Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today reported fiscal third quarter 2026 results, reflecting record sales and adjusted earnings per share, expanded operating margin and strong cash generation.

“These third quarter results demonstrate the strength of Moog’s portfolio and operational excellence,” said Pat Roche, CEO. “We are clear about where we win, disciplined on how we work, selective about where we invest, and able to turn attractive market demand into improved financial performance.”

(in millions, except per share results)

  

Three Months Ended

 

  

Q3 2026

  

Q3 2025(2)

  

Deltas

Net sales

  

$

1,117

 

  

$

970

 

  

 

15

%

Operating margin

  

 

15.8

%

  

 

11.5

%

  

430 bps

Adjusted operating margin(1)

  

 

16.4

%

  

 

13.6

%

  

280 bps

Net earnings

  

$

152

 

  

$

58

 

  

 

160

%

Adjusted net earnings(1)

  

$

119

 

  

$

74

 

  

 

61

%

Diluted net earnings per share

  

$

4.74

 

  

$

1.83

 

  

 

159

%

Adjusted diluted net earnings per share(1)

  

$

3.72

 

  

$

2.33

 

  

 

60

%

Net cash provided (used) by operating activities

  

$

160

 

  

$

125

 

  

$

35

 

Free cash flow(1)

  

$

133

 

  

$

93

 

  

$

40

 

(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 June 27, 2026 and June 28, 2025.

(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

  • Record net sales, reflecting significant growth across all four segments.

  • Operating margin benefitted from $30 million of claims related to previously incurred International Emergency Economic Powers Act (“IEEPA”) tariffs and the absence of the prior year’s program termination and asset impairment charges.

  • Adjusted operating margin increased due to the claims of previously incurred IEEPA tariffs, which accounted for 270 basis points of incremental margin, and business performance, partially offset by last year’s benefit from a non-core product line sale.

  • Diluted net earnings per share was driven by income tax benefits attributable to current and prior fiscal years, the claims of previously incurred IEEPA tariffs and business performance.

  • Adjusted diluted net earnings per share was driven by the claims of previously incurred IEEPA tariffs and business performance.

  • Free cash flow improved significantly, driven by strong earnings.

  • Twelve-month backlog increased 23% to $3.3 billion, reflecting continued demand across our markets.

Segment Results

Sales in the third quarter of 2026 were $1.1 billion, an increase of 15% compared to the third quarter of 2025. Space and Defense sales increased 17% to $336 million, reflecting broad-based defense demand including demand for missile controls and space vehicles. Military Aircraft sales increased 9% to $245 million, driven by strong aftermarket activity, as well as continued activity on the MV-75 program. Commercial Aircraft sales increased 17% to $254 million, driven by higher volume and pricing on various major production programs, as well as strong aftermarket sales. Industrial sales increased 18% to $282 million, driven by strong demand for data center cooling pumps, as well as for medical devices and energy products.

Operating margin in the third quarter of 2026 was 15.8%, an increase of 430 basis points compared to the third quarter of 2025. Industrial operating margin increased 770 basis points to 17.4%, primarily driven by tariff refund claims, as well as the absence of last year’s impairment charges and the growing data center cooling pump business. Military Aircraft operating margin increased 650 basis points to 14.7%, driven by the absence of the prior year’s 360 basis point charge associated with the termination of a product development effort and business performance. Space and Defense operating margin increased 240 basis points to 15.7%, driven by business performance and, to a lesser extent, the tariff refund. These benefits were partially offset by increased product development, business capture and operational readiness investments. Commercial Aircraft operating margin increased 50 basis points to 15.2%, driven by tariff refund claims and pricing benefits, mostly offset by the absence of the prior year’s 300 basis points non-core product line sale and the current quarter’s less favorable sales mix.

