About Woodward

Woodward, Inc. (Woodward) an independent designer, manufacturer, and service provider of control solutions for the aerospace and industrial markets. The company's fluid energy, combustion control, electrical energy, and motion control systems help customers offer cleaner, more reliable, and more efficient equipment. The company's customers include leading original equipment manufacturers and end users of their products. The company has production and assembly facilities primarily in the United States, Europe, and Asia; and promotes its products and services through the company's worldwide locations. The company's strategic focus is providing energy control and optimization solutions for the aerospace and industrial markets. The precise and efficient control of energy, including motion, fluid, combustion, and electrical energy, is a growing requirement in the markets the company serves. The company's customers look to the company to optimize the efficiency, emissions, and operation of power equipment in both commercial and defense operations. The company's core technologies leverage well across its markets and customer applications, enabling the company to develop and integrate cost-effective and state-of-the-art fuel, combustion, fluid, actuation, and electronic systems. The company focuses primarily on serving original equipment manufacturers ('OEMs') and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. The company also provides aftermarket repair, maintenance, replacement, and other service support for the company's installed products. Markets and Principal Lines of Business The company serves the aerospace and industrial markets through its two reportable segments - Aerospace and Industrial. The company's customers require technological solutions to meet their needs for performance, efficiency, and reliability, and to reduce cost of operation of their products. Within the aerospace market, the company provides systems, components, and solutions for both commercial and defense applications. The company's aerospace systems and components optimize the performance of fixed wing and rotorcraft platforms in commercial, business and military aircraft, missiles, weapons and space, ground vehicles, and other equipment. The company's key focus areas within this market are propulsion and combustion control solutions for turbine powered aircraft; and fluid and motion control solutions for critical aerospace and defense applications. Within the industrial market, the company's key focus areas are applications and control solutions for machines that produce electricity utilizing conventional or alternative energy sources; and fluid, motion, and combustion control solutions for complex oil and gas, industrial, power generation, and transportation applications. Products, Services and Applications Aerospace The company's Aerospace segment designs, manufactures, and services systems and products for the management of fuel, air, combustion, and motion control. These products include fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, as well as flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. The company has significant content on a wide variety of commercial aircraft, rotorcraft, and business jet platforms, such as the Airbus A320neo, Boeing 737 MAX, 787, Bell 429, and Gulfstream G650. The company also has significant content on defense applications, such as Blackhawk and Apache helicopters, F-35 and F-15 fighter jets, and guided tactical weapons. Revenues from the Aerospace segment are generated by sales to OEMs, tier-one suppliers, and prime contractors; and through aftermarket sales of components, such as provisioning spares or replacements. The company also provides aftermarket maintenance, repair and overhaul, as well as other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. Industrial The company's Industrial segment designs, produces, and services systems and products for the management of energy in the form of fuel, air, fluids, gases, motion, combustion, and electricity. These products include actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors. The company's products are used on industrial gas turbines (including heavy frame, aeroderivative, and small industrial gas turbines), steam turbines, compressors, and reciprocating engines (including low speed, medium speed, and high-speed engines, that operate on various fuels, including natural gas, diesel, heavy fuel oil and dual-fuel). The equipment on which the company's products are found is used to generate power; to extract and distribute fossil fuels; to mine other commodities; and to convert fuel to work in transportation and freight (both marine and locomotives), mobile, and industrial equipment applications. Revenues from the company's Industrial segment are generated primarily by sales to OEMs and by providing aftermarket products and other related services to the company's OEM customers. The company's Industrial segment also sells products through an independent network of distributors and, in some cases, directly to end users. Customers The customers who account for approximately 10% or more of the company's consolidated net sales are the General Electric Company ('GE') and RTX Corporation. Sales to GE accounted for approximately 12% of the company's consolidated net sales in the year ended September 30, 2023. Accounts receivable from GE represented approximately 7% of accounts receivable as of September 30, 2023. Sales to RTX Corporation accounted for approximately 10% of the company's consolidated net sales in the year ended September 30, 2023. Accounts receivable from RTX Corporation totaled approximately 4% of accounts receivable as of September 30, 2023. Aerospace: For the Year Ended September 30, 2023, this segment's customers were RTX Corporation, GE, and The Boeing Company. Industrial: For the Year Ended September 30, 2023, this segment's customers were Rolls-Royce PLC, Caterpillar Inc., and Weichai Westport. Research and Development The company's research and development costs included $132,095 for the year ended September 30, 2023. Government Contracts and Regulation The company contracts with numerous U.S. Government agencies and entities, including all of the branches of the U.S. military, the National Aeronautics and Space Administration ('NASA'), and the Departments of Defense, Homeland Security, and Transportation. Sales made directly to the U.S. Government agencies and entities, or indirectly through third party manufacturers utilizing Woodward parts and subassemblies, collectively represented 17% of the company's sales for the year ended September 30, 2023. Seasonality The company's sales have generally been lower in the first quarter of the company's fiscal year (year ended September 2023) as compared to the immediately preceding quarter due to fewer working days resulting from the observance of various holidays and scheduled plant shutdowns for annual maintenance. Competition Aerospace: The company's competitors in aerospace include divisions of Eaton, Honeywell, Moog, Parker Hannifin, and RTX Corporation. Several competitors are also customers for the company's products, such as Honeywell, Parker Hannifin, and RTX Corporation. Industrial: Competitors include Emerson, EControls, Heinzmann GmbH & Co., Hoerbiger, Meggitt, Robert Bosch AG, and Triconix. OEM customers with internal capabilities for similar products include Caterpillar, Cummins, GE, Rolls-Royce Power Systems, Wärtsilä, and Weichai Westport. History Woodward, Inc. was founded in 1870. The company was incorporated in 1902.