Moog Inc. Reports Record Sales and Continued Margin Expansion for Second Quarter 2024

Rhea-AI Summary

Moog Inc. reported record sales and continued margin expansion for the second quarter of 2024. Net sales increased by 11%, operating margin improved by 200 basis points, and adjusted operating margin increased by 320 basis points. Diluted earnings per share grew by 39%, and adjusted diluted earnings per share rose by 54%. The company's free cash flow also improved by $17 million. Sales increased across all segments, with Commercial Aircraft sales up by 26%, Space and Defense by 9%, Military Aircraft by 11%, and Industrial by 4%. Moog Inc. provided a positive financial outlook for fiscal year 2024, with expected growth in net sales, adjusted operating margin, and earnings per share.

Positive

• Record sales and margin expansion for Moog Inc. in Q2 2024.
• Net sales increased by 11%, operating margin improved by 200 basis points.
• Adjusted operating margin increased by 320 basis points.
• Diluted earnings per share rose by 39%, adjusted diluted earnings per share by 54%.
• Free cash flow improved by $17 million.
• Sales growth across all segments: Commercial Aircraft up 26%, Space and Defense 9%, Military Aircraft 11%, Industrial 4%.
• Positive financial outlook for FY 2024: net sales growth of 7%, adjusted operating margin expansion by 150 basis points, and adjusted earnings per share increase of 18%.

Negative

• None.

Insights

Financial Analyst

Moog Inc.'s second quarter fiscal 2024 earnings report is indicative of a robust period for the company, with a noticeable 11% upsurge in net sales and a significant improvement in operating margins by 200 basis points. The robust performance across all segments is noteworthy, particularly within the Commercial Aircraft segment, showing a 26% increase. This reflects a burgeoning demand which could be tied to a recovery or growth within the aerospace sector.

The company's strategies to enhance margins appear to be paying off, as evidenced by the expansion of adjusted operating margins by 320 basis points. The Employee Retention Credit from the CARES Act has also positively influenced the margins and overall earnings, showing management's capability to capitalize on government incentives.

From an investor's perspective, the increase in diluted earnings per share (EPS) by 39% and adjusted diluted EPS by 54% is quite impressive, as these are key indicators of profitability and often influence stock valuations positively. However, it's important to consider the reported use of cash in operations and capital expenditures, which can highlight the company's investment in future growth or potential liquidity concerns.

Looking at the future guidance, Moog Inc. forecasts positive trends, expecting sales growth of 7%, adjusted operating margin expansion of 150 basis points and an 18% increase in adjusted EPS. However, the forecasted operating margin shows a slight decrease, which could be a point of concern for investors, warranting close monitoring in upcoming quarters.

Market Research Analyst

Moog Inc.'s performance in the second quarter reflects strong demand in their specialized markets, which is an encouraging sign for their future sales trajectory. The backlog increase to $2.5 billion, particularly in aerospace and defense, indicates a robust pipeline that can support sustained revenue streams. Given the cyclical nature of these industries, the growth demonstrates Moog's competitive positioning and adaptability to market conditions.

Given the expansion in all four business segments, investors should note the diversity in Moog's product applications, which likely contributes to the company's resilience against sector-specific downturns. This diversification could be a stabilizing factor for the stock in a volatile market.

Additionally, Moog's financial guidance suggests confidence in continued performance improvements. The adjustments to operating margin and earnings projections might be interpreted as a response to market demand fluctuations and cost management efficiency, which can reassure stakeholders of the company's strategic foresight.

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 controls systems, today reported fiscal second quarter 2024 diluted earnings per share of $1.86 and adjusted diluted earnings per share of $2.19.

"The second quarter of 2024 was an exceptional quarter from a sales and earnings perspective," said Pat Roche, CEO. "Our margin enhancement efforts continue to drive financial performance improvements across our businesses and we look forward to continued strength through the year."

