,777		$	4,203

(1)Includes effects of foreign exchange rate changes during the period.

Schedule of Contract Liability

Contract liabilities consisted of the following:

	December 31, 2023				September 30, 2023
	Current		Noncurrent		Current		Noncurrent
Deferred revenue from material rights from GE joint venture formation	$	6,255	$	232,553	$	6,147	$	233,997
Deferred revenue from advanced invoicing and/or prepayments from customers		9,638		4,196		6,868		2,196
Liability related to customer supplied inventory		14,357		—		14,543		—
Deferred revenue from material rights related to engineering and development funding		6,872		183,190		6,190		178,464
Net contract liabilities	$	37,122	$	419,939	$	33,748	$	414,657

Schedule of Disaggregation of Revenue

Revenue by primary market for the Aerospace reportable segment was as follows:

	Three Months Ended December 31,
	2023		2022
Commercial OEM	$	171,354	$	138,875
Commercial aftermarket		137,544		126,643
Defense OEM		93,425		89,762
Defense aftermarket		58,433		40,405
Total Aerospace segment net sales	$	460,756	$	395,685

Revenue by primary market for the Industrial reportable segment was as follows:

	Three Months Ended December 31,
	2023		2022
Power generation	$	98,106	$	81,577
Transportation		174,469		88,915
Oil and gas		53,399		52,442
Total Industrial segment net sales	$	325,974	$	222,934

The customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows:

	Three Months Ended December 31, 2023	Three Months Ended December 31, 2022
Aerospace	General Electric Company, RTX Corporation, The Boeing Company	RTX Corporation, General Electric Company, The Boeing Company
Industrial	Weichai Westport, Rolls-Royce PLC, Caterpillar, Inc.	Rolls-Royce PLC, Caterpillar, Inc., Wartsila, General Electric Company

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Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:

	Three Months Ended December 31,
	2023		2022
Numerator:
Net earnings	$	90,044	$	29,606
Denominator:
Basic shares outstanding		60,021		59,667
Dilutive effect of stock options and restricted stock		1,825		1,261
Diluted shares outstanding		61,846		60,928
Income per common share:
Basic earnings per share	$	1.50	$	0.50
Diluted earnings per share	$	1.46	$	0.49

Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share

The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

	Three Months Ended December 31,
	2023		2022
Options		39		1,598
Weighted-average option price	$	114.53	$	101.18

Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:

	Three Months Ended December 31,
	2023		2022
Weighted-average treasury stock shares held for deferred compensation obligations		55		131

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Leases (Tables)

3 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease-Related Assets and Liabilities

Lease-related assets and liabilities were as follows:

	Classification on the Condensed Consolidated Balance Sheets	December 31, 2023		September 30, 2023
Assets:
Operating lease	Other assets	$	24,280	$	24,680
Finance lease	Property, plant, and equipment, net		3,089		3,337
Total lease assets			27,369		28,017
Current liabilities:
Operating lease	Accrued liabilities		4,657		4,594
Finance lease	Current portion of long-term debt		745		817
Noncurrent liabilities:
Operating lease	Other liabilities		20,250		20,685
Finance lease	Long-term debt, less current portion		2,559		2,733
Total lease liabilities		$	28,211	$	28,829

Lease-Related Expenses

Lease-related expenses were as follows:

	Three Months Ended December 31,
	2023		2022
Operating lease expense	$	1,632	$	1,487
Amortization of finance lease assets		248		256
Interest on finance lease liabilities		41		34
Variable lease expense		228		210
Short-term lease expense		38		57
Total lease expense	$	2,187	$	2,044

Lease-Related Supplemental Cash Flow Information

Lease-related supplemental cash flow information was as follows:

	Three Months Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,316	$	1,360
Operating cash flows for finance leases		41		34
Financing cash flows for finance leases		249		99
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		477		411
Finance leases		—		27

Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements

The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” on the Condensed Consolidated Balance Sheets, follows:

	December 31, 2023			September 30, 2023
Property, plant, and equipment	$	46,835		$	45,766
Less accumulated depreciation		(29,472	)		(28,128	)
Property, plant, and equipment, net	$	17,363		$	17,638

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Joint Venture (Tables)

3 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Unamortized Deferred Revenue from JV

Unamortized deferred revenue from material rights in connection with the JV formation included:

	December 31, 2023		September 30, 2023
Accrued liabilities	$	6,255	$	6,147
Other liabilities		232,553		233,997

Other Income Related JV

Other income related to Woodward’s equity interest in the earnings of the JV was as follows:

	Three Months Ended December 31,
	2023		2022
Other income	$	10,155	$	4,573

Cash Distribution from JV

Cash distributions to Woodward from the JV, recognized in “Other, net” in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows:

	Three Months Ended December 31,
	2023		2022
Cash distributions	$	6,500	$	4,500

Net Sales to the JV

Net sales to the JV were as follows:

	Three Months Ended December 31,
	2023		2022
Net sales1	$	20,272	$	6,477

(1)Net sales included a reduction of $14,539 for the three months ended December 31, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $7,570 for the three months ended December 31, 2022.

Accounts Receivable, Accounts Payable, and Other Assets Related to JV

The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:

	December 31, 2023		September 30, 2023
Accounts receivable	$	3,978	$	3,666
Accounts payable		8,025		6,276
Other assets		19,683		16,028

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Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value as defined by the U.S. GAAP fair value hierarchy.

	At December 31, 2023								At September 30, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets:
Investments in banks and financial institutions	$	45,257	$	—	$	—	$	45,257	$	28,560	$	—	$	—	$	28,560
Equity securities		28,969		—		—		28,969		24,913		—		—		24,913
Cross-currency interest rate swaps		—		—		—		—		—		5,389		—		5,389
Total financial assets	$	74,226	$	—	$	—	$	74,226	$	53,473	$	5,389	$	—	$	58,862
Financial liabilities:
Cross-currency interest rate swaps	$	—	$	12,362	$	—	$	12,362	$	—	$	—	$	—	$	—
Total financial liabilities	$	—	$	12,362	$	—	$	12,362	$	—	$	—	$	—	$	—

Estimated Fair Values of Financial Instruments

The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows:

		At December 31, 2023				At September 30, 2023
	Fair Value Hierarchy Level	Estimated Fair Value		Carrying Cost		Estimated Fair Value		Carrying Cost
Assets:
Notes receivable from municipalities	2	$	7,861	$	7,333	$	7,794	$	7,688
Investments in short-term time deposits	2		6,099		6,101		6,095		6,107
Liabilities:
Long-term debt	2		619,230		654,876		661,507		722,671

