Latest news with #MoogInc
Yahoo
5 days ago
- Business
- Yahoo
Moog Inc (MOG.A) Q3 2025 Earnings Call Highlights: Record Sales and Strategic Growth Amid ...
Sales: $971 million, up 7% from last year's third quarter. Commercial Aircraft Sales: $219 million, increased 16% year-over-year. Space and Defense Sales: $288 million, up 11% from the previous year. Military Aircraft Sales: $225 million, up 8% year-over-year. Industrial Sales: $240 million, down 4% due to divestitures. Adjusted Operating Margin: 13.6%, up 130 basis points from the prior year. Commercial Aircraft Operating Margin: 14.9%, up 180 basis points. Industrial Operating Margin: 13.5%, up 180 basis points. Space and Defense Operating Margin: 14.1%, up 140 basis points. Military Aircraft Operating Margin: 11.6%, down 30 basis points. Adjusted Earnings Per Share: $2.37, up 24% from last year's third quarter. Free Cash Flow: $93 million, with over 120% free cash flow conversion. Leverage Ratio: 2.4 times at the end of the third quarter. Updated Sales Guidance: $3.8 billion, an $80 million increase from previous guidance. Projected Operating Margin: 12.8%, down 20 basis points due to tariff pressures. Projected Adjusted Earnings Per Share: $8.25, plus or minus $0.10. Free Cash Flow Conversion Guidance: Moderated to a 30% to 50% range. Warning! GuruFocus has detected 4 Warning Signs with UVE. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Moog Inc (NYSE:MOG.A) delivered record sales and adjusted earnings per share, reflecting strong financial performance. The company achieved a record 12-month backlog, indicating robust demand and future revenue potential. Moog Inc (NYSE:MOG.A) reported strong growth in key areas such as commercial aftermarket, satellite components, missiles, defense components, and new military aircraft programs. The company successfully mitigated some of the tariff impacts through strategic actions, including price adjustments and leveraging trade agreements. Moog Inc (NYSE:MOG.A) acquired COTSWORKS defense components business, enhancing its optoelectronics capabilities and expanding its product portfolio. Negative Points Moog Inc (NYSE:MOG.A) faced significant tariff pressures, particularly on steel and aluminum imports, impacting operating margins. The company had to take $20 million in charges related to product development termination, facility closures, and investment impairments. Free cash flow conversion guidance was lowered due to increased working capital needs, primarily in inventories and receivables. There were disruptions and delays in certain business jet and narrow-body programs, affecting sales in the commercial aircraft segment. The company experienced pressure on operating margins in the military aircraft segment due to increased R&D investments and sales mix. Q & A Highlights Q: What led to the revision of Moog's free cash flow conversion guidance to 30%-50% from the previous 50%? Does this include the tax benefit for the year? A: Jennifer Walter, CFO, explained that the revision is due to increased sales and operating performance, which necessitated more working capital, particularly in physical inventories and billed receivables. The tax benefit from recent legislation will impact FY '26, not FY '25. Q: What is driving the increase in inventory, and is it related to tariffs or supply chain uncertainties? A: Jennifer Walter clarified that the inventory build is not related to tariffs or uncertainties but is to support the higher sales levels. The company is preparing for increased demand and is managing inventory through planning and sourcing activities. Q: How does Moog expect to benefit from the increased defense budget and NATO spending targets? A: Patrick Roche, CEO, stated that Moog is well-positioned to benefit from the increased defense spending due to its alignment with prioritized areas such as missile systems and hypersonics. The company expects strong growth and increased demand, particularly in its missile business. Q: Can Moog mitigate tariff impacts through pricing strategies in new contracts? A: Aaron Astrachan, Director of Investor Relations, noted that Moog has revised its pricing approach over the past few years to ensure value delivery. The company is actively working to pass through cost increases due to tariffs where possible, with some price adjustments expected to take effect in Q4. Q: What is driving the strength in Moog's Industrial business, and is it expected to continue? A: Patrick Roche highlighted that the industrial business is resilient, with stable book-to-bill ratios and growth in industrial automation and medical segments. The medical segment, in particular, is experiencing steady growth and increased market share. 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
Yahoo
6 days ago
- Business
- Yahoo
Moog's (NYSE:MOG.A) five-year total shareholder returns outpace the underlying earnings growth
