EAST AURORA, N.Y.--(BUSINESS WIRE)--November 21, 2025--
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 record fiscal fourth quarter 2025 results and another year of outstanding performance. The results highlight continued progress against the company's long-term financial objectives.
"We finished fiscal 2025 with an exceptional fourth quarter performance, achieving record financial results," said Pat Roche, CEO. "This performance capped an outstanding year of delivering for our customers and driving continuous operational improvements. The momentum reflects our strategy in action across the business, and positions us to deliver continued value creation."
(in millions,
except per
share
results) Three Months Ended Twelve Months Ended
--------------------------------- --------------------------------
Q4
Q4 2025 2024(1) Deltas Q4 2025 Q4 2024(1) Deltas
Net sales $1,049 $ 919 14% $3,861 $3,609 7%
Operating
margin 11.9% 10.1% 180 bps 11.6% 11.2% 40 bps
Adjusted
operating
margin 13.7% 13.5% 20 bps 13.0% 12.7% 30 bps
Diluted net
earnings per
share $ 2.01 $1.31 53% $ 7.33 $ 6.45 14%
Adjusted
diluted net
earnings per
share $ 2.56 $2.15 19% $ 8.69 $ 7.84 11%
Net cash
provided
(used) by
operating
activities $ 241 $ 147 $ 93 $ 273 $ 198 $ 75
Free cash flow $ 199 $ 109 $ 90 $ 128 $ 21 $107
--------------- ----- ---- ----- ----- ---
See the reconciliations of adjusted financial measures to the most directly
comparable U.S. GAAP measures included in the financial statements herein for
the periods ended September 27, 2025, and September 28, 2024.
(1) Amounts have been revised to reflect the correction of immaterial
misstatements. See "Revision of Previously Issued Consolidated Financial
Statements" section included herein for additional information.
Quarter Highlights
-- Quarterly records set for sales, adjusted operating margin, both
earnings per share figures and free cash flow.
-- Sales increased to over $1 billion, driven by record sales in each of
the Space and Defense, Military Aircraft and Commercial Aircraft
segments.
-- Operating margin improved, reflecting stronger financial performance
and lower simplification charges.
-- Adjusted operating margin expanded, driven by operational strength,
partially offset by tariff pressure.
-- Diluted net earnings per share increased, benefiting from incremental
profit from higher sales and lower simplification charges.
-- Adjusted diluted net earnings per share increased, benefiting from
incremental profit from higher sales.
-- Record free cash flow driven by customer advances.
Year Highlights
-- Record net sales reflect higher demand across the aerospace and defense
portfolio.
-- Twelve-month backlog increased 20%, reaching a record $3.0 billion.
-- Operating margin and adjusted operating margin improved, both driven by
stronger financial performance, partially offset by tariffs and last
year's benefit from the Employee Retention Credit $(ERC)$.
-- Diluted net earnings per share and adjusted diluted net earnings per
share increased, both driven by incremental profit from higher sales and
expanded operating margin.
Quarter Results
Sales in the fourth quarter of 2025 increased in all of the segments compared to the fourth quarter of 2024, driven by records in Commercial Aircraft, Space and Defense and Military Aircraft. Commercial Aircraft sales increased 27% to $252 million, driven by volume on major production programs and aftermarket associated with strong fleet utilization of the 787 and A350 programs. Space and Defense sales increased 17% to $307 million, reflecting broad-based demand across the defense portfolio, including missile controls and satellite components. Military Aircraft sales increased 10% to $236 million, driven by higher activity associated with the MV-75 program and by incremental pricing, primarily within aftermarket. Industrial sales increased 5% to $253 million as demand for medical devices and data center cooling pumps increased.
Operating margin in the fourth quarter of 2025 increased 180 basis points to 11.9% compared to the fourth quarter of 2024, reflecting stronger performance and lower simplification charges. Industrial operating margin increased 860 basis points to 12.7%, reflecting both higher simplification charges incurred in the prior year, and the resulting current year benefits, partially offset by tariff pressure. Military Aircraft operating margin increased 210 basis points to 14.0%, driven by pricing activities as well as a favorable sales mix. Space and Defense operating margin was 10.2%, essentially flat year over year, as profitable sales growth was largely offset by charges associated with the settlement of a legal dispute. Commercial Aircraft operating margin decreased 400 basis points to 11.4%, primarily due to tariff pressure and an unfavorable sales mix.