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedges, Assets [Abstract]

Impact of Derivative Instruments on Earnings

The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	901
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		17,899		37,285
		$	17,899	$	38,186

The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	896
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		18,510		31,692
		$	18,510	$	32,588

The following table discloses the amount of (gain) loss reclassified from accumulated OCI into earnings on derivative instruments designated as qualifying hedging instruments:

		Three months ended December 31,
Derivatives in:	Location	2023		2022
Cross-currency interest rate swap agreement designated as fair value hedges	Selling, general and administrative expenses	$	—	$	901
Cross-currency interest rate swap agreements designated as cash flow hedges	Selling, general and administrative expenses		17,899		37,285
		$	17,899	$	38,186

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Supplemental Statement of Cash Flows Information (Tables)

3 Months Ended

Dec. 31, 2023

Supplemental Cash Flow Information [Abstract]

Schedule of Supplemental Statement of Cash Flows Information

	Three Months Ended December 31,
	2023		2022
Interest paid, net of amounts capitalized	$	13,411	$	12,334
Income taxes paid		13,032		3,725
Income tax refunds received		2,440		322
Non-cash activities:
Purchases of property, plant and equipment on account		3,121		5,821

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Inventories (Tables)

3 Months Ended

Dec. 31, 2023

Inventory, Net [Abstract]

Schedule of Inventories

	December 31, 2023			September 30, 2023
Raw materials	$	154,663		$	133,699
Work in progress		133,977			127,438
Component parts(1)		343,444			327,522
Finished goods		88,614			74,594
Customer supplied inventory		14,357			14,543
On-hand inventory for which control has transferred to the customer		(175,382	)		(159,953	)
	$	559,673		$	517,843

(1)Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.

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Property, Plant, and Equipment (Tables)

3 Months Ended

Dec. 31, 2023

Property, Plant and Equipment, Net [Abstract]

Schedule of Property Plant and Equipment, Net

	December 31, 2023			September 30, 2023
Land and land improvements	$	90,073		$	89,352
Buildings and building improvements		591,776			589,735
Leasehold improvements		21,707			21,079
Machinery and production equipment		817,319			807,244
Computer equipment and software		121,329			120,290
Office furniture and equipment		42,931			41,943
Other		38,354			20,073
Construction in progress		66,357			55,487
		1,789,846			1,745,203
Less accumulated depreciation		(858,593	)		(832,109	)
Property, plant, and equipment, net	$	931,253		$	913,094

Schedule of Depreciation Expense

Woodward had depreciation expense as follows:

	Three Months Ended December 31,
	2023		2022
Depreciation expense	$	20,226	$	20,126

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Goodwill (Tables)

3 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

	September 30, 2023		Effects of Foreign Currency Translation		December 31, 2023
Aerospace	$	455,423	$	—	$	455,423
Industrial		336,045		12,019		348,064
Consolidated	$	791,468	$	12,019	$	803,487

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Intangible Assets, Net (Tables)

3 Months Ended

Dec. 31, 2023

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class

	December 31, 2023							September 30, 2023
	Gross Carrying Value		Accumulated Amortization			Net Carrying Amount		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Intangible assets with finite lives:
Customer relationships and contracts:
Aerospace	$	281,683	$	(238,825	)	$	42,858	$	281,683	$	(236,143	)	$	45,540
Industrial		394,516		(98,353	)		296,163		378,804		(90,084	)		288,720
Total	$	676,199	$	(337,178	)	$	339,021	$	660,487	$	(326,227	)	$	334,260
Intellectual property:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		3,139		(3,139	)		—		3,139		(3,139	)		—
Total	$	3,139	$	(3,139	)	$	—	$	3,139	$	(3,139	)	$	—
Process technology:
Aerospace	$	44,570	$	(39,788	)	$	4,782	$	44,570	$	(39,551	)	$	5,019
Industrial		86,436		(33,261	)		53,175		83,456		(31,709	)		51,747
Total	$	131,006	$	(73,049	)	$	57,957	$	128,026	$	(71,260	)	$	56,766
Other intangibles:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		574		(574	)		—		554		(524	)		30
Total	$	574	$	(574	)	$	—	$	554	$	(524	)	$	30
Intangible asset with indefinite life:
Trade name:
Aerospace	$	—	$	—		$	—	$	—	$	—		$	—
Industrial		64,008		—			64,008		61,307		—			61,307
Total	$	64,008	$	—		$	64,008	$	61,307	$	—		$	61,307
Total intangibles:
Aerospace	$	326,253	$	(278,613	)	$	47,640	$	326,253	$	(275,694	)	$	50,559
Industrial		548,673		(135,327	)		413,346		527,260		(125,456	)		401,804
Consolidated Total	$	874,926	$	(413,940	)	$	460,986	$	853,513	$	(401,150	)	$	452,363

Schedule of Finite-Lived Intangible Assets Amortization Expense

Woodward recorded amortization expense associated with intangibles of the following:

	Three Months Ended December 31,
	2023		2022
Amortization expense	$	8,599	$	9,178

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Future amortization expense associated with intangibles is expected to be:

Year Ending September 30:
2024 (remaining)	$	24,862
2025		28,195
2026		28,185
2027		28,137
2028		27,536
Thereafter		260,063
	$	396,978

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Accrued Liabilities (Tables)

3 Months Ended

Dec. 31, 2023

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

	December 31, 2023		September 30, 2023
Salaries and other member benefits	$	89,797	$	146,713
Product warranties and related liabilities		21,802		18,162
Interest payable		4,105		13,611
Accrued retirement benefits		2,869		2,822
Net current contract liabilities		37,122		33,748
Taxes, other than income		22,842		13,436
Other		33,120		34,124
	$	211,657	$	262,616

Changes in Accrued Product Warranties and Related Liabilities

Changes in accrued product warranties and related liabilities were as follows:

	Three Months Ended December 31,
	2023			2022
Beginning of period	$	18,162		$	40,042
Additions, net of recoveries		5,306			17,010
Reductions for settlement		(1,827	)		(7,702	)
Foreign currency exchange rate changes		161			176
End of period	$	21,802		$	49,526

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Other Liabilities (Tables)

3 Months Ended

Dec. 31, 2023

Other Liabilities, Noncurrent [Abstract]

Schedule of Other Liabilities

	December 31, 2023		September 30, 2023
Net accrued retirement benefits, less amounts recognized within accrued liabilities	$	78,117	$	72,570
Total unrecognized tax benefits		8,618		8,020
Noncurrent income taxes payable		10,714		10,714
Deferred economic incentives (1)		5,479		5,797
Noncurrent operating lease liabilities		20,250		20,685
Net noncurrent contract liabilities		419,939		414,657
Cross-currency swap derivative liability		12,362		—
Other		10,403		11,047
	$	565,882	$	543,490

(1)Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.

