Woodward, Inc. 10-Q filed Jul 30, 2026

Modified · Global Business Conditions

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were not authorized by the statute, although it did not establish a process for recovery. Subsequent cases were filed after the U.S. Supreme Court ruling, which resulted in an order requiring U.S. Customs and Border Protection (“CBP”) to establish an administrative process through which applicable tariffs could be recovered. The Company is the importer of record for certain merchandise that was previously subject to such tariffs under IEEPA. The CBP has proposed and worked to develop an administrative process, which went live on April 20, 2026. However, significant uncertainty remains as to the effectiveness, timing, and process The Company has filed refund claims for tariff recovery. The Company is evaluating the ruling tariffs previously paid and potential actions available expects to it, including actions that may be taken to preserve or protect its rights and remediesrecognize such refunds as they are received. In addition, Woodward is not able to accurately estimate the financial effects A portion of any tariff recovery at this time based on a variety of factorsrefund payments have already been recovered, includingbut the unknown timing and amount that can be directly recovered, the percentage of overall recovery that may be required remain subject to be returned to our customers, the applicable administrative process and the amount that can be recovered from third parties to whom Woodward paid increased costs due to tariffsoutcome of the refund claims. The impact on financial statements cannot be accurately estimated at this time. The Company is actively evaluating the applicable rulings and administrative actions taken by CBP continues to determine the bestevaluate its rights and most efficient course of action to recover such tariffs. Because the process, timing, remedies and amount of any recovery are uncertain, the Company is unable to accurately estimate monitoring the financial impacts on the financial statementsstatus of its refund claims.