Adjusted operating margin in the fourth quarter of 2025 increased 20 basis points to 13.7% compared to the fourth quarter of 2024. Military Aircraft adjusted operating margin increased 210 basis points to 14.1%, driven by pricing activities as well as a favorable sales mix. Space and Defense adjusted operating margin increased 190 basis points to 15.1%, driven by profitable sales growth, partially offset by investments in product development, business capture and operational readiness. Industrial adjusted operating margin increased 70 basis points to 13.9%, as a favorable sales mix and simplification initiatives more than offset tariff pressure. Commercial Aircraft adjusted operating margin decreased 440 basis points to 11.4%, primarily due to tariff pressure and an unfavorable sales mix.
Free cash flow for the quarter was a record $199 million, driven by strong cash generation from changes in working capital, in particular cash generated from customer advances. Capital expenditures were $42 million, reflecting continued investment in manufacturing operations.
Year Results
Sales for fiscal 2025 increased 7% compared to fiscal 2024, reflecting record sales in each of the Commercial Aircraft, Space and Defense and Military Aircraft segments. Commercial Aircraft sales increased 15% to $904 million, due to strong aftermarket demand and the ongoing widebody production ramps. Space and Defense sales increased 9% to $1.1 billion, driven by continued broad-based defense demand across the portfolio. Military Aircraft sales increased 9% to $888 million, driven by higher activity for the MV-75 and new production programs. Industrial sales decreased 4% to $956 million, due to divestitures completed at the beginning of the fiscal year.
Operating margin for fiscal 2025 increased 40 basis points to 11.6% compared to fiscal 2024, due to stronger financial performance across all of the segments. The increases were partially offset by tariffs, primarily in Commercial Aircraft and Industrial, and by last year's ERC benefit. Industrial operating margin increased 190 basis points to 11.3%, driven by the benefit of simplification initiatives. Military Aircraft operating margin increased 60 basis points to 11.1%, driven by stronger business performance and pricing benefits, partially offset by the gain from the sale of a mature product line. Space and Defense operating margin decreased 70 basis points to 11.8% due to last year's ERC benefit. Commercial Aircraft operating margin decreased 10 basis points to 12.4%, driven by pressure associated with tariffs, offset by the sale of a non-core product line as part of the portfolio shaping activities.
Record adjusted operating margin for fiscal 2025 increased 30 basis points to 13.0% compared to fiscal 2024, reflecting stronger financial performance across all of the segments. Industrial adjusted operating margin increased 80 basis points to 13.5%, due to the benefit from simplification initiatives, partially offset by tariff pressure. Military Aircraft adjusted operating margin increased 40 basis points to 12.3%, driven by stronger business performance and pricing benefits. Space and Defense adjusted operating margin increased 20 basis points to 13.5%, supported by profitable sales growth, partially offset by last year's ERC benefit and this year's investments to support growth. Commercial Aircraft adjusted operating margin decreased 30 basis points to 12.4%, reflecting tariff pressure, partially offset by a non-core product line sale.
Free cash flow for the year was $128 million, reflecting business investments to support the record level of sales, including capital expenditures and within working capital.
Fiscal 2026 Financial Guidance
"Fiscal year 2026 will be another great year in which we continue to build our financial strength," said Jennifer Walter, CFO. "We will achieve a record level of sales, further expand our operating margin and make meaningful progress towards generating strong free cash flow."
Operating margin and adjusted operating margin for fiscal 2025 included approximately 50 basis points of tariff pressure. Operating margin and adjusted operating margin for fiscal 2026 is forecasted to include 80 basis points of tariff pressure.
FY 2026
Guidance FY 2025
Net sales (in billions) $ 4.2 $ 3.9
Operating margin 13.4% 11.6%
Adjusted operating margin 13.4% 13.0%
Diluted net earnings per share(1) $ 10.00 $7.33
Adjusted diluted net earnings per share(1) $ 10.00 $8.69
Free cash flow conversion 60% 46%
-------------------------------------------- ----- ----
(1) Diluted net earnings per share and Adjusted diluted net earnings per share
figures are forecasted to be within range of +/- $0.20.