Adjusted operating margin excludes $7 million of charges for simplification initiatives in the third quarter of 2026, and excludes $20 million of charges for simplification initiatives, as well as a program termination, in the third quarter of 2025. Excluding these items, adjusted operating margin expanded 280 basis points to 16.4% compared to the third quarter of 2025. Industrial adjusted operating margin increased 630 basis points to 19.9% driven by tariff refund claims and the growing data center cooling pump business. Military Aircraft adjusted operating margin increased 290 basis points to 14.7%, driven by business performance and the tariff refund. Within Space and Defense and Commercial Aircraft, adjusted operating margin increased due to the same factors as described above.

Income Tax Expense

The effective tax rates for the third quarter and first three quarters of 2026 were (10.6)% and 10.0%, respectively, compared with 23.4% for both corresponding periods of 2025. During the third quarter of 2026, we recognized income tax benefits related to U.S. federal research credits of $35 million related to prior years. We also recognized a discrete income tax benefit of $8 million related to legal entity simplification initiatives. Adjusted 2026 net earnings and adjusted net earnings per share exclude both the $35 million and $8 million income tax benefits.

Free Cash Flow Results

Free cash flow for the quarter was $133 million. Strong earnings drove cash generation, and working capital remained relatively constant despite strong sales growth. Capital expenditures were $28 million, relatively light compared to recent periods due to timing of capital investments.

Fiscal 2026 Financial Guidance

“This quarter was another one marked with robust financial results,” said Jennifer Walter, CFO. “We’re increasing our 2026 guidance for all key financial metrics, reflecting our strong operational performance, as well as contributions from the tariff refund and a current year research and development tax credit. Fiscal 2026 is shaping up to be another record year.”

 

  

FY 2026 Guidance

 

  

Current

  

Previous

Net sales (in billions)

  

$

4.4

 

  

$

4.3

 

Adjusted operating margin

  

 

14.1

%

  

 

13.4

%

Adjusted diluted net earnings per share(1)

  

$

11.65

 

  

$

10.60

 

Free cash flow conversion

  

 

70

%

  

 

60

%

(1) Adjusted diluted net earnings per share is forecasted to be within range of +/- $0.10.

Conference call information

In conjunction with today’s release, Pat Roche, CEO, and Jennifer Walter, CFO, will host a conference call today beginning at 10:00 a.m. ET, which will be simultaneously broadcast live online. Listeners can access the call and supplemental financial materials at www.moog.com/investors/communications.

Cautionary Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as: “may,” “will,” “should,” “believes,” “expects,” “expected,” “intends,” “plans,” “projects,” “approximate,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “anticipates,” “presume,” “assume” and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, are neither historical facts nor guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements.

Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission (“SEC”) and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) current and future geopolitical conditions and events, including wars, armed conflicts, sanctions, trade restrictions and related disruptions to global markets and supply chains; (iv) our heavy dependence on government contracts that may not be fully funded, delayed or terminated; (v) our ability to remediate the material weakness in internal control over financial reporting and maintain effective disclosure controls and procedures; (vi) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (vii) failure of our subcontractors or suppliers to perform their contractual obligations; (viii) risks related to information systems interruptions, intrusions, cybersecurity threats or new software implementations; and (ix) our accounting estimates for over-time contracts and any changes we may need to make thereto. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties.

While we believe we have identified and discussed in our SEC filings the material risks affecting our business, there may be additional factors, risks and uncertainties not currently known to us or that we currently consider immaterial that may affect the forward-looking statements we make herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to update any forward-looking statement made in this press release, except as required by applicable law.

Non-GAAP Financial Measures

The press release also includes certain financial information that is not presented in accordance with Generally Accepted Accounting Principles (“GAAP”), including, but not limited to, “Adjusted Operating Margin,” “Adjusted Diluted Net Earnings Per Share,” “Adjusted Net Earnings,” “Adjusted Effective Tax Rate,” “Free Cash Flow” and “Free Cash Flow Conversion.” While we believe that these non-GAAP financial measures may be useful in evaluating our financial condition and results of operations, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. Adjustments to operating profit and margin and net earnings per share have included restructuring charges; acquisition- and integration-related costs; gains or losses on investments; asset impairments; litigation and regulatory matters; discrete tax items; changes in the fair value of contingent consideration; foreign exchange gains or losses; and other non-recurring or non-cash items. Reconciliations of the non-GAAP measures to the most directly comparable GAAP measures can be found in the accompanying materials.

