EX-99.1 2 ex991-12425.htm EX-99.1 Document
Exhibit 99.1
Moog Inc. ▪ East Aurora, New York ▪ 14052 ▪ 716-652-2000

Press Information
Release Date:January 24, 2025
IMMEDIATE
 

Moog Inc. Reports First Quarter 2025 Results with Increased Sales, Enhanced Margins and Significant Bookings

East Aurora, NY -- 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 first quarter 2025 diluted earnings per share of $1.64 and adjusted diluted earnings per share of $1.78, which includes an out-of-period warranty expense.

(in millions, except per share results)Three Months Ended
Q1 2025Q1 2024Deltas
Net sales$910 $857 6 %
Operating margin (1)
11.1 %11.0 %10 bps
Adjusted operating margin (1)
11.8 %11.3 %50 bps
Diluted net earnings per share (2)
$1.64 $1.48 11 %
Adjusted diluted net earnings per share (2)
$1.78 $1.53 16 %
Net cash provided (used) by operating activities$(132)$60 $(193)
Free cash flow$(165)$(2)$(163)
See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the periods ended December 28, 2024 and December 30, 2023.
(1) Q1 2025 includes 80 basis points for an out-of-period warranty expense.
(2) Q1 2025 includes $0.18 for an out-of-period warranty expense.

Quarter Highlights

•Net sales increased due to growth in aerospace and defense businesses, while sales declined in the Industrial segment, in part due to divestitures.
•Operating margin increased due to benefits of simplification initiatives and improved operations, mostly offset by higher restructuring and other charges. Adjusted operating margin, excluding these charges, expanded across all of our segments.
•Commercial Aircraft operating profit includes an $8 million out-of-period warranty expense.
•Diluted earnings per share increased due to the incremental operating profit from higher sales.
•Adjusted diluted earnings per share increased due to the incremental operating profit from both higher sales and margin enhancement across all of our segments.
•Free cash flow use was driven by working capital requirements.
•Bookings of $1.3 billion were driven by record orders in Space and Defense and strong orders in Commercial Aircraft.
•Twelve-month backlog remained steady at $2.5 billion, as growth in Space and Defense was offset by declines in Industrial due to the impact of the divestitures and weaker foreign currencies.

"We have delivered a great quarter with strong sales growth, impressive bookings and solid margin enhancement," said Pat Roche, CEO. "We are delivering value for our customers and are being rewarded with significant program wins. Our operational initiatives will deliver continued margin enhancement and strong free cash flow in the second half of 2025."



Exhibit 99.1
Segment Results
Sales in the first quarter of 2025 increased compared to the first quarter of 2024, driven by defense growth in Space and Defense and in Military Aircraft, and by aftermarket demand in Commercial Aircraft. These increases were partially offset by a sales decline in Industrial. Space and Defense sales increased 8% to $248 million, supported by broad-based demand. Military Aircraft sales increased 15% to $213 million, driven by the ramp-up of activity on the FLRAA program and new production programs. Commercial Aircraft sales increased 14% to $221 million, reflecting strong repair activity and initial provisioning of spares. Industrial sales decreased 7% to $228 million, half due to the lost sales associated with our portfolio shaping activities.

Operating margin increased 10 basis points to 11.1% in the first quarter of 2025 compared to the first quarter of 2024. Space and Defense operating margin increased 50 basis points to 11.5% due to sales growth, partially offset by investments to prepare for upcoming major programs. Military Aircraft operating margin increased 20 basis points to 10.7%, driven by increased activity on the FLRAA program and lower research and development expenses, partially offset by an unfavorable sales mix. Commercial Aircraft operating margin increased 40 basis points to 11.0%, driven by higher levels of aftermarket sales, offset by a 340 basis-point out-of-period warranty expense. Excluding this warranty expense, Commercial Aircraft operating margin would have been 14.4% in the first quarter of 2025. Industrial operating margin decreased 60 basis points to 11.2%, due to restructuring and other charges.

Adjusted operating margin excludes $6 million and $2 million in restructuring and other charges in the first quarter of 2025 and 2024, respectively. Industrial adjusted operating margin increased 60 basis points to 13.2% in the first quarter of 2025 compared to the first quarter of 2024, driven by simplification initiatives.


Free Cash Flow Results
Free cash flow in the first quarter was a use of cash of $165 million driven by working capital requirements. Physical inventories grew to support future sales growth. In addition, free cash flow was negatively impacted by the timing of collections and compensation payments.


