M WOODWARD FISCAL YEAR 2022 SECOND QUARTER RESULTS May 2, 2022 Q2 FY22 AGENDA ________ ________ ________ HIGHLIGHTS Dan Provaznik MARKET REVIEW Tom Gendron FINANCIAL RESULTS & OUTLOOK Mark Hartman 2 | © WOODWARD, INC. PROPRIETARY © WOODWARD, INC. | --- ...

Financial Data and Key Metrics Changes - Net sales for Q2 2022 were $587 million, an increase of 1% compared to $581 million in Q2 2021 [7] - Net earnings decreased to $48 million or $0.74 per share from $68 million or $1.04 per share in the prior year [8] - Adjusted net earnings for Q2 2022 were $47 million or $0.72 per share, with no adjustments in the prior year [8] - Net cash provided by operating activities for the first half of fiscal 2022 was $50 million, down from $219 million [9] - Free cash flow for the first half of fiscal 2022 was $26 million, compared to $206 million in the previous year [9] Business Line Data and Key Metrics Changes - Aerospace segment sales for Q2 2022 were $370 million, up 2%, but negatively impacted by approximately $60 million due to COVID-19 disruptions [27] - Commercial OEM and aftermarket sales increased by 21% and 40% respectively, driven by recovery in passenger traffic [28] - Defense OEM sales decreased by 28% primarily due to lower sales of guided weapons, while defense aftermarket sales were down 12% [28] - Industrial segment sales for Q2 2022 were $214 million, a decrease of 1%, impacted by approximately $40 million from COVID-19 disruptions and unfavorable foreign currency [31] Market Data and Key Metrics Changes - Commercial Aerospace is recovering, with U.S. and European domestic passenger traffic nearing pre-COVID levels, while China’s traffic has collapsed due to lockdowns [18] - Demand for gas turbines in power generation is strong in Asia, with increasing aftermarket activity [20] - The oil and gas market remains favorable due to elevated prices, leading to increased utilization and aftermarket demand [22] Company Strategy and Development Direction - The company is focused on addressing market recovery challenges while enhancing operational excellence and delivering shareholder value [24] - Long-term outlook remains positive, with expectations of recovery in markets and improved profitability in Aerospace and Industrial businesses [24] Management's Comments on Operating Environment and Future Outlook - Management anticipates ongoing market volatility due to COVID-19 disruptions, supply chain challenges, and inflationary pressures [15] - The company has reduced its fiscal year outlook due to these challenges but remains optimistic about long-term recovery [17] - Orders are up across nearly all market segments, indicating strong recovery momentum [14] Other Important Information - The company is experiencing labor inefficiencies due to onboarding approximately 400 new employees since January [15] - R&D costs for Q2 2022 were $32 million, or 5.5% of sales, compared to $28 million, or 4.8% of sales in the prior year [36] Q&A Session Summary Question: On OE sales and commercial aero profitability amidst inflationary pressures - Management confirmed that OE sales remain profitable and that price increases are being implemented to offset inflation [51] Question: Impact of inflation on aerospace margins - Management indicated that margin drops are due to inflation, mix issues, and labor efficiencies, with expectations for recovery in the second half of the year [66] Question: Update on supplier capacity issues and chip shortages - Management reported ongoing challenges with suppliers, particularly in semiconductors, with recovery expected in 2023 [72] Question: Changes in full-year revenue guidance - Management highlighted that the reduction in guidance was primarily due to impacts from China lockdowns and supply chain disruptions [109] Question: Confidence in second half sales improvement - Management expressed confidence in achieving sales improvement in the second half, with expectations for a stronger fourth quarter [100]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 FY2022, including earnings, balance sheets, cash flows, and equity, with detailed notes [Condensed Consolidated Statements of Earnings](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net sales slightly increased to **$541.6 million** in Q1 FY2022, but net earnings and diluted EPS declined due to higher costs Three-Months Ended December 31 (in thousands, except per share amounts) | Financial Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net sales | $541,586 | $537,619 | | Total costs and expenses | $503,840 | $490,035 | | Earnings before income taxes | $37,746 | $47,584 | | Net earnings | $30,305 | $41,570 | | Diluted earnings per share | $0.47 | $0.64 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$4.04 billion** as of December 31, 2021, while total liabilities decreased and stockholders' equity slightly increased Balance Sheet Summary (in thousands) | Account | Dec 31, 2021 | Sep 30, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$4,035,240** | **$4,091,004** | | Total Current Assets | $1,446,731 | $1,464,723 | | **Total Liabilities** | **$1,811,808** | **$1,876,223** | | Total Current Liabilities | $329,508 | $366,257 | | Long-term debt | $729,826 | $734,122 | | **Total