Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 3, 2026 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 (716) 652-2000 (Registrant's telephone number, including area code) For the transition period from _________ to _________ Commission file number 1-05129 MOOG Inc. (Exact ...

Release Date: January 30, 2026 IMMEDIATE Moog Inc. Reports First Quarter 2026 Record Sales and EPS and Raises Full-Year Guidance 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 record fiscal first quarter 2026 results, reflecting strong execution and continued progress against the company's long-term financial objectives. "We delivered an outstanding st ...

Financial Performance - The twelve-month backlog as of September 27, 2025, was $3.0 billion, an increase of 20% compared to September 28, 2024[16]. - Net sales to the five largest customers represented approximately 31% of total sales in 2025[41]. - Aerospace and defense OEM customers accounted for 61% of total sales in 2025, with U.S. Government contracts representing 38% of total sales[40][42]. - Aftermarket sales accounted for 14% of total sales in 2025[40]. - Industrial market sales represented 25% of total sales in 2025, typically based on lead times of 90 days or less[40]. Research and Development - Research and development expenses were $94 million, representing approximately 2.4% of sales in 2025[20]. - Internal research and development activities are significant, with a focus on innovation in motion control products[20]. - The company maintains a patent portfolio that includes patents related to motion control and actuation systems, which are significant for future revenue opportunities[19]. Employee and Leadership Development - The company hired over 1,400 new employees and rehired over 70 employees in 2025[23]. - The average voluntary attrition rate over the last five years was approximately 7%[30]. - The company’s leadership development strategy focuses on internal growth and development of leaders through on-the-job experiences[33]. - Moog's leadership development programs include an 18-month Moog Leadership Program and a nine-month Emerging Leadership Program[34]. - The company has established a Global Mentoring Program and an on-demand learning library to support employee development[35]. Environmental Commitment - The company aims to reduce combined Scope 1 and 2 emissions by 40% from the 2022 baseline by 2030[43]. - The company has refined its corporate charitable giving guidelines to prioritize twelve key United Nations Sustainable Development Goals[43]. Operational Insights - The company operates through wholly-owned foreign subsidiaries primarily in Europe and the Asia-Pacific region, facing risks such as currency fluctuations and local government regulations[44]. - Moog's international operations are primarily located in Europe and the Asia-Pacific region, facing typical risks of international trade[44]. - The company emphasizes a strong commitment to health and safety, regularly conducting training and measuring EHS results continuously[27]. - The company’s sales and marketing organization consists of individuals with specialized technical expertise to meet customer precision control requirements[14]. - The company’s operations are not generally seasonal, although certain products in the energy market may experience seasonal variations[18].

Financial Performance - Moog Inc. achieved record net sales of $1,049 million in Q4 2025, a 14% increase from $919 million in Q4 2024[2] - The company reported a diluted net earnings per share of $2.01 for Q4 2025, reflecting a 53% increase from $1.31 in Q4 2024[2] - For fiscal 2025, net sales increased by 7% to $3.861 billion, with significant contributions from Commercial Aircraft, Space and Defense, and Military Aircraft segments[9] - Net sales for the three months ended September 27, 2025, were $1,049,138, a 13.9% increase from $919,395 in the same period of 2024[22] - Net earnings for the three months ended September 27, 2025, were $64,406, representing a 51.5% increase from $42,534 in the same period of 2024[24] - Diluted net earnings per share for the twelve months ended September 27, 2025, increased to $7.33, up from $6.45 in the previous year, a rise of 13.6%[24] - Net earnings for the twelve months ended September 27, 2025, were $235,028 thousand, an increase of 12.58% compared