The press release also includes certain forward-looking non-GAAP financial guidance, including, but not limited to, “Adjusted Diluted Net Earnings per Share,” “Adjusted Operating Margin” and “Free Cash Flow Conversion”. The Company is unable to provide a reconciliation of such forward-looking non-GAAP guidance to the most directly comparable GAAP measures without unreasonable effort because certain items that are material to the comparable GAAP measures are not available and cannot be estimated with reasonable certainty. These items are dependent on future events that are difficult to predict and outside the Company’s control. These items may include, but are not limited to, restructuring charges; acquisition- and integration-related costs; gains or losses on investments; asset impairments; litigation and regulatory matters; discrete tax items; changes in the fair value of contingent consideration; foreign exchange gains or losses; and other non-recurring or non-cash items. The timing and amount of these items may vary significantly from period to period and could have a material impact on the Company’s GAAP results, including, but not limited to, “Diluted Net Earnings per Share” and “Operating Margin”.

Moog Inc.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(dollars in thousands, except per share data)
 

 

 

Three Months Ended

 

Nine Months Ended

 

 

June 27,

2026

 

June 28,

2025

 

June 27,

2026

 

June 28,

2025

Net sales

 

$

1,116,545

 

 

$

969,582

 

$

3,268,838

 

$

2,811,486

Cost of sales

 

 

769,299

 

 

 

696,913

 

 

2,339,797

 

 

2,034,972

Inventory write-down

 

 

—

 

 

 

5,839

 

 

—

 

 

7,988

Gross profit

 

 

347,246

 

 

 

266,830

 

 

929,041

 

 

768,526

Research and development

 

 

33,040

 

 

 

21,906

 

 

84,336

 

 

69,992

Selling, general and administrative

 

 

150,989

 

 

 

139,748

 

 

436,272

 

 

401,817

Interest

 

 

15,778

 

 

 

17,790

 

 

48,513

 

 

53,586

Asset impairment and fair value adjustment

 

 

6,684

 

 

 

3,000

 

 

6,684

 

 

3,000

Restructuring

 

 

2,268

 

 

 

2,850

 

 

5,224

 

 

9,059

Other

 

 

1,063

 

 

 

5,183

 

 

555

 

 

8,226

Earnings before income taxes

 

 

137,424

 

 

 

76,353

 

 

347,457

 

 

222,846

Income taxes (benefit)

 

 

(14,601

)

 

 

17,867

 

 

34,742

 

 

52,224

Net earnings

 

$

152,025

 

 

$

58,486

 

$

312,715

 

$

170,622

 

 

 

 

 

 

 

 

 

Net earnings per share

 

 

 

 

 

 

 

 

Basic

 

$

4.80

 

 

$

1.86

 

$

9.88

 

$

5.38

Diluted

 

$

4.74

 

 

$

1.83

 

$

9.76

 

$

5.32

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

31,676,950

 

 

 

31,524,999

 

 

31,654,223

 

 

31,684,945

Diluted

 

 

32,075,908

 

 

 

31,896,949

 

 

32,038,003

 

 

32,082,186
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

 

Nine Months Ended

 

 

June 27,

2026

 

June 28,

2025

 

June 27,

2026

 

June 28,

2025

Net Earnings as Reported

 

$

152,025

 

 

$

58,486

 

 

$

312,715

 

 

$

170,622

 

Adjustments to Net Earnings:

 

 

 

 

 

 

 

 

Program terminations(1)

 

 

—

 

 

 

