Latest news with #MoogInc
Yahoo
26-04-2025
- Business
- Yahoo
Moog Inc (MOG.A) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Revenue: $935 million in the second quarter, slightly above last year's second quarter. Military Aircraft Sales: $214 million, up 6% over the second quarter of last year. Commercial Aircraft Sales: $216 million, increased 4% over the same quarter a year ago. Space and Defense Sales: $270 million, up 1% over the second quarter last year. Industrial Sales: $234 million, down 7% from the same quarter a year ago. Adjusted Operating Margin: 12.5% in the second quarter, down from 13.6% in the prior year. Adjusted Earnings Per Share: $1.92, down 12% compared to last year's second quarter. Free Cash Flow: $2 million generated in the second quarter. Capital Expenditures: $38 million in the second quarter. Share Repurchases: 290,000 shares repurchased, spending about $60 million in the second quarter. Leverage Ratio: 2.6 times as of the end of the second quarter. Full Year Sales Guidance: Projected to be $3.7 billion. Full Year Earnings Per Share Guidance: Projected to be $8.20 plus or minus $0.20. Warning! GuruFocus has detected 1 Warning Sign with PFG. Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Moog Inc (NYSE:MOG.A) achieved record sales and improved operating margins, reflecting strong financial performance. The company reported a 3% increase in revenue year-to-date compared to the prior year, with expectations for further revenue growth in the second half. Moog Inc (NYSE:MOG.A) anticipates significant free cash flow generation in the latter half of the fiscal year due to optimized networking capital. The defense segment shows strong performance with increased budgets and alignment with key defense priorities, providing growth opportunities. Commercial aftermarket sales are robust, driven by strong fleet utilization and increased airline activity, contributing positively to margins. Tariff changes pose a significant risk, particularly affecting the import of steel and aluminum, and could impact operating profits by $10 million to $20 million. Commercial aircraft sales face challenges due to changes in Airbus' ordering patterns, leading to inventory pressures and potential cash flow impacts. Industrial sales decreased by 7% year-over-year, partly due to divestitures and purposeful product exits. Operating margins in the space and defense segment decreased by 330 basis points, influenced by the absence of last year's employee retention credit. The company faces uncertainties related to tariffs, which could affect various segments differently, with commercial and industrial segments being most vulnerable. Q: Can you provide the commercial OE revenue growth and aftermarket growth for the quarter? A: The commercial OE for the quarter was about $135 million, and the aftermarket was $81 million. This compares to OE of $140 million last year and $67 million for the aftermarket. Q: Can you elaborate on the changes in Airbus' ordering patterns and their impact on Moog? A: Airbus has altered their ordering patterns, affecting our sales guidance for the A350. While commercial OE sales are down, this is offset by strong aftermarket performance. We expect inventory pressure in the back half of fiscal year '25, with recovery anticipated in FY26. Q: How do you anticipate the impact of tariffs on your business, and what mitigation strategies are in place? A: The commercial business is expected to see the highest impact from tariffs, followed by industrial, with minimal impact on space and defense, and negligible on military aircraft. We are utilizing the US-Mexico-Canada trade agreement and adjusting pricing strategies to mitigate tariff impacts. Q: What is the outlook for cash flow generation in the second half of the year? A: We anticipate strong cash flow generation in the second half, driven by improved collections on receivables and inventory management. We expect significant cash flow in the third quarter, with further improvement in the fourth quarter. Q: How do you view the potential $1 trillion defense budget in relation to Moog's long-term outlook? A: The potential increase in the defense budget reflects the necessary investment to address national security threats. This aligns with our capabilities and positions us well for future growth in defense-related programs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Journals
25-04-2025
- Business
- Business Journals
Moog CEO Pat Roche discusses plan for up to $20 million in tariff impacts
Tariffs are a big concern for Moog, which imports a significant amount of steel, aluminum and other materials and products into the U.S. Tariffs are a big concern for Moog, which imports a significant amount of steel, aluminum and other materials and products into the U.S. Moog Inc. (NYSE: MOG.A and MOG.B) is planning for up to $20 million in tariff impacts for its fiscal 2025. CEO Pat Roche addressed tariff concerns during a conference call with investors Friday morning. 'All told, we import about $200 million into the U.S.,' he said. Jennifer Walter, CFO, said the company expects tariffs to impact its commercial aircraft and industrial segments the most, due to the 25% tariffs on steel and aluminum. She said commercial aircraft has a broad global supply chain, and the medical business with the industrial segment sources from a Moog facility in Costa Rica, which is subject to tariffs. 'After considering the actions we're taking to offset these risks, and assuming current conditions persist, we're estimating the potential for $10 million to $20 million of net pressure on our operating profit guidance for fiscal year 2025,' she said. To mitigate the impact, Roche said, Moog will maximize its utilization of the U.S.-Mexico-Canada agreement, create more efficient administration of imports and exports of repair goods that have to return to the U.S., and make price adjustments when necessary. He said the company will also evaluate its manufacturing footprint and supply chain, but it 'will not act in haste.' 'We've tried to model out what potentially could happen based on the imports that we have and the current rate of tariffs, but they change sometimes day by day,' Roche told investors. 'So, there's no certainty in this. I think there will be negotiations on an ongoing basis — on a country basis, but also people lobbying for certain industries, and you saw that with automotive.' Roche said that Moog has spent decades building out manufacturing facilities and global supply chain partnerships in an environment 'that was relatively free of tariffs.' The company has manufacturing sites in the Philippines, India, Ireland, Costa Rica, Germany and the United Kingdom. 'The changes in U.S. tariffs within the last 100 days, especially since April 2, could alter the context in which we operate,' he said. Despite concern over tariffs, Moog reiterated its revenue guidance of $3.7 billion for fiscal year 2025, while reporting its second-quarter earnings Friday. Second-quarter sales were $935 million, up 3% over the same quarter last year.