to $208,786 thousand for the same period in 2024[39] Cash Flow and Financial Health - Free cash flow reached a record $199 million in Q4 2025, up from $109 million in Q4 2024, driven by strong cash generation from customer advances[8] - Free cash flow for the twelve months ended September 27, 2025, was $128,355 thousand, significantly up from $20,867 thousand in the previous year, indicating a conversion rate of 46%[41] - Free cash flow conversion for fiscal 2026 is anticipated to be 60%, compared to 46% in fiscal 2025[15] - Cash and cash equivalents at the end of the period were $62,213 thousand, down from $64,537 thousand, a decrease of 3.61%[39] Operating Performance - Operating margin for fiscal 2025 improved by 40 basis points to 11.6%, supported by stronger financial performance across all segments[10] - The company expects operating margin and adjusted operating margin for fiscal 2026 to be 13.4%, reflecting continued operational improvements[15] - Total operating profit for the three months ended September 27, 2025, was $125,040, a 34.5% increase from $92,881 in the same period of 2024[31] - Total operating profit as adjusted for the twelve months ended September 27, 2025, was $501,268, with a margin of 13.0%[33] Research and Development - Research and development expenses decreased to $23,679 for the three months ended September 27, 2025, down from $26,021 in the same period of 2024, a decline of 8.9%[22] - Research and development expenses for the twelve months ended September 28, 2024, remained steady at $112,773 thousand[53] Future Projections - Moog Inc. forecasts fiscal 2026 net sales to reach $4.2 billion, an increase from $3.9 billion in fiscal 2025[15] - Adjusted diluted net earnings per share for fiscal 2026 is projected to be $10.00, up from $8.69 in fiscal 2025[15] Backlog and Demand - The twelve-month backlog increased by 20%, reaching a record $3.0 billion, indicating strong future demand[4] Assets and Liabilities - Total assets increased to $4,426,055 thousand as of September 27, 2025, up from $4,077,647 thousand a year earlier, representing a growth of 8.55%[36] - Current assets rose to $2,369,980 thousand, a 11.65% increase from $2,122,646 thousand in the prior year[36] - Long-term debt, excluding current installments, increased to $944,123 thousand from $874,139 thousand, reflecting a rise of 7.98%[36] - The company reported a total current liabilities of $1,119,068 thousand, which is an increase of 10.43% from $1,013,414 thousand in the previous year[36] Acquisitions and Strategic Moves - The company made acquisitions totaling $41,179 thousand during the year, compared to $5,911 thousand in the previous year, indicating a strategic expansion[39] Corrections and Adjustments - The company identified and corrected immaterial misstatements in prior financial statements, impacting the reported figures for 2023 and 2024[45]

Financial Performance - Net sales for the three months ended June 28, 2025, were $971,363,000, representing an increase of 7.4% compared to $904,735,000 for the same period in 2024[11]. - Net earnings for the three months ended June 28, 2025, were $59,707,000, a 6.5% increase from $56,360,000 in the prior year[11]. - Total net sales for the nine months ended June 28, 2025, reached $2,816.52 million, compared to $2,691.89 million for the same period in 2024, indicating a growth of approximately 4.6%[102]. - Total operating profit for the three months ended June 28, 2025, was $111,867,000, compared to $105,380,000 for the same period in 2024, reflecting an increase of about 6.4%[11]. - Earnings before income taxes for the nine months ended June 28, 2025, were $220,140,000, up from $212,265,000 in the same period of 2024, indicating a growth of approximately 3.7%[11]. Assets and Liabilities - Total assets as of June 28, 2025, were $4,396,574,000, an increase from $4,093,626,000 as of September 28, 2024[18]. - The company’s total liabilities increased to $2,452,873,000 as of June 28, 2025, from $2,232,993,000 as of September 28, 2024, indicating a rise of about 9.8%[17]. - Long-term debt, excluding current installments, rose to $1,081,674,000 as of June 28, 2025, compared to $874,139,000 in the previous year[18]. - The fair value of long-term debt was $1,068,433 as of June 28, 2025, compared to its carrying value of $1,082,500[91]. Shareholder Equity and