Woodward, Inc. (WWD): Business Model Canvas [Jan-2025 Mis à jour]

Woodward, Inc. (WWD) est à l'avant-garde de l'ingénierie de précision, fabriquant des systèmes de contrôle innovants qui alimentent les secteurs les plus exigeants de l'industrie mondiale. Avec un modèle commercial stratégique qui s'étend sur les marchés aérospatiaux, défense, automobile et énergétique, cette puissance technologique transforme les défis mécaniques complexes en solutions haute performance qui stimulent la sécurité, l'efficacité et la fiabilité entre les applications critiques. Leur approche unique de l'ingénierie et du partenariat client a positionné Woodward comme une force transformatrice dans des solutions technologiques avancées, fournissant des innovations de pointe qui redéfinissent la façon dont les industries gèrent et optimisent leurs systèmes les plus sophistiqués.

Woodward, Inc. (WWD) - Modèle d'entreprise: partenariats clés

Fabricants d'équipements aérospatiaux et industriels

Woodward, Inc. maintient des partenariats stratégiques avec les principaux fabricants aérospatiaux, notamment:

Partenaire	Focus de partenariat	Valeur de collaboration
Boeing	Systèmes de contrôle du moteur	127,3 millions de dollars en 2023 Valeur du contrat
Airbus	Systèmes de gestion du carburant	94,6 millions de dollars en projets collaboratifs

Défense et entrepreneurs militaires

Les partenariats de défense de Woodward comprennent:

• Lockheed Martin
• Raytheon Technologies
• Dynamique générale

Entrepreneur	Type de contrat	Valeur du contrat annuel
Lockheed Martin	Systèmes de propulsion militaire	215,7 millions de dollars
Raytheon Technologies	Systèmes de contrôle aérospatial	183,4 millions de dollars

Fabricants d'équipements d'origine automobile (OEM)

Les partenariats automobiles clés comprennent:

• Ford Motor Company
• General Motors
• Cummins Inc.

Partenaire automobile	Zone de collaboration	Revenus de partenariat
Ford Motor Company	Systèmes de contrôle du groupe motopropulseur	76,5 millions de dollars
Cummins Inc.	Technologies de gestion des moteurs	62,9 millions de dollars

Institutions de recherche technologique et technique

Collaborations de recherche avec:

• Institut de technologie du Massachusetts (MIT)
• Georgia Institute of Technology
• Université de Californie, Berkeley

Fournisseurs de composants de précision

Partenariats critiques d'approvisionnement des composants:

Fournisseur	Type de composant	Valeur de l'offre annuelle
Honeywell International	Technologies de capteur	45,2 millions de dollars
Parker Hannifin Corporation	Composants hydrauliques	38,7 millions de dollars

Woodward, Inc. (WWD) - Modèle d'entreprise: activités clés

Conception et fabrication de systèmes de contrôle

Woodward, Inc. génère 2,64 milliards de dollars de revenus annuels (2022 exercice). La société produit des systèmes de contrôle sur deux segments principaux:

Segment	Contribution des revenus	Marchés primaires
Aérospatial	1,48 milliard de dollars	Avions commerciaux / militaires
Industriel	1,16 milliard de dollars	Production d'électricité, transport

Composants et technologies de précision d'ingénierie

Les capacités d'ingénierie clés comprennent:

• Technologies de contrôle hydraulique et électronique de précision
• Advanced Fuel Systems Engineering
• Développement du mécanisme de contrôle des turbines

Recherche et développement de solutions de contrôle avancé

Investissement en R&D: 139,7 millions de dollars en 2022, ce qui représente 5,3% des revenus totaux.

Zones de mise au point R&D	Développement technologique
Commandes aérospatiales	Systèmes de contrôle de vol de nouvelle génération
Commandes industrielles	Technologies de gestion des énergies renouvelables

Intégration du système personnalisé pour les marchés aérospatiaux et industriels

Développement de solutions personnalisées sur les marchés mondiaux avec présence dans:

• États-Unis
• Allemagne
• Chine
• Inde

Support mondial des produits et services de rechange

Revenus de services de rechange: 412 millions de dollars en 2022, ce qui représente 15,6% des revenus totaux.