Stockholders' Equity** | **$2,223,432** | **$2,214,781** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to **$39.3 million** in Q1 FY2022, primarily due to working capital changes, while financing cash outflow decreased Cash Flow Summary (in thousands) | Cash Flow Activity | Three-Months Ended Dec 31, 2021 | Three-Months Ended Dec 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,290 | $146,725 | | Net cash used in investing activities | ($13,115) | ($9,955) | | Net cash used in financing activities | ($46,688) | ($94,642) | | **Net change in cash and cash equivalents** | **($21,480)** | **$48,611** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue recognition, GE joint venture, financial instruments, debt, stock repurchases, and segment performance, supporting financial statements - The company's remaining performance obligations for firm orders totaled **$1.39 billion** as of December 31, 2021, with the majority related to the Aerospace segment and expected to be recognized within two years[33](index=33&type=chunk) - The company's equity interest in the earnings of its joint venture with General Electric (GE) contributed **$4.7 million** to other income in Q1 FY2022, up from **$2.4 million** in Q1 FY2021[48](index=48&type=chunk) - In January 2022, the Board authorized a new **$800 million** stock repurchase program, terminating the previous **$500 million** authorization from 2019; in Q1 FY2022, the company repurchased **$26.7 million** of its common stock[102](index=102&type=chunk)[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2022 financial performance, covering COVID-19 impacts, operational results, segment performance, liquidity, and capital resources [Overview](index=27&type=section&id=Overview) Q1 FY2022 saw market recovery signs but faced supply chain and labor disruptions, with consolidated net sales slightly increasing driven by Aerospace - The COVID-19 pandemic and related disruptions, including supply chain constraints and labor shortages, continue to adversely impact operations and caused some customer-initiated shipment delays[125](index=125&type=chunk) Q1 FY2022 vs Q1 FY2021 Performance | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Total Net Sales | $541.6M | $537.6M | | Aerospace Sales | $336.4M | $321.7M | | Industrial Sales | $205.2M | $216.0M | | Consolidated Net Earnings | $30.3M | $41.6M | | Diluted EPS | $0.47 | $0.64 | | Adjusted Diluted EPS | $0.56 | $0.64 | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Consolidated net sales rose to **$541.6 million**, but gross margin declined due to mix shift, while SG&A increased and R&D decreased - Aerospace segment sales increased **4.6%** to **$336.4 million**, driven by recovering global passenger traffic and increased aircraft production rates, though negatively impacted by approximately **$42 million** due to supply chain and labor disruptions[134](index=134&type=chunk)[145](index=145&type=chunk)[147](index=147&type=chunk) - Industrial segment sales decreased **5.0%** to **$205.2 million**, primarily due to weakness in natural gas engine sales in China and unfavorable foreign currency impacts, with approximately **$28 million** negative impact from COVID-related disruptions[135](index=135&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Gross margin declined to **22.6%** from **25.3%** year-over-year, attributed to increased Aerospace commercial OEM sales volume which carry lower margins[137](index=137&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity with **$427.0 million** cash, but operating cash flow decreased; a new **$800 million** stock repurchase program was authorized - As of December 31, 2021, the company had **$427.0 million** in cash and cash equivalents, total debt of **$730.3 million**, and **$989.1 million** of borrowing availability under its revolving credit facility[131](index=131&type=chunk)[156](index=156&type=chunk) Cash Flow Comparison (Q1 FY2022 vs Q1 FY2021, in thousands) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $39,290 | $146,725 | | Free cash flow (Non-GAAP) | $26,167 | $139,462 | - The Board terminated the 2019 stock repurchase authorization and approved a new **$800 million** program in January 2022, which will run for two years[160](index=160&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks including interest rate, foreign currency, and raw material costs, with no material changes since the last 10-K - The company's primary market risks include interest rate risk, foreign currency exchange rate risk, and raw material cost changes; there have been no material changes in these risks since the last annual report[178](index=178&type=chunk)[179](index=179&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of December 31, 2021, with no material changes to internal controls during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2021[181](index=181&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[182](index=182&type=chunk) [PART II – OTHER INFORMATION](index=37&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with management expecting no material impact on financial condition or operations - Woodward is involved in routine legal proceedings and claims, but management believes any resulting liabilities will not materially impact the