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Other (Income) Expense, Net (Tables)

3 Months Ended

Dec. 31, 2023

Nonoperating Income (Expense) [Abstract]

Schedule of Other (Income) Expense, Net

	Three Months Ended December 31,
	2023			2022
Equity interest in the earnings of the JV	$	(10,155	)	$	(4,573	)
Rent income		(82	)		(88	)
Net gain on investments in deferred compensation program		(2,609	)		(1,191	)
Gain on non-recurring matter related to a previous acquisition		(4,803	)		—
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense		(2,919	)		(2,485	)
Other		(71	)		(53	)
	$	(20,639	)	$	(8,390	)

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Income Taxes (Tables)

3 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Tax Expense and Effective Tax Rate

The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes:

	Three Months Ended December 31,
	2023			2022
Earnings before income taxes	$	109,720		$	31,749
Income tax expense		19,676			2,143
Effective tax rate		17.9	%		6.7	%

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Retirement Benefits (Tables)

3 Months Ended

Dec. 31, 2023

Defined Benefit Plan Disclosure [Line Items]

Schedule of Amount of Expense Associated with Defined Contribution Plans

The amount of expense associated with defined contribution plans was as follows:

	Three Months Ended December 31,
	2023		2022
Company costs	$	11,175	$	10,102

Schedule of Estimated Remaining Cash Contributions

Woodward estimates its remaining cash contributions in fiscal year 2024 will be as follows:

Retirement pension benefits:
United States	$	—
United Kingdom		861
Japan		—
Germany		932
Other postretirement benefits		2,264

Defined Benefit Pension Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Periodic Benefit Costs

The components of the net periodic retirement pension costs recognized are as follows:

	Three Months Ended December 31,
	United States						Other Countries						Total
	2023			2022			2023			2022			2023			2022
Service cost	$	194		$	223		$	309		$	320		$	503		$	543
Interest cost		1,899			1,824			793			750			2,692			2,574
Expected return on plan assets		(2,271	)		(2,074	)		(592	)		(551	)		(2,863	)		(2,625	)
Amortization of:
Net actuarial loss (gain)		57			73			(168	)		(148	)		(111	)		(75	)
Prior service cost		174			174			6			5			180			179
Net periodic retirement pension cost	$	53		$	220		$	348		$	376		$	401		$	596
Contributions paid	$	—		$	—		$	593		$	562		$	593		$	562

Other Postretirement Benefit Plans [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Periodic Benefit Costs

The components of the net periodic other postretirement benefit costs recognized are as follows:

	Three Months Ended December 31,
	2023			2022
Interest cost	$	226		$	226
Amortization of:
Net actuarial gain		(139	)		(124	)
Net periodic other postretirement cost	$	87		$	102
Contributions paid	$	412		$	441

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Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2023

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Common Stock and Treasury Stock Share Activity

A summary of common stock and treasury stock share activity is as follows:

	Common Stock		Treasury Stock			Treasury stock held for deferred compensation
Balances as of September 30, 2022		72,960		(13,207	)		(139	)
Sales of treasury stock		—		19			—
Purchase of treasury stock		—		(274	)		—
Common shares issued for benefit plans		—		2			—
Purchases of stock by deferred compensation		—		—			(1	)
Distribution of stock from deferred compensation		—		—			18
Balances as of December 31, 2022		72,960		(13,460	)		(122	)
Balances as of September 30, 2023		72,960		(13,070	)		(55	)
Sales of treasury stock		—		247			—
Purchases of stock by deferred compensation		—		—			(1	)
Distribution of stock from deferred compensation		—		—			2
Balances as of December 31, 2023		72,960		(12,823	)		(54	)

Summary of Activity for RSUs

A summary of the activity for RSUs:

	Three Months Ended December 31, 2023
	Number of units			Weighted-Average Grant Date Fair Value
Beginning balance		177		$	93.46
Granted		12			131.66
Released		(19	)		85.91
Ending balance		170		$	96.95

Stock Options [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Activity for Stock Option Awards

The following is a summary of the activity for stock option awards:

	Three Months Ended December 31, 2023
	Number of options			Weighted-Average Exercise Price per Share
Beginning balance		4,842		$	80.48
Granted		6			131.66
Exercised		(235	)		71.74
Forfeited		(2	)		92.74
Ending balance		4,611		$	80.99

Changes in Non-vested Stock Options

Changes in non-vested stock options were as follows:

	Three Months Ended December 31, 2023
	Number of options			Weighted-Average Grant Date Fair Value per Share
Beginning balance		1,393		$	33.96
Granted		6			61.03
Exercised		(572	)		32.37
Forfeited		(1	)		34.42
Ending balance		826		$	35.26

Stock Options Vested, or Expected to Vest and Exercisable

Information about stock options that have vested, or are expected to vest, and are exercisable at December 31, 2023 was as follows:

	Number of options		Weighted-Average Exercise Price		Weighted-Average Remaining Life in Years		Aggregate Intrinsic Value
Options outstanding		4,611	$	80.99		5.4	$	254,265
Options vested and exercisable		3,753		77.96		4.8		218,292
Options vested and expected to vest		4,577		80.90		5.4		252,769

Performance Restricted Stock Units [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of Assumptions to Value PSUs Granted

The fair value of the PSUs for the November 2023 grant was determined based upon a Monte Carlo valuation method. The assumptions used in the Monte Carlo method to value the PSUs granted, which includes the grant date fair value outcome from the Monte Carlo method, were as follows:

	December 31, 2023
Expected volatility		30.2	%
Risk free interest rate		4.5	%
Expected life	3 years
Grant date fair value	$	146.47

Summary of Activity for PSUs

A summary of the activity for PSUs:

	Three Months Ended December 31, 2023
	Number of units		Weighted-Average Grant Date Fair Value
Beginning balance		—	$	—
Granted		66		146.47
Forfeited		—		—
Ending balance		66	$	146.47