8,065

 

 

 

1,324

 

 

 

8,065

 

Simplification initiatives(2)

 

 

8,239

 

 

 

6,805

 

 

 

13,531

 

 

 

18,204

 

Investment losses(3)

 

 

—

 

 

 

3,000

 

 

 

—

 

 

 

3,000

 

Acquisition and integration(4)

 

 

—

 

 

 

481

 

 

 

3,606

 

 

 

481

 

Other charges(5)

 

 

(1,200

)

 

 

1,462

 

 

 

(1,067

)

 

 

3,462

 

Corporate charges(6)

 

 

5,938

 

 

 

—

 

 

 

6,338

 

 

 

—

 

Tax effect of above adjustments

 

 

(3,133

)

 

 

(4,007

)

 

 

(5,775

)

 

 

(7,320

)

One-time tax benefits(7)

 

 

(42,613

)

 

 

—

 

 

 

(42,613

)

 

 

—

 

Net Earnings as Adjusted

 

$

119,256

 

 

$

74,292

 

 

$

288,059

 

 

$

196,514

 

 

 

 

 

 

 

 

 

 

Diluted Net Earnings Per Share

 

 

 

 

 

 

 

 

As Reported

 

$

4.74

 

 

$

1.83

 

 

$

9.76

 

 

$

5.32

 

As Adjusted

 

$

3.72

 

 

$

2.33

 

 

$

8.99

 

 

$

6.13

 

 

 

 

 

 

 

 

 

 

Effective Income Tax Rate

 

 

 

 

 

 

 

 

As Reported

 

 

(10.6

)%

 

 

23.4

%

 

 

10.0

%

 

 

23.4

%

As Adjusted

 

 

20.7

%

 

 

22.7

%

 

 

22.4

%

 

 

23.3

%

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

(1) Adjustments include costs related to the termination of significant development, production, or support programs, such as write-off and impairment of inventory and long-lived assets, contract termination costs and other related charges or credits.

(2) Adjustments include costs related to footprint rationalization, portfolio shaping and legal entity re-organization activities, such as facility closure costs, employee severance and retention costs, write-off and impairment of inventory and long-lived assets and other related charges or credits.

(3) Adjustments include impairment losses on minority investments.

(4) Adjustments include acquisition related activity, such as amortization of inventory fair value step-up and professional services fees. Charges also include costs related to integrating the business, such as employee severance and retention costs, professional services fees, legal entity and facility rationalization costs and other related charges or credits.

(5) Adjustments include costs associated with business interruptions from natural causes, litigation matters and other charges or credits that are not part of normal operations.

(6) Adjustments primarily include impairment charges related to long-lived assets used in corporate operations.

(7) Adjustments include tax benefits associated with federal R&D tax credits attributable to prior fiscal years and legal-entity simplification initiatives.
Moog Inc.

CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)

(dollars in thousands)
 

 

 

Three Months Ended

 

Nine Months Ended

 

 

June 27,

2026

 

June 28,

2025

 

June 27,

2026

 

June 28,

2025

Net sales:

 

 

 

 

 

 

 

 

Space and Defense

 

$

336,095

 

 

$

287,705

 

 

$

973,966

 

 

$

805,673

 

Military Aircraft

 

 

245,164

 

 

 

224,662

 

 

 

728,064

 

 

 

651,931

 

Commercial Aircraft

 

 

253,569

 

 

 

217,655

 

 

 

768,419

 

 

 

651,708

 

Industrial

 

 

281,717

 

 

 

239,560

 

 

 

798,389

 

 

 

702,174

 

Net sales

 

$

1,116,545

 

 

$

969,582

 

 

$

3,268,838

 

 

$

2,811,486

 

Operating profit:

 

 

 

 

 

 

 

 

Space and Defense

 

$

52,730

 

 

$

38,363

 

 

$

138,765

 

 

$

99,921

 

 

 

 

15.7

%

 

 