company's liquidity, financial condition, or operations[184](index=184&type=chunk)[185](index=185&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the most recent Annual Report on Form 10-K - The risk factors disclosed in the company's most recent Form 10-K have not materially changed[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **233,204** shares at **$114.69** per share in October 2021, under a publicly announced plan Issuer Purchases of Equity Securities (October 2021) | Period | Total Shares Purchased | Weighted-Average Price Paid Per Share | Shares Purchased as Part of Publicly Announced Plan | | :--- | :--- | :--- | :--- | | Oct 1 - Oct 31, 2021 | 233,204 | $114.69 | 233,178 | - In January 2022, the Board terminated the 2019 stock repurchase authorization and approved a new **$800 million** program to run through January 2024[188](index=188&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the 10-Q, including credit agreement amendments, officer certifications, and interactive data

Woodward, Inc. (NASDAQ:WWD) Q1 2022 Results Conference Call January 31, 2022 4:30 PM ET Company Participants Dan Provaznik - Director of Investor Relations Tom Gendron - Chairman and Chief Executive Officer Mark Hartman - Chief Financial Officer Conference Call Participants Sheila Kahyaoglu - Jefferies Robert Spingarn - Milius Research Christopher Glynn - Oppenheimer Michael Ciarmoli - Truist Securities Matt Akers - Los Fargo Pete Skibitski - Alembic Global David Strauss - Barclays Gautam Khanna - Cowen Chr ...

Fiscal Year 2022 First Quarter Results January 31, 2022 Today's Agenda Highlights Market Review Financial Results & Outlook Q&A Dan Provaznik Tom Gendron Mark Hartman 2 | © WOODWARD, INC. PROPRIETARY Cautionary Statement Information in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, statements regarding our business and financial outlook for fiscal 2022, inclu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 000-08408 WOODWARD, INC. (Exact name of registrant as specified in its charter) Delaware 36-1984010 (State or other jurisdiction of inc ...

Financial Data and Key Metrics Changes - Net sales for Q4 2021 were $570 million, a 7% increase from $531 million in Q4 2020. For the full year, net sales were $2.25 billion, down from $2.5 billion in the prior year [9][10] - Net earnings for Q4 2021 were $50 million ($0.76 per share), compared to $57 million ($0.89 per share) in Q4 2020. Adjusted net earnings for Q4 2021 were $54 million ($0.82 per share), up from $48 million ($0.75 per share) in the prior year [9][10] - Free cash flow for 2021 was $427 million, compared to $302 million in 2020, reflecting effective working capital management [10][31] Business Line Data and Key Metrics Changes - Aerospace segment sales for Q4 2021 were $371 million, a 12% increase from the prior year, driven by a 67% increase in commercial OEM sales and a 23% increase in aftermarket sales. However, defense OEM sales decreased by 6% and defense aftermarket sales decreased by 20% [21][22] - Industrial segment sales for Q4 2021 were $193 million, a slight decrease of 1% from $195 million in the prior year, primarily due to lower industrial gas turbine sales and weakness in natural gas engines in China [24][25] Market Data and Key Metrics Changes - The commercial aerospace market is recovering, with domestic travel nearing pre-COVID levels and international travel improving, although still lagging [14] - In the industrial market, demand for gas turbines is increasing, particularly in Asia, and there is strong demand for backup power for data centers [15] - The oil and gas sector has seen prices return to pre-2020 levels, leading to increased capital expenditures [17] Company Strategy and Development Direction - The company expects continued recovery in 2022, with a focus on capitalizing on market opportunities despite ongoing uncertainties related to COVID-19 and supply chain disruptions [13][33] - The aerospace outlook anticipates further improvements in build rates and recovery in flight traffic, while industrial growth is expected to be driven by higher demand for power generation equipment and increased ship utilization [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery across markets, with expectations for improved profitability in both aerospace and industrial segments in 2022 [19][33] - The company highlighted the importance of managing supply chain disruptions and indicated that improvements are anticipated in the second half of fiscal 2022 [52][116] Other Important Information - The effective tax rate for fiscal 2021 was 15.1%, with an expected increase to approximately 21% for the upcoming year [30][36] - The company returned $82 million to shareholders in fiscal 2021 through dividends and share repurchases, with $441 million remaining available under the share repurchase program [32] Q&A Session Summary Question: Guidance implications for industrial segment growth - Management indicated confidence in low double-digit growth due to recovery in turbo machinery and marine markets, with discussions of volume increases with customers [42] Question: Supply chain issues and revenue expectations - Management believes the worst of supply chain issues is behind them, with expectations for