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Segment Information (Tables)

3 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Summary of Consolidated Net Sales and Earnings by Segment

A summary of consolidated net sales and earnings by segment follows:

	Three Months Ended December 31,
	2023			2022
Segment external net sales:
Aerospace	$	460,756		$	395,685
Industrial		325,974			222,934
Total consolidated net sales	$	786,730		$	618,619
Segment earnings:
Aerospace	$	79,002		$	55,434
Industrial		66,881			11,402
Nonsegment expenses		(26,200	)		(24,311	)
Interest expense, net		(9,963	)		(10,776	)
Consolidated earnings before income taxes	$	109,720		$	31,749

Summary of Consolidated Total Assets by Segment

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

	December 31, 2023		September 30, 2023
Segment assets:
Aerospace	$	1,838,875	$	1,829,410
Industrial		1,574,497		1,490,341
Unallocated corporate property, plant, and equipment, net		122,740		104,962
Other unallocated assets		594,693		585,490
Consolidated total assets	$	4,130,805	$	4,010,203

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Revenue (Schedule of Revenue Recognition Time) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation Of Revenue [Line Items]
Net sales	$ 786,730	$ 618,619
Aerospace [Member]
Disaggregation Of Revenue [Line Items]
Net sales	460,756	395,685
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	325,974	222,934
Point In Time [Member]
Disaggregation Of Revenue [Line Items]
Net sales	375,133	309,679
Point In Time [Member] | Aerospace [Member]
Disaggregation Of Revenue [Line Items]
Net sales	188,503	169,840
Point In Time [Member] | Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	186,630	139,839
Over Time [Member]
Disaggregation Of Revenue [Line Items]
Net sales	411,597	308,940
Over Time [Member] | Aerospace [Member]
Disaggregation Of Revenue [Line Items]
Net sales	272,253	225,845
Over Time [Member] | Industrial [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 139,344	$ 83,095

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Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Contract With Customer Asset [Line Items]
Total billed receivables	$ 483,696	$ 485,227
Current unbilled receivables (contract assets)	300,146	270,479
Total accounts receivable	783,842	755,706
Less: Allowance for uncollectible amounts	(5,777)	(5,847)
Total accounts receivable, net	778,065	749,859
Trade Accounts Receivable [Member]
Contract With Customer Asset [Line Items]
Billed receivables	426,598	434,287
Other (Chinese Financial Institutions) [Member]
Contract With Customer Asset [Line Items]
Billed receivables	$ 57,098	$ 50,940

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Revenue (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Noncurrent unbilled receivables	$ 6,945		$ 7,332
Revenue from contract liabilities	$ 13,033	$ 8,885

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Revenue (Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables) (Details) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Balance, beginning		$ 5,847	$ 3,922
Changes in estimates		298	344
Write-offs		(459)	(83)
Other	[1]	91	20
Balance, ending		$ 5,777	$ 4,203

[1] Includes effects of foreign exchange rate changes during the period.

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Revenue (Schedule of Contract Liability) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Contract With Customer Liability [Line Items]
Current contract liabilities	$ 37,122	$ 33,748
Noncurrent contract liabilities	419,939	414,657
Deferred Revenue From Material Rights From GE Joint Venture Formation [Member]
Contract With Customer Liability [Line Items]
Current contract liabilities	6,255	6,147
Noncurrent contract liabilities	232,553	233,997
Deferred Revenue From Advance Invoicing And/Or Prepayments From Customers [Member]
Contract With Customer Liability [Line Items]
Current contract liabilities	9,638	6,868
Noncurrent contract liabilities	4,196	2,196
Liability Related To Customer Supplied Inventory [Member]
Contract With Customer Liability [Line Items]
Current contract liabilities	14,357	14,543
Deferred Revenue From Material Rights Related To Engineering And Development Funding [Member]
Contract With Customer Liability [Line Items]
Current contract liabilities	6,872	6,190
Noncurrent contract liabilities	$ 183,190	$ 178,464

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Revenue (Narrative - Performance Obligations) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Remaining performance obligation amount	$ 2,435,837	$ 2,325,533
Material Rights [Member]
Remaining performance obligation amount	$ 472,957	$ 457,391

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Revenue (Narrative - Performance Obligations) (Details1) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Remaining performance obligation amount	$ 2,435,837	$ 2,325,533
Material Rights [Member]
Remaining performance obligation amount	$ 472,957	$ 457,391
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01
Period of remaining performance obligation, expected timing of satisfaction	9 months
Remaining performance obligation amount	$ 8,865
Remaining performance obligation, expected timing of satisfaction, year	2024
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01
Period of remaining performance obligation, expected timing of satisfaction	1 year
Remaining performance obligation amount	$ 13,291
Remaining performance obligation, expected timing of satisfaction, year	2025
Aerospace [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01
Period of remaining performance obligation, expected timing of satisfaction	2 years
Maximum [Member] | Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01
Period of remaining performance obligation, expected timing of satisfaction	40 years

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Revenue (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation Of Revenue [Line Items]
Total net sales	$ 786,730	$ 618,619
Aerospace [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	460,756	395,685
Aerospace [Member] | Commercial OEM [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	171,354	138,875
Aerospace [Member] | Commercial Aftermarket [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	137,544	126,643
Aerospace [Member] | Defense OEM [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	93,425	89,762
Aerospace [Member] | Defense Aftermarket [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	58,433	40,405
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	325,974	222,934
Industrial [Member] | Power Generation [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	98,106	81,577
Industrial [Member] | Transportation [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	174,469	88,915
Industrial [Member] | Oil and Gas [Member]
Disaggregation Of Revenue [Line Items]
Total net sales	$ 53,399	$ 52,442

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Earnings Per Share (Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net earnings	$ 90,044	$ 29,606
Denominator:
Basic shares outstanding	60,021	59,667
Dilutive effect of stock options and restricted stock	1,825	1,261
Diluted shares outstanding	61,846	60,928
Income per common share:
Basic earnings per share	$ 1.5	$ 0.5
Diluted earnings per share	$ 1.46	$ 0.49

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Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - Stock Options [Member] - $ / shares shares in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Options	39	1,598
Weighted-average option price	$ 114.53	$ 101.18

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Earnings Per Share (Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding) (Details) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Weighted-average treasury stock shares held for deferred compensation obligations	55	131

