Moog Inc. Reports Strong Performance for Fourth Quarter 2024 and Issues Positive Guidance for Fiscal 2025
Moog Inc. reported strong Q4 2024 results with net sales increasing 5% to $917 million and full-year sales up 9% to $3.609 billion. Q4 operating margin decreased to 9.1% from 10.1%, while adjusted operating margin remained stable at 12.5%. Military Aircraft sales grew 17% to $216 million, and Space and Defense sales increased 9% to $263 million. The company's twelve-month backlog reached a record $2.5 billion, up 3%. For fiscal 2025, Moog projects net sales of $3.7 billion with an operating margin of 13.0% and diluted earnings per share of $8.20.
Moog Inc. ha riportato risultati solidi per il quarto trimestre del 2024, con vendite nette in aumento del 5% a 917 milioni di dollari e vendite annuali complessive cresciute del 9% a 3,609 miliardi di dollari. Il margine operativo del quarto trimestre è sceso al 9,1% rispetto al 10,1%, mentre il margine operativo rettificato è rimasto stabile al 12,5%. Le vendite di aerei militari sono aumentate del 17% a 216 milioni di dollari, e le vendite di spazio e difesa sono aumentate del 9% a 263 milioni di dollari. Il backlog dell'azienda per dodici mesi ha raggiunto un record di 2,5 miliardi di dollari, con un incremento del 3%. Per l'anno fiscale 2025, Moog prevede vendite nette di 3,7 miliardi di dollari con un margine operativo del 13,0% e utili per azione diluiti di 8,20 dollari.
Moog Inc. reportó resultados sólidos para el cuarto trimestre de 2024, con ventas netas que aumentaron un 5% a 917 millones de dólares y ventas anuales totales que subieron un 9% a 3,609 mil millones de dólares. El margen operativo del cuarto trimestre disminuyó al 9,1% desde el 10,1%, mientras que el margen operativo ajustado se mantuvo estable en el 12,5%. Las ventas de aviones militares crecieron un 17% a 216 millones de dólares, y las ventas de espacio y defensa aumentaron un 9% a 263 millones de dólares. La cartera de pedidos de la empresa alcanzó un récord de 2,5 mil millones de dólares, un aumento del 3%. Para el año fiscal 2025, Moog prevé ventas netas de 3,7 mil millones de dólares con un margen operativo del 13,0% y ganancias por acción diluidas de 8,20 dólares.
무그 주식회사는 2024년 4분기 매출이 9억1700만 달러로 5% 증가했고, 연간 매출은 36억9000만 달러로 9% 증가했다고 보고했습니다. 4분기 운영 마진은 10.1%에서 9.1%로 감소했지만, 조정된 운영 마진은 12.5%로 안정세를 유지했습니다. 군용 항공기 판매는 2억1600만 달러로 17% 증가했으며, 우주 및 방위 판매는 2억6300만 달러로 9% 증가했습니다. 회사의 12개월 잔고는 25억 달러로 3% 증가하며 기록을 세웠습니다. 2025 회계연도에 대해 무그는 37억 달러의 순매출과 13.0%의 운영 마진, 희석 주당 수익 8.20 달러를 예상하고 있습니다.
Moog Inc. a annoncé de solides résultats pour le quatrième trimestre 2024, avec des ventes nettes en hausse de 5% à 917 millions de dollars et des ventes annuelles totales en augmentation de 9% à 3,609 milliards de dollars. La marge opérationnelle du quatrième trimestre a diminué à 9,1% contre 10,1%, tandis que la marge opérationnelle ajustée est restée stable à 12,5%. Les ventes d'
Moog Inc. berichtete über starke Ergebnisse im 4. Quartal 2024, mit einem Anstieg des Nettoumsatzes um 5% auf 917 Millionen US-Dollar und einem Anstieg des Jahresumsatzes um 9% auf 3,609 Milliarden US-Dollar. Die operative Marge im 4. Quartal sank von 10,1% auf 9,1%, während die bereinigte operative Marge stabil bei 12,5% blieb. Die Verkäufe von Militärflugzeugen stiegen um 17% auf 216 Millionen US-Dollar, und die Verkäufe im Bereich Raumfahrt und Verteidigung erhöhten sich um 9% auf 263 Millionen US-Dollar. Der zwölfmonatige Auftragsbestand des Unternehmens erreichte einen Rekord von 2,5 Milliarden US-Dollar, was einem Anstieg von 3% entspricht. Für das Haushaltsjahr 2025 rechnet Moog mit einem Nettoumsatz von 3,7 Milliarden US-Dollar, einer operativen Marge von 13,0% und einem verwässerten Gewinn pro Aktie von 8,20 US-Dollar.