Dividends - Total shareholders' equity reached $1,943,701,000 as of June 28, 2025, compared to $1,860,633,000 as of September 28, 2024, reflecting a growth in equity[18]. - Cash dividends declared were $0.29 per share for the three months ended June 28, 2025, compared to $0.28 per share for the same period in 2024[21]. - The company declared a quarterly dividend of $0.29 per share on July 24, 2025, payable on August 26, 2025[110]. Research and Development - Research and development expenses decreased to $21,906,000 for the three months ended June 28, 2025, down 21.2% from $27,791,000 in the same period of 2024[11]. Cash Flow and Investments - Operating cash flow for the nine months ended June 28, 2025, was $32,463,000, down from $46,555,000 in 2024, indicating a decrease of 30.2%[27]. - The company reported a net cash used in investing activities of $92,398,000 for the nine months ended June 28, 2025, compared to $114,546,000 in 2024, showing a decrease of 19.4%[27]. - The company purchased outstanding shares for treasury amounting to $127,808,000 in 2025, compared to $21,832,000 in 2024, indicating a significant increase[27]. Segment Performance - Space and Defense segment net sales for the three months ended June 28, 2025, were $287.71 million, up from $258.41 million in the same period of 2024, reflecting a growth of about 11.3%[102]. - Military Aircraft segment net sales increased to $224.66 million for the three months ended June 28, 2025, compared to $207.18 million in the same period of 2024, marking an increase of approximately 8.5%[102]. - Commercial Aircraft segment net sales rose to $219.44 million for the three months ended June 28, 2025, compared to $189.37 million in 2024, reflecting a 15.87% increase[102]. Impairments and Reserves - The company reported an increase in asset impairment and inventory write-down to $10,988,000 in 2025 from $8,637,000 in 2024, representing a rise of 27.3%[27]. - The company has contract reserves of $69,832 as of June 28, 2025, reflecting anticipated losses on certain contracts[44]. Tax and Compliance - The effective tax rate for the three and nine months ended June 28, 2025, was 23.4%, compared to 20.5% and 22.7% for the same periods in 2024[16][95]. - The company does not expect any material change to its ongoing tax rate due to the recent tax law changes enacted on July 4, 2025[95]. Foreign Currency and Derivatives - The net gain from foreign currency contracts for the three months ended June 28, 2025, was $13,048, compared to a loss of $2,542 for the same period in 2024[86]. - The notional amount of outstanding foreign currency contracts was $45,035 million as of June 28, 2025, maturing through December 23, 2026[82].

Financial Performance - Moog Inc. reported record net sales of $971 million for Q3 2025, a 7% increase from $905 million in Q3 2024[2][3]. - Diluted earnings per share reached $1.87, up 7% from $1.74 in the prior year, while adjusted diluted earnings per share increased by 24% to $2.37[2][3][6]. - The operating profit for the three months ended June 28, 2025, was $111,867,000, compared to $105,380,000 for the same period in 2024, reflecting an increase of about 6.4%[26]. - Moog Inc. achieved net earnings of $75,513,000 for the three months ended June 28, 2025, compared to $62,010,000 for the same period in 2024, marking an increase of approximately 21.8%[21]. - The total operating profit for the nine months ended June 28, 2025, was $322,331,000, compared to $311,928,000 for the same period in 2024, reflecting a growth of about 3.3%[26]. - Net earnings for the nine months ended June 28, 2025, were $168,574 thousand, compared to $164,175 thousand for the same period in 2024, reflecting a year-over-year increase of about 2.9%[33]. Backlog and Guidance - The twelve-month backlog hit a record $2.7 billion, primarily driven by Military Aircraft and Space and Defense sectors[6]. - Moog Inc. has updated its FY 2025 guidance, projecting net sales of $3.8 billion, up from the previous estimate of $3.7 billion[11]. - The company anticipates a diluted net earnings per share of $7.44 for FY 2025, down from the previous guidance of $7.89[11]. Segment Performance - Sales in the Commercial Aircraft segment increased by 16%, while Space and Defense sales grew by 11%[7]. - The Space and Defense segment reported an operating profit margin of 13.3% for