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 Twelve Months Ended
------------------------- ---------------------------
September September September
27, 28, 27, September 28,
------------------
2025 2024 (1) 2025 2024 (1)
------------------ ----------- ------------ ----------- --------------
Net sales $ 1,049,138 $ 919,395 $ 3,860,624 $ 3,608,960
Cost of sales 759,830 657,660 2,794,802 2,589,525
Inventory
write-down 486 5,252 8,474 7,027
---------- ---------- ---------- ----------
Gross profit 288,822 256,483 1,057,348 1,012,408
Research and
development 23,679 26,021 93,671 112,773
Selling, general
and
administrative 152,151 126,377 553,968 501,253
Interest 18,489 17,397 72,075 66,330
Asset impairment
and fair value
adjustment 2,374 15,287 5,374 22,149
Restructuring 956 11,165 10,015 23,788
Gain on sale of
buildings -- (979) -- (979)
Other 1,371 6,449 9,597 17,348
---------- ---------- ---------- ----------
Earnings before
income taxes 89,802 54,766 312,648 269,746
Income taxes 25,396 12,232 77,620 60,960
---------- ---------- ---------- ----------
Net earnings $ 64,406 $ 42,534 $ 235,028 $ 208,786
---------- ---------- ---------- ----------
Net earnings per
share
Basic $ 2.03 $ 1.33 $ 7.42 $ 6.53
Diluted $ 2.01 $ 1.31 $ 7.33 $ 6.45
---------- ---------- ---------- ----------
Weighted average
common shares
outstanding
Basic 31,666,286 31,988,662 31,680,280 31,954,689
Diluted 32,083,845 32,458,411 32,082,601 32,359,338
------------------- ---------- ---------- ---------- ----------
(1) Amounts have been revised to reflect the correction of immaterial
misstatements. See "Revision of Previously Issued Consolidated Financial
Statements" section included herein for additional information.
Moog Inc.
RECONCILIATION TO ADJUSTED NET EARNINGS, ADJUSTED DILUTED NET EARNINGS PER
SHARE AND ADJUSTED EFFECTIVE TAX RATE (UNAUDITED)
(dollars in thousands)
----------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
------------------------- --------------------------
September September September September
27, 28, 27, 28,
---------------------
2025 2024 (1) 2025 2024 (1)
------------------- ------------ ----------- ------------ ------------
Net Earnings as
Reported $64,406 $42,534 $235,028 $208,786
Adjustments to Net
Earnings:
Program
terminations(2) (231) -- 7,834 1,992
Simplification
initiatives(3) 8,876 28,837 27,080 43,293
Dispute
resolution(4) 10,455 -- 11,917 --
Investment
losses(5) -- -- 3,000 5,294
Acquisition and
integration(6) 2,477 (487) 2,958 (487)
Other charges(7) 573 2,889 2,573 3,305
Tax effect of
adjustments (4,385) (4,117) (11,705) (8,339)
------ ------ ------- -------
Net Earnings as
Adjusted $82,171 $69,656 $278,685 $253,844
------ --- ------ ------- -------
Diluted Net
Earnings Per Share
As Reported $ 2.01 $ 1.31 $ 7.33 $ 6.45
As Adjusted $ 2.56 $ 2.15 $ 8.69 $ 7.84
Effective Income
Tax Rate
As Reported 28.3% 22.3% 24.8% 22.6%
As Adjusted(8) 24.1% 19.0% 23.5% 21.4%
------ ------ ------- -------
The diluted net earnings per share associated with the adjustments in the
table above may not reconcile when totaled due to rounding.
(1) As reported amounts have been revised to reflect the correction of
immaterial misstatements. See "Revision of Previously Issued Consolidated
Financial Statements" section included herein for additional information.
(2) Charges include costs related to the termination of significant
development, production, or support programs, such as write-off and
impairments of inventory and long-lived assets, contract termination costs,
and other charges.
(3) 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. (4) Charges include costs related to a dispute with a customer. The circumstances giving rise to this matter are unique and outside the ordinary course of business. These charges consist primarily of third-party legal services and related settlement costs. (5) Charges include impairment losses on minority investments. (6) 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. (7) Other charges include business interruptions from natural causes, litigation matters, and other items that are not part of normal operations. (8) Adjusted effective income tax rate excludes a charge associated with simplifying our legal entity structure.