- Net sales increased 9% YoY to $3.609 billion
- Record backlog of $2.5 billion, up 3%
- Military Aircraft sales grew 17% to $216 million
- Free cash flow improved by $59 million YoY
- Adjusted diluted EPS increased 27% to $7.80
- Q4 operating margin declined 100 basis points to 9.1%
- Industrial segment sales decreased 5% to $242 million
- Commercial Aircraft operating margin declined 680 basis points to 11.0%
Insights
The Q4 2024 results and FY2025 guidance demonstrate strong operational execution and financial health. Net sales grew 5% to
Key performance metrics show substantial improvement:
- Adjusted operating margin expanded 150 basis points to
12.4% for the full year - Full-year adjusted EPS grew
27% to$7.80 - Free cash flow improved significantly from
-$37 million to$21 million
The FY2025 guidance projects continued growth with sales of
Strong performance in defense segments highlights Moog's strategic positioning in key military programs. The FLRAA program is driving significant growth, with Military Aircraft sales up
The defense backlog and program mix suggest sustainable long-term growth, particularly given increased global defense spending trends. Margin improvements in Military Aircraft (590 basis points to
"Our fourth quarter was strong, bringing to a close an exceptional year with record sales and expanded margins," said Pat Roche, CEO. "Our performance reflects the success in pricing and simplification initiatives that continue to build momentum into 2025, with stronger sales, expanded margin and improved cash flow generation."
(in millions, except per share results) |
Three Months Ended |
Twelve Months Ended |
||||||||||||||||
|
Q4 2024 |
Q4 2023 |
Deltas |
Q4 2024 |
Q4 2023 |
Deltas |
||||||||||||
Net sales |
$ |
917 |
|
$ |
872 |
|
|
5 |
% |
$ |
3,609 |
|
$ |
3,319 |
|
|
9 |
% |
Operating margin |
|
9.1 |
% |
|
10.1 |
% |
(100 bps) |
|
11.0 |
% |
|
10.3 |
% |
70 bps |
||||
Adjusted operating margin |
|
12.5 |
% |
|
12.5 |
% |
0 bps |
|
12.4 |
% |
|
10.9 |
% |
150 bps |
||||
Diluted net earnings per share |
$ |
1.33 |
|
$ |
1.23 |
|
|
8 |
% |
$ |
6.40 |
|
$ |
5.34 |
|
|
20 |
% |
Adjusted diluted net earnings per share |
$ |
2.16 |
|
$ |
2.10 |
|
|
3 |
% |
$ |
7.80 |
|
$ |
6.15 |
|
|
27 |
% |
Net cash provided by operating activities |
$ |
156 |
|
$ |
153 |
|
$ |
3 |
|
$ |
202 |
|
$ |
136 |
|
$ |
66 |
|
Free cash flow |
$ |
109 |
|
$ |
105 |
|
$ |
5 |
|
$ |
21 |
|
$ |
(37 |
) |
$ |
59 |
|
See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the periods ended September 28, 2024 and September 30, 2023. |
||||||||||||||||||
Quarter Highlights
- Net sales increased driven by growth in defense businesses.
- Operating margin declined due to higher levels of charges related to simplification initiatives.
- Adjusted operating margin improved within Military Aircraft, Industrial and Space and Defense, while Commercial Aircraft declined from a strong quarter a year ago.
- Diluted net earnings per share increased due to improved operational performance, partially offset by the net of prior and current year one-time charges and benefits.
- Adjusted diluted net earnings per share increased due to incremental profit from higher sales and the benefit of capitalizing interest, partially offset by the absence of last year's favorable litigation settlement.
-
Twelve-month backlog increased
3% , reaching a record level of$2.5 billion
Year Highlights
- Net sales increased due to higher demand across our aerospace and defense businesses.
- Operating margin increased within Space and Defense and Military Aircraft, while Industrial and Commercial Aircraft declined.
- Adjusted operating margin expanded in Military Aircraft, Space and Defense and Industrial reflecting the benefits of pricing and simplification initiatives, while Commercial Aircraft declined from a strong prior year.