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Leases (Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Assets:
Operating lease	$ 24,280	$ 24,680
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Finance lease	$ 3,089	$ 3,337
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Total lease assets	$ 27,369	$ 28,017
Current liabilities:
Operating lease	$ 4,657	$ 4,594
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Finance lease	$ 745	$ 817
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Long-Term Debt, Current Maturities	Long-Term Debt, Current Maturities
Noncurrent liabilities:
Operating lease	$ 20,250	$ 20,685
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Finance lease	$ 2,559	$ 2,733
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-Term Debt, Excluding Current Maturities	Long-Term Debt, Excluding Current Maturities
Total lease liabilities	$ 28,211	$ 28,829

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Leases (Lease-Related Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease expense	$ 1,632	$ 1,487
Amortization of finance lease assets	248	256
Interest on finance lease liabilities	41	34
Variable lease expense	228	210
Short-term lease expense	38	57
Total lease expense	$ 2,187	$ 2,044

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Leases (Lease-Related Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases	$ 1,316	$ 1,360
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases	41	34
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases	249	99
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases	$ 477	411
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases		$ 27

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Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Revenue included embedded operating leases	$ 1,364	$ 1,388

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Leases (Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Leases [Abstract]
Property, plant, and equipment	$ 46,835	$ 45,766
Less accumulated depreciation	(29,472)	(28,128)
Property, plant, and equipment, net	$ 17,363	$ 17,638

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Joint Venture (Unamortized Deferred Revenue from JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Schedule Of Equity Method Investments [Line Items]
Accrued liabilities	$ 6,255	$ 6,147
Other liabilities	$ 232,553	$ 233,997

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Joint Venture (Narrative) (Details) - Woodward and General Electric Joint Venture [Member] - Sales [Member] - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Equity Method Investments [Line Items]
Amortization of deferred income recognized as an increase to sales	$ 1,335	$ 831
Reduction to sales related to royalties owed to joint venture	$ 14,539	$ 7,570

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Joint Venture (Other Income Related JV) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Equity Method Investments [Line Items]
Other income	$ 10,155	$ 4,573
Woodward and General Electric Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Other income	$ 10,155	$ 4,573

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Joint Venture (Cash Distribution from JV) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Woodward and General Electric Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Cash distributions	$ 6,500	$ 4,500

XML

Joint Venture (Net Sales to the JV) (Details) - USD ($) $ in Thousands		3 Months Ended
		Dec. 31, 2023	Dec. 31, 2022
Woodward and General Electric Joint Venture [Member] | Related Party [Member]
Schedule Of Equity Method Investments [Line Items]
Net sales	[1]	$ 20,272	$ 6,477

[1] Net sales included a reduction of $14,539 for the three months ended December 31, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $7,570 for the three months ended December 31, 2022.

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Joint Venture (Accounts Receivable, Accounts Payable, and Other Assets Related to JV) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Schedule Of Equity Method Investments [Line Items]
Accounts receivable	$ 483,696	$ 485,227
Accounts payable	253,398	234,328
Woodward and General Electric Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Other assets	19,683	16,028
Woodward and General Electric Joint Venture [Member] | Related Party [Member]
Schedule Of Equity Method Investments [Line Items]
Accounts receivable	3,978	3,666
Accounts payable	$ 8,025	$ 6,276

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Financial Instruments and Fair Value Measurements (Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Financial assets:
Total financial assets	$ 74,226	$ 58,862
Financial liabilities:
Total financial liabilities	12,362
Cross Currency Interest Rate Swaps [Member]
Financial assets:
Cross-currency interest rate swaps		5,389
Financial liabilities:
Cross-currency interest rate swaps	12,362
Level 1 [Member]
Financial assets:
Total financial assets	74,226	53,473
Level 2 [Member]
Financial assets:
Total financial assets		5,389
Financial liabilities:
Total financial liabilities	12,362
Level 2 [Member] | Cross Currency Interest Rate Swaps [Member]
Financial assets:
Cross-currency interest rate swaps		5,389
Financial liabilities:
Cross-currency interest rate swaps	12,362
Investments in Banks and Financial Institutions [Member]
Financial assets:
Investments	45,257	28,560
Investments in Banks and Financial Institutions [Member] | Level 1 [Member]
Financial assets:
Investments	45,257	28,560
Equity Securities [Member]
Financial assets:
Equity securities	28,969	24,913
Equity Securities [Member] | Level 1 [Member]
Financial assets:
Equity securities	$ 28,969	$ 24,913

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Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - Level 2 [Member] - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
ASSETS
Investments in short-term time deposits, Estimated Fair Value	$ 6,099	$ 6,095
Liabilities:
Long-term debt, Estimated Fair Value	619,230	661,507
Investments in short-term time deposits, Carrying Cost	6,101	6,107
Long-term debt, Carrying Cost	654,876	722,671
Long Term Notes Receivable from Municipalities [Member]
ASSETS
Notes receivable, Estimated Fair Value	7,861	7,794
Liabilities:
Notes receivable, Carrying Cost	$ 7,333	$ 7,688

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Financial Instruments and Fair Value Measurements (Narrative) (Details) - Measurement Input, Discount Rate [Member]	Dec. 31, 2023	Sep. 30, 2023
Long-Term Debt [Member] | Weighted Average [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Interest rate used to measure long-term debt	4.9	5.9
Long Term Notes Receivable from Municipalities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Interest rate used to measure municipal notes	2.4	3.6
Investments in Short-Term Time Deposits [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Interest rate used to measure short-term time deposits	6.6	6.8

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Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	May 31, 2020 USD ($) Swap Loan	Sep. 23, 2016 EUR (€)
Derivative Instruments Gain Loss [Line Items]
Remaining unrecognized gains (losses) associated with derivative instruments included in AOCI	$ (10,312)		$ (9,701)
2016 Note Purchase Agreements [Member]
Derivative Instruments Gain Loss [Line Items]
Issuance date	Sep. 23, 2016
Face amount | €					€ 160,000,000
Series M Notes [Member]
Derivative Instruments Gain Loss [Line Items]
Face amount | €					€ 40,000,000
Maturity date	Sep. 23, 2026
Gain (Loss) on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary	$ 1,866	$ 3,625
2020 Fixed-Rate Cross-Currency Swaps [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative, notional amount	$ 400,000			$ 400,000
2020 Fixed-Rate Cross-Currency Swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative, number of instruments | Swap				5
2020 Floating-Rate Cross-Currency Swap [Member]
Derivative Instruments Gain Loss [Line Items]
Derivative, notional amount				$ 45,000
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments Gain Loss [Line Items]
Derivative, number of instruments | Loan				5