Yahoo
25-04-2025
- Business
- Yahoo
Moog: Fiscal Q2 Earnings Snapshot
NEW YORK (AP) — NEW YORK (AP) — Moog Inc. (MOG.A) on Friday reported fiscal second-quarter net income of $55.8 million. On a per-share basis, the New York-based company said it had net income of $1.75. Earnings, adjusted for restructuring costs, were $1.92 per share. The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.80 per share. The aerospace contractor posted revenue of $934.8 million in the period. Moog expects full-year earnings to be $8.20 per share, with revenue expected to be $3.7 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on MOG.A at Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Moog Inc. (MOG-A): One of the Top Defense Stock Picks from the Goldman Sachs Portfolio
We recently published a list of Goldman Sachs Defense Stocks: Top 12 Stock Picks. In this article, we will take a look at where Moog Inc. (NYSE:MOG-A) stands against other top defense stock picks from the Goldman Sachs Portfolio. After a subdued start to the year, American defense stocks are beginning to see improved returns. Investors are buoyed by President Trump's plans for a $1 trillion defense budget for fiscal 2026, adding to the momentum from last month's unveiling of the F-47 and announcement to resurrect the country's shipbuilding industry. READ ALSO: 10 Best Mid Cap Defense Stocks to Buy According to Analysts and 10 Best Performing Defense Stocks So Far in 2025. The sector has received another boost after market chatter that tariff negotiations to address trade imbalances could include commitments from foreign countries to buy weapons from the US. In a statement released on April 8, Vietnam's prime minister asked for a 45-day delay in the imposition of tariffs and stated his country would buy more American goods, including weapons, to tackle the trade gap. On April 11, Goldman analyst Noah Poponak adjusted his ratings and price targets for defense stocks, and the most notable adjustment was a prominent Navy shipbuilder receiving a double upgrade on the back of an executive order signed by Trump to revitalize the sector. Poponak expects the stock to benefit, with shipbuilding expected to be a high priority within the defense budget. The firm is known for its expertise in stock recommendations, helping investors identify high-potential companies. GS boasts a vast network of analysts, covers a wide range of stocks. It also has a research team led by analysts and economists from around the world, offering insights on the economy and the broader market. In a report released in March this year, Goldman Sachs Research projected a significant increase in defense spending by EU member nations. Military expenditure in the euro area accounted for 1.8% of the GDP in 2024, and is projected to rise to 2.4% by 2027. The firm's analysts estimate the increased spending to positively impact GDP growth, with every €100 spent on defense to boost GDP by approximately €50. Defense stocks have rallied in Europe this year, as regional capitals unlocked billions to supercharge their militaries. While recent tariffs have sparked a major plunge in shares over the past couple of weeks, this has been a year to remember for several European defense contractors, with significant returns so far in 2025. With that said, let's head over to the list of the top defense picks from the Goldman Sachs stock portfolio. A broker trading stocks on a financial trading floor, representing the investment approach of the company. For this article, we scanned Goldman Sachs' 13F portfolio as of December 31, 2024. From there, we picked the top 12 defense stocks according to their stake value and ranked them in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Stake Value as of Q4 2024: $108,442,341 Moog Inc. (NYSE:MOG-A) designs, manufactures, and integrates precision control components and systems for OEMs and end users in the aerospace, industrial, and defense markets. On March 25, the company announced the shipment of Meteor satellite buses for national security space missions. This is a significant milestone for Moog Inc. (NYSE:MOG-A), which has expanded its footprint to the DoD's programs. It also continues the company's seven-decade-long commitment to protect warfighters and support those who explore the universe. The Meteor is an ESPA Grande-class bus, featuring radiation-hardened space avionics, modular payload power, and mission-configurable flight software, making it ideal for dynamic space operations. This new bus builds on Moog Inc. (NYSE:MOG-A)'s earlier success of the Meteorite small satellite buses, which are currently supporting a national security mission on orbit. In January, Moog Inc. (NYSE:MOG-A) was selected by Lockheed Martin to provide custom actuators for the PAC-3 MSE contract with the Army. The contract was valued at $100 million, making it one of the largest and most significant awards in the company's defense division. The program is aimed at defending the country from inbound ballistic and cruise missiles, aircraft, and other advanced threats. Moog Inc. (NYSE:MOG-A) is among the top defense picks from the Goldman Sachs stock portfolio, with the investment banking firm having a stake value of over $108 million in the company as of Q4 2024. Overall, MOG-A ranks 11th among the Goldman Sachs Defense Stocks: Top 12 Stock Picks. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MOG-A but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Is Moog Inc. (MOG-A) One of the Best Mid Cap Defense Stocks to Buy According to Analysts?