- Diluted net earnings per share increased due to largely the same factors as the fourth quarter.
- Adjusted diluted net earnings per share increased driven by operating margin expansion and incremental profit from higher sales.
Quarter Results
"We had a great quarter," said Jennifer Walter, CFO. "Sales were very strong, adjusted operating margin was robust and on plan, and adjusted earnings per share exceeded the high end of our guidance range. In addition, we generated a substantial amount of free cash flow."
Sales in the fourth quarter of 2024 increased compared to the fourth quarter of 2023, with notable growth in Military Aircraft and Space and Defense. Military Aircraft sales increased
Operating margin decreased 100 basis points to
Adjusted operating margin in the fourth quarter of 2024 was unchanged at
Non-operating expenses in the fourth quarter of 2024 declined compared to the fourth quarter of 2023. The fourth quarter of 2024 included a
Free cash flow in the fourth quarter was driven by strong customer collections and by timing of vendor payments.
Year Results
Sales in 2024 increased compared to 2023 with notable growth in Commercial Aircraft, Military Aircraft and Space and Defense. Commercial Aircraft sales increased
Operating margin in 2024 increased compared to 2023, reflecting the benefits of pricing and simplification efforts, partially offset by higher amounts of charges related to simplifying our operations. Operating margin increased in Space and Defense and Military Aircraft, while Commercial Aircraft operating margin decreased, all due to the same factors as the fourth quarter. Also, Industrial operating margin decreased due to higher amounts of simplification charges.
Adjusted operating margin increased in 2024 compared to 2023, inclusive of a 40 basis-point contribution from the Employee Retention Credit, and increased in all of our segments except for Commercial Aircraft. Adjusted operating margin in Military Aircraft increased 300 basis points to
2025 Financial Guidance
(in millions, except per share results) |
FY 2025 |
FY 2024 |
||||
Net sales |
$ |
3,700 |
|
$ |
3,609 |
|
Operating margin |
|
13.0 |
% |
|
11.0 |
% |
Adjusted operating margin |
|
13.0 |
% |
|
12.4 |
% |
Diluted net earnings per share* |
$ |
8.20 |
|
$ |
6.40 |
|
Adjusted diluted net earnings per share* |
$ |
8.20 |
|
$ |
7.80 |
|
Free cash flow conversion |
|
50 - 75 |
% |
|
8 |
% |
*Diluted net earnings per share figures for 2025 are forecasted to be within range of +/- |
||||||
When the company provides adjusted, non-GAAP figures on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort.
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 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Net sales |
|
$ |
917,272 |
|
|
$ |
872,051 |
|
|
$ |
3,609,160 |
|
|
$ |
3,319,122 |
|
Cost of sales |
|
|
666,541 |
|
|
|
623,808 |
|
|
|
2,605,214 |
|
|
|
2,423,245 |
|
Inventory write-down |
|
|
5,252 |
|
|
|
4,345 |
|
|
|
7,027 |
|
|
|
4,345 |
|
Gross profit |
|
|
245,479 |
|
|
|
243,898 |
|
|
|
996,919 |
|
|
|
891,532 |
|
Research and development |
|
|
26,021 |
|
|
|
29,444 |
|
|
|
112,773 |
|
|
|
106,551 |
|
Selling, general and administrative |
|
|
124,840 |
|
|
|
118,041 |
|
|
|
494,887 |
|
|
|
469,836 |
|
Interest (1) |
