Revenue

6 Months Ended

Mar. 31, 2025

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 March 31, 2025						Three Months Ended March 31, 2024
	Aerospace		Industrial		Consolidated		Aerospace		Industrial		Consolidated
Point in time	$	223,025	$	178,801	$	401,826	$	229,171	$	203,232	$	432,403
Over time		338,704		143,099		481,803		268,341		134,599		402,940
Total net sales	$	561,729	$	321,900	$	883,629	$	497,512	$	337,831	$	835,343

	Six Months Ended March 31, 2025						Six Months Ended March 31, 2024
	Aerospace		Industrial		Consolidated		Aerospace		Industrial		Consolidated
Point in time	$	415,010	$	333,869	$	748,879	$	417,674	$	389,862	$	807,536
Over time		640,601		266,874		907,475		540,594		273,943		814,537
Total net sales	$	1,055,611	$	600,743	$	1,656,354	$	958,268	$	663,805	$	1,622,073

Accounts Receivable

Accounts receivable consisted of the following:

	March 31, 2025			September 30, 2024
Billed receivables
Trade accounts receivable	$	495,104		$	455,831
Other (Chinese financial institutions)		555			1,403
Total billed receivables		495,659			457,234
Current unbilled receivables (contract assets)		344,399			320,570
Total accounts receivable		840,058			777,804
Less: Allowance for uncollectible amounts		(8,558	)		(7,738	)
Total accounts receivable, net	$	831,500		$	770,066

As of March 31, 2025, “Other assets” on the Condensed Consolidated Balance Sheets includes $11,075 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 March 31,						Six Months Ended March 31,
	2025			2024			2025			2024
Balance, beginning	$	7,793		$	5,777		$	7,738		$	5,847
Changes in estimates		599			1,398			806			1,696
Write-offs		(120	)		(16	)		(120	)		(475	)
Other1		286			(33	)		134			58
Balance, ending	$	8,558		$	7,126		$	8,558		$	7,126

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

Contract liabilities

Contract liabilities consisted of the following:

	March 31, 2025				September 30, 2024
	Current		Noncurrent		Current		Noncurrent
Deferred revenue from material rights from JV formation	$	6,939	$	234,069	$	6,580	$	232,164
Deferred revenue from advanced invoicing and/or prepayments from customers		15,749		7,542		23,706		6,437
Liability related to customer supplied inventory		16,648		—		20,563		—
Deferred revenue from material rights related to engineering and development funding		8,083		191,298		5,942		186,008
Net contract liabilities	$	47,419	$	432,909	$	56,791	$	424,609

Woodward recognized revenue of $5,035 in the three months and $21,118 in the six months ended March 31, 2025 from contract liabilities balances recorded as of October 1, 2024, compared to $8,232 in the three months and $21,265 in the six months ended March 31, 2024 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 March 31, 2025 was $3,105,657, 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 March 31, 2025.

Remaining performance obligations related to material rights that have not yet been recognized in revenue as of March 31, 2025 was $511,464, of which $8,587 is expected to be recognized in the remainder of fiscal year 2025, $17,013 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, and 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 March 31,				Six Months Ended March 31,
	2025		2024		2025		2024
Commercial OEM	$	167,461	$	183,517	$	321,537	$	354,871
Commercial aftermarket		201,861		163,886		365,711		301,430
Defense OEM		137,928		91,017		250,710		184,442
Defense aftermarket		54,479		59,092		117,653		117,525
Total Aerospace segment net sales	$	561,729	$	497,512	$	1,055,611	$	958,268

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

	Three Months Ended March 31,				Six Months Ended March 31,
	2025		2024		2025		2024
Power generation	$	111,047	$	106,811	$	216,266	$	204,917
Transportation		141,734		173,786		258,340		348,255
Oil and gas		69,119		57,234		126,137		110,633
Total Industrial segment net sales	$	321,900	$	337,831	$	600,743	$	663,805

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 are 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 were as follows:

	Three Months Ended March 31, 2025	Three Months Ended March 31, 2024
Aerospace	RTX Corporation, GE Aerospace, The Boeing Company	RTX Corporation, GE
Industrial	Rolls-Royce PLC, Caterpillar, Inc.	Weichai Power, Rolls-Royce PLC

	Six Months Ended March 31, 2025	Six Months Ended March 31, 2024
Aerospace	RTX Corporation, GE Aerospace, The Boeing Company	GE, RTX Corporation, The Boeing Company
Industrial	Rolls-Royce PLC, GE Vernova, Caterpillar, Inc.	Weichai Power, Rolls-Royce PLC