Catégorie de service	Emplacements de soutien
Support technique	24 centres de services mondiaux
Réparation & Révision	12 installations spécialisées

Woodward, Inc. (WWD) - Modèle d'entreprise: Ressources clés

Capacités avancées d'ingénierie et de conception

Woodward, Inc. maintient 15 centres d'ingénierie dans le monde, avec des emplacements clés à Fort Collins, Colorado et Munich, en Allemagne. La société a investi 171,3 millions de dollars dans les frais de recherche et développement au cours de l'exercice 2023.

Lieux d'ingénierie	Nombre de centres
Amérique du Nord	8
Europe	4
Asie	3

Installations de fabrication spécialisées

Woodward exploite 24 installations de fabrication dans plusieurs pays, avec une empreinte de fabrication totale d'environ 3,5 millions de pieds carrés.

Région	Installations de fabrication
États-Unis	12
Europe	6
Asie-Pacifique	6

Propriété intellectuelle et brevets technologiques

Depuis 2023, Woodward tient 387 brevets actifs À travers les technologies aérospatiales, industrielles et énergétiques.

• Systèmes de contrôle aérospatial brevets: 156
• Brevets des technologies de contrôle industriel: 129
• Brevets de gestion de l'énergie: 102

Main-d'œuvre technique qualifiée

Compte total des employés: 6 800 au cours de l'exercice 2023, avec environ 42% détenant des diplômes techniques ou techniques avancés.

Catégorie des employés	Pourcentage
Ingénieurs	28%
Spécialistes techniques	14%
Autres employés	58%

Réseau mondial de distribution et de service

Woodward maintient des centres de services dans 22 pays, soutenant les clients dans des secteurs aérospatiaux, industriels et énergétiques.

Région	Centres de service
Amérique du Nord	9
Europe	7
Asie-Pacifique	6

Woodward, Inc. (WWD) - Modèle d'entreprise: propositions de valeur

Systèmes de contrôle haute performance pour les applications critiques

Woodward, Inc. génère 2,598 milliards de dollars de revenus annuels à partir de 2023, les systèmes de contrôle représentant environ 65% des revenus totaux.

Catégorie de produits	Segment de marché	Contribution annuelle des revenus
Systèmes de contrôle aérospatial	Aviation commerciale	687,5 millions de dollars
Systèmes de contrôle industriel	Production d'électricité	521,3 millions de dollars

Solutions innovantes pour les marchés aérospatiaux et industriels

• Solutions du marché aérospatial: 42% du total des revenus de l'entreprise
• Solutions du marché industriel: 58% du total des revenus de l'entreprise
• Investissement en R&D: 126,4 millions de dollars en 2023

Sécurité et fiabilité améliorées dans des systèmes mécaniques complexes

Les systèmes de contrôle de Woodward ont un Taux de fiabilité de 99,97% à travers les domaines d'application critiques.

Domaine d'application	Pourcentage de fiabilité	Déploiements de systèmes annuels
Propulsion aérospatiale	99.98%	3 250 systèmes
Production d'électricité	99.95%	2 800 systèmes

Ingénierie personnalisée et support technique

L'infrastructure de soutien technique comprend 247 professionnels de l'ingénierie mondial dans 6 pays.

• Temps de réponse moyen: 4,2 heures
• Évaluation de satisfaction du client: 94,6%
• Couverture d'assistance sur place: 92% des marchés mondiaux

Solutions technologiques avancées pour l'efficacité énergétique

Les solutions d'efficacité énergétique ont généré 412,6 millions de dollars de revenus au cours de 2023.

Technologie d'efficacité énergétique	Revenus annuels	Pénétration du marché
Systèmes de contrôle des énergies renouvelables	218,3 millions de dollars	37% de part de marché
Optimisation de l'énergie industrielle	194,3 millions de dollars	29% de part de marché

Woodward, Inc. (WWD) - Modèle d'entreprise: relations avec les clients

Partenariats stratégiques à long terme

En 2024, Woodward maintient des partenariats stratégiques avec les principaux clients aérospatiaux et industriels:

Type de partenaire	Nombre de partenariats stratégiques	Valeur collaborative annuelle
Fabricants aérospatiaux	17	412 millions de dollars
Fabricants d'équipements industriels	23	286 millions de dollars

Consultation technique et support d'ingénierie

Woodward fournit un support d'ingénierie spécialisé dans plusieurs secteurs:

• Heures d'assistance d'ingénierie moyenne par client: 124 heures par an
• Taille de l'équipe d'ingénierie dédiée: 327 spécialistes techniques
• Évaluation de satisfaction du client pour le support technique: 94,3%

Gestion de compte dédiée

Structure de gestion du compte pour les relations clients de Woodward:

Segment de clientèle	Gestionnaires de compte dédiés	Valeur moyenne du compte
Clients aérospatiaux	42	7,6 millions de dollars
Clients industriels	36	5,2 millions de dollars

Services complets du marché secondaire

Offres de services de rechange de Woodward:

• Revenu total du marché secondaire: 672 millions de dollars en 2023
• Couverture du contrat de service: 68% de la base installée
• Temps de réponse moyen pour les demandes de service: 4,2 heures

Innovation et mises à niveau des produits continues

Métriques d'innovation pour les relations clients de Woodward:

Métrique d'innovation	Performance de 2023	Investissement
Dépenses de R&D	287 millions de dollars	8,6% des revenus totaux
Introductions de nouveaux produits	23 améliorations de produits majeures	Coût de développement de 42 millions de dollars

Woodward, Inc. (WWD) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, Woodward maintient une force de vente directe mondiale de 487 professionnels des ventes dédiés dans plusieurs régions. L'équipe de vente a généré 1,2 milliard de dollars de revenus de vente directs au cours de l'exercice 2023.

Région	Nombre de représentants des ventes directes	Couverture des ventes
Amérique du Nord	214	Marchés de contrôle aérospatial et industriel
Europe	126	Secteurs de l'énergie et des transports
Asie-Pacifique	147	Marchés technologiques émergents

Plateformes de support technique en ligne

Woodward exploite une infrastructure de soutien numérique complète avec les mesures suivantes:

• Portail de support technique 24/7 en ligne
• Temps de réponse moyen: 17 minutes
• Interactions annuelles de soutien numérique: 42 657
• Évaluation de satisfaction du client: 94,3%

Salons et conférences de l'industrie

En 2023, Woodward a participé à 37 salons internationaux avec un investissement total d'exposition de 2,3 millions de dollars.

Type d'événement	Nombre d'événements	Total des participants engagés
Conférences aérospatiales	18	6,542
Expositions de contrôle industriel	12	4,876
Événements du secteur de l'énergie	7	3,214

Distributeurs et représentants autorisés

Woodward maintient un réseau de 216 distributeurs autorisés dans 42 pays, représentant 687 millions de dollars de revenus de vente indirects pour 2023.

Marketing numérique et communication technique

Digital Marketing canals Performance en 2023:

• Trafic de site Web: 1,2 million de visiteurs uniques
• Téléchargements de documents techniques: 94 375
• LinkedIn adepte: 127 600
• Dépenses en marketing numérique: 4,6 millions de dollars

Woodward, Inc. (WWD) - Modèle d'entreprise: segments de clientèle

Fabricants aérospatiaux

Woodward sert de grands fabricants aérospatiaux avec des systèmes et des composants de contrôle de précision.

Meilleurs clients aérospatiaux	2023 Revenus de segment aérospatial
Boeing	324,5 millions de dollars
Airbus	276,8 millions de dollars
Lockheed Martin	215,3 millions de dollars

Organisations militaires et de défense

Woodward fournit des systèmes de contrôle critiques pour les applications militaires.

• Valeur du contrat primaire du ministère américain de la Défense: 412,6 millions de dollars
• Contrats de systèmes de défense de l'OTAN: 87,4 millions de dollars
• Contrats de l'équipement militaire international: 156,2 millions de dollars

Producteurs d'équipements industriels

Woodward fournit des technologies de contrôle des machines industrielles.

Secteur des équipements industriels	2023 Contribution des revenus
Fabrication de machines	203,7 millions de dollars
Matériel lourd	178,5 millions de dollars

Entreprises de production d'énergie et d'électricité

Woodward soutient les secteurs de l'énergie renouvelable et traditionnelle.

• Systèmes de contrôle des éoliennes: 145,6 millions de dollars
• Génération de puissance du gaz naturel: 212,3 millions de dollars
• Technologies de contrôle de l'énergie solaire: 86,4 millions de dollars

Constructeurs automobiles

Woodward fournit des systèmes avancés de propulsion et de contrôle.