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on a lighter note, a good company can see its share price rise well over 100%. One great example is Moog Inc. (NYSE:MOG.A) which saw its share price drive 246% higher over five years. It's also good to see the share price up 10% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 16% in 90 days). While the stock has fallen 3.7% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, Moog achieved compound earnings per share (EPS) growth of 3.6% per year. This EPS growth is slower than the share price growth of 28% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It might be well worthwhile taking a look at our free report on Moog's earnings, revenue and cash flow. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Moog, it has a TSR of 264% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective Moog shareholders are down 3.8% for the year (even including dividends), but the market itself is up 20%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 30% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Moog , and understanding them should be part of your investment process. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Moog Inc. Announces Cash Dividend
The Board of Directors of Moog Inc. (NYSE: MOG.A and MOG.B) declared a quarterly dividend of $0.29 per share on the Company's issued and outstanding shares of Class A and Class B common stock. The dividend will be paid on August 26, 2025, to all shareholders of record as of the close of business on August 8, 2025. The dividend represents a net use of cash of approximately $9 million. Future declarations of quarterly dividends are subject to the determination and discretion of Moog's Board of Directors. About Moog Inc. Moog is a worldwide designer, manufacturer, and systems integrator of high-performance precision motion and fluid controls and control systems. Moog's high-performance systems control military and commercial aircraft, satellites, and space vehicles, launch vehicles, defense systems, missiles, automated industrial machinery, marine, and medical equipment. Additional information about the Company can be found at
Yahoo
6 days ago
- Business
- Yahoo
Moog Inc. Reports Third Quarter 2025 Results With Both Record Sales and Earnings Per Share
EAST AURORA, N.Y., July 25, 2025--(BUSINESS WIRE)--Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today reported fiscal third quarter 2025 net sales of $971 million, diluted earnings per share of $1.87 and adjusted diluted earnings per share of $2.37, all records, reflecting business growth and simplified operations. (in millions, except per share results) Three Months Ended Q3 2025 Q3 2024 Deltas Net sales $ 971 $ 905 7 % Operating margin 11.5 % 11.6 % (10) bps Adjusted operating margin 13.6 % 12.3 % 130 bps Diluted net earnings per share $ 1.87 $ 1.74 7 % Adjusted diluted net earnings per share $ 2.37 $ 1.91 24 % Net cash provided (used) by operating activities $ 125 $ 30 $ 95 Free cash flow $ 93 $ (2 ) $ 95 See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the periods ended June 28, 2025 and June 29, 2024. Quarter Highlights Net sales increased to a record level, led by strength in Commercial Aircraft, Space and Defense, and Military Aircraft. Industrial declined due to divestitures completed at the beginning of this fiscal year. Operating margin was relatively unchanged as charges for a program termination and charges for simplification initiatives offset stronger operational performance. Adjusted operating margin increased due to the benefit from the sale of intellectual property and inventory associated with a non-core product line and a favorable sales mix, partially offset by tariff pressure. Diluted net earnings per share increased as strong operational performance was partially offset by higher charges for a program termination and charges for simplification initiatives. Adjusted diluted net earnings per share increased reflecting margin expansion and incremental profit from higher sales. Free cash flow improved with a conversion greater than 120%. Twelve-month backlog was at a record level of $2.7 billion with growth primarily driven by Military Aircraft and Space and Defense. Acquired COTSWORKS after quarter-end, strengthening the Space and Defense product portfolio. "We have just delivered another quarter of record financial results, reflective of our unrelenting focus on driving improved business performance," said Pat Roche, CEO. "Our teams across the company continue advancing our simplification strategies, and our value proposition to our customers has resulted in strong order intake and a record 12-month backlog. Our employees are driving change and our business is strong, giving us confidence as we look to 2026." Segment Results Sales in the third quarter increased 7% to a record $971 million. Sales growth was led by Commercial Aircraft, which increased 16% on strong aftermarket demand. Space and Defense sales increased 11%, reflecting broad-based demand including satellite components and missile control programs. Military Aircraft sales increased 8%, driven by continued ramp-up on the FLRAA program. Industrial sales declined 4% due to previously completed divestitures. Operating margin in the third quarter was 11.5%, down 10 basis points from the prior year. Military Aircraft operating margin declined 360 basis points to 8.0%, primarily due to charges tied to the termination of a product development effort, along with a less favorable sales mix and increased research and development investment in future programs. Industrial operating margin declined 20 basis points to 9.6%, reflecting charges related to portfolio shaping, facility rationalization and an investment impairment, as well as pressures from tariffs, and were partially offset by the benefit from simplification initiatives. Partially offsetting these declines was an increase in Commercial Aircraft operating margin of 200 