Revenue

3 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Note 3. Revenue

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

	Three Months Ended December 31, 2024						Three Months Ended December 31, 2023
	Aerospace		Industrial		Consolidated		Aerospace		Industrial		Consolidated
Point in time	$	191,985	$	155,068	$	347,053	$	188,503	$	186,630	$	375,133
Over time		301,897		123,775		425,672		272,253		139,344		411,597
Total net sales	$	493,882	$	278,843	$	772,725	$	460,756	$	325,974	$	786,730

Accounts Receivable

Accounts receivable consisted of the following:

	December 31, 2024			September 30, 2024
Billed receivables
Trade accounts receivable	$	365,322		$	455,831
Other (Chinese financial institutions)		1,738			1,403
Total billed receivables		367,060			457,234
Current unbilled receivables (contract assets)		333,332			320,570
Total accounts receivable		700,392			777,804
Less: Allowance for uncollectible amounts		(7,793	)		(7,738	)
Total accounts receivable, net	$	692,599		$	770,066

As of December 31, 2024, “Other assets” on the Condensed Consolidated Balance Sheets includes $11,127 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $11,237 as of September 30, 2024.

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,
	2024			2023
Balance, beginning	$	7,738		$	5,847
Changes in estimates		207			298
Write-offs		—			(459	)
Other1		(152	)		91
Balance, ending	$	7,793		$	5,777

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

Contract liabilities

Contract liabilities consisted of the following:

	December 31, 2024				September 30, 2024
	Current		Noncurrent		Current		Noncurrent
Deferred revenue from material rights from JV formation	$	6,760	$	230,962	$	6,580	$	232,164
Deferred revenue from advanced invoicing and/or prepayments from customers		20,552		5,139		23,706		6,437
Liability related to customer supplied inventory		17,163		—		20,563		—
Deferred revenue from material rights related to engineering and development funding		6,042		186,356		5,942		186,008
Net contract liabilities	$	50,517	$	422,457	$	56,791	$	424,609

Woodward recognized revenue of $16,083 in the three months ended December 31, 2024 from contract liabilities balances recorded as of October 1, 2024, compared to $13,033 in the three months ended December 31, 2023 from contract liabilities balances recorded as of October 1, 2023.

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, 2024 was $2,920,580, compared to $2,932,793 as of September 30, 2024, the majority of which relates to Woodward’s Aerospace segment in both periods. Woodward expects to recognize almost all remaining performance obligations within two years after December 31, 2024.

Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2024 was $507,479, compared to $509,366 as of September 30, 2024, of which $10,876 is expected to be recognized in the remainder of fiscal year 2025, $15,833 is expected to be recognized in fiscal year 2026, 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 reportable segments, Aerospace and Industrial. 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,
	2024		2023
Commercial OEM	$	154,076	$	171,354
Commercial aftermarket		163,850		137,544
Defense OEM		112,782		93,425
Defense aftermarket		63,174		58,433
Total Aerospace segment net sales	$	493,882	$	460,756

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

	Three Months Ended December 31,
	2024		2023
Power generation	$	105,219	$	98,106
Transportation		116,606		174,469
Oil and gas		57,018		53,399
Total Industrial segment net sales	$	278,843	$	325,974

On April 2, 2024, The General Electric Company ("GE") split into two separate companies, GE Aerospace and GE Vernova. During fiscal year 2024, we engaged in transactions with GE prior to its split, and subsequently engaged in

transactions with both GE Aerospace and GE Vernova. Sales listed with "GE" represent the legacy General Electric Company, and any sales following the split will be listed as GE Aerospace and GE Vernova as applicable.

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, 2024	Three Months Ended December 31, 2023
Aerospace	RTX Corporation, GE Aerospace, The Boeing Company	GE, RTX Corporation, The Boeing Company
Industrial	Rolls-Royce PLC, GE Vernova	Weichai Power, Rolls-Royce PLC, Caterpillar, Inc.