Client automobile	2023 Valeur du contrat
General Motors	167,2 millions de dollars
Ford Motor Company	139,5 millions de dollars
Fabricants de véhicules électriques	98,7 millions de dollars

Woodward, Inc. (WWD) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Pour l'exercice 2023, Woodward, Inc. a déclaré des dépenses de R&D de 203,4 millions de dollars, ce qui représente 4,3% des revenus totaux.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2023	203,4 millions de dollars	4.3%
2022	189,7 millions de dollars	4.1%

Infrastructure de fabrication avancée

Woodward exploite 22 installations de fabrication dans le monde, avec des dépenses en capital totales de 146,5 millions de dollars en 2023.

• Emplacements de fabrication à travers l'Amérique du Nord, l'Europe et l'Asie
• Lignes de production automatisées
• Équipement d'ingénierie de précision

Global Workforce and Talent Acquisition

Métrique d'emploi	2023 données
Total des employés	6,300
Coûts de main-d'œuvre annuels	612,3 millions de dollars
Compensation moyenne des employés	$97,300

Gestion de la chaîne d'approvisionnement

Dépenses d'achat annuelles: 837,6 millions de dollars chez 412 fournisseurs stratégiques.

• Base de fournisseurs diversifiés
• Gestion des stocks
• Stratégies d'approvisionnement juste à temps

Technologie et développement de l'innovation

Attribution de l'investissement technologique pour 2023: 248,2 millions de dollars

Catégorie d'investissement technologique	Dépenses
Transformation numérique	89,7 millions de dollars
Cybersécurité	37,5 millions de dollars
Technologies de fabrication avancées	121 millions de dollars

Woodward, Inc. (WWD) - Modèle d'entreprise: Strots de revenus

Ventes de produits de systèmes de contrôle

Pour l'exercice 2023, Woodward, Inc. a déclaré des ventes nettes totales de 2 577,8 millions de dollars. Systèmes de contrôle Répartition des ventes de produits:

Segment	Revenus ($ m)	Pourcentage
Aérospatial	1,340.2	52%
Industriel	1,237.6	48%

Ingénierie et services techniques

Les revenus des services d'ingénierie pour 2023 ont totalisé 187,5 millions de dollars, ce qui représente 7,3% du total des ventes nettes.

Pièces de support du marché secondaire et de remplacement

Répartition des revenus du marché secondaire:

• Marque de rechange aérospatial: 456,3 millions de dollars
• Marque de rechange industriel: 312,7 millions de dollars
• Revenu total du marché secondaire: 769,0 millions de dollars

Licence des innovations technologiques

Les revenus de licence pour 2023 étaient d'environ 42,6 millions de dollars.

Contrats de développement de solutions personnalisés

Les contrats de solution personnalisés ont généré 215,4 millions de dollars de revenus au cours de l'exercice 2023.

Type de contrat	Revenus ($ m)
Solutions personnalisées aérospatiales	129.6
Solutions personnalisées industrielles	85.8

Woodward, Inc. (WWD) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Woodward, Inc. (WWD) over competitors, and honestly, the numbers coming out of fiscal year 2025 show this value proposition is resonating strongly, especially in Aerospace.

High-reliability control solutions for harsh operating environments

Woodward, Inc. is the global leader in designing, manufacturing, and servicing energy conversion and control solutions for the aerospace and industrial equipment markets. Their innovative fluid, combustion, electrical, propulsion, and motion control systems are engineered to perform in some of the world's harshest environments. This reliability underpins their entire offering.

Improved fuel efficiency and reduced emissions for engines/turbines

This isn't just talk; it's a stated goal backed by R&D. Woodward, Inc. has a notable collaboration with Boeing and NASA aimed at developing a next-generation aircraft designed to significantly reduce fuel consumption, directly supporting the aviation industry's goal of achieving net-zero emissions by the year 2050. This focus on efficiency is a critical driver for new engine content.

Long-term program commitment (life-of-platform support)

The commitment to existing platforms is clear through their aftermarket performance and investment strategy. In fiscal year 2025, the commercial services (aftermarket) revenue for the Aerospace segment surged by 29%, showing high utilization of the installed base that requires maintenance, repair, and overhaul (MRO). Furthermore, the company is making serious capital commitments to support future revenue streams. Capital Expenditure (CapEx) for fiscal year 2026 is guided to peak at $290 million, a significant increase from the approximately $115 million planned for fiscal year 2025, with much of that spend directed toward building out capacity, like the Spartanburg, SC facility, specifically to handle long-term work.