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 Twelve Months Ended
---------------------------- ------------------------------
September
September 27, 28, September 27, September 28,
----------------
2025 2024 (1) 2025 2024 (1)
---------------- -------------- ------------ -------------- --------------
Net sales:
Space and
Defense $ 307,355 $262,824 $1,113,028 $1,018,148
Military
Aircraft 236,205 215,645 888,136 811,566
Commercial
Aircraft 252,171 199,242 903,879 788,100
Industrial 253,407 241,684 955,581 991,146
--------- ------- --------- ---------
Net sales $1,049,138 $919,395 $3,860,624 $3,608,960
----------------- --------- ------- --------- ---------
Operating
profit:
Space and
Defense $ 31,216 $ 26,554 $ 131,137 $ 126,885
10.2% 10.1% 11.8% 12.5%
Military
Aircraft 33,086 25,606 98,757 85,503
14.0% 11.9% 11.1% 10.5%
Commercial
Aircraft 28,654 30,729 111,793 98,877
11.4% 15.4% 12.4% 12.5%
Industrial 32,084 9,992 107,919 93,200
12.7% 4.1% 11.3% 9.4%
--------- ------- --------- ---------
Total operating
profit 125,040 92,881 449,606 404,465
11.9% 10.1% 11.6% 11.2%
Deductions from
operating
profit:
Interest
expense 18,490 17,398 72,075 66,330
Equity-based
compensation
expense 4,039 3,658 16,708 14,959
Non-service
pension
expense 1,864 3,119 7,719 12,685
Corporate and
other
expenses,
net 10,845 13,940 40,456 40,745
----------------- --------- ------- --------- ---------
Earnings before
income taxes $ 89,802 $ 54,766 $ 312,648 $ 269,746
----------------- --------- ------- --------- ---------
(1) Amounts have been revised to reflect the correction of immaterial
misstatements. See "Revision of Previously Issued Consolidated Financial
Statements" section included herein for additional information.
Moog Inc.
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)
(dollars in thousands)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
September September September September
27, 28, 27, 28,
2025 2024 (1) 2025 2024 (1)
--------------- ------------ ------------ ------------ ------------
Space and
Defense
operating
profit - as
reported $ 31,216 $ 26,554 $131,137 $126,885
Simplification
initiatives 2,092 6,336 4,566 6,336
Dispute
resolution 10,455 -- 11,917 --
Acquisition
integration 2,477 -- 2,958 --
Other charges 62 1,889 62 2,305
------- ------- ------- -------
Space and
Defense
operating
profit - as
adjusted $ 46,302 $ 34,779 $150,640 $135,526
15.1% 13.2% 13.5% 13.3%
--------------- ------- ------- ------- -------
Military
Aircraft
operating
profit - as
reported $ 33,086 $ 25,606 $ 98,757 $ 85,503
Program
terminations (231) -- 7,834 1,992
Simplification
initiatives -- 335 591 4,067
Investment
losses -- -- -- 5,294
Other charges 449 -- 2,449 --
------- ------- ------- -------
Military
Aircraft
operating
profit - as
adjusted $ 33,304 $ 25,941 $109,631 $ 96,856
14.1% 12.0% 12.3% 11.9%
--------------- ------- ------- ------- -------
Commercial
Aircraft
operating
profit - as
reported $ 28,654 $ 30,729 $111,793 $ 98,877
Simplification
initiatives -- 241 -- 649
Acquisition
integration -- (487) -- (487)
Other charges -- 1,000 -- 1,000
------- ------- ------- -------
Commercial
Aircraft
operating
profit - as
adjusted $ 28,654 $ 31,483 $111,793 $100,039
11.4% 15.8% 12.4% 12.7%
--------------- ------- ------- ------- -------
Industrial
operating
profit - as
reported $ 32,084 $ 9,992 $107,919 $ 93,200
Program
terminations -- -- -- --
Simplification
initiatives 3,084 21,925 18,223 32,241
Investment
losses -- -- 3,000 --
Other charges 62 -- 62 --
------- ------- ------- -------
Industrial
operating
profit - as
adjusted $ 35,230 $ 31,917 $129,204 $125,441
13.9% 13.2% 13.5% 12.7%
--------------- ------- ------- ------- -------
Total operating
profit - as
adjusted $143,490 $124,120 $501,268 $457,862
---------------- ------- ------- ------- -------
13.7% 13.5% 13.0% 12.7%
--------------- ------- ------- ------- -------
(1) As reported amounts have been revised to reflect the correction of
immaterial misstatements. See "Revision of Previously Issued Consolidated
Financial Statements" section included herein for additional information.