recovery in the second half of fiscal 2022 [50] Question: Decline in guided weapons sales - Management anticipates a decline in guided weapons sales, particularly JDAM, but expects some volume from foreign military sales [58][104] Question: Pricing dynamics in the aftermarket - Management confirmed that they are still able to achieve reasonable price increases in the aftermarket, with good pricing positions [109] Question: Working capital expectations - Management expects working capital needs to increase primarily in receivables as sales grow, while inventory management remains strong [92]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 000-08408 WOODWARD, INC. (Exact name of registrant as specified in its charter) Delaware 36-1984010 (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - Net sales for Q3 2021 were $557 million, an increase from $524 million in the prior year quarter, representing a growth of 6.3% [9][23] - Net earnings and adjusted net earnings for Q3 2021 were both $49 million or $0.74 per share, compared to $38 million or $0.61 per share in Q3 2020 [9][10] - Net cash provided by operating activities for the first nine months of 2021 was $318 million, up from $212 million in the same period of the prior year [10][31] - Free cash flow for the first nine months of 2021 was $297 million, compared to $173 million in the prior year [32] Business Line Data and Key Metrics Changes - Aerospace segment sales for Q3 2021 were $341 million, an increase of 11% from the prior year quarter, with commercial OEM and aftermarket sales up 51% and 11% respectively [24] - Industrial segment sales for Q3 2021 were $216 million, slightly down from $217 million in the prior year period, but excluding renewable power systems, sales increased to $210 million [28] - Aerospace segment earnings for Q3 2021 were $53 million or 15.6% of segment sales, compared to $41 million or 13.4% in Q3 2020 [27] Market Data and Key Metrics Changes - U.S. domestic travel is returning to near pre-COVID levels, while international travel remains weak [13] - Demand for gas turbines in power generation is increasing, with expectations for further improvement in 2022, driven by growth in Asia [15] - The global marine market is seeing improved ship utilization, which is expected to drive aftermarket activity [17] Company Strategy and Development Direction - The company anticipates recovery to pre-pandemic levels in 2023, with significant growth expected from market share gains and favorable fleet dynamics [12] - Continued investment in innovative products aimed at enhancing emissions performance, reliability, and fuel efficiency is a priority [19][20] - The company plans to focus on bolt-on acquisitions to fill in its strategic gaps, leveraging a strong balance sheet and cash flow [48] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing global supply chain disruptions and the unpredictable impact of COVID variants as factors contributing to future uncertainty [12][18] - The company remains optimistic about the recovery of its markets, particularly in aerospace and industrial segments, despite anticipated volatility [18][33] - Management expects sales, earnings, and free cash flow results for Q4 2021 to be higher than Q3, but considerable uncertainty remains [33] Other Important Information - The company experienced a $30 million negative impact on sales due to global supply chain constraints, predominantly affecting the aerospace business [23] - R&D expenses for Q3 2021 were $30 million, or 5.3% of sales, down from $35 million or 6.6% in the prior year [30] Q&A Session Summary Question: Competitive implications of Parker-Hannifin's acquisition of Meggitt - Management does not foresee significant changes in the competitive landscape due to this acquisition, noting only minor overlaps in certain areas [38][41] Question: Details on supply chain issues and their impact - The $30 million impact was predominantly from aerospace, with shortages primarily in electronics and other disruptions due to COVID-related plant shutdowns [55][56] Question: Outlook on guided weapons demand - Management anticipates a significant decline in guided weapons in fiscal 2022, with current demand being flat to slightly down [59][60] Question: Recovery in marine aftermarket and industrial markets - Management is optimistic about improvements in marine aftermarket and industrial markets, with expectations for better performance in 2022 [68][70] Question: Hiring and structural cost savings - The company has begun hiring back direct labor and anticipates continuing to ramp up as demand increases, with an estimated $50 million in ongoing structural cost savings [86][88] Question: Cash balance and shareholder returns - The company maintains a significant cash balance and plans to return 50% of net earnings to shareholders, including potential share buybacks [90][91]

Fiscal Year 2021 Third Quarter Results August 2, 2021 Today's Agenda Highlights Market Review Financial Results & Outlook Q&A Don Guzzardo Tom Gendron Bob Weber 2 | © WOODWARD, INC. PROPRIETARY Cautionary Statement Information in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements include, but are not limited to, statements about of the recovery of global economi ...