Moog Inc. Reports Record Fourth Quarter 2025 Sales, Adjusted Operating Margin and Free Cash Flow; Issues Strong Fiscal 2026 Guidance

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 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 2025			Q4 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 27,		September 28,			September 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 27,			September 28,			September 27,			September 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 27,			September 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 27,			September 28,			September 27,			September 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 27,			September 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/

Aaron Astrachan

716.687.4225

Source: Moog Inc.