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Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments Gain Loss [Line Items]
Amount of (Income) Expense Recognized in Earnings on Derivative	$ 17,899	$ 38,186
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative	18,510	32,588
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings	$ 17,899	38,186
Floating-Rate Cross Currency Interest Rate Contract [Member] | Derivatives in Fair Value Hedging Relationships [Member]
Derivative Instruments Gain Loss [Line Items]
Amount of (Income) Expense Recognized in Earnings on Derivative		$ 901
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, General and Administrative Expense	Selling, General and Administrative Expense
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative		$ 896
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, General and Administrative Expense	Selling, General and Administrative Expense
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings		$ 901
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging
Derivative Instruments Gain Loss [Line Items]
Amount of (Income) Expense Recognized in Earnings on Derivative	$ 17,899	$ 37,285
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, General and Administrative Expense	Selling, General and Administrative Expense
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative	$ 18,510	$ 31,692
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, General and Administrative Expense	Selling, General and Administrative Expense
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings	$ 17,899	$ 37,285

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Supplemental Statement of Cash Flows Information (Schedule of Supplemental Statement of Cash Flows Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Supplemental Cash Flow Information [Abstract]
Interest paid, net of amounts capitalized	$ 13,411	$ 12,334
Income taxes paid	13,032	3,725
Income tax refunds received	2,440	322
Non-cash activities:
Purchases of property, plant and equipment on account	$ 3,121	$ 5,821

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Acquisitions (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Business Acquisition [Line Items]
Goodwill	$ 803,487	$ 791,468
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2023	24,862
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2024	28,195
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2025	28,185
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2026	28,137
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2027	$ 27,536

XML

Acquisitions (Schedule of Purchase Price Consideration) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Total purchase price	$ (878)

XML

Acquisitions (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Business Acquisition [Line Items]
Goodwill	$ 803,487	$ 791,468

XML

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands		Dec. 31, 2023	Sep. 30, 2023
Inventory, Net [Abstract]
Raw materials		$ 154,663	$ 133,699
Work in progress		133,977	127,438
Component parts	[1]	343,444	327,522
Finished goods		88,614	74,594
Customer supplied inventory		14,357	14,543
On-hand inventory for which control has transferred to the customer		(175,382)	(159,953)
Inventory, net		$ 559,673	$ 517,843

[1] Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.

XML

Property, Plant, and Equipment (Schedule of Property Plant and Equipment, Net) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 1,789,846	$ 1,745,203
Less accumulated depreciation	(858,593)	(832,109)
Property, plant, and equipment, net	931,253	913,094
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	90,073	89,352
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	591,776	589,735
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	21,707	21,079
Machinery and Production Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	817,319	807,244
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	121,329	120,290
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	42,931	41,943
Other [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	38,354	20,073
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 66,357	$ 55,487

XML

Property, Plant, and Equipment (Schedule of Depreciation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment, Net [Abstract]
Depreciation expense	$ 20,226	$ 20,126

XML

Goodwill (Schedule of Goodwill) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 791,468
Effects of Foreign Currency Translation	12,019
Goodwill, Ending Balance	803,487
Aerospace [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	455,423
Goodwill, Ending Balance	455,423
Industrial [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	336,045
Effects of Foreign Currency Translation	12,019
Goodwill, Ending Balance	$ 348,064

XML

Intangible Assets, Net (Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization of Finite-Lived Intangible	$ (413,940)	$ (401,150)
Net Carrying Amount - Finite-Lived Intangible	396,978
Intangible Assets, Gross, Total	874,926	853,513
Intangible Assets, Net, Total	460,986	452,363
Customer Relationships And Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	676,199	660,487
Accumulated Amortization of Finite-Lived Intangible	(337,178)	(326,227)
Net Carrying Amount - Finite-Lived Intangible	339,021	334,260
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	3,139	3,139
Accumulated Amortization of Finite-Lived Intangible	(3,139)	(3,139)
Process Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	131,006	128,026
Accumulated Amortization of Finite-Lived Intangible	(73,049)	(71,260)
Net Carrying Amount - Finite-Lived Intangible	57,957	56,766
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	574	554
Accumulated Amortization of Finite-Lived Intangible	(574)	(524)
Net Carrying Amount - Finite-Lived Intangible		30
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	64,008	61,307
Aerospace [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization of Finite-Lived Intangible	(278,613)	(275,694)
Intangible Assets, Gross, Total	326,253	326,253
Intangible Assets, Net, Total	47,640	50,559
Aerospace [Member] | Customer Relationships And Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	281,683	281,683
Accumulated Amortization of Finite-Lived Intangible	(238,825)	(236,143)
Net Carrying Amount - Finite-Lived Intangible	42,858	45,540
Aerospace [Member] | Process Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	44,570	44,570
Accumulated Amortization of Finite-Lived Intangible	(39,788)	(39,551)
Net Carrying Amount - Finite-Lived Intangible	4,782	5,019
Industrial [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated Amortization of Finite-Lived Intangible	(135,327)	(125,456)
Intangible Assets, Gross, Total	548,673	527,260
Intangible Assets, Net, Total	413,346	401,804
Industrial [Member] | Customer Relationships And Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	394,516	378,804
Accumulated Amortization of Finite-Lived Intangible	(98,353)	(90,084)
Net Carrying Amount - Finite-Lived Intangible	296,163	288,720
Industrial [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	3,139	3,139
Accumulated Amortization of Finite-Lived Intangible	(3,139)	(3,139)
Industrial [Member] | Process Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	86,436	83,456
Accumulated Amortization of Finite-Lived Intangible	(33,261)	(31,709)
Net Carrying Amount - Finite-Lived Intangible	53,175	51,747
Industrial [Member] | Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value - Finite-Lived Intangible	574	554
Accumulated Amortization of Finite-Lived Intangible	(574)	(524)
Net Carrying Amount - Finite-Lived Intangible		30
Industrial [Member] | Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	$ 64,008	$ 61,307

XML

Intangible Assets, Net (Narrative) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($)
Disposal Group [Member]
Intangible Assets, Net [Line Items]
Impairment of intangible assets, Indefinite-lived	$ 0

XML

Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Amortization expense	$ 8,599	$ 9,178

XML

Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Intangible Assets, Net (Excluding Goodwill) [Abstract]
2024 (remaining)	$ 24,862
2025	28,195
2026	28,185
2027	28,137
2028	27,536
Thereafter	260,063
Net Carrying Amount - Finite-Lived Intangible	$ 396,978