|
|
9,262 |
|
|
|
18,227 |
|
|
|
62,112 |
|
|
|
63,578 |
|
Asset impairment and fair value adjustment |
|
|
15,287 |
|
|
|
12,974 |
|
|
|
22,149 |
|
|
|
14,628 |
|
Restructuring |
|
|
11,165 |
|
|
|
3,260 |
|
|
|
23,788 |
|
|
|
7,997 |
|
Loss on sale of businesses |
|
|
— |
|
|
|
900 |
|
|
|
— |
|
|
|
900 |
|
Gain on sale of buildings |
|
|
(979 |
) |
|
|
— |
|
|
|
(979 |
) |
|
|
(10,030 |
) |
Pension settlement |
|
|
— |
|
|
|
12,542 |
|
|
|
— |
|
|
|
12,542 |
|
Other |
|
|
4,335 |
|
|
|
(599 |
) |
|
|
14,376 |
|
|
|
9,478 |
|
Earnings before income taxes |
|
|
55,548 |
|
|
|
49,109 |
|
|
|
267,813 |
|
|
|
216,052 |
|
Income taxes |
|
|
12,503 |
|
|
|
9,527 |
|
|
|
60,593 |
|
|
|
45,054 |
|
Net earnings |
|
$ |
43,045 |
|
|
$ |
39,582 |
|
|
$ |
207,220 |
|
|
$ |
170,998 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.35 |
|
|
$ |
1.24 |
|
|
$ |
6.48 |
|
|
$ |
5.37 |
|
Diluted |
|
$ |
1.33 |
|
|
$ |
1.23 |
|
|
$ |
6.40 |
|
|
$ |
5.34 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
31,988,662 |
|
|
|
31,893,646 |
|
|
|
31,954,689 |
|
|
|
31,831,687 |
|
Diluted |
|
|
32,458,411 |
|
|
|
32,187,501 |
|
|
|
32,359,338 |
|
|
|
32,044,226 |
|
(1) During the three months ended September 28, 2024, we capitalized interest associated with major capital projects for a total of |
||||||||||||||||
Moog Inc. |
||||||||||||||||
RECONCILIATION TO ADJUSTED NET EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTED NET EARNINGS PER SHARE (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
As Reported: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
55,548 |
|
|
$ |
49,109 |
|
|
$ |
267,813 |
|
|
$ |
216,052 |
|
Income taxes |
|
|
12,503 |
|
|
|
9,527 |
|
|
|
60,593 |
|
|
|
45,054 |
|
Effective income tax rate |
|
|
22.5 |
% |
|
|
19.4 |
% |
|
|
22.6 |
% |
|
|
20.9 |
% |
Net earnings |
|
|
43,045 |
|
|
|
39,582 |
|
|
|
207,220 |
|
|
|
170,998 |
|
Diluted net earnings per share |
|
$ |
1.33 |
|
|
$ |
1.23 |
|
|
$ |
6.40 |
|
|
$ |
5.34 |
|
|
|
|
|
|
|
|
|
|
||||||||
Inventory Write-down, Restructuring and Other Charges: |
|
|
|
|
|
|
||||||||||
Earnings before income taxes |
|
$ |
16,930 |
|
|
$ |
7,605 |
|
|
$ |
32,226 |
|
|
$ |
13,391 |
|
Income taxes |
|
|
4,270 |
|
|
|
1,746 |
|
|
|
8,122 |
|
|
|
3,050 |
|
Net earnings |
|
|
12,660 |
|
|
|
5,859 |
|
|
|
24,104 |
|
|
|
10,341 |
|
Diluted net earnings per share |
|
$ |
0.39 |
|
|
$ |
0.18 |
|
|
$ |
0.74 |
|
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
||||||||
Asset Impairment |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
391 |
|
|
$ |
12,974 |
|
|
$ |
7,253 |
|
|
$ |
14,628 |
|
Income taxes |
|
|
92 |
|
|
|
937 |
|
|
|
462 |
|
|
|
1,285 |
|
Net earnings |
|
|
299 |
|
|
|
12,037 |
|
|
|
6,791 |
|
|
|
13,343 |
|
Diluted net earnings per share |
|
$ |
0.01 |
|
|
$ |
0.37 |
|
|
$ |
0.21 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
||||||||
Loss (Gain) on Sale of Businesses, Buildings and Fair Value Adjustments: |
|
|
|
|
||||||||||||
Earnings before income taxes |
|
$ |
13,918 |
|
|
$ |
900 |
|
|
$ |
13,918 |
|
|
$ |
(9,130 |
) |
Income taxes |
|
|
(245 |
) |
|
|
212 |
|
|
|
(245 |
) |
|
|
(1,874 |
) |
Net earnings |
|
|
14,163 |
|
|
|
688 |
|
|
|
14,163 |
|
|
|
(7,256 |
) |
Diluted net earnings per share |
|
$ |
0.44 |
|
|
$ |
0.02 |