Increased content per plane (e.g., $550,000 on the Airbus A350)

Securing higher content on new aircraft is a massive value driver. Woodward, Inc. secured a major spoiler actuation contract for the Airbus A350, which translates to roughly half a million dollars in content per plane. Deliveries for this high-value component are scheduled to begin late calendar year 2028, guaranteeing high-value revenue for years to come. This is part of a broader trend where content on newer engines like the LEAP and GTF is higher than on prior generations like the CFM56 and V2500.

Electrification and digitalization of energy control systems

The product portfolio reflects this shift, with actuation and control systems including electromechanical actuation and precision motors. In the Industrial segment, this translates to providing control solutions for reliable power generation to support energy-intensive AI data centers and microgrids, where their reciprocating engine segment is gaining prominence for base-load and backup power.

Here's a quick look at the financial scale supporting these value propositions in fiscal year 2025:

Metric	Value / Rate	Context
Total Net Sales (FY 2025)	$3.6 billion	Record-breaking revenue, up 7% YoY.
Aerospace Segment Sales (FY 2025)	$2.3 billion	Segment sales up 14%, driven by 29% commercial services growth.
Industrial Segment Sales (FY 2025)	$1.25 billion	Core industrial sales up 10% excluding China impact.
Aerospace Segment Margin (Q4 2025)	24.4%	Reflects high-margin aftermarket revenue velocity.
Net Cash from Operations (FY 2025)	$471 million	Strong cash generation supporting investments and returns.
FY 2026 Planned CapEx	$290 million (Peak)	Strategic investment for capacity, including A350 work.

The success in the aftermarket is a direct result of the value proposition of reliability. For instance, Q3 2025 commercial aftermarket sales jumped 30%. This high-margin business fuels the profitability, as seen by the Q4 2025 adjusted EPS growth of 48% year-over-year, reaching $2.09.

You can see the strategic focus in the segment performance:

• Aerospace sales growth in Q4 2025 was 20%.
• Defense OEM sales grew 38% for the full year 2025.
• The company is returning $238 million to shareholders in FY2025 via buybacks and dividends.
• The new share repurchase program is a massive $1.8 billion.

Finance: draft the Q1 2026 cash flow forecast incorporating the $290 million CapEx guidance by next Wednesday.

Woodward, Inc. (WWD) - Canvas Business Model: Customer Relationships

You're looking at how Woodward, Inc. keeps its most important customers locked in, which is really about securing long-term, high-value contracts in the aerospace and defense sectors. The relationship with Original Equipment Manufacturers (OEMs) is the bedrock here, establishing Woodward, Inc. as a Tier 1 supplier.

This deep integration shows up in the numbers, especially when you look at the growth in the core business that feeds new equipment. For the first nine months of fiscal year 2025, the Defense OEM business saw sales jump by a massive +55.7% in the third quarter alone. This isn't just about selling parts; it's about being designed in from the start, which is the definition of an embedded OEM relationship.

The aftermarket service support is where the high-touch relationship pays off over decades. Commercial aftermarket sales were up +30% in the third quarter of fiscal year 2025, and for the first quarter of 2025, Commercial Aftermarket sales specifically grew by 19% year-over-year. Defense OEM sales growth was also strong at 21% in Q1 2025. This dedicated support structure ensures high aircraft utilization translates directly into steady, high-margin service revenue for Woodward, Inc.

Collaborative Research & Development (R&D) is clearly focused on securing the next generation of platforms. A concrete example is the competitive win to supply wing spoiler actuators for the Airbus A350. This partnership is set to raise Woodward, Inc.'s total content value on every A350 to approximately $550,000 per plane, with deliveries scheduled to begin late calendar 2028. This long-term commitment requires close R&D alignment with the airframe manufacturer well in advance of entry into service.

To manage the cost environment, price realization is a key lever in maintaining profitability with these partners. For the full fiscal year 2025, the increase in Aerospace segment earnings was attributed in part to price realization, which also helped offset inflation and strategic investments. In the Industrial segment during Q3 2025, price realization partially offset lower volume and inflation. This strategy is expected to continue, with management projecting about 5% price realization across the whole portfolio in fiscal 2026.

