EAST AURORA, N.Y.--(BUSINESS WIRE)--April 24, 2026--
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 second quarter 2026 results, reflecting robust demand, strengthening operations and continued progress toward the company's long-term financial objectives.
"Our teams delivered another outstanding quarter. Demand is strong, business is executing well and we are delivering results ahead of guidance," said Pat Roche, CEO. "We are confident in our ability to deliver for the rest of the year."
(in millions, except per
share results) Three Months Ended
---------------------------------------
Q2 2026 Q2 2025 Deltas
--------------- --------- -----------
Net sales $ 1,052 $ 934 13%
Operating margin 13.1% 11.7% 140 bps
Adjusted operating margin(1) 13.4% 12.5% 90 bps
Diluted net earnings per
share $ 2.55 $1.71 49%
Adjusted diluted net earnings
per share(1) $ 2.64 $1.88 40%
Net cash provided (used) by
operating activities $ 130 $ 40 $ 90
Free cash flow(1) $ 98 $ 2 $ 95
----------------------------- ------ --- ---- ---
(1) 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 March 28, 2026, and March 29,
2025.
Quarter Highlights
-- Net sales increased, reflecting robust growth across all four
segments.
-- Operating margin and adjusted operating margin increased, reflecting
profitable sales growth, pricing and operational performance, partially
offset by tariff pressure.
-- Diluted net earnings per share and adjusted diluted net earnings per
share, both at record levels, were driven by higher operating margin and
higher sales, offset partially by tariff pressure.
-- Free cash flow improved significantly, driven by strong earnings and
working capital management.
-- Twelve-month backlog increased 33% to a record $3.3 billion, reflecting
continued demand across our markets.
Segment Results
Sales in the second quarter of 2026 increased 13% to $1.1 billion. Space and Defense sales increased 16% to $314 million, reflecting broad-based defense demand. Demand was particularly strong for space vehicles and missile controls. Commercial Aircraft sales increased 15% to $247 million, driven by increased volume and pricing on certain major production programs. Military Aircraft sales increased 10% to $235 million, driven by higher activity on the MV-75 program. Industrial sales increased 9% to $256 million, driven by strong demand for data center cooling pumps, as well as favorable foreign currency translation.
Operating margin in the second quarter of 2026 increased 140 basis points to 13.1%, compared to the second quarter of 2025. Military Aircraft operating margin increased 260 basis points to 13.7%, driven by profitable sales growth. Space and Defense operating margin increased 170 basis points to 13.8%, driven by profitable sales growth, partially offset by increased investments for product development, business capture and operational readiness. Industrial operating margin increased 130 basis points to 12.9%, driven by lower charges associated with simplification initiatives and the benefits from business optimization, partially offset by tariff pressure. Commercial Aircraft operating margin increased 10 basis points to 11.9%, driven by pricing benefits, partially offset by tariff pressure.
Adjusted operating margin excludes $3 million and $7 million of charges primarily associated with simplification initiatives in the second quarter of 2026 and 2025, respectively. Industrial adjusted operating margin decreased 20 basis points to 13.2% in the second quarter of 2026 compared with the second quarter of 2025, as tariff pressure offset simplification benefits.
Free Cash Flow Results
Free cash flow for the quarter was $98 million. Strong earnings contributed to cash generation, while working capital remained relatively constant despite strong sales growth. Inventory growth to support higher sales was largely offset by customer advances. Capital expenditures were $32 million, reflecting continued investment to support future growth.
Fiscal 2026 Financial Guidance
"We had an outstanding second quarter and expect an even stronger business performance in the second half of 2026," said Jennifer Walter, CFO. "We're increasing our 2026 guidance for sales and adjusted earnings per share, and reaffirming our guidance for adjusted operating margin and free cash flow conversion."
FY 2026 Guidance
--------------------------------
Current Previous
Net sales (in billions) $ 4.3 $ 4.3
Adjusted operating margin 13.4% 13.4%
Adjusted diluted net earnings per
share(1) $ 10.60 $ 10.20
Free cash flow conversion 60% 60%
---------------------------------------- ------- ------
(1) Adjusted diluted net earnings per share is 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) current and future geopolitical conditions and events, including wars, armed conflicts, sanctions, trade restrictions and related disruptions to global markets and supply chains; (iv) our heavy dependence on government contracts that may not be fully funded, delayed or terminated; (v) our ability to remediate the material weakness in internal control over financial reporting and maintain effective disclosure controls and procedures; (vi) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (vii) failure of our subcontractors or suppliers to perform their contractual obligations; (viii) risks related to information systems interruptions, intrusions, cybersecurity threats or new software implementations; and (ix) our accounting estimates for over-time contracts and any changes we may 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.