XML

Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details) - USD ($)		3 Months Ended
	Nov. 15, 2023	Dec. 31, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Outstanding borrowings			$ 0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 1,000,000,000
Line of credit facility, maximum borrowing capacity extension		1,500,000,000
Principal amount borrowing outstanding		$ 65,100,000
Effective interest rate		0.0646
Minimum [Member] | SOFR [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		0.875%
Maximum [Member] | SOFR [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		1.75%
Series H and K Notes [Member]
Debt Instrument [Line Items]
Payment of principal balance	$ 75,000,000

XML

Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Accrued Liabilities, Current [Abstract]
Salaries and other member benefits	$ 89,797	$ 146,713
Product warranties and related liabilities	21,802	18,162	$ 49,526	$ 40,042
Interest payable	4,105	13,611
Accrued retirement benefits	2,869	2,822
Net current contract liabilities	37,122	33,748
Taxes, other than income	22,842	13,436
Other	33,120	34,124
Accrued liabilities	$ 211,657	$ 262,616

XML

Accrued Liabilities (Changes in Accrued Product Warranties and Related Liabilities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Beginning of period	$ 18,162	$ 40,042
Additions, net of recoveries	5,306	17,010
Reductions for settlement	(1,827)	(7,702)
Foreign currency exchange rate changes	161	176
End of period	$ 21,802	$ 49,526

XML

Accrued Liabilities (Narrative) (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($)
Hydraulics Systems and Engine Systems [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,083

XML

Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands		Dec. 31, 2023	Sep. 30, 2023
Other Liabilities, Noncurrent [Abstract]
Net accrued retirement benefits, less amounts recognized within accrued liabilities		$ 78,117	$ 72,570
Total unrecognized tax benefits		8,618	8,020
Noncurrent income taxes payable		10,714	10,714
Deferred economic incentives	[1]	5,479	5,797
Noncurrent operating lease liabilities		20,250	20,685
Net noncurrent contract liabilities		419,939	414,657
Cross-currency swap derivative liability		12,362
Other		10,403	11,047
Other liabilities		$ 565,882	$ 543,490

[1] Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.

XML

Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Equity interest in the earnings of the JV	$ (10,155)	$ (4,573)
Rent income	(82)	(88)
Gain on non-recurring matter related to a previous acquisition	(4,803)
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense	(2,919)	(2,485)
Other	(71)	(53)
Other (income) expense, net	(20,639)	(8,390)
Gain on Investments in Deferred Compensation Program [Member]
Net gain on investments in deferred compensation program	$ (2,609)	$ (1,191)

XML

Income Taxes (Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Earnings before income taxes	$ 109,720	$ 31,749
Income tax expense	$ 19,676	$ 2,143
Effective tax rate	17.90%	6.70%

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Income Taxes [Line Items]
Gross unrecognized tax benefits	$ 11,858	$ 11,112
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	7,588
Possible decrease in unrecognized tax benefits liability	$ 2,178
Domestic Tax Authority [Member]
Income Taxes [Line Items]
Year remaining open to tax examination	2020
State and Local Jurisdiction [Member]
Income Taxes [Line Items]
Year remaining open to tax examination	2019
Foreign Jurisdiction [Member]
Income Taxes [Line Items]
Year remaining open to tax examination	2018

XML

Retirement Benefits (Schedule of Amount of Expense Associated with Defined Contribution Plans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Company costs	$ 11,175	$ 10,102

XML

Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 503	$ 543
Interest cost	2,692	2,574
Expected return on plan assets	(2,863)	(2,625)
Amortization of: Net actuarial loss (gain)	(111)	(75)
Amortization of: Prior service cost	180	179
Net periodic retirement pension cost	401	596
Contributions paid	593	562
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	226	226
Amortization of: Net actuarial loss (gain)	(139)	(124)
Net periodic retirement pension cost	87	102
Contributions paid - other postretirement plans	412	441
United States [Member] | Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	194	223
Interest cost	1,899	1,824
Expected return on plan assets	(2,271)	(2,074)
Amortization of: Net actuarial loss (gain)	57	73
Amortization of: Prior service cost	174	174
Net periodic retirement pension cost	53	220
Other Countries [Member] | Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	309	320
Interest cost	793	750
Expected return on plan assets	(592)	(551)
Amortization of: Net actuarial loss (gain)	(168)	(148)
Amortization of: Prior service cost	6	5
Net periodic retirement pension cost	348	376
Contributions paid	$ 593	$ 562

XML

Retirement Benefits (Schedule of Estimated Remaining Cash Contributions) (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in the current fiscal year	$ 2,264
United Kingdom [Member] | Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in the current fiscal year	861
Germany [Member] | Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in the current fiscal year	$ 932

XML

Stockholders' Equity (Summary of Common Stock and Treasury Stock Share Activity) (Details) - shares	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance, Common Stock, shares	72,960,000
Balance, Treasury Stock, shares	(13,070,000)
Balance, Treasury stock held for deferred compensation, shares	(55,000)
Balance, Common Stock, shares	72,960,000
Balance, Treasury Stock, shares	(12,823,000)
Balance, Treasury stock held for deferred compensation, shares	(54,000)
Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance, Common Stock, shares	72,960,000	72,960,000
Balance, Common Stock, shares	72,960,000	72,960,000
Treasury Stock at Cost [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance, Treasury Stock, shares	(13,070,000)	(13,207,000)
Sales of treasury stock, shares	247,000	19,000
Purchase of treasury stock, shares		(274,000)
Common shares issued for benefit plans, shares		2,000
Balance, Treasury Stock, shares	(12,823,000)	(13,460,000)
Treasury Stock Held for Deferred Compensaton [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance, Treasury stock held for deferred compensation, shares	(55,000)	(139,000)
Purchases of stock by deferred compensation, shares	(1,000)	(1,000)
Distribution of stock from deferred compensation, shares	2,000	18,000
Balance, Treasury stock held for deferred compensation, shares	(54,000)	(122,000)