(in millions, except per share results)	Three Months Ended
	Q2 2024			Q2 2023			Deltas
Net sales	$	930		$	837			11	%
Operating margin		12.0	%		10.0	%	200 bps
Adjusted operating margin		13.6	%		10.4	%	320 bps
Diluted net earnings per share	$	1.86		$	1.34			39	%
Adjusted diluted net earnings per share	$	2.19		$	1.42			54	%
Net cash used by operating activities	$	(44	)	$	(41	)	$	(3	)
Free cash flow	$	(84	)	$	(101	)	$	17
See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the quarters ended March 30, 2024 and April 1, 2023.

Quarter Highlights

• Net sales of $930 million increased 11% compared to the prior year's quarter, with increases in all four segments, including a 26% increase in Commercial Aircraft.

• Operating margin of 12.0% increased 200 basis points. Business performance across all segments contributed an incremental 165 basis points. Also, the current quarter included a 150 basis point benefit from the Employee Retention Credit associated with the CARES Act. The current quarter also included 115 basis points of higher impairments and restructuring.

• Adjusted operating margin of 13.6% increased 320 basis points, driven by the underlying business performance, as well as the Employee Retention Credit.

• Diluted earnings per share of $1.86 increased 39% due to the higher operating profit and the Employee Retention Credit, partially offset by the current quarter's restructuring and impairment charges.

• Adjusted diluted earnings per share of $2.19 increased 54%, reflecting earnings associated from higher sales across all of our segments and the Employee Retention Credit.

• Free cash flow improved by $17 million as compared to last year due to lower capital expenditures.

Quarter Results

Sales in the second quarter of 2024 increased across all segments compared to the second quarter of 2023. Commercial Aircraft sales increased 26% to $208 million due to the growth in widebody aircraft. Space and Defense sales increased 9% to $267 million, driven by strong demand for programs supporting emerging defense priorities. Sales in Military Aircraft increased 11% to $203 million due to the ramp-up of the FLRAA program and the sale of a mature product line. Sales in Industrial increased 4% to $253 million due to higher demand for flight simulation systems and energy products, and were partially offset by a slowdown in orders for industrial automation applications.

Operating margin increased 200 basis points to 12.0% in the second quarter of 2024 compared to the second quarter of 2023. Space and Defense operating margin increased 460 basis points to 15.8% due to improved performance on space vehicle programs and the benefit associated with the Employee Retention Credit. Commercial Aircraft operating margin increased 250 basis points to 12.0% due to pricing and higher sales volumes across our entire book of business. Industrial operating margin increased 110 basis points to 11.1%, as the Employee Retention Credit and benefits from pricing initiatives were partially offset by higher amounts of restructuring charges. Military Aircraft operating margin decreased 60 basis points to 8.3%, as impairment and restructuring charges more than offset the gain from the sale of a mature product line.

The current quarter includes $14 million of restructuring, impairment and other charges, primarily in Military Aircraft and Industrial. The second quarter of 2023 included $3 million of restructuring and other charges. Excluding charges in both periods, adjusted operating margin increased 320 basis points to 13.6% driven largely by the factors previously described. Space and Defense adjusted operating margin increased 420 basis points to 15.9%. Military Aircraft adjusted operating margin increased 400 basis points to 13.4%. Commercial Aircraft adjusted operating margin increased 250 basis points to 12.0%, and Industrial adjusted operating margin increased 210 basis points to 12.5%.

Twelve-month backlog increased 9% to a record level of $2.5 billion due to growth across our aerospace and defense businesses.

Free cash flow in the second quarter was a use of cash of $84 million. Unfavorable timing in accounts receivable and the work-down of milestones in customer advances pressured working capital. Also, growth in physical inventories, driven by the strong level of sales, pressured working capital. Capital expenditures in the second quarter of 2024 were $40 million.

2024 Financial Guidance

"Fiscal year 2024 is shaping up to be another great year of financial performance, and we're on track to achieve our long-term financial targets," said Jennifer Walter, CFO. "This year, our sales will grow by 7%, our adjusted operating margin will expand by 150 basis points and our adjusted earnings per share will increase by 18%."

(in millions, except per share results)	FY 2024 Guidance
	Current			Previous
Net sales	$	3,550		$	3,500
Operating margin		11.9	%		12.0	%
Adjusted operating margin		12.4	%		12.0	%
Diluted net earnings per share*	$	6.87		$	6.86
Adjusted diluted net earnings per share*	$	7.25		$	6.90
*Diluted net earnings per share figures for 2024 are forecasted to be within range of +/- $0.20. Adjusted diluted net earnings per share for the third quarter of 2024 are forecasted to be $1.70, +/- $0.10.

