Retirement Benefits

6 Months Ended

Mar. 31, 2025

Retirement Benefits [Abstract]

Retirement Benefits

Note 20. 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.

Woodward's U.S. employees receive an annual contribution of Woodward stock, equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Saving Plan accounts. Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing a total of 126 shares of common stock for a value of $24,058 in the second quarter of fiscal year 2025, compared to a total of 159 shares of common stock for a value of $21,887 in the second quarter of fiscal year 2024.

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

	Three Months Ended March 31,				Six Months Ended March 31,
	2025		2024		2025		2024
Company costs	$	13,627	$	12,902	$	25,970	$	24,077

Defined benefit plans

Woodward has defined benefit plans that provide pension benefits for certain retired members in the United States, the United Kingdom, Japan, and Germany. Woodward also provides other postretirement benefits to its members including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired members, 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, 2024, 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 were as follows:

	Three Months Ended March 31,
	United States						Other Countries						Total
	2025			2024			2025			2024			2025			2024
Service cost	$	230		$	194		$	343		$	312		$	573		$	506
Interest cost		1,718			1,900			717			803			2,435			2,703
Expected return on plan assets		(2,748	)		(2,271	)		(604	)		(602	)		(3,352	)		(2,873	)
Amortization of:
Net actuarial loss (gain)		42			56			(98	)		(171	)		(56	)		(115	)
Prior service cost		190			175			5			5			195			180
Net periodic retirement pension (benefit) cost	$	(568	)	$	54		$	363		$	347		$	(205	)	$	401
Contributions paid	$	—		$	—		$	490		$	746		$	490		$	746
	Six Months Ended March 31,
	United States						Other Countries						Total
	2025			2024			2025			2024			2025			2024
Service cost	$	459		$	388		$	691		$	621		$	1,150		$	1,009
Interest cost		3,437			3,799			1,445			1,596			4,882			5,395
Expected return on plan assets		(5,496	)		(4,542	)		(1,218	)		(1,194	)		(6,714	)		(5,736	)
Amortization of:
Net actuarial loss (gain)		85			113			(198	)		(339	)		(113	)		(226	)
Prior service cost		381			349			11			11			392			360
Net periodic retirement pension (benefit) cost	$	(1,134	)	$	107		$	731		$	695		$	(403	)	$	802
Contributions paid	$	—		$	—		$	874		$	1,339		$	874		$	1,339

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 were as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2025			2024			2025			2024
Interest cost	$	180		$	225		$	359		$	451
Amortization of:
Net actuarial gain		(111	)		(139	)		(221	)		(278	)
Net periodic other postretirement cost	$	69		$	86		$	138		$	173
Contributions paid	$	408		$	413		$	794		$	825

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 2025 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2025 will be as follows:

Retirement pension benefits:
United States	$	—
United Kingdom		145
Japan		—
Germany		583
Other postretirement benefits		1,725