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• Woodward is like a focused Honeywell for the essential control systems inside aircraft and industrial machinery.
• Woodward is like a specialized Parker-Hannifin, providing high-precision control components for aircraft and industrial engines.
• Woodward is like a compact Collins Aerospace, concentrating on precision power and motion control for aircraft engines and industrial turbines.

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• Fuel and Fluid Management Systems: Provides components such as fuel pumps, metering units, fuel nozzles, and fuel injection systems for efficient control of fuel and other fluids in engines and turbines.
• Actuation and Motion Control Systems: Develops actuators, servocontrols, flight deck controls, and thrust reverser actuation systems that precisely manage mechanical movements in aircraft and industrial machinery.
• Engine and Turbine Control Electronics: Offers advanced electronic controls, ignition systems, solenoids, speed controls, and sensors to regulate the performance of gas turbines, steam turbines, and reciprocating engines.
• Specialty Valves and Air Systems: Designs and manufactures various air valves and specialty valves critical for controlling fluid and air flow within aerospace and industrial applications.
• Aftermarket Maintenance, Repair, and Overhaul (MRO) Services: Provides comprehensive maintenance, repair, overhaul, and provisioning of spare parts to ensure the long-term operational integrity of its control solutions.

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Woodward (WWD) primarily designs, manufactures, and services control solutions for other businesses within the aerospace and industrial markets. Based on the company description, its major customers are within the following categories. While specific customer names are not listed in the provided background, the following are examples of major companies that would typically fall into these customer categories within the industries Woodward serves:

• Original Equipment Manufacturers (OEMs): These companies integrate Woodward's components into their larger systems, such as aircraft, engines, turbines, and compressors.
  • Aerospace OEMs (for aircraft, engines, and defense systems):
    • Boeing (BA)
    • Lockheed Martin (LMT)
    • Raytheon Technologies (RTX) - includes major aerospace and engine manufacturers like Pratt & Whitney and Collins Aerospace
    • GE Aerospace (part of General Electric, GE)
    • Airbus (private company, but a major global aerospace OEM)
  • Industrial OEMs (for industrial gas turbines, steam turbines, compressors, and reciprocating engines):
    • General Electric (GE)
    • Siemens Energy (SIEGY)
    • Caterpillar (CAT)
    • Mitsubishi Heavy Industries (7011.T on the Tokyo Stock Exchange, or MHVYF as an ADR)
• Tier-One Suppliers and Prime Contractors: Especially in the aerospace segment, Woodward sells to companies that supply major subsystems to the ultimate OEMs or directly to defense agencies. Examples would include major aerospace and defense contractors that act as system integrators or provide large components.
• Aftermarket Customers: This category encompasses various entities involved in maintenance, repair, and overhaul (MRO), as well as direct end-users for spare parts and services.
  • Commercial airlines
  • Military depots
  • Third-party repair facilities
  • Direct industrial end-users (companies operating industrial gas turbines, steam turbines, compressors, and reciprocating engines)

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Charles "Chip" Blankenship, Chairman of the Board, Chief Executive Officer, and President

Chip Blankenship has served as Chairman of the Board and CEO of Woodward since May 2022. Prior to joining Woodward, he was the CEO of Arconic Corporation, an aircraft parts supplier. He also spent 24 years at General Electric (GE) in leadership roles within aerospace and defense sectors, including serving as CEO of GE Appliances, Vice President and General Manager of Commercial Aircraft Engines, and General Manager of GE Aero Energy.

William (Bill) Lacey, Executive Vice President and Chief Financial Officer

Bill Lacey was appointed Chief Financial Officer of Woodward, Inc. effective May 8, 2023. Before joining Woodward, he served as Vice President of Finance for Amazon's Books and Kindle Content. Prior to Amazon, he was President and CEO of Savant's Lighting division, a role he continued after the division's acquisition by Savant. He also had a 28-year career at General Electric (GE), where he served as President and CEO of GE's Lighting division and held senior financial leadership positions, including CFO of GE's Healthcare Medical Diagnostic and Wind Energy divisions.

Tom Cromwell, Executive Vice President and Chief Operating Officer

Tom Cromwell has direct oversight of Woodward's business groups, global supply chain, and operational excellence groups. He brings significant global experience in advanced manufacturing settings and a proven track record of delivering strong operational results.