basis points to 14.9%, supported by the benefit from the sale of a non-core product line and by record aftermarket sales, partially offset by pressures from tariffs and OEM customers' production delays. In addition, Space and Defense operating margin increased 70 basis points to 13.3%, driven by profitable sales growth. Adjusted operating margin excludes charges of $20 million and $6 million in the third quarters of 2025 and 2024, respectively, which primarily relate to simplification initiatives and a program termination. Excluding these charges, total company adjusted operating margin increased 130 basis points from 12.3% to 13.6%. Commercial Aircraft adjusted operating margin increased 180 basis points to 14.9%, supported by the benefit from the sale of a non-core product line and by record aftermarket sales, partially offset by pressures from tariffs and OEM customers' production delays. Industrial adjusted operating margin improved 180 basis points to 13.5%, supported by the benefit of the simplification initiatives, including divestitures completed at the start of the year, partially offset by tariff pressure. Space and Defense adjusted operating margin increased 140 basis points to 14.1%, driven by profitable sales growth. Partially offsetting the increases was a decrease in Military Aircraft adjusted operating margin of 30 basis points to 11.6%, due to a less favorable program sales mix and increased research and development investment. Free Cash Flow Results Free cash flow for the quarter was $93 million, driven by strong earnings and cash provided by changes in working capital. Capital expenditures were $33 million. 2025 Financial Guidance "We are increasing our sales guidance from 90 days ago based on the strength of the business. We are updating our adjusted operating margin guidance to reflect the expected pressures associated with tariffs and the underlying strength in our business. We are also moderating our free cash flow guidance based on working capital needs to support our elevated growth," said Jennifer Walter, CFO. "We're on track to close out a record year for sales in 2025. Our business is strong, and we're continuing to expand our operating margin and generate an increasing level of free cash flow." FY 2025 Guidance (1) Current Previous Net sales (in billions) $ 3.8 $ 3.7 Operating margin 11.9 % 12.7 % Adjusted operating margin 12.8 % 13.0 % Diluted net earnings per share(2) $ 7.44 $ 7.89 Adjusted diluted net earnings per share(2) $ 8.25 $ 8.20 Free cash flow conversion 30 - 50 % 50 % (1) Current guidance now includes the net tariff pressures, while the previous guidance excluded it.(2) Diluted net earnings per share and Adjusted diluted net earnings per share figures are forecasted to be within range of +/- $0.10. Conference call information In conjunction with today's release, Pat Roche, CEO, and Jennifer Walter, CFO, will host a conference call today beginning at 10:00 a.m. ET, which will be simultaneously broadcast live online. Listeners can access the call and supplemental financial materials at Cautionary Statement This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as: "may," "will," "should," "believes," "expects," "expected," "intends," "plans," "projects," "approximate," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume," "assume" and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, are neither historical facts nor guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A "Risk Factors" of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission ("SEC") and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) our heavy dependence on government contracts that may not be fully funded or may be terminated; (iv) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (v) failure of our subcontractors or suppliers to perform their contractual obligations; and (vi) our accounting estimations for over-time contracts and any changes we need to make thereto. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. While we believe we have identified and discussed in our SEC filings the material risks affecting our business, there may be additional factors, risks and uncertainties not currently known to us or that we currently consider immaterial that may affect the forward-looking statements we make herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to update any forward-looking statement made in this press release, except as required by applicable law. Moog STATEMENTS OF EARNINGS (UNAUDITED)(dollars in thousands, except per share data) Three Months Ended Nine Months Ended June 28, 2025 June 29,2024 June 28, 2025 June 29,2024 Net sales $ 971,363 $ 904,735 $ 2,816,518 $ 2,691,888 Cost of sales 699,685 651,672 2,044,373 1,938,673 Inventory write-down 5,839 1,600 7,988 1,775 Gross profit 265,839 251,463 764,157 751,440 Research and development 21,906 27,791 69,992 86,752 Selling, general and administrative 138,801 126,361 399,684 370,047 Interest 17,790 18,153 54,340 52,850 Asset impairment 3,000 112 3,000 6,862 Restructuring 2,850 3,984 9,059 12,623 Other 3,510 4,157 7,942 10,041 Earnings before income taxes 77,982 70,905 220,140 212,265 Income taxes 18,275 14,545 51,566 48,090 Net earnings $ 59,707 $ 56,360 $ 168,574 $ 164,175 Net earnings per share Basic $ 1.89 $ 1.76 $ 5.32 $ 5.14 Diluted $ 1.87 $ 1.74 $ 5.25 $ 5.08 Weighted average common shares outstanding Basic 31,524,999 31,960,165 31,684,945 31,943,365 