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 live, or in replay mode, at www.moog.com/investors/communications. Supplemental financial data will be available on the website approximately 90 minutes prior to the conference call.

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							Six Months Ended
		March 30, 2024			April 1, 2023				March 30, 2024			April 1, 2023
Net sales		$	930,303		$	836,792			$	1,787,153		$	1,596,895
Cost of sales			663,350			615,477				1,287,001			1,171,894
Inventory write-down			175			—				175			—
Gross profit			266,778			221,315				499,977			425,001
Research and development			28,382			26,743				58,961			50,605
Selling, general and administrative			124,961			116,695				243,686			229,860
Interest			18,003			14,963				34,697			28,095
Asset impairment			6,750			1,219				6,750			1,219
Restructuring			6,750			2,017				8,639			3,095
Gain on sale of buildings			—			(527	)			—			(10,030	)
Other			3,183			3,901				5,884			5,552
Earnings before income taxes			78,749			56,304				141,360			116,605
Income taxes			18,746			13,291				33,545			27,576
Net earnings		$	60,003		$	43,013			$	107,815		$	89,029
Net earnings per share
Basic		$	1.88		$	1.35			$	3.38		$	2.80
Diluted		$	1.86		$	1.34			$	3.34		$	2.79
Weighted average common shares outstanding
Basic			31,967,828			31,848,140				31,934,965			31,797,071
Diluted			32,335,418			32,043,910				32,295,762			31,959,315

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								Six Months Ended
		March 30, 2024				April 1, 2023				March 30, 2024				April 1, 2023
As Reported:
Earnings before income taxes		$	78,749			$	56,304			$	141,360			$	116,605
Income taxes			18,746				13,291				33,545				27,576
Effective income tax rate			23.8	%			23.6	%			23.7	%			23.6	%
Net earnings			60,003				43,013				107,815				89,029
Diluted net earnings per share		$	1.86			$	1.34			$	3.34			$	2.79
Restructuring and Other Charges:
Earnings before income taxes		$	7,590			$	2,611			$	9,479			$	4,144
Income taxes			1,852				643				2,350				917
Net earnings			5,738				1,968				7,129				3,227
Diluted net earnings per share		$	0.18			$	0.06			$	0.22			$	0.10
Asset Impairment:
Earnings before income taxes		$	6,750			$	1,219			$	6,750			$	1,219
Income taxes			1,593				283				1,593				283
Net earnings			5,157				936				5,157				936
Diluted net earnings per share		$	0.16			$	0.03			$	0.16			$	0.03
Gain on Sale of Buildings:
Earnings before income taxes		$	—			$	(527	)		$	—			$	(10,030	)
Income taxes			—				(100	)			—				(2,086	)
Net earnings			—				(427	)			—				(7,944	)
Diluted net earnings per share		$	—			$	(0.01	)		$	—			$	(0.25	)
As Adjusted:
Earnings before income taxes		$	93,089			$	59,607			$	157,589			$	111,938
Income taxes			22,191				14,117				37,488				26,690
Effective income tax rate			23.8	%			23.7	%			23.8	%			23.8	%
Net earnings			70,898				45,490				120,101				85,248
Diluted net earnings per share		$	2.19			$	1.42			$	3.72			$	2.67
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 the sale of buildings, asset impairments due to program termination and the devaluation of an investment, as well as restructuring and other charges related to continued portfolio shaping activities and the derecognition of revenue from the write-off of an unbilled receivable due to a program cancellation ($665). 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								Six Months Ended
		March 30, 2024				April 1, 2023				March 30, 2024				April 1, 2023
Net sales:
Space and Defense		$	266,787			$	245,853			$	496,915			$	463,638
Military Aircraft			202,500				182,753				388,744				360,553
Commercial Aircraft			207,594				164,251				401,816				296,710
Industrial			253,422				243,935				499,678				475,994
Net sales		$	930,303			$	836,792			$	1,787,153			$	1,596,895
Operating profit:
Space and Defense		$	42,243			$	27,507			$	67,540			$	47,801
			15.8	%			11.2	%			13.6	%			10.3	%
Military Aircraft			16,769				16,181				36,358				31,382
			8.3	%			8.9	%			9.4	%			8.7	%
Commercial Aircraft			24,845				15,681				45,471				30,198
			12.0	%			9.5	%			11.3	%			10.2	%
Industrial			28,155				24,397				57,179				61,148
			11.1	%			10.0	%			11.4	%			12.8	%
Total operating profit			112,012				83,766				206,548				170,529
			12.0	%			10.0	%			11.6	%			10.7	%
Deductions from operating profit:
Interest expense			18,003				14,963				34,697				28,095
Equity-based compensation expense			3,047				2,791				7,212				5,765
Non-service pension expense			3,191				3,115				6,378				6,214
Corporate and other expenses, net			9,022				6,593				16,901				13,850
Earnings before income taxes		$	78,749			$	56,304			$	141,360			$	116,605