Non-GAAP Financial Measures
The press release also includes certain financial information that is not presented in accordance with Generally Accepted Accounting Principles ("GAAP"), including, but not limited to, "Adjusted Operating Margin," "Adjusted Diluted Net Earnings Per Share," "Adjusted Net Earnings," "Adjusted Effective Tax Rate," "Free Cash Flow" and "Free Cash Flow Conversion." While we believe that these non-GAAP financial measures may be useful in evaluating our financial condition and results of operations, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. Adjustments to operating profit and margin and net earnings per share have included restructuring charges; acquisition- and integration-related costs; gains or losses on investments; asset impairments; litigation and regulatory matters; discrete tax items; changes in the fair value of contingent consideration; foreign exchange gains or losses; and other non-recurring or non-cash items. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures can be found in the accompanying materials.
The press release also includes certain forward-looking non-GAAP financial guidance, including, but not limited to, "Adjusted Diluted Net Earnings per Share," "Adjusted Operating Margin" and "Free Cash Flow Conversion". The Company is unable to provide a reconciliation of such forward-looking non-GAAP guidance to the most directly comparable GAAP measures without unreasonable effort because certain items that are material to the comparable GAAP measures are not available and cannot be estimated with reasonable certainty. These items are dependent on future events that are difficult to predict and outside the Company's control. These items may include, but are not limited to, restructuring charges; acquisition- and integration-related costs; gains or losses on investments; asset impairments; litigation and regulatory matters; discrete tax items; changes in the fair value of contingent consideration; foreign exchange gains or losses; and other non-recurring or non-cash items. The timing and amount of these items may vary significantly from period to period and could have a material impact on the Company's GAAP results, including, but not limited to, "Diluted Net Earnings per Share" and "Operating Margin".
Moog Inc.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(dollars in thousands, except per share data)
Three Months Ended Six Months Ended
------------------------- -------------------------
March 28, March 29, March 28, March 29,
2026 2025 2026 2025
------------------ ------------ ----------- ------------ -----------
Net sales $ 1,051,947 $ 934,022 $ 2,152,293 $ 1,841,904
Cost of sales 764,392 675,255 1,570,498 1,338,059
Inventory
write-down -- 2,149 -- 2,149
---------- ---------- ---------- ----------
Gross profit 287,555 256,618 581,795 501,696
Research and
development 26,662 24,481 51,296 48,086
Selling, general
and
administrative 136,324 133,932 285,283 262,069
Interest 15,540 19,548 32,735 35,796
Restructuring 1,505 2,425 2,956 6,209
Other (1,295) 4,174 (508) 3,043
---------- ---------- ---------- ----------
Earnings before
income taxes 108,819 72,058 210,033 146,493
Income taxes 26,980 17,448 49,343 34,357
---------- ---------- ---------- ----------
Net earnings $ 81,839 $ 54,610 $ 160,690 $ 112,136
---------- ---------- ---------- ----------
Net earnings per
share
Basic $ 2.58 $ 1.73 $ 5.07 $ 3.53
Diluted $ 2.55 $ 1.71 $ 5.01 $ 3.49
---------- ---------- ---------- ----------
Weighted average
common shares
outstanding
Basic 31,715,560 31,558,372 31,696,403 31,764,917
Diluted 32,102,535 31,942,315 32,072,594 32,174,804
------------------- ---------- ---------- ---------- ----------
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 Six Months Ended
------------------------- --------------------------
March 28, March 29, March 28, March 29,
2026 2025 2026 2025
------------------- ------------ ----------- ------------ ------------
Net Earnings as
Reported $81,839 $54,610 $160,690 $112,136
Adjustments to Net
Earnings:
Program
terminations(1) -- -- 1,324 --
Simplification
initiatives(2) 3,303 5,343 5,292 11,399
Acquisition and
integration(3) -- -- 3,606 --
Other charges(4) 400 2,000 533 2,000
Tax effect of
adjustments (932) (1,801) (2,642) (3,313)
------ ------ ------- -------
Net Earnings as
Adjusted $84,610 $60,152 $168,803 $122,222
------ --- ------ ------- -------
Diluted Net
Earnings Per Share
As Reported $ 2.55 $ 1.71 $ 5.01 $ 3.49
As Adjusted $ 2.64 $ 1.88 $ 5.26 $ 3.80
Effective Income
Tax Rate
As Reported 24.8% 24.2% 23.5% 23.5%
As Adjusted 24.8% 24.2% 23.5% 23.6%
-------------------- ------ ------ ------- -------
The diluted net earnings per share associated with the adjustments in the
table above may not reconcile when totaled due to rounding.
(1) Adjustments 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 related charges or credits.
(2) Adjustments 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 related
charges or credits.