Diluted 31,896,949 32,409,370 32,082,186 32,342,700 Moog TO ADJUSTED NET EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTED NET EARNINGS PER SHARE (UNAUDITED)(dollars in thousands) Three Months Ended Nine Months Ended June 28, 2025 June 29,2024 June 28, 2025 June 29,2024 As Reported: Earnings before income taxes $ 77,982 $ 70,905 $ 220,140 $ 212,265 Income taxes 18,275 14,545 51,566 48,090 Effective income tax rate 23.4 % 20.5 % 23.4 % 22.7 % Net earnings 59,707 56,360 168,574 164,175 Diluted net earnings per share $ 1.87 $ 1.74 $ 5.25 $ 5.08 Program Terminations1 Earnings before income taxes $ 8,065 $ — $ 8,065 $ 1,992 Income taxes 1,903 — 1,903 470 Net earnings 6,162 — 6,162 1,522 Diluted net earnings per share $ 0.19 $ — $ 0.19 $ 0.05 Simplification Initiatives2 Earnings before income taxes $ 6,805 $ 5,818 $ 18,204 $ 14,457 Income taxes 1,647 1,502 4,487 3,654 Net earnings 5,158 4,316 13,717 10,803 Diluted net earnings per share $ 0.16 $ 0.13 $ 0.43 $ 0.33 Investment Losses3 Earnings before income taxes $ 3,000 $ — $ 3,000 $ 5,294 Income taxes — (1,249 ) — — Net earnings 3,000 1,249 3,000 5,294 Diluted net earnings per share $ 0.09 $ 0.04 $ 0.09 $ 0.16 Acquisition and Integration4 Earnings before income taxes $ 481 $ — $ 481 $ — Income taxes 113 — 113 — Net earnings 368 — 368 — Diluted net earnings per share $ 0.01 $ — $ 0.01 $ — Other Charges5 Earnings before income taxes $ 1,462 $ 111 $ 3,462 $ 415 Income taxes 344 26 817 98 Net earnings 1,118 85 2,645 317 Diluted net earnings per share $ 0.04 $ — $ 0.08 $ 0.01 As Adjusted: Earnings before income taxes $ 97,795 $ 76,834 $ 253,352 $ 234,423 Income taxes 22,282 14,824 58,886 52,312 Effective income tax rate 22.8 % 19.3 % 23.2 % 22.3 % Net earnings 75,513 62,010 194,466 182,111 Diluted net earnings per share $ 2.37 $ 1.91 $ 6.06 $ 5.63 The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding.1 Charges include costs related to the termination of significant development, production, or support programs, such as write-off and impairments or inventory and long-lived assets, contract termination costs, and other charges.2 Charges include costs related to footprint rationalization, portfolio shaping and legal entity re-organization activities, such as facility closure costs, employee severance and retention costs, write-off and impairments of inventory and long-lived assets, and other charges.3 Charges include impairment losses on minority investments.4 Charges include costs related to acquisition such as amortization of inventory fair value step-up and professional services fees. Charges also include costs related to integrating the businesses, such as employee severance and retention costs, professional services fees, legal entity and facility rationalization costs and other related charges.5 Other charges include business interruptions from natural causes, litigation matters, and other items that are not part of normal operations. While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. Moog SALES AND OPERATING PROFIT (UNAUDITED)(dollars in thousands) Three Months Ended Nine Months Ended June 28, 2025 June 29,2024 June 28, 2025 June 29,2024 Net sales: Space and Defense $ 287,705 $ 258,409 $ 805,673 $ 755,324 Military Aircraft 224,662 207,177 651,931 595,921 Commercial Aircraft 219,436 189,365 656,740 591,181 Industrial 239,560 249,784 702,174 749,462 Net sales $ 971,363 $ 904,735 $ 2,816,518 $ 2,691,888 Operating profit: Space and Defense $ 38,261 $ 32,635 $ 99,581 $ 100,175 13.3 % 12.6 % 12.4 % 13.3 % Military Aircraft 17,994 23,965 64,632 60,323 8.0 % 11.6 % 9.9 % 10.1 % Commercial Aircraft 32,623 24,367 82,418 69,838 14.9 % 12.9 % 12.5 % 11.8 % Industrial 22,989 24,413 75,700 81,592 9.6 % 9.8 % 10.8 % 10.9 % Total operating profit 111,867 105,380 322,331 311,928 11.5 % 11.6 % 11.4 % 11.6 % Deductions from operating profit: Interest expense 17,790 18,153 54,340 52,850 Equity-based compensation expense 4,649 4,089 12,669 11,301 Non-service pension expense 1,970 3,188 5,855 9,566 Corporate and other expenses, net 9,476 9,045 29,327 25,946 Earnings before income taxes $ 77,982 $ 70,905 $ 220,140 $ 212,265 Moog TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)(dollars in thousands) Three Months Ended Nine Months Ended June 28, 2025 June 29,2024 June 28, 2025 June 29,2024 Space and Defense operating profit - as reported $ 38,261 $ 32,635 $ 99,581 $ 100,175 Simplification Initiatives 406 — 2,474 — Acquisition Integration 481 — 481 — Other charges 1,462 112 1,462 416 Space and Defense operating profit - as adjusted $ 40,610 $ 32,747 $ 103,998 $ 100,591 14.1 % 12.7 % 12.9 % 13.3 % Military Aircraft operating profit - as reported $ 17,994 $ 23,965 $ 64,632 $ 60,323 Program terminations 8,065 — 8,065 1,992 Simplification Initiatives — 609 591 3,732 Investment losses — — — 5,294 Other charges — — 2,000 — Military Aircraft operating profit - as adjusted $ 26,059 $ 24,574 $ 75,288 $ 71,341 11.6 % 11.9 % 11.5 % 12.0 % Commercial Aircraft operating profit - as reported $ 32,623 $ 24,367 $ 82,418 $ 69,838 Simplification Initiatives — 408 — 408 Commercial Aircraft operating profit - as adjusted $ 32,623 $ 24,775 $ 82,418 $ 70,246 14.9 % 13.1 % 12.5 % 11.9 % Industrial operating profit - as reported $ 22,989 $ 24,413 $ 75,700 $ 81,592 Simplification Initiatives 6,399 4,800 15,139 10,316 Investment losses 3,000 — 3,000 — Industrial operating profit - as adjusted $ 32,388 $ 29,213 $ 93,839 $ 91,908 