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)
September 27, September 28,
-------------------------------------
2025 2024 (1)
------------------------------------- --------------- -----------------
ASSETS
Current assets
Cash and cash equivalents $ 62,013 $ 61,694
Restricted cash 200 123
Receivables, net 506,768 419,971
Unbilled receivables 744,352 690,572
Inventories, net 914,302 862,541
Prepaid expenses and other current
assets 142,345 87,745
---------- ----------
Total current assets 2,369,980 2,122,646
Property, plant and equipment, net 1,019,906 928,588
Operating lease right-of-use assets 52,799 52,591
Goodwill 842,313 833,764
Intangible assets, net 66,101 63,479
Deferred income taxes 22,459 23,884
Other assets 52,497 52,695
---------- ----------
Total assets $ 4,426,055 $ 4,077,647
-------------------------------------- ---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current installments of long-term
debt $ 1,563 $ --
Accounts payable 318,402 293,888
Accrued compensation 106,040 104,027
Contract advances and progress
billings 372,988 302,126
Accrued liabilities and other 320,075 313,373
---------- ----------
Total current liabilities 1,119,068 1,013,414
Long-term debt, excluding current
installments 944,123 874,139
Long-term pension and retirement
obligations 157,218 167,161
Deferred income taxes 32,600 27,652
Other long-term liabilities 180,491 166,464
---------- ----------
Total liabilities 2,433,500 2,248,830
---------- ----------
Shareholders' equity
Common stock - Class A 43,864 43,835
Common stock - Class B 7,416 7,445
Additional paid-in capital 839,328 784,509
Retained earnings 2,834,548 2,635,950
Treasury shares (1,209,200) (1,082,240)
Stock Employee Compensation Trust (195,491) (194,049)
Supplemental Retirement Plan Trust (170,191) (163,821)
Accumulated other comprehensive
loss (157,719) (202,812)
---------- ----------
Total shareholders' equity 1,992,555 1,828,817
---------- ----------
Total liabilities and shareholders'
equity $ 4,426,055 $ 4,077,647
-------------------------------------- ---------- ----------
(1) Amounts have been revised to reflect the correction of immaterial
misstatements. See "Revision of Previously Issued Consolidated Financial
Statements" section included herein for additional information.
Moog Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Twelve Months Ended
----------------------------------
September 27, September 28,
-------------------------------------
2025 2024 (1)
------------------------------------- --------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 235,028 $ 208,786
Adjustments to reconcile net
earnings to net cash provided
(used) by operating activities:
Depreciation 94,013 85,878
Amortization 9,715 10,149
Deferred income taxes (6,545) (29,651)
Equity-based compensation
expense 16,708 14,959
Gain on sale of buildings -- (979)
Asset impairment and inventory
write-down 13,848 29,176
Other 4,432 6,283
Changes in assets and liabilities
providing (using) cash:
Receivables (87,070) 35,962
Unbilled receivables (64,588) (50,474)
Inventories (51,772) (131,330)
Accounts payable 24,711 26,446
Contract advances and progress
billings 81,597 (41,717)
Accrued expenses 3,743 7,900
Accrued income taxes (20,214) 14,502
Net pension and post retirement
liabilities 18,194 11,791
Other assets and liabilities 1,286 181
---------- ----------
Net cash provided (used) by
operating activities 273,086 197,862
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of
cash acquired (41,179) (5,911)
Purchase of property, plant and
equipment (144,731) (151,995)
Net proceeds from businesses sold 13,487 1,627
Net proceeds from buildings sold -- 1,453
Other investing transactions (2,833) (766)
---------- ----------
Net cash provided (used) by
investing activities (175,256) (155,592)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving lines of
credit 1,229,500 1,038,500
Payments on revolving lines of
credit (1,410,000) (1,029,500)
Proceeds from long-term debt 250,000 --
Payments on finance lease
obligations (10,159) (6,037)
Payment of dividends (36,430) (35,476)
Proceeds from sale of treasury
stock 19,568 15,685
Purchase of outstanding shares for
treasury (142,707) (36,738)
Proceeds from sale of stock held by
SECT 32,664 28,202
Purchase of stock held by SECT (28,985) (22,837)
Other financing transactions (1,742) --
---------- ----------
Net cash provided (used) by
financing activities (98,291) (48,201)
---------- ----------
Effect of exchange rate changes on
cash (1,863) 1,324
---------- ----------
Increase (decrease) in cash, cash
equivalents and restricted cash (2,324) (4,607)
Cash, cash equivalents and
restricted cash at beginning of
year (2) 64,537 69,144
---------- ----------
Cash, cash equivalents and
restricted cash at end of period
(2) $ 62,213 $ 64,537
-------------------------------------- ---------- ----------
(1) Amounts have been revised to reflect the correction of immaterial
misstatements. See "Revision of Previously Issued Consolidated Financial
Statements" section included herein for additional information.
