Woodward, Inc. Earnings Per Share Disclosure
Note 4. Earnings per share
Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.
Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options, restricted stock units, and performance stock units.
The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:
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Year Ended September 30, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net earnings |
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$ |
442,111 |
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$ |
372,971 |
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$ |
232,368 |
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Denominator: |
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Basic shares outstanding |
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59,563 |
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60,076 |
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59,908 |
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Dilutive effect of stock options; restricted and performance stock units |
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1,901 |
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|
2,008 |
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|
1,574 |
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Diluted shares outstanding |
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61,464 |
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|
62,084 |
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61,482 |
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Income per common share: |
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Basic earnings per share |
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$ |
7.42 |
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$ |
6.21 |
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$ |
3.88 |
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Diluted earnings per share |
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$ |
7.19 |
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$ |
6.01 |
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$ |
3.78 |
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The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:
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Year Ended September 30, |
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2025 |
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2024 |
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2023 |
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Options |
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25 |
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63 |
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|
561 |
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Weighted-average option price |
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$ |
186.19 |
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$ |
135.26 |
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$ |
114.88 |
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The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:
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Year Ended September 30, |
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2025 |
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2024 |
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2023 |
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Weighted-average treasury stock shares held for deferred compensation obligations |
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33 |
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|
51 |
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|
88 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 25, 2025 | Showing above |
| 2024 | Nov 26, 2024 | |
| 2023 | Nov 17, 2023 | |
| 2022 | Nov 18, 2022 | |
| 2021 | Nov 19, 2021 | |
| 2020 | Nov 20, 2020 | |
| 2019 | Nov 25, 2019 | |
| 2018 | Nov 13, 2018 | |
| 2017 | Nov 13, 2017 | |
| 2016 | Nov 16, 2016 | |
| 2015 | Nov 12, 2015 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.