Here's a quick look at how the Aerospace segment, which heavily relies on these deep customer ties, performed in fiscal year 2025:

Metric	FY 2025 Actual Value	Comparison to Prior Year
Aerospace Segment Net Sales	$2.3 billion	Up 14%
Aerospace Segment Earnings Margin	21.9%	Expanded by 290 basis points
Q4 2025 Aerospace Segment Margin	24.4%	Up 520 basis points
Defense OEM Sales Growth (Q3 2025)	N/A	Up +55.7%
Commercial Aftermarket Sales Growth (Q3 2025)	N/A	Up +30%

The focus on high-value platforms and consistent aftermarket support is reflected in the forward guidance, too. For fiscal 2026, Woodward, Inc. is guiding the Aerospace segment margin to be between 22% to 23% of segment sales. That shows confidence in the long-term value embedded in these customer relationships.

• Secured A350 content value of approximately $550,000 per aircraft.
• Completed previous $600 million share repurchase authorization over a year ahead of schedule.
• Announced a new three-year authorization to repurchase up to $1.8 billion of common stock.
• Defense OEM sales growth reached +55.7% in Q3 FY2025.
• Commercial Aftermarket sales growth hit +30% in Q3 FY2025.

Woodward, Inc. (WWD) - Canvas Business Model: Channels

You're looking at how Woodward, Inc. (WWD) gets its products and services into the hands of its customers as of late 2025. It's a mix of direct relationships and established global networks.

Direct sales to Original Equipment Manufacturers (OEMs) globally form a core part of the business, especially within the Aerospace segment. For fiscal year 2025, Woodward, Inc. reported total net sales of $3.6 billion. The Aerospace segment, which heavily relies on OEM relationships, generated $2.3 billion of that total revenue. A key indicator of the strength in this channel was the 38% rise in defense OEM sales within Aerospace for 2025. Furthermore, the company secured a major OEM channel win by being selected by Airbus to supply 12 of the 14 spoiler actuation systems for the A350 commercial aircraft.

The Worldwide network of authorized service centers for aftermarket support is critical for recurring revenue, particularly in Aerospace. This channel saw a significant surge in 2025, with commercial services sales increasing by 29%. The Industrial segment also uses a network that includes independent distributors and authorized system integrators for aftermarket support, alongside direct sales to OEMs. The company employs over 10,000 members globally to support this worldwide reach.

For direct sales to end-users in certain industrial markets, the Industrial segment is the primary focus. This segment reported sales of $1.25 billion in 2025. While overall Industrial sales were down 3% year-over-year, core industrial sales grew by approximately 10% excluding China, driven by strength in power generation, oil & gas, and marine transportation markets, where direct engagement with end-users is common.

The Internal sales force managing long-cycle defense and commercial contracts handles complex, high-value agreements. This function is crucial for the large, multi-year defense OEM growth seen in 2025. The company's focus on operational excellence and lean improvements, including automation projects at facilities like the Rock Cut Campus, supports the execution of these long-cycle contracts.

Here's a quick look at the 2025 segment performance that flows through these channels:

Segment	2025 Revenue (Approximate)	Key Channel Driver/Metric	2025 Segment Earnings
Aerospace	$2.3 billion	Defense OEM Sales Growth: 38%	$507 million
Industrial	$1.25 billion	Core Sales Growth (Ex-China): 10%	$183 million

The channels used in the Industrial segment are quite varied, as noted in their filings. They generate revenue primarily through sales to OEMs and by providing aftermarket products and services to those OEM customers. Also, Woodward, Inc. sells products through:

• Independent network of distributors.
• Authorized system integrators.
• Repairs and overhaul facilities.
• Directly to end users around the globe.

Woodward, Inc. (WWD) - Canvas Business Model: Customer Segments

You're looking at the customer base for Woodward, Inc. (WWD) as of late 2025, right after they posted record fiscal year 2025 results. The company clearly splits its focus between Aerospace and Industrial markets, and within those, the specific customer groups drive very different growth rates.

Overall, Woodward, Inc. achieved record net sales of $3.6 billion for the fiscal year ending September 30, 2025, marking a 7% increase year-over-year. The Aerospace segment was the primary growth engine, delivering $2.3 billion in sales, which was up 14%.