(2) Beginning of year cash balance at September 29, 2024 and end of year cash
balance at September 28, 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 Twelve Months Ended
-------------------------- ----------------------------
September September
27, 28, September 27, September 28,
------------
2025 2024 (1) 2025 2024 (1)
------------ ------------ ------------ ------------- -------------
Net cash
provided
(used) by
operating
activities $240,689 $147,462 $ 273,086 $ 197,862
Purchase of
property,
plant and
equipment (41,690) (38,172) (144,731) (151,995)
Receivables
Purchase
Agreement -- -- -- (25,000)
------- ------- -------- --------
Free cash
flow $198,999 $109,290 $ 128,355 $ 20,867
Adjusted net
earnings $ 82,171 $ 69,656 $ 278,685 $ 253,844
------- ------- -------- --------
Free cash
flow
conversion 242% 157% 46% 8%
------------- ------- ------- -------- --------
(1) Amounts have been revised to reflect the correction of immaterial
misstatements. See "Revision of Previously Issued Consolidated Financial
Statements" section included herein for additional information.
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.
Moog Inc.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
During the preparation of our consolidated financial statements for the year ended September 27, 2025, management identified immaterial misstatements in previously issued consolidated financial statements and interim consolidated condensed financial statements, impacting prior periods.
The principal misstatement related to the accounting for a distinct group of long-term aftermarket service contracts with customers in the Commercial Aircraft segment. Specifically, there were inaccurate inputs used in the total costs at completion estimate within the over-time revenue recognition calculation for these contracts that accumulated over several years. Additionally, other unrelated immaterial misstatements, including an adjustment for the understatement of certain warranty costs, were also identified.
We evaluated the nature and magnitude of all identified misstatements to assess the materiality, including quantitative and qualitative considerations, and determined that the misstatements were not material, individually or in aggregate, to any previously issued quarterly or annual consolidated financial statements. However, correcting these misstatements entirely in the current period would have been material to our 2025 financial statements. As a result, we have revised our prior period annual consolidated financial statements for 2023 and 2024 and our quarterly consolidated condensed financial statements for 2024 and 2025 to reflect the corrections in the periods in which the misstatements originated.
A summary of the corrections and their related impacts on each financial statement line items from our previously issued consolidated financial statements will be presented in Note 25 -- Revision of Previously Issued Consolidated Financial Statements of our Annual Report on Form 10-K to be filed with the SEC and in the revised Consolidated Financial Statement tables below.
Moog Inc.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(dollars in thousands, except per share data)
Three Months Ended
---------------------------------------------
September 28,
2024
---------------------------------------------
As Reported Revisions As Revised
-------------------------- ---------------- ----------- --------------
Net sales $ 917,272 $ 2,123 $ 919,395
Cost of sales 666,541 (8,881) 657,660
Inventory write-down 5,252 -- 5,252
-------- ------ -------
Gross profit 245,479 11,004 256,483
Research and development 26,021 -- 26,021
Selling, general and
administrative 124,840 1,537 126,377
Interest 9,262 8,135 17,397
Asset impairment and
fair value adjustment 15,287 -- 15,287
Restructuring 11,165 -- 11,165
Gain on sale of
buildings (979) -- (979)
Other 4,335 2,114 6,449
-------- ------ -------
Earnings before income
taxes 55,548 (782) 54,766
Income taxes 12,503 (271) 12,232
-------- ------ -------
Net earnings $ 43,045 $ (511) $ 42,534
-------- ------ -------
Net earnings per share
Basic $ 1.35 $ (0.02) $ 1.33
Diluted $ 1.33 $ (0.02) $ 1.31
--------------------------- -------- ------ -------
Twelve Months Ended
-------------------------------------
September 28,
2024
----------------------------- -------------------------------------
As Reported Revisions As Revised