2025 Financial Guidance

"Fiscal year 2025 is shaping up to be another strong year, with growth in sales, continued operating margin expansion and enhanced free cash flow generation," said Jennifer Walter, CFO. "Both pricing and simplification will drive our operating margin expansion this year, while our focus on optimizing our planning and sourcing activities will contribute to our significant cash generation in the back half of the year."

(in millions, except per share results)
FY 2025 Guidance
CurrentPrevious
Net sales$3,700 $3,700 
Operating margin12.9 %13.0 %
Adjusted operating margin13.0 %13.0 %
Diluted net earnings per share(1)
$8.06 $8.20 
Adjusted diluted net earnings per share$8.20 $8.20 
Free cash flow conversion50 - 75 %50 - 75 %
(1) Diluted net earnings per share figures are forecasted to be within range of +/- $0.20.

Diluted net earnings per share for the second quarter of 2025 is forecasted to be $1.75, plus or minus $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.




Exhibit 99.1
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.

Contact: Aaron Astrachan
716.687.4225




Exhibit 99.1
Moog Inc.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
(dollars in thousands, except per share data)
 
 Three Months Ended
December 28,
2024		December 30,
2023
Net sales$910,315 $856,850 
Cost of sales668,040 623,651 
Gross profit242,275 233,199 
Research and development23,605 30,579 
Selling, general and administrative127,781 118,725 
Interest17,002 16,694 
Restructuring3,784 1,889 
Other1,524 2,701 
Earnings before income taxes68,579 62,611 
Income taxes15,466 14,799 
Net earnings$53,113 $47,812 
Net earnings per share 
Basic$1.66 $1.50 
Diluted$1.64 $1.48 
Weighted average common shares outstanding 
Basic31,971,462 31,902,101 
Diluted32,407,293 32,249,313 
 




















Exhibit 99.1
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
December 28,
2024		December 30,
2023
As Reported:
Earnings before income taxes$68,579 $62,611 
Income taxes15,466 14,799 
Effective income tax rate22.6 %23.6 %
Net earnings53,113 47,812 
Diluted net earnings per share$1.64 $1.48 
Restructuring and Other Charges:
Earnings before income taxes$6,056 $1,889 
Income taxes1,512 498 
Net earnings4,544 1,391 
Diluted net earnings per share$0.14 $0.04 
As Adjusted:
Earnings before income taxes$74,635 $64,500 
Income taxes16,978 15,297 
Effective income tax rate22.7 %23.7 %
Net earnings57,657 49,203 
Diluted net earnings per share$1.78 $1.53 
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 and footprint rationalization activities. 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.



Exhibit 99.1
Moog Inc.
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)
(dollars in thousands)
 
Three Months Ended
December 28,
2024		December 30,
2023
Net sales:
Space and Defense$247,784 $230,128 
Military Aircraft213,420 186,244 
Commercial Aircraft220,923 194,222 
Industrial228,188 246,256 
Net sales$910,315 $856,850 
Operating profit:
Space and Defense$28,539 $25,297 
11.5 %11.0 %
Military Aircraft22,916 19,589 
10.7 %10.5 %
Commercial Aircraft24,204 20,626 
11.0 %10.6 %
Industrial25,498 29,024 
11.2 %11.8 %
Total operating profit101,157 94,536 
11.1 %11.0 %
Deductions from operating profit:
Interest expense17,002 16,694 
Equity-based compensation expense4,325 4,165 
Non-service pension expense1,946 3,187 
Corporate and other expenses, net9,305 7,879 
Earnings before income taxes$68,579 $62,611 

























Exhibit 99.1
Moog Inc.
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)
(dollars in thousands)

Three Months Ended
December 28,
2024		December 30,
2023
Space and Defense operating profit - as reported$28,539 $25,297 
Restructuring and other930 — 
Space and Defense operating profit - as adjusted$29,469 $25,297 
11.9 %11.0 %
Military Aircraft operating profit - as reported$22,916 $19,589 
Restructuring and other591 — 
Military Aircraft operating profit - as adjusted$23,507 $19,589 
11.0 %10.5 %
Commercial Aircraft operating profit - as reported and adjusted$24,204 $20,626 
11.0 %10.6 %
Industrial operating profit - as reported$25,498 $29,024 
Restructuring and other4,535 1,889 
Industrial operating profit - as adjusted$30,033 $30,913 
13.2 %12.6 %
Total operating profit - as adjusted$107,213 $96,425 
11.8 %11.3 %
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.