(3) Adjustments include acquisition related activity, 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 or credits.
(4) Adjustments include costs associated with business interruptions from
natural causes, litigation matters, and other charges or credits that are
not part of normal operations.
Moog Inc.
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)
(dollars in thousands)
Three Months Ended Six Months Ended
---------------------------- ------------------------------
March 28, March 29, March 28, March 29,
2026 2025 2026 2025
---------------- -------------- ------------ -------------- --------------
Net sales:
Space and
Defense $ 313,593 $270,184 $ 637,871 $ 517,968
Military
Aircraft 235,489 213,849 482,900 427,269
Commercial
Aircraft 247,007 215,563 514,850 434,053
Industrial 255,858 234,426 516,672 462,614
--------- ------- --------- ---------
Net sales $1,051,947 $934,022 $2,152,293 $1,841,904
----------------- --------- ------- --------- ---------
Operating
profit:
Space and
Defense $ 43,265 $ 32,778 $ 86,035 $ 61,558
13.8% 12.1% 13.5% 11.9%
Military
Aircraft 32,310 23,716 60,438 47,325
13.7% 11.1% 12.5% 11.1%
Commercial
Aircraft 29,316 25,347 57,730 51,114
11.9% 11.8% 11.2% 11.8%
Industrial 33,046 27,210 69,180 52,658
12.9% 11.6% 13.4% 11.4%
--------- ------- --------- ---------
Total operating
profit 137,937 109,051 273,383 212,655
13.1% 11.7% 12.7% 11.5%
Deductions from
operating
profit:
Interest
expense 15,540 19,548 32,735 35,796
Equity-based
compensation
expense 4,770 3,695 9,725 8,020
Non-service
pension
expense 1,147 1,939 2,277 3,885
Corporate and
other
expenses,
net 7,661 11,811 18,613 18,461
----------------- --------- ------- --------- ---------
Earnings before
income taxes $ 108,819 $ 72,058 $ 210,033 $ 146,493
----------------- --------- ------- --------- ---------
Moog Inc.
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)
(dollars in thousands)
Three Months Ended Six Months Ended
-------------------------- --------------------------
March 28, March 29, March 28, March 29,
2026 2025 2026 2025
--------------- ------------ ------------ ------------ ------------
Space and
Defense
operating
profit - as
reported $ 43,265 $ 32,778 $ 86,035 $ 61,558
Simplification
initiatives 2,636 1,138 3,959 2,068
Acquisition and
integration -- -- 3,606 --
Other charges -- -- 133 --
------- ------- ------- -------
Space and
Defense
operating
profit - as
adjusted $ 45,901 $ 33,916 $ 93,733 $ 63,626
14.6% 12.6% 14.7% 12.3%
--------------- ------- ------- ------- -------
Military
Aircraft
operating
profit - as
reported $ 32,310 $ 23,716 $ 60,438 $ 47,325
Program
terminations -- -- 1,324 --
Simplification
initiatives -- -- -- 591
Other charges -- 2,000 -- 2,000
------- ------- ------- -------
Military
Aircraft
operating
profit - as
adjusted $ 32,310 $ 25,716 $ 61,762 $ 49,916
13.7% 12.0% 12.8% 11.7%
--------------- ------- ------- ------- -------
Commercial
Aircraft
operating
profit - as
reported and
adjusted $ 29,316 $ 25,347 $ 57,730 $ 51,114
11.9% 11.8% 11.2% 11.8%
--------------- ------- ------- ------- -------
Industrial
operating
profit - as
reported $ 33,046 $ 27,210 $ 69,180 $ 52,658
Simplification
initiatives 667 4,205 1,333 8,740
------- ------- ------- -------
Industrial
operating
profit - as
adjusted $ 33,713 $ 31,415 $ 70,513 $ 61,398
13.2% 13.4% 13.6% 13.3%
--------------- ------- ------- ------- -------
Total operating
profit - as
adjusted $141,240 $116,394 $283,738 $226,054
---------------- ------- ------- ------- -------
13.4% 12.5% 13.2% 12.3%
--------------- ------- ------- ------- -------
Moog Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
March 28, September 27,
2026 2025
------------------------------------ ------------ -----------------
ASSETS
Current assets
Cash and cash equivalents $ 307,553 $ 62,013
Restricted cash 679 200
Receivables, net 605,518 506,768
Unbilled receivables 842,157 744,352
Inventories, net 931,804 914,302
Prepaid expenses and other current
assets 105,830 142,345
---------- ----------
Total current assets 2,793,541 2,369,980
Property, plant and equipment, net 1,060,100 1,019,906
Operating lease right-of-use assets 54,149 52,799
Goodwill 873,510 842,313
Intangible assets, net 60,544 66,101
Deferred income taxes 6,903 22,459
Other assets 53,851 52,497
---------- ----------
Total assets $ 4,902,598 $ 4,426,055
------------------------------------- ---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current installments of long-term