----------------------------- ----------- --------- -------------
Net sales $3,609,160 $ (200) $3,608,960
Cost of sales 2,605,214 (15,689) 2,589,525
Inventory write-down 7,027 -- 7,027
--------- ------- ---------
Gross profit 996,919 15,489 1,012,408
Research and development 112,773 -- 112,773
Selling, general and
administrative 494,887 6,366 501,253
Interest 62,112 4,218 66,330
Asset impairment and fair
value adjustment 22,149 -- 22,149
Restructuring 23,788 -- 23,788
Gain on sale of buildings (979) -- (979)
Other 14,376 2,972 17,348
--------- ------- ---------
Earnings before income taxes 267,813 1,933 269,746
Income taxes 60,593 367 60,960
--------- ------- ---------
Net earnings $ 207,220 $ 1,566 $ 208,786
--------- ------- ---------
Net earnings per share
Basic $ 6.48 $ 0.05 $ 6.53
Diluted $ 6.40 $ 0.05 $ 6.45
----------------------------- --------- ------- ---------
Moog Inc.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)
(dollars in thousands)
------------------------------------------------------------------------
Three Months Ended
---------------------------------------
September 28,
2024
---------------------------------------
As Reported Revisions As Revised
------------------------------ -------------- ----------- ----------
Net sales:
Space and Defense $ 262,824 $ -- $ 262,824
Military Aircraft 215,645 -- 215,645
Commercial Aircraft 197,119 2,123 199,242
Industrial 241,684 -- 241,684
---------- ------ ---------
Net sales $ 917,272 $ 2,123 $ 919,395
------------------------------- ---------- ------ ---------
Operating profit:
Space and Defense $ 27,179 $ (625) $ 26,554
Military Aircraft 25,535 71 25,606
Commercial Aircraft 21,634 9,095 30,729
Industrial 9,065 927 9,992
---------- ------ ---------
Total operating profit 83,413 9,468 92,881
Deductions from operating
profit:
Interest expense 9,262 8,136 17,398
Equity-based compensation
expense 3,658 -- 3,658
Non-service pension expense 3,119 -- 3,119
Corporate and other expenses,
net 11,826 2,114 13,940
------------------------------- ---------- ------ ---------
Earnings before income taxes $ 55,548 $ (782) $ 54,766
------------------------------- ---------- ------ ---------
Twelve Months Ended
--------------------------------------
September 28,
2024
------------------------------- --------------------------------------
As Reported Revisions As Revised
------------------------------- ------------- ----------- ----------
Net sales:
Space and Defense $ 1,018,148 $ -- $1,018,148
Military Aircraft 811,566 -- 811,566
Commercial Aircraft 788,300 (200) 788,100
Industrial 991,146 -- 991,146
--------- ------ ---------
Net sales $ 3,609,160 $ (200) $3,608,960
-------------------------------- --------- ------ ---------
Operating profit:
Space and Defense $ 127,354 $ (469) $ 126,885
Military Aircraft 85,858 (355) 85,503
Commercial Aircraft 91,472 7,405 98,877
Industrial 90,657 2,543 93,200
--------- ------ ---------
Total operating profit 395,341 9,124 404,465
Deductions from operating
profit:
Interest expense 62,112 4,218 66,330
Equity-based compensation
expense 14,959 -- 14,959
Non-service pension expense 12,685 -- 12,685
Corporate and other expenses,
net 37,772 2,973 40,745
-------------------------------- --------- ------ ---------
Earnings before income taxes $ 267,813 $ 1,933 $ 269,746
-------------------------------- --------- ------ ---------
Moog Inc.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
September 28,
2024
---------------------------------------
As Reported Revisions As Revised
------------------------ ------------ --------- --------------
ASSETS
Current assets
Cash and cash
equivalents $ 61,694 $ -- $ 61,694
Restricted cash 123 -- 123
Receivables, net 419,971 -- 419,971
Unbilled receivables 709,014 (18,442) 690,572
Inventories, net 863,702 (1,161) 862,541
Prepaid expenses and
other current assets 86,245 1,500 87,745
---------- ------- ----------
Total current
assets 2,140,749 (18,103) 2,122,646
Property, plant and
equipment, net 929,357 (769) 928,588
Operating lease
right-of-use assets 52,591 -- 52,591
Goodwill 833,764 -- 833,764
Intangible assets, net 63,479 -- 63,479
Deferred income taxes 20,991 2,893 23,884
Other assets 52,695 -- 52,695
---------- ------- ----------
Total assets $ 4,093,626 $(15,979) $ 4,077,647
------------------------- ---------- ------- ----------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Current installments
of long-term debt $ -- $ -- $ --
Accounts payable 292,988 900 293,888