13.3

%

 

 

14.2

%

 

 

12.4

%

Military Aircraft

 

 

35,948

 

 

 

18,346

 

 

 

96,386

 

 

 

65,671

 

 

 

 

14.7

%

 

 

8.2

%

 

 

13.2

%

 

 

10.1

%

Commercial Aircraft

 

 

38,480

 

 

 

32,025

 

 

 

96,210

 

 

 

83,139

 

 

 

 

15.2

%

 

 

14.7

%

 

 

12.5

%

 

 

12.8

%

Industrial

 

 

49,112

 

 

 

23,177

 

 

 

118,292

 

 

 

75,835

 

 

 

 

17.4

%

 

 

9.7

%

 

 

14.8

%

 

 

10.8

%

Total operating profit

 

 

176,270

 

 

 

111,911

 

 

 

449,653

 

 

 

324,566

 

 

 

 

15.8

%

 

 

11.5

%

 

 

13.8

%

 

 

11.5

%

Deductions from operating profit:

 

 

 

 

 

 

 

 

Interest expense

 

 

15,778

 

 

 

17,790

 

 

 

48,513

 

 

 

53,586

 

Equity-based compensation expense

 

 

6,187

 

 

 

4,649

 

 

 

15,912

 

 

 

12,669

 

Non-service pension expense

 

 

1,137

 

 

 

1,970

 

 

 

3,414

 

 

 

5,855

 

Corporate and other expenses, net

 

 

15,744

 

 

 

11,149

 

 

 

34,357

 

 

 

29,610

 

Earnings before income taxes

 

$

137,424

 

 

$

76,353

 

 

$

347,457

 

 

$

222,846

 
Moog Inc.

RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)

(dollars in thousands)
 

 

 

Three Months Ended

 

Nine Months Ended

 

 

June 27,

2026

 

June 28,

2025

 

June 27,

2026

 

June 28,

2025

Space and Defense operating profit – as reported

 

$

52,730

 

 

$

38,363

 

 

$

138,765

 

 

$

99,921

 

Simplification initiatives

 

 

1,402

 

 

 

406

 

 

 

5,361

 

 

 

2,474

 

Acquisition and integration

 

 

—

 

 

 

481

 

 

 

3,606

 

 

 

481

 

Other charges

 

 

(1,200

)

 

 

1,462

 

 

 

(1,067

)

 

 

1,462

 

Space and Defense operating profit – as adjusted

 

$

52,932

 

 

$

40,712

 

 

$

146,665

 

 

$

104,338

 

 

 

 

15.7

%

 

 

14.2

%

 

 

15.1

%

 

 

13.0

%

 

 

 

 

 

 

 

 

 

Military Aircraft operating profit – as reported

 

$

35,948

 

 

$

18,346

 

 

$

96,386

 

 

$

65,671

 

Program terminations

 

 

—

 

 

 

8,065

 

 

 

1,324

 

 

 

8,065

 

Simplification initiatives

 

 

—

 

 

 

—

 

 

 

—

 

 

 

591

 

Other charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,000

 

Military Aircraft operating profit – as adjusted

 

$

35,948

 

 

$

26,411

 

 

$

97,710

 

 

$

76,327

 

 

 

 

14.7

%

 

 

11.8

%

 

 

13.4

%

 

 

11.7

%

 

 

 

 

 

 

 

 

 

Commercial Aircraft operating profit – as reported and adjusted

 

$

38,480

 

 

$

32,025

 

 

$

96,210

 

 

$

83,139

 

 

 

 

15.2

%

 

 

14.7

%

 

 

12.5

%

 

 

12.8

%

 

 

 

 

 

 

 

 

 

Industrial operating profit – as reported

 

$

49,112

 

 

$

23,177

 

 

$

118,292

 

 

$

75,835

 

Simplification initiatives

 

 

6,837

 

 

 

6,399

 

 

 

8,170

 

 

 