debt $ 500,000 $ 1,563
Accounts payable 328,084 318,402
Accrued compensation 81,968 106,040
Contract advances and progress
billings 469,206 372,988
Accrued liabilities and other 286,743 320,075
---------- ----------
Total current liabilities 1,666,001 1,119,068
Long-term debt, excluding current
installments 739,825 944,123
Long-term pension and retirement
obligations 152,791 157,218
Deferred income taxes 45,489 32,600
Other long-term liabilities 196,012 180,491
---------- ----------
Total liabilities 2,800,118 2,433,500
---------- ----------
Shareholders' equity
Common stock - Class A 43,874 43,864
Common stock - Class B 7,406 7,416
Additional paid-in capital 1,021,544 839,328
Retained earnings 2,976,532 2,834,548
Treasury shares (1,252,323) (1,209,200)
Stock Employee Compensation Trust (279,828) (195,491)
Supplemental Retirement Plan Trust (253,378) (170,191)
Accumulated other comprehensive
loss (161,347) (157,719)
---------- ----------
Total shareholders' equity 2,102,480 1,992,555
---------- ----------
Total liabilities and shareholders'
equity $ 4,902,598 $ 4,426,055
------------------------------------- ---------- ----------
Moog Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Six Months Ended
--------------------------
March 28, March 29,
2026 2025
--------------------------------------- ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 160,690 $ 112,136
Adjustments to reconcile net
earnings to net cash provided (used)
by operating activities:
Depreciation 50,184 44,779
Amortization 5,449 4,629
Deferred income taxes 27,607 (12,824)
Equity-based compensation expense 9,725 8,020
Other (217) 2,291
Changes in assets and liabilities
providing (using) cash:
Receivables (101,159) (123,555)
Unbilled receivables (85,779) (31,216)
Inventories (14,511) (54,040)
Accounts payable 7,481 1,975
Contract advances and progress
billings 88,508 8,501
Accrued expenses (26,813) (29,523)
Accrued income taxes (23,972) (22,429)
Net pension and post retirement
liabilities 2,005 12,067
Other assets and liabilities (14,372) (13,705)
---------- --------
Net cash provided (used) by
operating activities 84,826 (92,894)
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and
equipment (66,178) (70,382)
Net proceeds from businesses sold -- 13,487
Net proceeds from buildings sold 3,065 --
Other investing transactions (458) (2,062)
---------- --------
Net cash provided (used) by
investing activities (63,571) (58,957)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving lines of
credit 869,400 752,500
Payments on revolving lines of credit (1,064,400) (462,000)
Proceeds from senior notes, net of
issuance costs 492,221 --
Payments on finance lease obligations (8,013) (4,469)
Payment of dividends (18,706) (18,106)
Proceeds from sale of treasury stock 8,476 7,825
Purchase of outstanding shares for
treasury (50,431) (126,425)
Proceeds from sale of stock held by
SECT 33,782 19,289
Purchase of stock held by SECT (34,470) (14,808)
Other financing transactions (3,116) (1,457)
---------- --------
Net cash provided (used) by
financing activities 224,743 152,349
---------- --------
Effect of exchange rate changes on cash 21 (2,309)
---------- --------
Increase (decrease) in cash, cash
equivalents and restricted cash 246,019 (1,811)
Cash, cash equivalents and restricted
cash at beginning of year 62,213 64,537
---------- --------
Cash, cash equivalents and restricted
cash at end of period $ 308,232 $ 62,726
---------------------------------------- ---------- --------
Moog Inc.
RECONCILIATION OF NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES TO
FREE CASH FLOW (UNAUDITED)
(dollars in thousands)
Three Months Ended Six Months Ended
-------------------------- ---------------------------
March 28, March 29, March 28, March 29,
2026 2025 2026 2025
----------- ------------ ------------ ------------ -------------
Net cash
provided
(used) by
operating
activities $129,594 $ 40,016 $ 84,826 $ (92,894)
Purchase of
property,
plant and
equipment (31,798) (37,604) (66,178) (70,382)
------- ------- ------- --------
Free cash
flow $ 97,796 $ 2,412 $ 18,648 $(163,276)
Adjusted net
earnings $ 84,610 $ 60,152 $168,803 $ 122,222
------- ------- ------- --------
Free cash
flow
conversion 116% 4% 11% (134)%
------------ ------- ------- ------- --------
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/20260424428017/en/
CONTACT: Aaron Astrachan
716.687.4225
(END) Dow Jones Newswires
April 24, 2026 07:55 ET (11:55 GMT)