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

3,861

3,609

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

7.33

6.45

Adjusted diluted net earnings per share

2.56

2.15

8.69

7.84

Net cash provided (used) by operating activities

241

147

273

198

Free cash flow

199

109

128

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

Year Highlights

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

(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

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

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

1,889

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

—

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

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

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

(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

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

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.