Moog Inc.
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)
(dollars in thousands)
		Three Months Ended								Six Months Ended
		March 30, 2024				April 1, 2023				March 30, 2024				April 1, 2023
Space and Defense operating profit - as reported		$	42,243			$	27,507			$	67,540			$	47,801
Asset impairment			304				219				304				219
Restructuring and other			—				1,105				—				1,281
Space and Defense operating profit - as adjusted		$	42,547			$	28,831			$	67,844			$	49,301
			15.9	%			11.7	%			13.7	%			10.6	%
Military Aircraft operating profit - as reported		$	16,769			$	16,181			$	36,358			$	31,382
Asset impairment			6,446				1,000				6,446				1,000
Restructuring and other			3,963				—				3,963				—
Military Aircraft operating profit - as adjusted		$	27,178			$	17,181			$	46,767			$	32,382
			13.4	%			9.4	%			12.0	%			9.0	%
Commercial Aircraft operating profit - as reported and adjusted		$	24,845			$	15,681			$	45,471			$	30,198
			12.0	%			9.5	%			11.3	%			10.2	%
Industrial operating profit - as reported		$	28,155			$	24,397			$	57,179			$	61,148
Gain on sale of buildings			—				(527	)			—				(10,030	)
Restructuring and other			3,627				1,506				5,516				2,863
Industrial operating profit - as adjusted		$	31,782			$	25,376			$	62,695			$	53,981
			12.5	%			10.4	%			12.5	%			11.3	%
Total operating profit - as adjusted		$	126,352			$	87,069			$	222,777			$	165,862
			13.6	%			10.4	%			12.5	%			10.4	%

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)
		March 30, 2024				September 30, 2023
ASSETS
Current assets
Cash and cash equivalents		$	59,066			$	68,959
Restricted cash			665				185
Receivables, net			419,399				434,723
Unbilled receivables			794,167				706,601
Inventories, net			810,483				724,002
Prepaid expenses and other current assets			73,165				50,862
Total current assets			2,156,945				1,985,332
Property, plant and equipment, net			869,303				814,696
Operating lease right-of-use assets			57,074				56,067
Goodwill			828,469				821,301
Intangible assets, net			68,876				71,637
Deferred income taxes			9,063				8,749
Other assets			49,390				50,254
Total assets		$	4,039,120			$	3,808,036
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	267,731			$	264,573
Accrued compensation			73,961				111,154
Contract advances and progress billings			404,876				377,977
Accrued liabilities and other			257,960				211,769
Total current liabilities			1,004,528				965,473
Long-term debt, excluding current installments			948,615				863,092
Long-term pension and retirement obligations			160,265				157,455
Deferred income taxes			22,765				37,626
Other long-term liabilities			149,688				148,303
Total liabilities			2,285,861				2,171,949
Shareholders’ equity
Common stock - Class A			43,826				43,822
Common stock - Class B			7,454				7,458
Additional paid-in capital			702,272				608,270
Retained earnings			2,587,222				2,496,979
Treasury shares			(1,071,558	)			(1,057,938	)
Stock Employee Compensation Trust			(153,295	)			(114,769	)
Supplemental Retirement Plan Trust			(129,709	)			(93,126	)
Accumulated other comprehensive loss			(232,953	)			(254,609	)
Total shareholders’ equity			1,753,259				1,636,087
Total liabilities and shareholders’ equity		$	4,039,120			$	3,808,036

