Moog Inc. Reports First Quarter 2026 Record Sales and EPS and Raises Full-Year 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 first quarter 2026 results, reflecting strong execution and continued progress against the company’s long-term financial objectives.

“We delivered an outstanding start to fiscal 2026,” said Pat Roche, CEO. “Our customer focus has resulted in exceptionally strong orders that further secures our future growth. We remain committed to delivering value to our stakeholders."

(in millions, except per share results)

Three Months Ended

Q1 2026

Q1 2025 (2)

Deltas

Net sales

1,100

908

Operating margin

12.3

11.4

90 bps

Adjusted operating margin (1)

13.0

12.1

90 bps

Diluted net earnings per share

2.46

1.78

Adjusted diluted net earnings per share (1)

2.63

1.92

Net cash provided (used) by operating activities

(45

)

(133

)

Free cash flow (1)

(79

)

(166

)

(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 January 3, 2026, and December 28, 2024.

(2) As previously disclosed, amounts have been revised to reflect the correction of immaterial misstatements. See "Revision of Previously Issued Consolidated Financial Statements" section from our 2025 Form 10-K.

Quarter Highlights

Segment Results

Sales in the first quarter of 2026 increased 21% to $1.1 billion. Space and Defense sales increased 31% to $324 million, driven by broad-based defense demand, with particular strength in missile controls and satellite components. Commercial Aircraft sales increased 23% to $268 million, driven by higher volume on major production programs, increased aftermarket activity associated with strong fleet utilization, and pricing. Military Aircraft sales increased 16% to $247 million, driven by a significant V-22 spares order and continued ramp-up activity on the MV-75 program. Industrial sales increased 14% to $261 million, driven by strong demand for data center cooling pumps, other industrial automation products, and enteral feeding and IV sets.

Operating margin in the first quarter of 2026 increased 90 basis points to 12.3%, compared to the first quarter of 2025. Space and Defense operating margin increased 160 basis points to 13.2%, driven by profitable sales growth, partially offset by investments in product development, business capture and charges associated with acquisition activity. Military Aircraft operating margin increased 30 basis points to 11.4%, driven primarily by a favorable sales mix. Commercial Aircraft operating margin decreased 120 basis points to 10.6%, driven by tariff pressure, partially mitigated by increased volume and pricing benefits. Industrial operating margin increased 270 basis points to 13.9%, reflecting benefits from business optimization and sales growth, partially pressured by tariffs.

Adjusted operating margin in the first quarter of 2026 increased 90 basis points to 13.0%, compared to the first quarter of 2025. The only segment with material adjustments in the first quarter of 2026 was Space and Defense, where adjusted operating margin increased 280 basis points to 14.8%, reflecting higher sales and incremental profit, partially offset by investments in product development and business capture.

Free Cash Flow Results

Free cash flow in the first quarter was a use of $79 million, driven primarily by cash used by physical inventories to support growth and the timing of payments, including the normal timing of compensation payments. Capital expenditures totaled $34 million, as the company continued to invest to support future growth.

Fiscal 2026 Financial Guidance

“We've had an incredible start to the year with our strong first quarter financial performance, and we'll continue to build our financial strength in 2026,” said Jennifer Walter, CFO. “We're increasing our 2026 guidance for sales and adjusted earnings per share, and we're affirming our guidance on adjusted operating margin and free cash flow conversion."

FY 2026 Guidance

Current

Net sales (in billions)

4.3

4.2

Adjusted operating margin

13.4

Adjusted diluted net earnings per share (1)

10.20

10.00

Free cash flow conversion

(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) 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.

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 EBITDA,” “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” and “Adjusted Operating Profit.” 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 Profit.”

Moog Inc.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(dollars in thousands, except per share data)

Three Months Ended

January 3,

December 28,

2026

2024

Net sales

1,100,346

907,882

Cost of sales

806,106

662,804

Gross profit

294,240

245,078

Research and development

24,634

23,605

Selling, general and administrative

148,959

128,137

Interest

17,195

16,248

Restructuring

1,451

3,784

Other

787

(1,131

)

Earnings before income taxes

101,214

74,435

Income taxes

22,363

16,909

Net earnings

78,851

57,526

Net earnings per share

Basic

2.49

1.80

Diluted

2.46

1.78

Weighted average common shares outstanding

Basic

31,679,982

31,971,462

Diluted

32,045,389

32,407,293

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

January 3,

December 28,

2026

2024

Net Earnings as Reported

78,851

57,526

Adjustments to Net Earnings:

Program terminations (1)

1,324

—

Simplification initiatives (2)

1,989

6,056

Acquisition and integration (3)

3,606

—

Other charges (4)

133

—

Tax effect of adjustments

(1,710

)

(1,512

)

Net Earnings as Adjusted

84,193

62,070

Diluted Net Earnings Per Share

As Reported

2.46

1.78

As Adjusted

2.63

1.92

Effective Income Tax Rate

As Reported

22.1

22.7

As Adjusted

22.2

22.9

The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding.

Moog Inc.

CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)

(dollars in thousands)

Three Months Ended

January 3,

December 28,

2026

2024

Net sales:

Space and Defense

324,278

247,784

Military Aircraft

247,411

213,420

Commercial Aircraft

267,843

218,490

Industrial

260,814

228,188

Net sales

1,100,346

907,882

Operating profit:

Space and Defense

42,770

28,780

13.2

11.6

Military Aircraft

28,128

23,609

11.4

11.1

Commercial Aircraft

28,414

25,767

10.6

11.8

Industrial

36,134

25,448

13.9

11.2

Total operating profit

135,446

103,604

12.3

11.4

Deductions from operating profit:

Interest expense

17,195

16,248

Equity-based compensation expense

4,955

4,325

Non-service pension expense

1,130

1,946

Corporate and other expenses, net

10,952

6,650

Earnings before income taxes

101,214

74,435

Moog Inc.

RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)

(dollars in thousands)

Three Months Ended

January 3,

December 28,

2026

2024

Space and Defense operating profit - as reported

42,770

28,780

Simplification initiatives

1,323

930

Acquisition and integration

3,606

—

Other charges

133

—

Space and Defense operating profit - as adjusted

47,832

29,710

14.8

12.0

Military Aircraft operating profit - as reported

28,128

23,609

Program terminations

1,324

—

Simplification initiatives

—

591

Military Aircraft operating profit - as adjusted

29,452

24,200

11.9

11.3

Commercial Aircraft operating profit - as reported and adjusted

28,414

25,767

10.6

11.8

Industrial operating profit - as reported

36,134

25,448

Simplification initiatives

666

4,535

Industrial operating profit - as adjusted

36,800

29,983

14.1

13.1

142,498

109,660

13.0

12.1

Moog Inc.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

January 3,

September 27,

2026

2025

ASSETS

Current assets

Cash and cash equivalents

73,359

62,013

Restricted cash

435

200

Receivables, net

554,295

506,768

Unbilled receivables

817,605

744,352

Inventories, net

915,691

914,302

Prepaid expenses and other current assets

88,910

142,345

Total current assets

2,450,295

2,369,980

Property, plant and equipment, net

1,043,003

1,019,906

Operating lease right-of-use assets

57,586

52,799

Goodwill

877,058

842,313

Intangible assets, net

63,558

66,101

Deferred income taxes

6,700

22,459

Other assets

53,693

52,497

Total assets

4,551,893

4,426,055

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Current installments of long-term debt

4,688

1,563

Accounts payable

295,203

318,402

Accrued compensation

61,690

106,040

Contract advances and progress billings

410,447

372,988

Accrued liabilities and other

280,606

320,075

Total current liabilities

1,052,634

1,119,068

Long-term debt, excluding current installments

1,052,312

944,123

Long-term pension and retirement obligations

156,083

157,218

Deferred income taxes

33,025

32,600

Other long-term liabilities

192,039

180,491

Total liabilities

2,486,093

2,433,500

Shareholders’ equity

Common stock - Class A

43,864

Common stock - Class B

7,416

Additional paid-in capital

920,181

839,328

Retained earnings

2,904,206

2,834,548

Treasury shares

(1,241,614

)

(1,209,200

)

Stock Employee Compensation Trust

(214,872

)

(195,491

)

Supplemental Retirement Plan Trust

(201,585

)

(170,191

)

Accumulated other comprehensive loss

(151,796

)

(157,719

)

Total shareholders’ equity

2,065,800

1,992,555

Total liabilities and shareholders’ equity

4,551,893

4,426,055

Moog Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)

Three Months Ended

January 3,

December 28,

2026

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net earnings

78,851

57,526

Adjustments to reconcile net earnings to net cash provided (used) by operating activities:

Depreciation

24,885

22,429

Amortization

2,713

2,323

Deferred income taxes

15,602

(4,261

)

Equity-based compensation expense

4,955

4,325

Other

217

1,401

Changes in assets and liabilities providing (using) cash:

Receivables

(46,404

)

(63,037

)

Unbilled receivables

(60,291

)

(36,140

)

Inventories

7,095

(48,612

)

Accounts payable

(26,583

)

(22,973

)

Contract advances and progress billings

28,114

(4,043

)

Accrued expenses

(54,463

)

(27,301

)

Accrued income taxes

(12,866

)

(6,652

)

Net pension and post retirement liabilities

871

636

Other assets and liabilities

(7,464

)

(8,531

)

Net cash provided (used) by operating activities

(44,768

)

(132,910

)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

(34,380

)

(32,778

)

Net proceeds from businesses sold

—

13,487

Net proceeds from buildings sold

3,065

—

Other investing transactions

(156

)

169

Net cash provided (used) by investing activities

(31,471

)

(19,122

)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from revolving lines of credit

372,900

426,500

Payments on revolving lines of credit

(261,900

)

(197,000

)

Payments on finance lease obligations

(4,308

)

(2,119

)

Payment of dividends

(9,193

)

(8,961

)

Proceeds from sale of treasury stock

8,090

—

Purchase of outstanding shares for treasury

(37,847

)

(55,692

)

Proceeds from sale of stock held by SECT

27,233

9,665

Purchase of stock held by SECT

(6,914

)

(8,087

)

Other financing transactions

(339

)

(439

)

Net cash provided (used) by financing activities

87,722

163,867

Effect of exchange rate changes on cash

(2,564

)

Increase (decrease) in cash, cash equivalents and restricted cash

11,581

9,271

Cash, cash equivalents and restricted cash at beginning of year

62,213

64,537

Cash, cash equivalents and restricted cash at end of period

73,794

73,808

Moog Inc.

RECONCILIATION OF NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)

(dollars in thousands)

Three Months Ended

January 3,

December 28,

2026

2024

Net cash provided (used) by operating activities

(44,768

)

(132,910

)

Purchase of property, plant and equipment

(34,380

)

(32,778

)

Free cash flow

(79,148

)

(165,688

)

Adjusted net earnings

84,193

62,070

Free cash flow conversion

(94

(267

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.