Exhibit 99.1
Moog Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
 
December 28,
2024		September 28,
2024
ASSETS
Current assets
Cash and cash equivalents$73,448 $61,694 
Restricted cash360 123 
Receivables, net472,310 419,971 
Unbilled receivables735,759 709,014 
Inventories, net886,088 863,702 
Prepaid expenses and other current assets77,783 86,245 
Total current assets2,245,748 2,140,749 
Property, plant and equipment, net934,087 929,357 
Operating lease right-of-use assets56,744 52,591 
Goodwill818,503 833,764 
Intangible assets, net59,469 63,479 
Deferred income taxes24,219 20,991 
Other assets54,242 52,695 
Total assets$4,193,012 $4,093,626 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$267,054 $292,988 
Accrued compensation68,366 101,127 
Contract advances and progress billings293,550 299,732 
Accrued liabilities and other284,849 305,180 
Total current liabilities913,819 999,027 
Long-term debt, excluding current installments1,104,151 874,139 
Long-term pension and retirement obligations162,222 167,161 
Deferred income taxes26,080 27,738 
Other long-term liabilities171,962 164,928 
Total liabilities2,378,234 2,232,993 
Shareholders’ equity
Common stock - Class A43,844 43,835 
Common stock - Class B7,436 7,445 
Additional paid-in capital777,060 784,509 
Retained earnings2,712,875 2,668,723 
Treasury shares(1,141,242)(1,082,240)
Stock Employee Compensation Trust(186,219)(194,049)
Supplemental Retirement Plan Trust(156,865)(163,821)
Accumulated other comprehensive loss(242,111)(203,769)
Total shareholders’ equity1,814,778 1,860,633 
Total liabilities and shareholders’ equity$4,193,012 $4,093,626 





Exhibit 99.1
Moog Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Three Months Ended
December 28,
2024		December 30,
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings$53,113 $47,812 
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation23,478 20,927 
Amortization2,323 2,720 
Deferred income taxes(3,577)(4,547)
Equity-based compensation expense4,325 4,165 
Other2,708 (2,478)
Changes in assets and liabilities providing (using) cash:
Receivables(63,037)58,887 
Unbilled receivables(31,073)(51,015)
Inventories(48,711)(46,852)
Accounts payable(22,973)(5,752)
Contract advances and progress billings(1,314)64,171 
Accrued expenses(29,372)(31,814)
Accrued income taxes(9,698)12,324 
Net pension and post retirement liabilities 1,555 2,957 
Other assets and liabilities(10,031)(11,114)
Net cash provided (used) by operating activities(132,284)60,391 
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired— (5,212)
Purchase of property, plant and equipment(32,778)(37,416)
Net proceeds from businesses sold13,487 — 
Other investing transactions169 (479)
Net cash provided (used) by investing activities(19,122)(43,107)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving lines of credit426,500 279,500 
Payments on revolving lines of credit(197,000)(223,000)
Payments on finance lease obligations(2,745)(1,286)
Payment of dividends (8,961)(8,619)
Proceeds from sale of treasury stock— 581 
Purchase of outstanding shares for treasury(55,692)(8,711)
Proceeds from sale of stock held by SECT9,665 5,001 
Purchase of stock held by SECT(8,087)(4,561)
Other financing transactions(439)— 
Net cash provided (used) by financing activities163,241 38,905 
Effect of exchange rate changes on cash(2,564)1,495 
Increase (decrease) in cash, cash equivalents and restricted cash9,271 57,684 
Cash, cash equivalents and restricted cash at beginning of year (1)
64,537 69,144 
Cash, cash equivalents and restricted cash at end of period$73,808 $126,828 
(1) Beginning of year cash balance at September 29, 2024 includes cash related to assets held for sale of $2,720.



Exhibit 99.1
Moog Inc.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
(dollars in thousands)

 Three Months Ended
December 28,
2024		December 30,
2023
Net cash provided (used) by operating activities$(132,284)$60,391 
Purchase of property, plant and equipment(32,778)(37,416)
Receivables Purchase Agreement— (25,000)
Free cash flow$(165,062)$(2,025)
Adjusted net earnings$57,657 $49,203 
Free cash flow conversion(286)%(4)%
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.