13.5 % 11.7 % 13.4 % 12.3 % Total operating profit - as adjusted $ 131,680 $ 111,309 $ 355,543 $ 334,086 13.6 % 12.3 % 12.6 % 12.4 % While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP Moog BALANCE SHEETS (UNAUDITED)(dollars in thousands) June 28, 2025 September 28,2024 ASSETS Current assets Cash and cash equivalents $ 58,191 $ 61,694 Restricted cash 823 123 Receivables, net 529,753 419,971 Unbilled receivables 734,976 709,014 Inventories, net 924,682 863,702 Prepaid expenses and other current assets 153,479 86,245 Total current assets 2,401,904 2,140,749 Property, plant and equipment, net 988,125 929,357 Operating lease right-of-use assets 52,877 52,591 Goodwill 802,089 833,764 Intangible assets, net 57,182 63,479 Deferred income taxes 37,701 20,991 Other assets 56,696 52,695 Total assets $ 4,396,574 $ 4,093,626 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 289,160 $ 292,988 Accrued compensation 98,292 101,127 Contract advances and progress billings 298,648 299,732 Accrued liabilities and other 302,514 305,180 Total current liabilities 988,614 999,027 Long-term debt, excluding current installments 1,081,674 874,139 Long-term pension and retirement obligations 177,688 167,161 Deferred income taxes 27,664 27,738 Other long-term liabilities 177,233 164,928 Total liabilities 2,452,873 2,232,993 Shareholders' equity Common stock - Class A 43,864 43,835 Common stock - Class B 7,416 7,445 Additional paid-in capital 769,935 784,509 Retained earnings 2,810,050 2,668,723 Treasury shares (1,205,305 ) (1,082,240 ) Stock Employee Compensation Trust (173,214 ) (194,049 ) Supplemental Retirement Plan Trust (147,042 ) (163,821 ) Accumulated other comprehensive loss (162,003 ) (203,769 ) Total shareholders' equity 1,943,701 1,860,633 Total liabilities and shareholders' equity $ 4,396,574 $ 4,093,626 Moog STATEMENTS OF CASH FLOWS (UNAUDITED)(dollars in thousands) Nine Months Ended June 28, 2025 June 29,2024 CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 168,574 $ 164,175 Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Depreciation 69,292 64,302 Amortization 6,996 7,677 Deferred income taxes (18,645 ) (26,483 ) Equity-based compensation expense 12,669 11,301 Asset impairment and inventory write-down 10,988 8,637 Other 4,399 5,374 Changes in assets and liabilities providing (using) cash: Receivables (105,346 ) (18,677 ) Unbilled receivables (35,174 ) (57,723 ) Inventories (64,095 ) (105,629 ) Accounts payable (3,301 ) 918 Contract advances and progress billings 8,798 (26,882 ) Accrued expenses (6,645 ) 36,928 Accrued income taxes (22,669 ) 9,832 Net pension and post retirement liabilities 15,563 8,783 Other assets and liabilities (8,941 ) (35,978 ) Net cash provided (used) by operating activities 32,463 46,555 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of businesses, net of cash acquired — (5,911 ) Purchase of property, plant and equipment (103,041 ) (109,616 ) Net proceeds from businesses sold 13,487 1,627 Other investing transactions (2,844 ) (646 ) Net cash provided (used) by investing activities (92,398 ) (114,546 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving lines of credit 957,500 784,500 Payments on revolving lines of credit (1,001,500 ) (691,000 ) Proceeds from long-term debt 250,000 — Payments on finance lease obligations (7,194 ) (4,468 ) Payment of dividends (27,247 ) (26,521 ) Proceeds from sale of treasury stock 10,970 7,579 Purchase of outstanding shares for treasury (127,808 ) (21,832 ) Proceeds from sale of stock held by SECT 20,287 16,670 Purchase of stock held by SECT (18,505 ) (14,296 ) Other financing transactions (1,600 ) — Net cash provided (used) by financing activities 54,903 50,632 Effect of exchange rate changes on cash (491 ) (267 ) Increase (decrease) in cash, cash equivalents and restricted cash (5,523 ) (17,626 ) Cash, cash equivalents and restricted cash at beginning of year (1) 64,537 69,144 Cash, cash equivalents and restricted cash at end of period $ 59,014 $ 51,518 (1) Beginning of year cash balance at September 29, 2024 includes cash related to assets held for sale of $2,720. Moog OF NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)(dollars in thousands) Three Months Ended Nine Months Ended June 28, 2025 June 29,2024 June 28, 2025 June 29,2024 Net cash provided (used) by operating activities $ 125,325 $ 30,166 $ 32,463 $ 46,555 Purchase of property, plant and equipment (32,659 ) (32,086 ) (103,041 ) (109,616 ) Receivables Purchase Agreement — — — (25,000 ) Free cash flow $ 92,666 $ (1,920 ) $ (70,578 ) $ (88,061 ) Adjusted net earnings $ 75,513 $ 62,010 $ 194,466 $ 182,111 Free cash flow conversion 123 % (3 )% (36 )% (48 )% Free cash flow is defined as net cash provided (used) by operating activities, less purchase of property, plant and equipment, less the benefit from the Receivables Purchase Agreement. Free cash flow conversion is defined as free cash flow divided by adjusted net earnings. Free cash flow and free cash flow conversion are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. However, management believes these adjusted financial measures may be useful in evaluating the liquidity, financial condition and results of operations of the Company. This information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. View source version on Contacts Aaron Astrachan716.687.4225 Sign in to access your portfolio
Business Wire
6 days ago
- Business
- Business Wire