|
|
$ |
0.44 |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Pension Settlement: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
— |
|
|
$ |
12,542 |
|
|
$ |
— |
|
|
$ |
12,542 |
|
Income taxes |
|
|
— |
|
|
|
2,960 |
|
|
|
— |
|
|
|
2,960 |
|
Net earnings |
|
|
— |
|
|
|
9,582 |
|
|
|
— |
|
|
|
9,582 |
|
Diluted net earnings per share |
|
$ |
— |
|
|
$ |
0.30 |
|
|
$ |
— |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
||||||||
As Adjusted: |
|
|
|
|
|
|
|
|
||||||||
Earnings before income taxes |
|
$ |
86,787 |
|
|
$ |
83,130 |
|
|
$ |
321,210 |
|
|
$ |
247,483 |
|
Income taxes |
|
|
16,620 |
|
|
|
15,382 |
|
|
|
68,932 |
|
|
|
50,475 |
|
Effective income tax rate |
|
|
19.2 |
% |
|
|
18.5 |
% |
|
|
21.5 |
% |
|
|
20.4 |
% |
Net earnings |
|
|
70,167 |
|
|
|
67,748 |
|
|
|
252,278 |
|
|
|
197,008 |
|
Diluted net earnings per share |
|
$ |
2.16 |
|
|
$ |
2.10 |
|
|
$ |
7.80 |
|
|
$ |
6.15 |
|
The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding. |
||||||||||||||||
Results shown above have been adjusted to exclude impacts associated with restructuring and other charges related to continued portfolio shaping activities, asset impairments and other charges due to program termination and the devaluation of an investment, fair value adjustments from businesses being held for sale at year end, a one-time pension settlement charge, as well as impacts from the sale of buildings and a business. 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 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
||||||||
Space and Defense |
|
$ |
262,824 |
|
|
$ |
241,211 |
|
|
$ |
1,018,148 |
|
|
$ |
947,251 |
|
Military Aircraft |
|
|
215,645 |
|
|
|
183,562 |
|
|
|
811,566 |
|
|
|
720,332 |
|
Commercial Aircraft |
|
|
197,119 |
|
|
|
193,297 |
|
|
|
788,300 |
|
|
|
668,815 |
|
Industrial |
|
|
241,684 |
|
|
|
253,981 |
|
|
|
991,146 |
|
|
|
982,724 |
|
Net sales |
|
$ |
917,272 |
|
|
$ |
872,051 |
|
|
$ |
3,609,160 |
|
|
$ |
3,319,122 |
|
Operating profit: |
|
|
|
|
|
|
|
|
||||||||
Space and Defense |
|
$ |
27,179 |
|
|
$ |
29,563 |
|
|
$ |
127,354 |
|
|
$ |
95,949 |
|
|
|
|
10.3 |
% |
|
|
12.3 |
% |
|
|
12.5 |
% |
|
|
10.1 |
% |
Military Aircraft |
|
|
25,535 |
|
|
|
10,891 |
|
|
|
85,858 |
|
|
|
60,416 |
|
|
|
|
11.8 |
% |
|
|
5.9 |
% |
|
|
10.6 |
% |
|
|
8.4 |
% |
Commercial Aircraft |
|
|
21,634 |
|
|
|
34,444 |
|
|
|
91,472 |
|
|
|
84,387 |
|
|
|
|
11.0 |
% |
|
|
17.8 |
% |
|
|
11.6 |
% |
|
|
12.6 |
% |
Industrial |
|
|
9,065 |
|
|
|
12,982 |
|
|
|
90,657 |
|
|
|
102,165 |
|
|
|
|
3.8 |
% |
|
|
5.1 |
% |
|
|
9.1 |
% |
|
|
10.4 |
% |
Total operating profit |
|
|
83,413 |
|
|
|
87,880 |
|
|
|
395,341 |
|
|
|
342,917 |
|
|
|
|
9.1 |
% |
|
|
10.1 |
% |
|
|
11.0 |
% |
|
|
10.3 |
% |
Deductions from operating profit: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
9,262 |
|
|
|
18,227 |
|
|
|
62,112 |
|
|
|
63,578 |
|
Equity-based compensation expense |
|
|
3,658 |
|
|
|
2,461 |
|
|
|
14,959 |
|
|
|
10,582 |
|
Pension settlement |
|
|
— |
|
|
|
12,542 |
|
|
|
— |
|
|
|
12,542 |
|
Non-service pension expense |
|
|
3,119 |
|
|
|
2,986 |
|
|
|
12,685 |
|
|
|
12,324 |
|
Corporate and other expenses, net |
|
|
11,826 |
|
|
|
2,555 |
|
|
|
37,772 |
|
|
|
27,839 |
|
Earnings before income taxes |
|
$ |