the three months ended June 28, 2025, slightly up from 12.6% in the same period of 2024[26]. - The Military Aircraft segment's operating profit for the three months ended June 28, 2025, was $17,994,000, down from $23,965,000 in the same period of 2024, indicating a decline of approximately 25.0%[26]. - The Industrial segment reported net sales of $239,560,000 for the three months ended June 28, 2025, a decrease from $249,784,000 in the same period of 2024, representing a decline of about 4.1%[26]. Cash Flow and Assets - Free cash flow improved to $93 million, with a conversion rate exceeding 120%[10][6]. - Free cash flow for the nine months ended June 28, 2025, was $(70,578) thousand, compared to $(88,061) thousand for the same period in 2024, indicating an improvement of approximately 20.0%[35]. - Cash and cash equivalents at the end of the period were $59,014 thousand, an increase from $51,518 thousand in June 2024, marking a growth of about 14.5%[33]. - Total assets increased to $4,396,574 thousand in June 2025, up from $4,093,626 thousand in September 2024, representing a growth of approximately 7.4%[31]. Liabilities and Equity - Total current liabilities decreased slightly to $988,614 thousand in June 2025 from $999,027 thousand in September 2024, a reduction of approximately 1.4%[31]. - Long-term debt, excluding current installments, rose to $1,081,674 thousand in June 2025, up from $874,139 thousand in September 2024, representing an increase of about 23.7%[31]. - Total shareholders' equity increased to $1,943,701 thousand in June 2025, up from $1,860,633 thousand in September 2024, indicating a growth of approximately 4.5%[31]. Operating Margins - The adjusted operating margin rose to 13.6%, an increase of 130 basis points from 12.3% in the previous year[3][9]. - Operating margin for Q3 2025 was 11.5%, a slight decrease of 10 basis points from the prior year[3][8]. - Moog Inc. adjusted its total operating profit to $131,680,000 for the three months ended June 28, 2025, compared to $111,309,000 for the same period in 2024, reflecting an increase of approximately 18.3%[28]. Tax and Depreciation - The effective income tax rate for the three months ended June 28, 2025, was 22.8%, compared to 19.3% for the same period in 2024[21]. - The company reported a depreciation expense of $69,292 thousand for the nine months ended June 28, 2025, compared to $64,302 thousand for the same period in 2024, reflecting an increase of about 7.8%[33].

Financial Performance - Net sales for the three months ended March 29, 2025, were $934,840,000, a slight increase from $930,303,000 for the same period in 2024, representing a growth of 0.2%[11] - Gross profit for the six months ended March 29, 2025, was $498,318,000, compared to $499,977,000 for the same period in 2024, indicating a decrease of 0.3%[11] - Net earnings for the three months ended March 29, 2025, were $55,754,000, down from $60,003,000 in the same period of 2024, reflecting a decline of 7.4%[11] - Comprehensive income for the three months ended March 29, 2025, was $80,866,000, compared to $48,650,000 for the same period in 2024, showing an increase of 66.1%[14] - Net earnings for the six months ended March 29, 2025, were $108,867,000, compared to $107,815,000 for the same period in 2024, reflecting a slight increase of 0.97%[25] - Operating profit for the three months ended March 29, 2025, was $109.31 million, compared to $112.01 million for the same period in 2024, reflecting a decrease of approximately 2.3%[99] - Total operating profit for the six months ended March 29, 2025, was $210.46 million, compared to $206.55 million for the same period in 2024, reflecting a growth of approximately 1.9%[99] Expenses and Costs - Research and development expenses decreased to $24,481,000 for the three months ended March 29, 2025, down from $28,382,000 in the same period of 2024, a reduction of 13.4%[11] - The company reported a depreciation expense of $45,822,000 for the six months ended March 29, 2025, compared to $42,276,000 for the same period in 2024, indicating an increase of 6.03%[25] - Total finance lease cost for the six months ended March 29, 2025, increased to $10,365, up 60% from $6,465 in the same period in 2024[64] - The total expense for U.S. defined benefit plans was $4,272 million for the three months ended March 29, 2025, compared to $5,922 