15,139

 

Investment losses

 

 

—

 

 

 

3,000

 

 

 

—

 

 

 

3,000

 

Industrial operating profit – as adjusted

 

$

55,949

 

 

$

32,576

 

 

$

126,462

 

 

$

93,974

 

 

 

 

19.9

%

 

 

13.6

%

 

 

15.8

%

 

 

13.4

%

 

 

 

 

 

 

 

 

 

Total operating profit – as adjusted

 

$

183,309

 

 

$

131,724

 

 

$

467,047

 

 

$

357,778

 

 

 

 

16.4

%

 

 

13.6

%

 

 

14.3

%

 

 

12.7

%
Moog Inc.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)
 

 

 

June 27,

2026

 

September 27,

2025

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

66,821

 

 

$

62,013

 

Restricted cash

 

 

931

 

 

 

200

 

Receivables, net

 

 

662,499

 

 

 

506,768

 

Unbilled receivables

 

 

823,658

 

 

 

744,352

 

Inventories, net

 

 

933,939

 

 

 

914,302

 

Prepaid expenses and other current assets

 

 

115,456

 

 

 

142,345

 

Total current assets

 

 

2,603,304

 

 

 

2,369,980

 

Property, plant and equipment, net

 

 

1,076,240

 

 

 

1,019,906

 

Operating lease right-of-use assets

 

 

54,753

 

 

 

52,799

 

Goodwill

 

 

869,185

 

 

 

842,313

 

Intangible assets, net

 

 

57,627

 

 

 

66,101

 

Deferred income taxes

 

 

31,012

 

 

 

22,459

 

Other assets

 

 

79,059

 

 

 

52,497

 

Total assets

 

$

4,771,180

 

 

$

4,426,055

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Current installments of long-term debt

 

$

1,563

 

 

$

1,563

 

Accounts payable

 

 

323,625

 

 

 

318,402

 

Accrued compensation

 

 

118,880

 

 

 

106,040

 

Contract advances and progress billings

 

 

486,574

 

 

 

372,988

 

Accrued liabilities and other

 

 

316,462

 

 

 

320,075

 

Total current liabilities

 

 

1,247,104

 

 

 

1,119,068

 

Long-term debt, excluding current installments

 

 

906,426

 

 

 

944,123

 

Long-term pension and retirement obligations

 

 

153,689

 

 

 

157,218

 

Deferred income taxes

 

 

32,241

 

 

 

32,600

 

Other long-term liabilities

 

 

209,825

 

 

 

180,491

 

Total liabilities

 

 

2,549,285

 

 

 

2,433,500

 

Shareholders’ equity

 

 

 

 

Common stock – Class A

 

 

43,878

 

 

 

43,864

 

Common stock – Class B

 

 

7,402

 

 

 

7,416

 

Additional paid-in capital

 

 

1,244,730

 

 

 

839,328

 

Retained earnings

 

 

3,119,054

 

 

 

2,834,548

 

Treasury shares

 

 

(1,264,428

)

 

 

(1,209,200

)

Stock Employee Compensation Trust

 

 

(411,397

)

 

 

(195,491

)

Supplemental Retirement Plan Trust

 

 

(350,461

)

 

 

(170,191

)

Accumulated other comprehensive loss

 

 

(166,883

)

 

 

(157,719

)

Total shareholders’ equity

 

 

2,221,895

 

 

 

1,992,555

 

Total liabilities and shareholders’ equity

 

$

4,771,180

 

 

$

4,426,055

 
Moog Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)
 

 

 

Nine Months Ended

 

 

June 27,

2026

 

June 28,

2025

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Net earnings

 

$

312,715

 

 

$

170,622

 

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

 

 

 

 

Depreciation

 

 

79,629

 

 

 

68,252

 

Amortization

 

 

8,152

 

 

 

6,996

 

Deferred income taxes

 

 

(8,521

)

 

 

(19,642

)