55,548 |
|
|
$ |
49,109 |
|
|
$ |
267,813 |
|
|
$ |
216,052 |
|
Moog Inc. |
||||||||||||||||
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Space and Defense operating profit - as reported |
|
$ |
27,179 |
|
|
$ |
29,563 |
|
|
$ |
127,354 |
|
|
$ |
95,949 |
|
Inventory write-down |
|
|
1,918 |
|
|
|
— |
|
|
|
1,918 |
|
|
|
— |
|
Asset impairment |
|
|
— |
|
|
|
— |
|
|
|
416 |
|
|
|
219 |
|
Restructuring and other |
|
|
6,307 |
|
|
|
1,348 |
|
|
|
6,307 |
|
|
|
2,902 |
|
Space and Defense operating profit - as adjusted |
|
$ |
35,404 |
|
|
$ |
30,911 |
|
|
$ |
135,995 |
|
|
$ |
99,070 |
|
|
|
|
13.5 |
% |
|
|
12.8 |
% |
|
|
13.4 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Military Aircraft operating profit - as reported |
|
$ |
25,535 |
|
|
$ |
10,891 |
|
|
$ |
85,858 |
|
|
$ |
60,416 |
|
Inventory write-down |
|
|
— |
|
|
|
1,616 |
|
|
|
175 |
|
|
|
1,616 |
|
Asset impairment |
|
|
— |
|
|
|
235 |
|
|
|
6,446 |
|
|
|
1,332 |
|
Loss on sale of business |
|
|
— |
|
|
|
900 |
|
|
|
— |
|
|
|
900 |
|
Restructuring and other |
|
|
335 |
|
|
|
124 |
|
|
|
4,732 |
|
|
|
399 |
|
Military Aircraft operating profit - as adjusted |
|
$ |
25,870 |
|
|
$ |
13,766 |
|
|
$ |
97,211 |
|
|
$ |
64,663 |
|
|
|
|
12.0 |
% |
|
|
7.5 |
% |
|
|
12.0 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Commercial Aircraft operating profit - as reported |
|
$ |
21,634 |
|
|
$ |
34,444 |
|
|
$ |
91,472 |
|
|
$ |
84,387 |
|
Asset impairment |
|
|
391 |
|
|
|
— |
|
|
|
391 |
|
|
|
338 |
|
Gain on sale of buildings |
|
|
(979 |
) |
|
|
— |
|
|
|
(979 |
) |
|
|
— |
|
Restructuring and other |
|
|
1,342 |
|
|
|
44 |
|
|
|
1,750 |
|
|
|
44 |
|
Commercial Aircraft operating profit - as adjusted |
|
$ |
22,388 |
|
|
$ |
34,488 |
|
|
$ |
92,634 |
|
|
$ |
84,769 |
|
|
|
|
11.4 |
% |
|
|
17.8 |
% |
|
|
11.8 |
% |
|
|
12.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Industrial operating profit - as reported |
|
$ |
9,065 |
|
|
$ |
12,982 |
|
|
$ |
90,657 |
|
|
$ |
102,165 |
|
Inventory write-down |
|
|
3,334 |
|
|
|
2,729 |
|
|
|
4,934 |
|
|
|
2,729 |
|
Asset impairment |
|
|
— |
|
|
|
12,739 |
|
|
|
— |
|
|
|
12,739 |
|
Fair value adjustment |
|
|
14,897 |
|
|
|
— |
|
|
|
14,897 |
|
|
|
— |
|
Gain on sale of buildings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,030 |
) |
Restructuring and other |
|
|
3,694 |
|
|
|
1,744 |
|
|
|
12,410 |
|
|
|
5,701 |
|
Industrial operating profit - as adjusted |
|
$ |
30,990 |
|
|
$ |
30,194 |
|
|
$ |
122,898 |
|
|
$ |
113,304 |
|
|
|
|
12.8 |
% |
|
|
11.9 |
% |
|
|
12.4 |
% |
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Total operating profit - as adjusted |
|
$ |
114,652 |
|
|
$ |
109,359 |
|
|
$ |
448,738 |
|
|
$ |
361,806 |
|
|
|
|
12.5 |
% |
|
|
12.5 |
% |
|
|
12.4 |
% |
|
|
10.9 |
% |
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 28,
|
|
September 30,
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
61,694 |
|
|
$ |
68,959 |
|
Restricted cash |
|
|
123 |
|
|
|
185 |
|
Receivables, net |
|
|
388,517 |
|
|
|
434,723 |
|
Unbilled receivables |
|
|
775,294 |
|
|
|
706,601 |
|
Inventories, net |
|
|
863,702 |
|
|
|
724,002 |
|
Prepaid expenses and other current assets |
|
|
86,245 |
|
|
|
50,862 |
|
Total current assets |
|
|
2,175,575 |
|
|
|
1,985,332 |
|