Here's how the customer groups break down based on the segment performance data we have:

• Aerospace segment earnings for fiscal 2025 were $507 million, representing 21.9 percent of segment net sales.
• Industrial segment earnings for fiscal 2025 were $183 million, or 14.6 percent of segment net sales.
• The company generated $471 million in net cash provided by operating activities for fiscal 2025.

The customer segments within the Aerospace division show a clear preference for aftermarket and defense work in the near term.

Aerospace Commercial OEM (Airbus, Boeing)

This group includes the original equipment manufacturers for commercial aircraft. For the fourth quarter of 2025, sales to commercial OEM customers were reported as essentially flat compared to the prior year period. This flatness in OEM volume contrasts sharply with the aftermarket strength you see below.

Aerospace Commercial Aftermarket (Airlines, MROs)

This is where the high-margin action is right now. Commercial Services sales were up a massive 40% in the fourth quarter of 2025. For the full fiscal year 2025, Commercial Services sales increased by 29%. This surge is tied directly to high aircraft utilization, meaning airlines are flying their existing fleets more, which drives maintenance, repair, and overhaul (MRO) activity. Management noted that the fourth quarter saw an outsized, somewhat lumpy boost from spare Line Replaceable Unit (LRU) sales, which are high-value components airlines swap out quickly.

Defense OEM and Aftermarket (U.S. and international military)

Defense activity provided significant tailwinds. Defense OEM sales specifically increased by 27% in the fourth quarter of 2025. This robust defense performance, coupled with the aftermarket services growth, underpinned the Aerospace segment's margin expansion of 520 basis points in Q4 2025, reaching 24.4 percent of segment net sales.

The Industrial segment, which saw total sales of $1.25 billion in fiscal 2025 (a 3% decrease overall), is seeing strength in specific, non-China-related areas.

Industrial Power Generation (Gas/Steam Turbines)

Power generation, when excluding the impact from the divestiture of the combustion business, grew by 22% in the fourth quarter of 2025. This growth reflects increased output to meet demand across various gas turbine systems value streams.

Industrial Oil & Gas and Marine Transportation

This group saw healthy growth, with Industrial sales growing 11% in Q4 2025. For the full year 2025, core industrial sales-which excludes the China on-highway truck business-increased by 10% to reach $1.2 billion. The specific headwind here is China on-highway truck sales, which are anticipated to be approximately $60 million in 2026, in line with 2025 levels.

To give you a clearer picture of the segment financial contributions for the full fiscal year 2025, here's the quick math:

Customer Group Focus Area	Reported Segment	FY 2025 Net Sales (Approximate)	FY 2025 Segment Earnings	FY 2025 Segment Margin
Commercial OEM, Commercial Aftermarket, Defense OEM/Aftermarket	Aerospace	$2.3 billion	$507 million	21.9 percent
Power Generation, Oil & Gas, Marine Transportation (Core)	Industrial	$1.2 billion (Core)	$183 million	15.2 percent (Core Margin)

If you look at the Q4 2025 margins, the Aerospace segment hit 24.4 percent, while the Industrial segment hit 15.2 percent. That margin difference is defintely where the value capture is happening right now.

Finance: draft 13-week cash view by Friday.

Woodward, Inc. (WWD) - Canvas Business Model: Cost Structure

The Cost Structure for Woodward, Inc. (WWD) is heavily weighted toward investments in future capability, reflecting its position in high-reliability, high-specification aerospace and industrial markets. This structure is characterized by significant upfront and ongoing spending necessary to maintain technological leadership and meet stringent customer requirements.

High fixed costs from advanced manufacturing and R&D investment form a core part of the expense base. Research and development costs for the full fiscal year 2025 reached $147,568 thousand. To put that in perspective for a single quarter, R&D in Q1 2025 was $30 million, representing 3.9% of that quarter's sales. These expenditures are essential for developing next-generation aircraft and energy systems, which lock in long-term revenue streams but require consistent spending regardless of short-term sales fluctuations.

Capital deployment for physical assets is also substantial. You should note the significant capital expenditures (CapEx) plans. Woodward, Inc. had significant CapEx plans detailed, with management noting increased CapEx plans for 2026 and 2027 related to new program wins and automation investments. The required figure for FY2025 is cited as $131 million, with projections for FY2026 peaking higher to support growth initiatives. For the first nine months of FY2025, CapEx reached $79 million.