million for the same period in 2024[89] Assets and Liabilities - Total assets increased to $4,319,255,000 as of March 29, 2025, from $4,093,626,000 as of September 28, 2024, representing a growth of 5.5%[16] - The company’s long-term debt, excluding current installments, increased to $1,165,662,000 as of March 29, 2025, from $874,139,000 as of September 28, 2024, a rise of 33.3%[16] - Accounts receivable increased to $502,093 as of March 29, 2025, compared to $388,841 as of September 28, 2024[51] - Total inventories, net of reserves, were $902,551 as of March 29, 2025, up from $863,702 as of September 28, 2024[57] - The company recognized additional revenue of $2,604 and $11,274 for the three and six months ended March 29, 2025, respectively, due to adjustments made to performance obligations satisfied in previous periods[40] Cash Flow and Dividends - Cash and cash equivalents rose to $62,124,000 as of March 29, 2025, compared to $61,694,000 as of September 28, 2024, a slight increase of 0.7%[16] - Cash dividends were $0.29 per share for the three months ended March 29, 2025, compared to $0.28 per share for the same period in 2024, an increase of 3.6%[20] - The company reported a net cash used by operating activities of $(92,862,000) for the six months ended March 29, 2025, compared to a net cash provided of $16,389,000 for the same period in 2024[25] Segment Performance - The Space and Defense segment generated net sales of $270.18 million for the three months ended March 29, 2025, compared to $266.79 million in the same period of 2024, indicating a growth of about 1.5%[97] - The Military Aircraft segment reported an operating profit of $23.72 million for the three months ended March 29, 2025, up from $16.77 million in the same period of 2024, representing an increase of approximately 41.5%[99] - The Industrial segment reported net sales of $234.43 million for the three months ended March 29, 2025, down from $253.42 million in the same period of 2024, a decrease of approximately 7.5%[97] Tax and Compliance - The effective tax rate for the three months ended March 29, 2025, was 24.2%, higher than the U.S. federal statutory tax rate of 21% due to various factors including state income taxes[90] - The company expects to adopt ASU no. 2023-07 for segment reporting in FY 2025, which will require additional disclosures regarding segment expenses[30] - The company is currently reviewing ASU no. 2023-09, which will expand annual income tax disclosures effective for fiscal years beginning after December 15, 2024[30] Other Financial Metrics - The company recorded a net gain of $250 from equity method investments for the three months ended March 29, 2025, compared to a gain of $338 for the same period in 2024[69] - The company recorded a net gain of $3,533 on foreign currency contracts for the three months ended March 29, 2025, compared to a loss of $2,919 for the same period in 2024[84] - The accumulated other comprehensive income (loss) at March 29, 2025, was $(216,999), reflecting changes in foreign currency translation and derivatives[92]

Financial Performance - Moog Inc. reported Q2 2025 net sales of $935 million, a slight increase of 0% compared to Q2 2024's $930 million[3]. - Diluted net earnings per share for Q2 2025 were $1.75, down 6% from $1.86 in Q2 2024, while adjusted diluted net earnings per share decreased 12% to $1.92 from $2.19[3][5]. - The operating margin for Q2 2025 was 11.7%, a decline of 30 basis points from 12.0% in Q2 2024, primarily due to the absence of a one-time Employee Retention Credit benefit[3][7]. - Adjusted operating margin for Q2 2025 was 12.5%, down 110 basis points from 13.6% in Q2 2024, but up 40 basis points when excluding the prior year's ERC benefit[8]. - The company reported a total operating profit margin of 12.5% for the three months ended March 29, 2025, compared to 13.6% for the same period in 2024[22]. - The company’s net earnings for the six months ended March 29, 2025, were $108,867 thousand, compared to $107,815 thousand for the same period in 2024, showing a growth of 1.0%[26]. Sales Performance - Military Aircraft sales increased by 6% to $214 million, and Commercial Aircraft sales rose by 4% to $216 million, while Industrial sales fell by 7% to $234 million[6]. - Net sales for the three months ended March 29, 2025, were $934,840 thousand, a slight