Property, plant and equipment, net |
|
|
929,357 |
|
|
|
814,696 |
|
Operating lease right-of-use assets |
|
|
52,591 |
|
|
|
56,067 |
|
Goodwill |
|
|
833,764 |
|
|
|
821,301 |
|
Intangible assets, net |
|
|
63,479 |
|
|
|
71,637 |
|
Deferred income taxes |
|
|
20,991 |
|
|
|
8,749 |
|
Other assets |
|
|
52,695 |
|
|
|
50,254 |
|
Total assets |
|
$ |
4,128,452 |
|
|
$ |
3,808,036 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
292,988 |
|
|
$ |
264,573 |
|
Accrued compensation |
|
|
101,127 |
|
|
|
111,154 |
|
Contract advances and progress billings |
|
|
334,558 |
|
|
|
377,977 |
|
Accrued liabilities and other |
|
|
305,180 |
|
|
|
211,769 |
|
Total current liabilities |
|
|
1,033,853 |
|
|
|
965,473 |
|
Long-term debt, excluding current installments |
|
|
874,139 |
|
|
|
863,092 |
|
Long-term pension and retirement obligations |
|
|
167,161 |
|
|
|
157,455 |
|
Deferred income taxes |
|
|
27,738 |
|
|
|
37,626 |
|
Other long-term liabilities |
|
|
164,928 |
|
|
|
148,303 |
|
Total liabilities |
|
|
2,267,819 |
|
|
|
2,171,949 |
|
Shareholders’ equity |
|
|
|
|
||||
Common stock - Class A |
|
|
43,835 |
|
|
|
43,822 |
|
Common stock - Class B |
|
|
7,445 |
|
|
|
7,458 |
|
Additional paid-in capital |
|
|
784,509 |
|
|
|
608,270 |
|
Retained earnings |
|
|
2,668,723 |
|
|
|
2,496,979 |
|
Treasury shares |
|
|
(1,082,240 |
) |
|
|
(1,057,938 |
) |
Stock Employee Compensation Trust |
|
|
(194,049 |
) |
|
|
(114,769 |
) |
Supplemental Retirement Plan Trust |
|
|
(163,821 |
) |
|
|
(93,126 |
) |
Accumulated other comprehensive loss |
|
|
(203,769 |
) |
|
|
(254,609 |
) |
Total shareholders’ equity |
|
|
1,860,633 |
|
|
|
1,636,087 |
|
Total liabilities and shareholders’ equity |
|
$ |
4,128,452 |
|
|
$ |
3,808,036 |
|
Moog Inc. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
(dollars in thousands) |
||||||||
|
|
Twelve Months Ended |
||||||
|
|
September 28,
|
|
September 30,
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Net earnings |
|
$ |
207,220 |
|
|
$ |
170,998 |
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
82,957 |
|
|
|
78,692 |
|
Amortization |
|
|
10,149 |
|
|
|
11,541 |
|
Deferred income taxes |
|
|
(31,735 |
) |
|
|
(35,531 |
) |
Equity-based compensation expense |
|
|
14,959 |
|
|
|
10,582 |
|
Loss on sale of businesses |
|
|
— |
|
|
|
900 |
|
Gain on sale of buildings |
|
|
(979 |
) |
|
|
(10,030 |
) |
Inventory write-down, asset impairment and fair value adjustments |
|
|
29,176 |
|
|
|
18,973 |
|
Pension settlement |
|
|
— |
|
|
|
12,542 |
|
Other |
|
|
6,512 |
|
|
|
6,244 |
|
Changes in assets and liabilities providing (using) cash: |
|
|
|
|
||||
Receivables |
|
|
54,716 |
|
|
|
(56,575 |
) |
Unbilled receivables |
|
|
(63,424 |
) |
|
|
(87,915 |
) |
Inventories |
|
|
(126,978 |
) |
|
|
(130,378 |
) |
Accounts payable |
|
|
26,446 |
|
|
|
28,641 |
|
Contract advances and progress billings |
|
|
(49,470 |
) |
|
|
79,983 |
|
Accrued expenses |
|
|
43,989 |
|
|
|
(1,692 |
) |
Accrued income taxes |
|
|
16,219 |
|
|
|
22,869 |
|
Net pension and post retirement liabilities |
|
|
11,791 |
|
|
|
13,940 |
|
Other assets and liabilities |
|
|
(29,204 |
) |
|
|
2,151 |
|
Net cash provided (used) by operating activities |
|
|
202,344 |
|
|
|