XML

Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	3 Months Ended
	Jan. 31, 2024	Jan. 25, 2023	Jan. 31, 2022	Nov. 30, 2023	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of additional shares available for future grants		500,000
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements					$ 27,881
Forfeiture rate, Board of Directors					0.00%
Forfeiture rate, non-Board of Directors					7.30%
Unrecognized compensation cost is expected to be recognized over a weighted-average period					1 year 7 months 6 days
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested contractual term, in years					10 years
Vesting period, in years					4 years
Weighted-average exercise price					$ 131.66
Stock Options [Member] | Share-based Compensation Award Tranche One [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rate					25.00%
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award Tranche One [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period, in years					4 years
Vesting rate					25.00%
Restricted Stock Units (RSUs) [Member] | On or After November 14, 2023 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period, in years					3 years
Vesting rate					33.30%
Performance Restricted Stock Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award performance period (in years)				3 years
Performance based criteria plan payout percentage, target				100.00%
Discount for dividends					0.00%
Performance Restricted Stock Units [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based criteria plan payout percentage				150.00%
Performance Restricted Stock Units [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance based criteria plan payout percentage				0.00%
2022 Authorization [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock repurchase program authorized amount			$ 800,000		$ 26,369
Repurchase period in years			2 years
Stock repurchase program, number of shares authorized to be repurchased					0		274,000
2017 Authorization [Member] | 2017 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future grants					2,661,000	2,689,000
2024 Authorization [Member] | Subsequent Event [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock repurchase program authorized amount	$ 600,000
Repurchase period in years	3 years

XML

Stockholders' Equity (Summary of Activity for Stock Option Awards) (Details) - Stock Options [Member] shares in Thousands	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options, Beginning balance | shares	4,842
Granted, Number of options | shares	6
Exercised, Number of options | shares	(235)
Forfeited, Number of options | shares	(2)
Number of options, Ending balance | shares	4,611
Weighted Average Exercise Price Per Share, Beginning balance | $ / shares	$ 80.48
Granted, Weighted Average Exercise Price Per Share | $ / shares	131.66
Exercised, Weighted Average Exercise Price Per Share | $ / shares	71.74
Forfeited, Weighted Average Exercise Price Per Share | $ / shares	92.74
Weighted Average Exercise Price Per Share, Ending balance | $ / shares	$ 80.99

XML

Stockholders' Equity (Changes in Non-vested Stock Options) (Details) - Stock Options [Member] shares in Thousands	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Options, Beginning balance | shares	1,393
Granted, Number of options | shares	6
Exercised, Number of options | shares | shares	(572)
Forfeited, Number of options | shares	(1)
Number of Options, Ending balance | shares	826
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $ / shares	$ 33.96
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares	61.03
Exercised, Weighted-Average Grant Date Fair Value Per Share | $ / shares	32.37
Forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares	34.42
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $ / shares	$ 35.26

XML

Stockholders' Equity (Stock Options Vested, or Expected to Vest and Exercisable) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, Number of options	4,611	4,842
Options vested and exercisable, Number of options	3,753
Options vested and expected to vest, Number of options	4,577
Options outstanding, Weighted-Average Exercise Price	$ 80.99	$ 80.48
Options vested and exercisable, Weighted-Average Exercise Price Per Share	77.96
Options vested and expected to vest, Weighted-Average Exercise Price Per Share	$ 80.9
Options outstanding, Weighted-Average Remaining Life in Years	5 years 4 months 24 days
Options vested and exercisable, Weighted-Average Remaining Life in Years	4 years 9 months 18 days
Options vested and expected to vest, Weighted-Average Remaining Life in Years	5 years 4 months 24 days
Options outstanding, Aggregate Intrinsic Value	$ 254,265
Options vested and exercisable, Aggregate Intrinsic Value	218,292
Options vested and expected to vest, Aggregate Intrinsic Value	$ 252,769

XML

Stockholders' Equity (Summary of Activity for RSUs) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of units, Beginning balance | shares	177
Granted, Number of units | shares	12
Forfeited/Released, Number of units | shares	(19)
Number of units, Ending balance | shares	170
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares	$ 93.46
Granted, Weighted-Average Grant Date Fair Value | $ / shares	131.66
Forfeited/Released, Weighted-Average Grant Date Fair Value | $ / shares	85.91
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares	$ 96.95

XML

Stockholders' Equity (Schedule of Assumptions to Value PSUs Granted) (Details) - Performance Restricted Stock Units [Member]	3 Months Ended
	Dec. 31, 2023 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected volatility	30.20%
Risk free interest rate	4.50%
Expected life	3 years
Grant date fair value	$ 146.47

XML

Stockholders' Equity (Summary of Activity for PSUs) (Details) - Performance Restricted Stock Units [Member] shares in Thousands	3 Months Ended
	Dec. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted, Number of units | shares	66
Number of units, Ending balance | shares	66
Granted, Weighted-Average Grant Date Fair Value | $ / shares	$ 146.47
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares	$ 146.47

XML

Segment Information (Narrative) (Details)	3 Months Ended
	Dec. 31, 2023 Segment
Segment Reporting [Abstract]
Number of Reportable Segments	2

XML

Segment Information (Summary of Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total net sales	$ 786,730	$ 618,619
Interest expense, net	(9,963)	(10,776)
Consolidated earnings before income taxes	109,720	31,749
Aerospace [Member]
Segment Reporting Information [Line Items]
Total net sales	460,756	395,685
Industrial [Member]
Segment Reporting Information [Line Items]
Total net sales	325,974	222,934
Operating Segments [Member] | Aerospace [Member]
Segment Reporting Information [Line Items]
Total net sales	460,756	395,685
Segment earnings (loss)	79,002	55,434
Operating Segments [Member] | Industrial [Member]
Segment Reporting Information [Line Items]
Total net sales	325,974	222,934
Segment earnings (loss)	66,881	11,402
Unallocated Corporate [Member]
Segment Reporting Information [Line Items]
Segment earnings (loss)	$ (26,200)	$ (24,311)

XML

Segment Information (Summary of Consolidated Total Assets by Segment) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Segment Reporting Information [Line Items]
Consolidated total assets	$ 4,130,805	$ 4,010,203
Property, plant and equipment, net	931,253	913,094
Unallocated Corporate [Member]
Segment Reporting Information [Line Items]
Property, plant and equipment, net	122,740	104,962
Other assets	594,693	585,490
Aerospace [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	1,838,875	1,829,410
Industrial [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	$ 1,574,497	$ 1,490,341

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Subsequent Events (Narrative) (Details) - Subsequent Event [Member]	Jan. 24, 2024 $ / shares
Subsequent Event [Line Items]
Dividend per share	$ 0.25
Dividend, payable date	Mar. 05, 2024
Dividend, record date	Feb. 20, 2024