increase from $930,303 thousand for the same period in 2024, representing a growth of 0.6%[21]. - Operating profit for the total company for the six months ended March 29, 2025, was $210,464 thousand, compared to $206,548 thousand for the same period in 2024, reflecting an increase of 1.9%[21]. - The Space and Defense segment reported an operating profit margin of 12.6% for the three months ended March 29, 2025, down from 15.9% in the same period of 2024[22]. - The Industrial segment's adjusted operating profit for the six months ended March 29, 2025, was $61,451 thousand, compared to $62,695 thousand for the same period in 2024, reflecting a decrease of 2.0%[22]. Cash Flow and Liquidity - Free cash flow for Q2 2025 was $2 million, a significant improvement from a negative $84 million in Q2 2024, driven by lower working capital requirements[3][9]. - Net cash provided by operating activities for Q2 2025 was $39,422,000, compared to a cash used of $(44,002,000) in Q2 2024[27]. - Free cash flow for Q2 2025 was $1,818,000, a significant improvement from $(84,116,000) in Q2 2024[27]. - Free cash flow conversion for Q2 2025 was 3%, compared to a negative conversion of (119%) in Q2 2024[27]. - Free cash flow for the first half of 2025 was $(163,244,000), compared to $(86,141,000) in the first half of 2024[27]. - The company reported a free cash flow conversion of (137%) for the first half of 2025, compared to (72%) in the first half of 2024[27]. - The financial measures presented are not GAAP-compliant but are believed to be useful for evaluating the company's liquidity and financial condition[27]. - Management emphasizes that free cash flow and conversion metrics may not be comparable with those used by other companies[27]. Guidance and Future Outlook - Moog Inc. reiterated its 2025 guidance, projecting net sales of $3.7 billion and adjusted diluted net earnings per share of $8.20[10]. - The twelve-month backlog remained steady at $2.5 billion, indicating stable future revenue prospects[5]. - The company acknowledged potential net tariff risks to operating profit, estimated between $10 million to $20 million[5]. Expenses and Debt - Research and development expenses for Q2 2025 were $24.5 million, compared to $28.4 million in Q2 2024, reflecting a focus on cost management[17]. - Long-term debt, excluding current installments, rose to $1,165,662 thousand as of March 29, 2025, up from $874,139 thousand as of September 28, 2024, indicating a significant increase of 33.3%[24]. - Total current assets increased to $2,331,772 thousand as of March 29, 2025, compared to $2,140,749 thousand as of September 28, 2024, marking a growth of 8.9%[24].

Financial Performance - Net sales for the three months ended December 28, 2024, were $910,315,000, an increase of 6.2% compared to $856,850,000 for the same period in 2023[10]. - Gross profit for the same period was $242,275,000, up from $233,199,000, reflecting a gross margin improvement[10]. - Net earnings increased to $53,113,000, compared to $47,812,000, representing an increase of 11.4% year-over-year[10]. - Basic net earnings per share rose to $1.66 from $1.50, marking an increase of 10.7%[10]. - Total operating profit for the three months ended December 28, 2024, was $101.157 million, compared to $94.536 million in the same period of 2023, marking an increase of 7.0%[97]. Assets and Liabilities - Total assets as of December 28, 2024, were $4,193,012,000, up from $4,093,626,000, indicating a growth of 2.4%[16]. - Total liabilities increased to $2,378,234,000 from $2,232,993,000, reflecting a growth of 6.5%[16]. - Shareholders' equity decreased to $1,814,778,000 from $1,860,633,000, a decline of 2.5%[16]. - Long-term debt increased to $1,104,151 million from $874,139 million, representing a significant rise of 26.2%[72]. Cash Flow and Dividends - Cash and cash equivalents increased to $73,448,000 from $61,694,000, a rise of 19.1%[16]. - Cash dividends declared were $0.28 per share for the three months ended December 28, 2024, compared to $0.27 per share for the same period in 2023[19]. - Net cash used by operating activities was $(132,284,000) for the three months ended December 28, 2024, compared to $60,391,000 provided in the same period last year[24]. Research and Development - Research and development expenses were $23,605,000, down from $30,579,000, a decrease