135,935 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Acquisitions of businesses, net of cash acquired |
|
|
(5,911 |
) |
|
|
— |
|
Purchase of property, plant and equipment |
|
|
(156,018 |
) |
|
|
(173,286 |
) |
Net proceeds from businesses sold |
|
|
1,627 |
|
|
|
1,892 |
|
Net proceeds from buildings sold |
|
|
1,453 |
|
|
|
19,702 |
|
Other investing transactions |
|
|
(766 |
) |
|
|
(11,455 |
) |
Net cash provided (used) by investing activities |
|
|
(159,615 |
) |
|
|
(163,147 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Proceeds from revolving lines of credit |
|
|
1,038,500 |
|
|
|
1,044,101 |
|
Payments on revolving lines of credit |
|
|
(1,029,500 |
) |
|
|
(1,017,420 |
) |
Payments on long-term debt |
|
|
— |
|
|
|
(916 |
) |
Payments on finance lease obligations |
|
|
(6,496 |
) |
|
|
(4,620 |
) |
Payment of dividends |
|
|
(35,476 |
) |
|
|
(34,074 |
) |
Proceeds from sale of treasury stock |
|
|
15,685 |
|
|
|
19,785 |
|
Purchase of outstanding shares for treasury |
|
|
(36,738 |
) |
|
|
(29,306 |
) |
Proceeds from sale of stock held by SECT |
|
|
28,202 |
|
|
|
15,713 |
|
Purchase of stock held by SECT |
|
|
(22,837 |
) |
|
|
(14,251 |
) |
Other financing transactions |
|
|
— |
|
|
|
(2,027 |
) |
Net cash provided (used) by financing activities |
|
|
(48,660 |
) |
|
|
(23,015 |
) |
Effect of exchange rate changes on cash |
|
|
1,324 |
|
|
|
2,043 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(4,607 |
) |
|
|
(48,184 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
|
69,144 |
|
|
|
117,328 |
|
Cash, cash equivalents and restricted cash at end of year (1) |
|
$ |
64,537 |
|
|
$ |
69,144 |
|
(1) End of year cash balance at September 28, 2024 includes cash related to assets held for sale of |
||||||||
Moog Inc. |
||||||||||||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) |
||||||||||||||||
(dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
September 28,
|
|
September 30,
|
|
September 28,
|
|
September 30,
|
||||||||
Net cash provided by operating activities |
|
$ |
155,789 |
|
|
$ |
153,032 |
|
|
$ |
202,344 |
|
|
$ |
135,935 |
|
Purchase of property, plant and equipment |
|
|
(46,402 |
) |
|
|
(48,212 |
) |
|
|
(156,018 |
) |
|
|
(173,286 |
) |
Receivables Purchase Agreement |
|
|
— |
|
|
|
— |
|
|
|
(25,000 |
) |
|
|
— |
|
Free cash flow |
|
$ |
109,387 |
|
|
$ |
104,820 |
|
|
$ |
21,326 |
|
|
$ |
(37,351 |
) |
Adjusted net earnings |
|
$ |
70,167 |
|
|
$ |
67,748 |
|
|
$ |
252,278 |
|
|
$ |
197,008 |
|
Free cash flow conversion |
|
|
156 |
% |
|
|
155 |
% |
|
|
8 |
% |
|
|
(19 |
)% |
Free cash flow is defined as net cash provided (used) by operating activities, less purchase of property, plant and equipment, less the benefit from the Receivables Purchase Agreement. Free cash flow conversion is defined as free cash flow divided by adjusted net earnings. Free cash flow and free cash flow conversion are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. However, management believes these adjusted financial measures may be useful in evaluating the liquidity, financial condition and results of operations of the Company. This information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241101207281/en/
Aaron Astrachan
716.687.4225
Source: Moog Inc.
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