We recently published a list of the 10 Best Mid Cap Defense Stocks to Buy According to Analysts. In this article, we will take a look at where Moog Inc. (NYSE:MOG-A) stands against other best mid cap defense stocks. Defense stocks have surged over the past week after President Trump unveiled plans for a $1 trillion defense budget for fiscal 2026, representing a 12% increase from the current year. Here is what he told reporters on April 7: 'Nobody's seen anything like it. We have to build our military and we're very cost-conscious, but the military is something that we have to build. And we have to be strong because you've got a lot of bad forces out there now. So we're going to be approving a budget and I'm proud to say actually, the biggest one we've ever done for the military.' READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 10 Best Large Cap Defense Stocks to Buy Now. This is an encouraging development for America's defense sector, which had a subdued start to the year due to uncertainty around budget cuts. The creation of DOGE had also reshaped investors' views of the industry. Stocks got another boost last week after market chatter that tariff negotiations to address trade imbalances could include commitments from foreign countries to buy weapons from the US. On April 7, Vietnam's prime minister issued a statement, asking for a 45-day delay in the imposition of tariffs and stating his country would buy more American goods, including arms, to tackle the trade gap. Defense stocks have soared in Europe this year, as regional capitals unlocked billions to supercharge their militaries. While a steep selloff in response to the tariffs sparked a major plunge in shares last week, this has been a year to remember for several European defense companies that have seen double-digit returns so far in 2025. Analysts at Citi believe defense stocks are poised for outperformance due to minimal tariff exposure, increased military budgets, and rising geopolitical tensions. Jason Gursky stated the following in a detailed preview to clients on April 10: 'We materially change the rank order of our stock picks, moving our defense coverage to the top of the list given our positive view on the outlook for global defense spending.' Investors are also buoyed by the unveiling of a new next-generation fighter jet, the F-47, to replace the F-22 Raptor. President Trump has also announced that he will resurrect America's military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China. A senior executive looking up at a large boardroom filled with the stocks their company manages. For this article, we sifted through screeners to identify mid-cap stocks in the aerospace and defense industry. These stocks have a market cap between $2 billion and $10 billion. From there, we picked the top 10 defense stocks with the highest positive share price upside potential. All data is as of the close of business on Friday, April 11, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Market Cap: $5.15 billion Share Price Upside Potential: 35.99% Moog Inc. (NYSE:MOG-A) designs, manufactures, and integrates precision control components and systems for OEMs and end users in the aerospace, industrial, and defense markets. The company operates through four segments: Space and Defense, Military Aircraft, Commercial Aircraft, and Industrial. On January 29, the company announced its selection by Lockheed Martin to provide custom actuators for the PAC-3 MSE contract with the Army. This is one of the largest and most significant awards in Moog Inc. (NYSE:MOG-A)'s defense division, valued at over $100 million. The program is aimed at defending the country from inbound ballistic and cruise missiles, aircraft, and other advanced threats. Moog Inc. (NYSE:MOG-A) reported impressive results for the first quarter of fiscal 2025, with net sales of $910 million, up from $857 million during the prior year's quarter. The increase was driven by growth in the defense and aerospace businesses. Adjusted diluted net earnings per share were logged at $1.78, growing 16% year-over-year. The company's 12-month backlog stood at $2.5 billion. According to Insider Monkey's database for Q4 2024, 25 hedge funds held a stake in the company, up from 17 at the end of the third quarter. Wall Street analysts are bullish on Moog Inc. (NYSE:MOG-A), with a consensus Strong Buy rating and an average share price upside potential of nearly 36%. It is one of the best mid cap stocks to buy. Overall, MOG-A ranks 3rd among the 10 best mid cap defense stocks to buy according to analysts. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MOG-A but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