Moog Inc. Reports Third Quarter 2025 Results With Both Record Sales and Earnings Per Share
EAST AURORA, N.Y.--(BUSINESS WIRE)--Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today reported fiscal third quarter 2025 net sales of $971 million, diluted earnings per share of $1.87 and adjusted diluted earnings per share of $2.37, all records, reflecting business growth and simplified operations. (in millions, except per share results) Q3 2024 Deltas Net sales $ 971 $ 905 7 % Operating margin 11.5 % 11.6 % (10) bps Adjusted operating margin 13.6 % 12.3 % 130 bps Diluted net earnings per share $ 1.87 $ 1.74 7 % Adjusted diluted net earnings per share $ 2.37 $ 1.91 24 % Net cash provided (used) by operating activities $ 125 $ 30 $ 95 Free cash flow $ 93 $ (2 ) $ 95 See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the periods ended June 28, 2025 and June 29, 2024. Expand Quarter Highlights Net sales increased to a record level, led by strength in Commercial Aircraft, Space and Defense, and Military Aircraft. Industrial declined due to divestitures completed at the beginning of this fiscal year. Operating margin was relatively unchanged as charges for a program termination and charges for simplification initiatives offset stronger operational performance. Adjusted operating margin increased due to the benefit from the sale of intellectual property and inventory associated with a non-core product line and a favorable sales mix, partially offset by tariff pressure. Diluted net earnings per share increased as strong operational performance was partially offset by higher charges for a program termination and charges for simplification initiatives. Adjusted diluted net earnings per share increased reflecting margin expansion and incremental profit from higher sales. Free cash flow improved with a conversion greater than 120%. Twelve-month backlog was at a record level of $2.7 billion with growth primarily driven by Military Aircraft and Space and Defense. Acquired COTSWORKS after quarter-end, strengthening the Space and Defense product portfolio. "We have just delivered another quarter of record financial results, reflective of our unrelenting focus on driving improved business performance," said Pat Roche, CEO. "Our teams across the company continue advancing our simplification strategies, and our value proposition to our customers has resulted in strong order intake and a record 12-month backlog. Our employees are driving change and our business is strong, giving us confidence as we look to 2026." Segment Results Sales in the third quarter increased 7% to a record $971 million. Sales growth was led by Commercial Aircraft, which increased 16% on strong aftermarket demand. Space and Defense sales increased 11%, reflecting broad-based demand including satellite components and missile control programs. Military Aircraft sales increased 8%, driven by continued ramp-up on the FLRAA program. Industrial sales declined 4% due to previously completed divestitures. Operating margin in the third quarter was 11.5%, down 10 basis points from the prior year. Military Aircraft operating margin declined 360 basis points to 8.0%, primarily due to charges tied to the termination of a product development effort, along with a less favorable sales mix and increased research and development investment in future programs. Industrial operating margin declined 20 basis points to 9.6%, reflecting charges related to portfolio shaping, facility rationalization and an investment impairment, as well as pressures from tariffs, and were partially offset by the benefit from simplification initiatives. Partially offsetting these declines was an increase in Commercial Aircraft operating margin of 200 basis points to 14.9%, supported by the benefit from the sale of a non-core product line and by record aftermarket sales, partially offset by pressures from tariffs and OEM customers' production delays. In addition, Space and Defense operating margin increased 70 basis points to 13.3%, driven by profitable sales growth. Adjusted operating margin excludes charges of $20 million and $6 million in the third quarters of 2025 and 2024, respectively, which primarily relate to simplification initiatives and a program termination. Excluding these charges, total company adjusted operating margin increased 130 basis points from 12.3% to 13.6%. Commercial Aircraft adjusted operating margin increased 180 basis points to 14.9%, supported by the benefit from the sale of a non-core product line and by record aftermarket sales, partially offset by pressures from tariffs and OEM customers' production delays. Industrial adjusted operating margin improved 180 basis points to 13.5%, supported by the benefit of the simplification initiatives, including divestitures completed at the start of the year, partially offset by tariff pressure. Space and Defense adjusted operating margin increased 140 basis points to 14.1%, driven by profitable sales growth. Partially offsetting the increases was a decrease in Military Aircraft adjusted operating margin of 30 basis points to 11.6%, due to a less favorable program sales mix and increased research and development investment. Free Cash Flow Results Free cash flow for the quarter was $93 million, driven by strong earnings and cash provided by changes in working capital. Capital expenditures were $33 million. 