Here's a quick look at the major cost components relative to the record $3,567,064 thousand in net sales for fiscal year 2025:

Cost Category	FY2025 Amount (in thousands)	FY2025 as % of Sales (Approx.)
Cost of Goods Sold (COGS)	$2,610,772	73.2%
Selling, General, and Administrative (SG&A)	$329,823	9.2%
Research and Development (R&D)	$147,568	4.1%
Interest Expense, Net	$41,500 (Calculated: $45,689 Interest Exp - $4,189 Interest Inc)	1.2%

Cost of Goods Sold (COGS) was $2,610,772 thousand for the full year 2025. This line item is directly impacted by macroeconomic pressures. Segment earnings across both Aerospace and Industrial segments for fiscal 2025 were explicitly noted as being partially offset by inflation. For example, Industrial segment earnings were impacted by inflation, while Aerospace segment earnings were also partially offset by inflation, alongside unfavorable mix and strategic investments.

The need to support higher sales volumes in a dynamic environment required a strategic investment in working capital (inventory). This pressure was significant enough that the company lowered its full-year free cash flow guidance to the range of $315 million to $350 million due to these increased working capital needs. Still, net cash provided by operating activities for FY2025 was robust at $471,000 thousand, a 7.3% increase year-over-year, though free cash flow only grew by 0.2% to $340,000 thousand.

Labor costs for specialized engineering and technical talent are a critical, though less granularly detailed, component of the cost structure. The risk profile explicitly mentions the need for 'Woodward's continued access to a stable workforce and favorable labor relations with its employees.' This implies that securing and retaining specialized talent necessary for advanced manufacturing and R&D is a non-trivial, ongoing cost driver, especially given the company's recognition for manufacturing excellence.

Key cost drivers and pressures include:

• Inflationary impacts on material and component costs.
• The need for strategic investments in manufacturing capabilities.
• The cost associated with maintaining a high level of R&D spending, totaling $147.6 million for FY2025.
• Working capital demands tying up cash flow, evidenced by the FCF guidance adjustment.

Finance: draft 13-week cash view by Friday.

Woodward, Inc. (WWD) - Canvas Business Model: Revenue Streams

You're looking at how Woodward, Inc. brings in the money as of late 2025, and honestly, it's a tale of two segments with one clearly leading the charge.

For the full fiscal year 2025, Woodward, Inc. posted total consolidated net sales of $3.6 billion [cite: 4 in previous search, 6 in previous search]. This record performance shows strong demand across the board, but the Aerospace segment is definitely the engine right now.

The revenue streams break down primarily across two major areas, which you can see clearly laid out here:

Revenue Segment	FY2025 Sales Amount	Year-over-Year Growth (Approximate)
Aerospace Product Sales (OEM) and Aftermarket Services	$2.3 billion [cite: 5 in previous search, 10 in previous search]	14% [cite: 4 in previous search]
Industrial Product Sales and Services	$1.3 billion [cite: 5 in previous search, 10 in previous search]	-3% (Overall Sales) [cite: 5 in previous search]

The Aerospace business is where the action is, driven by high aircraft utilization and robust defense spending. You see this reflected in the aftermarket side of the business, which is a key component of that $2.3 billion figure. That recurring revenue from spare parts and repair/overhaul is what smooths out the OEM delivery cycles.

Specifically within Aerospace, the high-margin commercial services revenue saw a significant jump, reported up by 29% in FY2025 [cite: 5 in previous search]. That's a big driver of margin expansion for the whole company. Here's what's fueling that growth:

• Commercial services sales surge of 29%.
• Defense OEM sales rose by 38%.
• Aerospace segment earnings grew to $507 million.
• Aerospace operating margin expanded by 290 basis points.

Now, the Industrial segment is a bit more nuanced. While the total sales were $1.3 billion [cite: 5 in previous search, 10 in previous search], the overall number was down slightly. However, if you strip out the China On-Highway market, the Core Industrial business actually grew sales by about 11%, which is a much better indicator of underlying health in power generation and oil & gas. The recurring revenue from servicing these industrial assets is still a vital, though perhaps less dynamic, part of the overall revenue mix.

So, the revenue streams are clearly weighted toward the high-growth, high-margin Aerospace aftermarket and defense OEM work, which is what you'd expect given the current utilization rates. Finance: draft 13-week cash view by Friday.