of 22.8%[10]. - Research and development expenses decreased by 23% to $24 million in the first quarter of 2025 from $31 million in the first quarter of 2024[116]. Revenue Recognition - The company recognized 65% of revenue over time for the three months ended December 28, 2024, using the cost-to-cost method of accounting[107]. - Revenue is recognized using the five-step model prescribed in ASC 606, with performance obligations identified for each promise in a contract[31]. - The company primarily uses the over-time method of revenue recognition for U.S. Government contracts and large commercial contracts[37]. Segment Performance - Military Aircraft segment net sales increased to $213.420 million, compared to $186.244 million, representing a growth of 14.6%[20]. - Commercial Aircraft segment net sales rose to $220.923 million, an increase of 13.8% from $194.222 million[20]. - Space and Defense net sales increased by 8% to $248 million in the first quarter of 2025, driven by higher demand in defense and space markets[122]. Acquisitions and Investments - The company acquired Data Collection Limited for a purchase price of $5,911, enhancing its Military Aircraft segment[48]. - The company plans to continue elevated levels of investment in facilities to prepare for significant future revenue growth opportunities[111]. Foreign Currency and Adjustments - The company experienced a foreign currency translation adjustment loss of $41.7 million, impacting comprehensive income, which totaled $14.8 million for the quarter[12]. - The company recorded a net loss of $12,271 on foreign currency contracts for the three months ended December 28, 2024, compared to a gain of $4,452 in the same period of 2023[82]. Future Projections and Commitments - The company expects additional costs of up to approximately $4,100 related to the 2023 restructuring plan, which will continue through 2027[86]. - The company has a remaining on-call capital commitment of up to $5,158 million for investments in startups through Suffolk Technologies Fund 1, L.P.[68].

Sales Performance - Net sales increased by 6% to $910 million in Q1 2025 compared to $857 million in Q1 2024[3] - Space and Defense sales increased by 8% to $248 million, supported by broad-based demand[7] - Military Aircraft sales grew by 15% to $213 million, driven by the FLRAA program and new production programs[7] - Commercial Aircraft sales increased by 14% to $221 million, reflecting strong repair activity and initial provisioning of spares[7] - Industrial sales decreased by 7% to $228 million, half due to divestitures[7] Earnings and Profitability - Adjusted diluted earnings per share rose by 16% to $1.78 in Q1 2025 from $1.53 in Q1 2024[3] - Adjusted operating margin increased by 50 basis points to 11.8% in Q1 2025 from 11.3% in Q1 2024[3] - Space and Defense operating profit increased to $29.5 million (11.9% margin) in Q4 2024 from $25.3 million (11.0% margin) in Q4 2023[24] - Military Aircraft operating profit rose to $23.5 million (11.0% margin) in Q4 2024 compared to $19.6 million (10.5% margin) in Q4 2023[24] - Commercial Aircraft operating profit grew to $24.2 million (11.0% margin) in Q4 2024 from $20.6 million (10.6% margin) in Q4 2023[24] - Industrial operating profit increased to $30.0 million (13.2% margin) in Q4 2024 from $30.9 million (12.6% margin) in Q4 2023[24] - Total adjusted operating profit reached $107.2 million (11.8% margin) in Q4 2024, up from $96.4 million (11.3% margin) in Q4 2023[24] Cash Flow and Liquidity - Free cash flow was a use of $165 million in Q1 2025, driven by working capital requirements[10] - Cash and cash equivalents increased to $73.4 million in Q4 2024 from $61.7 million in Q3 2024[26] - Receivables grew to $472.3 million in Q4 2024 from $420.0 million in Q3 2024[26] - Inventories increased to $886.1 million in Q4 2024 from $863.7 million in Q3 2024[26] - Net cash used by operating activities was $132.3 million in Q4 2024 compared to $60.4 million provided in Q4 2023[28] - Free cash flow was negative $165.1 million in Q4 2024 compared to negative $2.0 million in Q4 2023[29] Guidance and Bookings - FY 2025 guidance projects net sales of $3.7 billion and adjusted diluted earnings per share of $8.20[11] - Bookings reached $1.3 billion, driven by record orders in Space and Defense and strong orders in Commercial Aircraft[6]