2025 Financial Guidance 'We are increasing our sales guidance from 90 days ago based on the strength of the business. We are updating our adjusted operating margin guidance to reflect the expected pressures associated with tariffs and the underlying strength in our business. We are also moderating our free cash flow guidance based on working capital needs to support our elevated growth," said Jennifer Walter, CFO. "We're on track to close out a record year for sales in 2025. Our business is strong, and we're continuing to expand our operating margin and generate an increasing level of free cash flow." Conference call information In conjunction with today's release, Pat Roche, CEO, and Jennifer Walter, CFO, will host a conference call today beginning at 10:00 a.m. ET, which will be simultaneously broadcast live online. Listeners can access the call and supplemental financial materials at Cautionary Statement This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as: 'may,' 'will,' 'should,' 'believes,' 'expects,' 'expected,' 'intends,' 'plans,' 'projects,' 'approximate,' 'estimates,' 'predicts,' 'potential,' 'outlook,' 'forecast,' 'anticipates,' 'presume,' 'assume' and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, are neither historical facts nor guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A 'Risk Factors' of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission ('SEC') and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) our heavy dependence on government contracts that may not be fully funded or may be terminated; (iv) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (v) failure of our subcontractors or suppliers to perform their contractual obligations; and (vi) our accounting estimations for over-time contracts and any changes we need to make thereto. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. While we believe we have identified and discussed in our SEC filings the material risks affecting our business, there may be additional factors, risks and uncertainties not currently known to us or that we currently consider immaterial that may affect the forward-looking statements we make herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to update any forward-looking statement made in this press release, except as required by applicable law. Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 As Reported: Earnings before income taxes $ 77,982 $ 70,905 $ 220,140 $ 212,265 Income taxes 18,275 14,545 51,566 48,090 Effective income tax rate 23.4 % 20.5 % 23.4 % 22.7 % Net earnings 59,707 56,360 168,574 164,175 Diluted net earnings per share $ 1.87 $ 1.74 $ 5.25 $ 5.08 Program Terminations 1 Earnings before income taxes $ 8,065 $ — $ 8,065 $ 1,992 Income taxes 1,903 — 1,903 470 Net earnings 6,162 — 6,162 1,522 Diluted net earnings per share $ 0.19 $ — $ 0.19 $ 0.05 Simplification Initiatives 2 Earnings before income taxes $ 6,805 $ 5,818 $ 18,204 $ 14,457 Income taxes 1,647 1,502 4,487 3,654 Net earnings 5,158 4,316 13,717 10,803 Diluted net earnings per share $ 0.16 $ 0.13 $ 0.43 $ 0.33 Investment Losses 3 Earnings before income taxes $ 3,000 $ — $ 3,000 $ 5,294 Income taxes — (1,249 ) — — Net earnings 3,000 1,249 3,000 5,294 Diluted net earnings per share $ 0.09 $ 0.04 $ 0.09 $ 0.16 Acquisition and Integration 4 Earnings before income taxes $ 481 $ — $ 481 $ — Income taxes 113 — 113 — Net earnings 368 — 368 — Diluted net earnings per share $ 0.01 $ — $ 0.01 $ — Other Charges 5 Earnings before income taxes $ 1,462 $ 111 $ 3,462 $ 415 Income taxes 344 26 817 98 Net earnings 1,118 85 2,645 317 Diluted net earnings per share $ 0.04 $ — $ 0.08 $ 0.01 As Adjusted: Earnings before income taxes $ 97,795 $ 76,834 $ 253,352 $ 234,423 Income taxes 22,282 14,824 58,886 52,312 Effective income tax rate 22.8 % 19.3 % 23.2 % 22.3 % Net earnings 75,513 62,010 194,466 182,111 Diluted net earnings per share $ 2.37 $ 1.91 $ 6.06 $ 5.63 The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding. 1 Charges include costs related to the termination of significant development, production, or support programs, such as write-off and impairments or inventory and long-lived assets, contract termination costs, and other charges. 2 Charges include costs related to footprint rationalization, portfolio shaping and legal entity re-organization activities, such as facility closure costs, employee severance and retention costs, write-off and impairments of inventory and long-lived assets, and other charges. 3 Charges include impairment losses on minority investments. 4 Charges include costs related to acquisition such as amortization of inventory fair value step-up and professional services fees. Charges also include costs related to integrating the businesses, such as employee severance and retention costs, professional services fees, legal entity and facility rationalization costs and other related charges. 