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 www.moog.com/investors/communications.

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 Inc.
CONSOLIDATED 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 Inc.
RECONCILIATION 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 Inc.
CONSOLIDATED 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 Inc.
RECONCILIATION 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 Inc.
CONSOLIDATED 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 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.

Moog Inc.
RECONCILIATION 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 businesswire.com: https://www.businesswire.com/news/home/20250725323348/en/

Ämnen i artikeln

Moog A

Senast

193,58

1 dag %

−2,57%

1 dag

1 mån

1 år

Marknadsöversikt

OMX Stockholm 30

1 DAG %

−1,80%

Senast

2 533,59

1 mån
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Är du kund hos Avanza? Just nu kan du få en unik rabatt på Affärsvärlden. Afv har 28 år i rad utsetts till Sveriges bästa affärsmagasin i en undersökning med börs-VD:ar, finanschefer, IR-chefer och aktieproffs.

Annons
Introduce

för börsens små- och medelstora företag.

Annons
Investtech

Här hittar du våra artiklar om teknisk analys i samarbete med Investtech.