On this page of StockholderLetter.com we present the latest annual shareholder letter from Woodward, Inc. — ticker symbol WWD. Reading current and past WWD letters to shareholders can bring important insights into the investment thesis.
Vision. Values. Velocity. ANNUAL REPORT 2025 Powering a clean future
Financial Highlights Net Sales $ 3.6B +7.3% vs. 2024 $ 3.6B 2025 $ 3.3B 2024 $ 2.9B 2023 2022 $ 2.4B Adj Earnings Per Share* DILUTED $ 6.89 +12.8% vs. 2024 2025 $ 6.89 2024 $ 6.11 $ 4.21 2023 2022 This year we focused on increasing capacity and output to meet strong demand across the end markets we serve. Chip Blankenship | Chairman, CEO and President $ 2.75 Free Cash Flow* $ 340M -0.7% vs. 2024 2025 $ 340M 2024 $ 343M $ 232M 2023 2022 $ 140M * Adjusted earnings per share and free cash flow are non-U.S. GAAP financial measures and are defined in our 2025 annual report on Form 10-K. 2025 Annual Report All references to years are references to the Company s fiscal years.
Fellow Woodward Shareholders, Fiscal 2025 was another exceptional year for Woodward. We continued to strengthen our capabilities, enhance our competitive advantage, and deliver profitable growth through disciplined execution. Our solid financial position has enabled us to make strategic investments in organic and inorganic growth, aligned with our long-term growth strategy and our shareholder value drivers: Growth, Operational Excellence, and Innovation. This year s annual report theme, Vision, Values, Velocity, reflects our commitment to fulfilling our promises and building on our momentum. It underscores how our purpose to design and deliver energy control solutions our partners rely on to power a cleaner future, along with our core values, guides us as we accelerate progress and create value for our shareholders. Building on the achievements of previous years, our global teams delivered consistent improvements quarter over quarter. We made significant progress in safety, quality, delivery, and cost-efficiency as we worked to meet the sustained demand across our end markets. We also made notable strides in Operational Excellence, including Lean transformation, automation, and product management. In fiscal 2025, our team members' dedication to serving our customers and fulfilling our commitments to all stakeholders drove record performance in several key areas. For the first time, our annual revenue surpassed $3.5 billion, and we achieved substantial margin expansion. These results were driven by strong performance across both our Aerospace and Industrial segments. Strategic Investments Fuel Continued Growth Our strong results are a direct result of our ongoing investment in both our people and our manufacturing capabilities. Notably, we acquired Safran s North American electromechanical actuation business, a key addition to our portfolio and technological pedigree. We also broke ground on a state-of-the-art manufacturing facility in South Carolina. This facility will exceed the level of automation and vertical integration at Shareholder Letter 1
our Rockford, Illinois, Aerospace manufacturing facility. It will support the Airbus A350 spoiler actuation systems we were selected to provide, and has potential to serve additional programs and customers as we grow. These investments are designed to deliver strong returns in performance, scalability, and competitiveness, and position us to compete in next generation aircraft programs. Additionally, we ve made significant strides in developing our front-line leaders through immersive training that empowers them to solve problems within cycle time and drive operational improvements. We also continue to invest in improving our manufacturing capabilities to keep pace with the ongoing robust demand across our markets for our leading solutions. Advancing Operational Excellence Safety remains our top priority. In 2025, we expanded the rollout of our Human and Organizational Performance (HOP) program across more global sites. We are already 2 2025 Annual Report seeing meaningful improvements in member behaviors and outcomes through this approach. Our Lean transformation is reshaping the way Woodward operates by empowering teams to address challenges and opportunities through Kaizens. We are also bringing rigor to standardized work across all aspects of our operations. In the year ahead, we will focus on translating these Lean learnings and processes into performance outcomes. I m also pleased to see the progress our sites are making in automation. Fully automated processes and cobots are being introduced across multiple facilities to enhance productivity, reduce repetitive and tedious tasks for our team members, and improve quality. For example, our automated deburring stations are significantly reducing the need for labor-intensive processes. We plan to accelerate our automation efforts in the coming years, which will reduce our hiring needs and create opportunities for our people to focus on jobs where human input adds the most value. The Woodward Business System continues to provide the framework and tools for these advancements, embedding
continuous improvement across business planning, product lifecycle management, SIOP, the Woodward Production System, and member development. Well Positioned for the Future We ve built a strong foundation that positions Woodward to excel in the growing markets we serve, but there is always more work to be done. We are inspired by what lies ahead. Thanks to the extraordinary efforts of our teams, the trust of our customers, and the continued support of our shareholders, we are not just preparing for Woodward s continued growth, we are helping to shape the future of the Aerospace and Industrial customers we serve. I look forward to continuing to create lasting value for our shareholders through our commitment to Growth, Operational Excellence, and Innovation. Thank you for your continued trust and support in Woodward. Chip Blankenship Chairman, CEO and President Record Revenue Increased content on growing platforms in growing markets. Earnings Growth Operational Excellence focus driving margin expansion. Investing for LongTerm Value Enhancing automation and operational capabilities to enable profitable growth. Acquired state of the art electromechanical actuation products and technology into our portfolio. Building a showcase manufacturing facility with high levels of automation and vertical integration to support growth. Returning Cash to Shareholders Returned over $200M to shareholders through dividends and share repurchases. Shareholder Letter 3
 • shareholder letter icon 12/12/2025 Letter Continued (Full PDF)
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WWD Shareholder/Stockholder Letter Transcript:

Vision. Values. Velocity.
ANNUAL REPORT 2025
Powering a clean future

Financial Highlights
Net Sales
$ 3.6B +7.3%
vs. 2024
$ 3.6B
2025
$ 3.3B
2024
$ 2.9B
2023
2022
$ 2.4B
Adj Earnings Per Share*
DILUTED
$ 6.89 +12.8%
vs. 2024
2025
$ 6.89
2024
$ 6.11
$ 4.21
2023
2022
   This year we focused on
increasing capacity and
output to meet strong
demand across the end
markets we serve.   
Chip Blankenship | Chairman, CEO and President
$ 2.75
Free Cash Flow*
$ 340M -0.7%
vs. 2024
2025
$ 340M
2024
$ 343M
$ 232M
2023
2022
$ 140M
* Adjusted earnings per share
and free cash flow are non-U.S.
GAAP financial measures and
are defined in our 2025 annual
report on Form 10-K.
2025 Annual Report
All references to years are
references to the Company   s
fiscal years.

Fellow Woodward Shareholders,
Fiscal 2025 was another exceptional year for Woodward.
We continued to strengthen our capabilities, enhance our
competitive advantage, and deliver profitable growth
through disciplined execution.
Our solid financial position has enabled us to make
strategic investments in organic and inorganic growth,
aligned with our long-term growth strategy and our
shareholder value drivers: Growth, Operational
Excellence, and Innovation.
This year   s annual report theme, Vision, Values, Velocity,
reflects our commitment to fulfilling our promises and
building on our momentum. It underscores how our
purpose to design and deliver energy control solutions
our partners rely on to power a cleaner future, along with
our core values, guides us as we accelerate progress and
create value for our shareholders.
Building on the achievements of previous years, our
global teams delivered consistent improvements quarter
over quarter. We made significant progress in safety,
quality, delivery, and cost-efficiency as we worked to
meet the sustained demand across our end markets. We
also made notable strides in Operational Excellence,
including Lean transformation, automation, and product
management.
In fiscal 2025, our team members' dedication to
serving our customers and fulfilling our commitments
to all stakeholders drove record performance in several
key areas. For the first time, our annual revenue
surpassed $3.5 billion, and we achieved substantial
margin expansion. These results were driven by
strong performance across both our Aerospace and
Industrial segments.
Strategic Investments Fuel Continued Growth
Our strong results are a direct result of our ongoing
investment in both our people and our manufacturing
capabilities. Notably, we acquired Safran   s North
American electromechanical actuation business, a key
addition to our portfolio and technological pedigree.
We also broke ground on a state-of-the-art
manufacturing facility in South Carolina. This facility will
exceed the level of automation and vertical integration at
Shareholder Letter
1

our Rockford, Illinois, Aerospace manufacturing facility.
It will support the Airbus A350 spoiler actuation systems
we were selected to provide, and has potential to serve
additional programs and customers as we grow.
These investments are designed to deliver strong returns
in performance, scalability, and competitiveness, and
position us to compete in next generation aircraft
programs.
Additionally, we   ve made significant strides in developing
our front-line leaders through immersive training that
empowers them to solve problems within cycle time and
drive operational improvements.
We also continue to invest in improving our
manufacturing capabilities to keep pace with the
ongoing robust demand across our markets for our
leading solutions.
Advancing Operational Excellence
Safety remains our top priority. In 2025, we expanded the
rollout of our Human and Organizational Performance
(HOP) program across more global sites. We are already
2
2025 Annual Report
seeing meaningful improvements in member behaviors
and outcomes through this approach.
Our Lean transformation is reshaping the way Woodward
operates by empowering teams to address challenges
and opportunities through Kaizens. We are also bringing
rigor to standardized work across all aspects of our
operations. In the year ahead, we will focus on
translating these Lean learnings and processes into
performance outcomes.
I   m also pleased to see the progress our sites are making
in automation. Fully automated processes and cobots are
being introduced across multiple facilities to enhance
productivity, reduce repetitive and tedious tasks for our
team members, and improve quality. For example, our
automated deburring stations are significantly reducing
the need for labor-intensive processes. We plan to
accelerate our automation efforts in the coming years,
which will reduce our hiring needs and create
opportunities for our people to focus on jobs where
human input adds the most value.
The Woodward Business System continues to provide the
framework and tools for these advancements, embedding

continuous improvement across business planning,
product lifecycle management, SIOP, the Woodward
Production System, and member development.
Well Positioned for the Future
We   ve built a strong foundation that positions Woodward to
excel in the growing markets we serve, but there is always
more work to be done. We are inspired by what lies ahead.
Thanks to the extraordinary efforts of our teams, the trust
of our customers, and the continued support of our
shareholders, we are not just preparing for Woodward   s
continued growth, we are helping to shape the future of the
Aerospace and Industrial customers we serve.
I look forward to continuing to create lasting value for our
shareholders through our commitment to Growth,
Operational Excellence, and Innovation.
Thank you for your continued trust and support in
Woodward.
Chip Blankenship
Chairman, CEO and President
Record Revenue
Increased content on growing platforms in growing markets.
Earnings Growth
Operational Excellence focus driving margin expansion.
Investing for LongTerm Value
    Enhancing automation and operational capabilities
to enable profitable growth.
    Acquired state of the art electromechanical actuation
products and technology into our portfolio.
    Building a showcase manufacturing facility with
high levels of automation and vertical integration
to support growth.
Returning Cash to
Shareholders
Returned over $200M to shareholders through
dividends and share repurchases.
Shareholder Letter
3



shareholder letter icon 12/12/2025 Letter Continued (Full PDF)
 

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