Accrued compensation 101,127 2,900 104,027
Contract advances and
progress billings 299,732 2,394 302,126
Accrued liabilities
and other 305,180 8,193 313,373
---------- ------- ----------
Total current
liabilities 999,027 14,387 1,013,414
Long-term debt, excluding
current installments 874,139 -- 874,139
Long-term pension and
retirement obligations 167,161 -- 167,161
Deferred income taxes 27,738 (86) 27,652
Other long-term
liabilities 164,928 1,536 166,464
---------- ------- ----------
Total liabilities 2,232,993 15,837 2,248,830
---------- ------- ----------
Shareholders' equity
Common stock - Class A 43,835 -- 43,835
Common stock - Class B 7,445 -- 7,445
Additional paid-in
capital 784,509 -- 784,509
Retained earnings 2,668,723 (32,773) 2,635,950
Treasury shares (1,082,240) -- (1,082,240)
Stock Employee
Compensation Trust (194,049) -- (194,049)
Supplemental
Retirement Plan
Trust (163,821) -- (163,821)
Accumulated other
comprehensive loss (203,769) 957 (202,812)
---------- ------- ----------
Total shareholders'
equity 1,860,633 (31,816) 1,828,817
---------- ------- ----------
Total liabilities and
shareholders' equity $ 4,093,626 $(15,979) $ 4,077,647
------------------------- ---------- ------- ----------
Moog Inc.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
------------------------------------------------------------------
Twelve Months Ended
---------------------------------------
September 28,
2024
---------------------------------------
As Reported Revisions As Revised
------------------------ ------------ --------- --------------
CASH FLOWS FROM
OPERATING ACTIVITIES
Net earnings $ 207,220 $ 1,566 $ 208,786
Adjustments to
reconcile net
earnings to net cash
provided (used) by
operating
activities:
Depreciation 82,957 2,921 85,878
Amortization 10,149 -- 10,149
Deferred income
taxes (31,735) 2,084 (29,651)
Equity-based
compensation
expense 14,959 -- 14,959
Gain on sale of
buildings (979) -- (979)
Asset impairment
and inventory
write-down 29,176 -- 29,176
Other 6,512 (229) 6,283
Changes in assets and
liabilities providing
(using) cash:
Receivables 23,262 12,700 35,962
Unbilled
receivables 2,856 (53,330) (50,474)
Inventories (126,978) (4,352) (131,330)
Accounts payable 26,446 -- 26,446
Contract advances
and progress
billings (84,296) 42,579 (41,717)
Accrued expenses 26,493 (18,593) 7,900
Accrued income
taxes 16,219 (1,717) 14,502
Net pension and
post retirement
liabilities 11,791 -- 11,791
Other assets and
liabilities (11,708) 11,889 181
---------- ------- ----------
Net cash
provided (used)
by operating
activities 202,344 (4,482) 197,862
---------- ------- ----------
CASH FLOWS FROM
INVESTING ACTIVITIES
Acquisitions of
businesses, net of
cash acquired (5,911) -- (5,911)
Purchase of property,
plant and equipment (156,018) 4,023 (151,995)
Net proceeds from
businesses sold 1,627 -- 1,627
Net proceeds from
buildings sold 1,453 -- 1,453
Other investing
transactions (766) -- (766)
---------- ------- ----------
Net cash provided
(used) by
investing
activities (159,615) 4,023 (155,592)
---------- ------- ----------
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from
revolving lines of
credit 1,038,500 -- 1,038,500
Payments on revolving
lines of credit (1,029,500) -- (1,029,500)
Payments on finance
lease obligations (6,496) 459 (6,037)
Payment of dividends (35,476) -- (35,476)
Proceeds from sale of
treasury stock 15,685 -- 15,685
Purchase of
outstanding shares
for treasury (36,738) -- (36,738)
Proceeds from sale of
stock held by SECT 28,202 -- 28,202
Purchase of stock held
by SECT (22,837) -- (22,837)
Other financing
transactions -- -- --
---------- ------- ----------
Net cash provided
(used) by
financing
activities (48,660) 459 (48,201)
---------- ------- ----------
Effect of exchange rate
changes on cash 1,324 -- 1,324
---------- ------- ----------
Increase (decrease) in
cash, cash equivalents
and restricted cash (4,607) -- (4,607)
Cash, cash equivalents
and restricted cash
at beginning of year
(1) 69,144 -- 69,144
---------- ------- ----------
Cash, cash equivalents
and restricted cash
at end of period $ 64,537 $ -- $ 64,537
------------------------- ---------- ------- ----------
(1) Ending cash balance at September 28, 2024, includes cash related to assets
held for sale of $2,720.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251121652708/en/
CONTACT: Aaron Astrachan
716.687.4225
(END) Dow Jones Newswires
November 21, 2025 07:55 ET (12:55 GMT)