Equity-based compensation expense

 

 

15,912

 

 

 

12,669

 

Asset impairment and inventory write-down

 

 

6,684

 

 

 

10,988

 

Other

 

 

(705

)

 

 

3,648

 

Changes in assets and liabilities providing (using) cash:

 

 

 

 

Receivables

 

 

(159,619

)

 

 

(105,346

)

Unbilled receivables

 

 

(67,990

)

 

 

(37,642

)

Inventories

 

 

(21,516

)

 

 

(65,256

)

Accounts payable

 

 

4,106

 

 

 

(4,201

)

Contract advances and progress billings

 

 

107,579

 

 

 

9,009

 

Accrued expenses

 

 

25,604

 

 

 

(4,796

)

Accrued income taxes

 

 

(21,362

)

 

 

(20,095

)

Net pension and post-retirement liabilities

 

 

3,821

 

 

 

14,644

 

Other assets and liabilities

 

 

(39,568

)

 

 

(7,453

)

Net cash provided (used) by operating activities

 

 

244,921

 

 

 

32,397

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Purchase of property, plant and equipment

 

 

(93,692

)

 

 

(103,041

)

Net proceeds from businesses sold

 

 

—

 

 

 

13,487

 

Net proceeds from buildings sold

 

 

3,065

 

 

 

—

 

Other investing transactions

 

 

(904

)

 

 

(2,844

)

Net cash provided (used) by investing activities

 

 

(91,531

)

 

 

(92,398

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from revolving lines of credit

 

 

1,348,400

 

 

 

957,500

 

Payments on revolving lines of credit

 

 

(1,375,400

)

 

 

(1,001,500

)

Proceeds from long-term debt

 

 

—

 

 

 

250,000

 

Proceeds from senior notes, net of issuance costs

 

 

491,443

 

 

 

—

 

Payments on senior notes

 

 

(500,000

)

 

 

—

 

Payments on finance lease obligations

 

 

(15,716

)

 

 

(7,128

)

Payment of dividends

 

 

(28,209

)

 

 

(27,247

)

Proceeds from sale of treasury stock

 

 

8,476

 

 

 

10,970

 

Purchase of outstanding shares for treasury

 

 

(62,673

)

 

 

(127,808

)

Proceeds from sale of stock held by SECT

 

 

39,864

 

 

 

20,287

 

Purchase of stock held by SECT

 

 

(51,319

)

 

 

(18,505

)

Other financing transactions

 

 

(3,171

)

 

 

(1,600

)

Net cash provided (used) by financing activities

 

 

(148,305

)

 

 

54,969

 

Effect of exchange rate changes on cash

 

 

454

 

 

 

(491

)

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

 

 

5,539

 

 

 

(5,523

)

Cash, cash equivalents and restricted cash at beginning of year

 

 

62,213

 

 

 

64,537

 

Cash, cash equivalents and restricted cash at end of period

 

$

67,752

 

 

$

59,014

 
Moog Inc.

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

(dollars in thousands)
 

 

 

Three Months Ended

 

Nine Months Ended

 

 

June 27,

2026

 

June 28,

2025

 

June 27,

2026

 

June 28,

2025

Net cash provided (used) by operating activities

 

$

160,095

 

 

$

125,291

 

 

$

244,921

 

 

$

32,397

 

Purchase of property, plant and equipment

 

 

(27,514

)

 

 

(32,659

)

 

 

(93,692

)

 

 

(103,041

)

Free cash flow

 

$

132,581

 

 

$

92,632

 

 

$

151,229

 

 

$

(70,644

)

Adjusted net earnings

 

$

119,256

 

 

$

74,292

 

 

$

288,059

 

 

$

196,514

 

Free cash flow conversion

 

 

111

%

 

 

125

%

 

 

52

%

 

 

(36

)%

Free cash flow is defined as net cash provided (used) by operating activities less the purchase of property, plant and equipment. 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.

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