Segment Information

12 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

Note 23. 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:

	Year Ended September 30,
	2024			2023			2022
Segment external net sales:
Aerospace	$	2,028,618		$	1,768,103		$	1,519,322
Industrial		1,295,631			1,146,463			863,468
Total consolidated net sales	$	3,324,249		$	2,914,566		$	2,382,790
Segment earnings:
Aerospace	$	385,360		$	290,104		$	230,933
Industrial		229,857			161,622			82,788
Nonsegment expenses		(119,745	)		(130,811	)		(81,092	)
Interest Expense, net		(41,501	)		(45,147	)		(32,731	)
Consolidated earnings before income taxes	$	453,971		$	275,768		$	199,898

Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets, consolidated depreciation and amortization, and consolidated capital expenditures follows:

	Year Ended September 30,
	2024			2023			2022
Segment assets:
Aerospace	$	1,936,507		$	1,829,410		$	1,773,854
Industrial		1,509,495			1,490,341			1,380,446
Unallocated corporate property, plant and equipment, net		120,946			104,962			111,760
Other unallocated assets		801,967			585,490			540,386
Consolidated total assets	$	4,368,915		$	4,010,203		$	3,806,446
Segment depreciation and amortization:
Aerospace	$	55,305		$	59,880		$	60,176
Industrial		49,779			51,167			50,584
Unallocated corporate amounts		11,086			8,696			9,868
Consolidated depreciation and amortization	$	116,170		$	119,743		$	120,628
Segment capital expenditures:
Aerospace	$	55,989		$	56,913		$	23,253
Industrial		41,930			21,855			12,399
Unallocated corporate amounts		(1,639	)		(2,268	)		17,216
Consolidated capital expenditures	$	96,280		$	76,500		$	52,868

We had no customers who accounted for approximately 10% or more of our consolidated net sales for the fiscal year ended September 30, 2024. RTX Corporation was our largest customer during the fiscal year ended September 30, 2024. All sales were made by Woodward’s Aerospace segment and totaled approximately 9% of net sales in fiscal year 2024, 10% of net sales in fiscal year 2023, and 11% of net sales in fiscal year 2022.

Accounts receivable from RTX Corporation totaled approximately 6% of accounts receivable at September 30, 2024 and 4% of accounts receivable at September 30, 2023.

U.S. Government related sales from Woodward’s reportable segments were as follows:

	Direct U.S. Government Sales			Indirect U.S. Government Sales			Total U.S. Government Related Sales
Fiscal year ended September 30, 2024
Aerospace	$	107,978		$	443,370		$	551,348
Industrial		9,039			10,273			19,312
Total net external sales	$	117,017		$	453,643		$	570,660
Percentage of total net sales		3	%		14	%		17	%
Fiscal year ended September 30, 2023
Aerospace	$	99,848		$	363,835		$	463,683
Industrial		7,524			14,840			22,364
Total net external sales	$	107,372		$	378,675		$	486,047
Percentage of total net sales		4	%		13	%		17	%
Fiscal year ended September 30, 2022
Aerospace	$	93,266		$	433,646		$	526,912
Industrial		4,759			6,052			10,811
Total net external sales	$	98,025		$	439,698		$	537,723
Percentage of total net sales		4	%		19	%		23	%