Moog Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
		Six Months Ended
		March 30, 2024				April 1, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings		$	107,815			$	89,029
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation			42,276				36,810
Amortization			5,296				5,862
Deferred income taxes			(17,805	)			(9,970	)
Equity-based compensation expense			7,212				5,765
Gain on sale of buildings			—				(10,030	)
Asset impairment and inventory write-down			6,925				1,219
Other			2,207				3,292
Changes in assets and liabilities providing (using) cash:
Receivables			17,469				(10,836	)
Unbilled receivables			(86,197	)			(65,840	)
Inventories			(77,396	)			(72,346	)
Accounts payable			1,847				1,971
Contract advances and progress billings			24,512				17,067
Accrued expenses			903				(33,030	)
Accrued income taxes			10,833				11,965
Net pension and post retirement liabilities			5,687				7,119
Other assets and liabilities			(35,195	)			(11,063	)
Net cash provided (used) by operating activities			16,389				(33,016	)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired			(5,911	)			—
Purchase of property, plant and equipment			(77,530	)			(89,743	)
Net proceeds from businesses sold			—				959
Net proceeds from buildings sold			—				18,825
Other investing transactions			(515	)			(4,241	)
Net cash used by investing activities			(83,956	)			(74,200	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving lines of credit			509,500				503,232
Payments on revolving lines of credit			(425,000	)			(381,300	)
Payments on long-term debt			—				(188	)
Payments on finance lease obligations			(2,741	)			(1,899	)
Payment of dividends			(17,572	)			(16,859	)
Proceeds from sale of treasury stock			7,579				9,148
Purchase of outstanding shares for treasury			(20,238	)			(20,457	)
Proceeds from sale of stock held by SECT			15,788				9,795
Purchase of stock held by SECT			(9,407	)			(7,221	)
Other financing transactions			—				(2,024	)
Net cash provided by financing activities			57,909				92,227
Effect of exchange rate changes on cash			245				5,410
Decrease in cash, cash equivalents and restricted cash			(9,413	)			(9,579	)
Cash, cash equivalents and restricted cash at beginning of period			69,144				119,233
Cash, cash equivalents and restricted cash at end of period		$	59,731			$	109,654

Moog Inc.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
(dollars in thousands)
		Three Months Ended								Six Months Ended
		March 30, 2024				April 1, 2023				March 30, 2024				April 1, 2023
Net cash provided (used) by operating activities		$	(44,002	)		$	(41,099	)		$	16,389			$	(33,016	)
Purchase of property, plant and equipment			(40,114	)			(59,618	)			(77,530	)			(89,743	)
Free cash flow		$	(84,116	)		$	(100,717	)		$	(61,141	)		$	(122,759	)

Free cash flow is defined as net cash provided (used) by operating activities less purchase of property, plant and equipment. Free cash flow is not a measure determined in accordance with GAAP and may not be comparable with the measures as used by other companies. However, management believes this adjusted financial measure 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/20240426142803/en/

Aaron Astrachan - 716.687.4225

Source: Moog Inc.

FAQ

What were Moog Inc.'s diluted earnings per share in Q2 2024?

Moog Inc.'s diluted earnings per share in Q2 2024 were $1.86, with adjusted diluted earnings per share of $2.19.

How much did Moog Inc.'s net sales increase by in Q2 2024?

Moog Inc.'s net sales increased by 11% in Q2 2024 compared to the prior year's quarter.

What was the percentage increase in Commercial Aircraft sales for Moog Inc. in Q2 2024?

Commercial Aircraft sales for Moog Inc. increased by 26% in Q2 2024.

What is Moog Inc.'s financial guidance for FY 2024?

Moog Inc. expects net sales of $3,550 million, operating margin of 11.9%, adjusted operating margin of 12.4%, diluted net earnings per share of $6.87, and adjusted diluted net earnings per share of $7.25 for FY 2024.