Shawn McLevige, Executive Vice President and President, Aerospace Segment

Shawn McLevige, effective October 1, 2025, serves as Executive Vice President and President of Woodward's Aerospace Segment. He has over two decades of aerospace leadership, innovation, and technical expertise, and has been with Woodward for 18 years, holding various leadership roles including Vice President and General Manager of Engine and Turbine Fluid Systems.

Randy Hobbs, Executive Vice President and President, Industrial Segment

Randy Hobbs is responsible for direct oversight of Woodward's industrial large and small engine systems within the Industrial segment.

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The key risks to Woodward's business operations are primarily linked to the cyclical nature of its end markets and its dependence on original equipment manufacturers (OEMs).

1. Cyclicality and Sensitivity to End-Market Conditions: Woodward's performance is highly exposed to the cyclical demands of both the aerospace and industrial sectors globally. The aerospace segment, which provides control solutions for commercial, private, and military aircraft, is sensitive to factors such as global economic conditions, air travel demand, airline profitability, and government defense spending. Similarly, the industrial segment, which offers control solutions for turbines, compressors, and engines, is influenced by global economic growth, energy prices, and capital expenditure decisions in power generation, oil & gas, and heavy industry sectors. Downturns or volatility in these key end markets can directly impact the demand for Woodward's products and services.
2. Dependence on Original Equipment Manufacturers (OEMs): Woodward operates significantly as a supplier to Original Equipment Manufacturers in both its aerospace and industrial segments. Its financial performance is closely tied to the production volumes, program schedules, and overall financial health of these OEM customers. Delays in new program introductions, cancellations of existing programs, or reductions in production rates by OEMs can directly and negatively affect Woodward's revenue, order backlog, and profitability.

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Aerospace Segment

Industrial Segment

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Woodward, Inc. (WWD) is anticipated to drive future revenue growth over the next two to three years through several key factors:

1. Sustained Recovery and Growth in Commercial Aerospace: Woodward expects continued strong performance in both commercial aerospace original equipment manufacturing (OEM) and aftermarket services. This includes robust demand across narrow-body, wide-body, and regional aircraft platforms, with the company expanding its Maintenance, Repair, and Overhaul (MRO) capacity to meet this increasing need.
2. Robust Demand Across Key Industrial Markets: The Industrial segment is projected to benefit from sustained growth in several areas, notably marine transportation (driven by healthy global marine markets and alternative fuel orders), power generation (fueled by increased investment in gas-powered generation and growing demand for data centers), and oil & gas markets (related to ongoing investments in refining and petrochemical activities).
3. Successful Price Realization: Woodward has been effectively implementing price increases across its product and service portfolios, which is a direct contributor to revenue growth. The company anticipates an average price realization of 7% for the current fiscal year.
4. Strategic Investments and Enhanced Product Content: The company's strategic investments are increasing output and capacity to meet strong customer demand. This also includes a focus on securing greater content for critical engine platforms within the aerospace sector, such as the LEAP and GTF engines.

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Share Repurchases

• Woodward completed a $600 million share repurchase program in November 2025, more than a year ahead of schedule.
• A new $1.8 billion, three-year share repurchase authorization was approved in November 2025.
• In fiscal year 2025, Woodward returned $238 million to stockholders through dividends and share repurchases.

Share Issuance

• Woodward's shares outstanding for fiscal year 2025 were 0.061 billion, marking a 1% decline from 2024.
• Shares outstanding for fiscal year 2024 were 0.062 billion, a 0.98% increase from 2023.
• In fiscal year 2023, shares outstanding were 0.061 billion, reflecting a 2.8% decline from 2022.

Outbound Investments

• Woodward completed the strategic acquisition of Safran's North American Electromechanical Actuation business in fiscal year 2025, enhancing its existing portfolio with Horizontal Stabilizer Trim Actuation technology and other complementary products.
• The company entered into an agreement to acquire Valve Research & Manufacturing (VRM), a manufacturer of high-precision flow control valves for aerospace applications, with the transaction expected to close in the first half of 2026.

Capital Expenditures

• Capital expenditures for fiscal year 2025 totaled $131 million.
• Expected capital expenditures for fiscal year 2026 are approximately $290 million.
• Approximately $130 million of the fiscal 2026 capital expenditures are allocated to building a new advanced manufacturing facility in Spartanburg, SC, to support A350 spoiler actuator production and future aerospace programs.