5 Other charges include business interruptions from natural causes, litigation matters, and other items that are not part of normal operations. Expand While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. Moog Inc. (dollars in thousands) Three Months Ended Nine Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Space and Defense operating profit - as reported $ 38,261 $ 32,635 $ 99,581 $ 100,175 Simplification Initiatives 406 — 2,474 — Acquisition Integration 481 — 481 — Other charges 1,462 112 1,462 416 Space and Defense operating profit - as adjusted $ 40,610 $ 32,747 $ 103,998 $ 100,591 14.1 % 12.7 % 12.9 % 13.3 % Military Aircraft operating profit - as reported $ 17,994 $ 23,965 $ 64,632 $ 60,323 Program terminations 8,065 — 8,065 1,992 Simplification Initiatives — 609 591 3,732 Investment losses — — — 5,294 Other charges — — 2,000 — Military Aircraft operating profit - as adjusted $ 26,059 $ 24,574 $ 75,288 $ 71,341 11.6 % 11.9 % 11.5 % 12.0 % Commercial Aircraft operating profit - as reported $ 32,623 $ 24,367 $ 82,418 $ 69,838 Simplification Initiatives — 408 — 408 Commercial Aircraft operating profit - as adjusted $ 32,623 $ 24,775 $ 82,418 $ 70,246 14.9 % 13.1 % 12.5 % 11.9 % Industrial operating profit - as reported $ 22,989 $ 24,413 $ 75,700 $ 81,592 Simplification Initiatives 6,399 4,800 15,139 10,316 Investment losses 3,000 — 3,000 — Industrial operating profit - as adjusted $ 32,388 $ 29,213 $ 93,839 $ 91,908 13.5 % 11.7 % 13.4 % 12.3 % Expand While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP June 28, 2025 September 28, 2024 ASSETS Current assets Cash and cash equivalents $ 58,191 $ 61,694 Restricted cash 823 123 Receivables, net 529,753 419,971 Unbilled receivables 734,976 709,014 Inventories, net 924,682 863,702 Prepaid expenses and other current assets 153,479 86,245 Total current assets 2,401,904 2,140,749 Property, plant and equipment, net 988,125 929,357 Operating lease right-of-use assets 52,877 52,591 Goodwill 802,089 833,764 Intangible assets, net 57,182 63,479 Deferred income taxes 37,701 20,991 Other assets 56,696 52,695 Total assets $ 4,396,574 $ 4,093,626 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 289,160 $ 292,988 Accrued compensation 98,292 101,127 Contract advances and progress billings 298,648 299,732 Accrued liabilities and other 302,514 305,180 Total current liabilities 988,614 999,027 Long-term debt, excluding current installments 1,081,674 874,139 Long-term pension and retirement obligations 177,688 167,161 Deferred income taxes 27,664 27,738 Other long-term liabilities 177,233 164,928 Total liabilities 2,452,873 2,232,993 Shareholders' equity Common stock - Class A 43,864 43,835 Common stock - Class B 7,416 7,445 Additional paid-in capital 769,935 784,509 Retained earnings 2,810,050 2,668,723 Treasury shares (1,205,305 ) (1,082,240 ) Stock Employee Compensation Trust (173,214 ) (194,049 ) Supplemental Retirement Plan Trust (147,042 ) (163,821 ) Accumulated other comprehensive loss (162,003 ) (203,769 ) Total shareholders' equity 1,943,701 1,860,633 Total liabilities and shareholders' equity $ 4,396,574 $ 4,093,626 Expand Moog Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (dollars in thousands) Nine Months Ended June 28, 2025 June 29, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 168,574 $ 164,175 Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Depreciation 69,292 64,302 Amortization 6,996 7,677 Deferred income taxes (18,645 ) (26,483 ) Equity-based compensation expense 12,669 11,301 Asset impairment and inventory write-down 10,988 8,637 Other 4,399 5,374 Changes in assets and liabilities providing (using) cash: Receivables (105,346 ) (18,677 ) Unbilled receivables (35,174 ) (57,723 ) Inventories (64,095 ) (105,629 ) Accounts payable (3,301 ) 918 Contract advances and progress billings 8,798 (26,882 ) Accrued expenses (6,645 ) 36,928 Accrued income taxes (22,669 ) 9,832 Net pension and post retirement liabilities 15,563 8,783 Other assets and liabilities (8,941 ) (35,978 ) Net cash provided (used) by operating activities 32,463 46,555 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of businesses, net of cash acquired — (5,911 ) Purchase of property, plant and equipment (103,041 ) (109,616 ) Net proceeds from businesses sold 13,487 1,627 Other investing transactions (2,844 ) (646 ) Net cash provided (used) by investing activities (92,398 ) (114,546 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving lines of credit 957,500 784,500 Payments on revolving lines of credit (1,001,500 ) (691,000 ) Proceeds from long-term debt 250,000 — Payments on finance lease obligations (7,194 ) (4,468 ) Payment of dividends (27,247 ) (26,521 ) Proceeds from sale of treasury stock 10,970 7,579 Purchase of outstanding shares for treasury (127,808 ) (21,832 ) Proceeds from sale of stock held by SECT 20,287 16,670 Purchase of stock held by SECT (18,505 ) (14,296 ) Other financing transactions (1,600 ) — Net cash provided (used) by financing activities 54,903 50,632 Effect of exchange rate changes on cash (491 ) (267 ) Increase (decrease) in cash, cash equivalents and restricted cash (5,523 ) (17,626 ) Cash, cash equivalents and restricted cash at beginning of year (1) 64,537 69,144 Cash, cash equivalents and restricted cash at end of period $ 59,014 $ 51,518 (1) Beginning of year cash balance at September 29, 2024 includes cash related to assets held for sale of $2,720. Expand Free cash flow is defined as net cash provided (used) by operating activities, less purchase of property, plant and equipment, less the benefit from the Receivables Purchase Agreement. Free cash flow conversion is defined as free cash flow divided by adjusted net earnings. Free cash flow and free cash flow conversion are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. However, management believes these adjusted financial measures may be useful in evaluating the liquidity, financial condition and results of operations of the Company. This information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.
