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]

Financial Performance - The twelve-month backlog as of September 28, 2024, was $2.5 billion, reflecting a 3% increase compared to September 30, 2023[18]. - Net sales to the five largest customers represented approximately 29% of total sales in 2024[48]. - Sales under U.S. Government contracts constituted 38% of total sales in 2024, primarily within the Space and Defense and Military Aircraft segments[49]. - Aerospace and defense OEM customers accounted for 60% of total sales in 2024, while industrial market sales represented 27%[47]. Research and Development - Research and development expenses amounted to $113 million, representing approximately 3% of sales in 2024[22]. - The patent portfolio includes significant patents related to medical devices, which provide future revenue opportunities[21]. Employee and Workforce - The company hired over 1,700 new employees and rehired over 100 employees globally in 2024[27]. - The average voluntary attrition rate over the last five years was approximately 6%[37]. Environmental and Community Initiatives - The company aims to reduce its combined Scope 1 and 2 emissions by 40% from the 2022 baseline by 2030[44]. - The company expanded its Community giving platform and launched a pilot of paid Volunteer Time Off in 2024[44]. Financial Liabilities and Currency Exposure - As of September 28, 2024, the company had $377 million in borrowings subject to variable interest rates, with an average of $477 million during 2024, indicating a potential increase in interest expense of $5 million if rates rose by one percentage point[251]. - The company sold $125 million in receivables under the Receivables Purchase Agreement (RPA) subject to variable interest rates, with an average of $119 million during 2024, which could lead to an additional $1 million in interest expense if rates increased by one percentage point[252]. - The company has foreign currency contracts with notional amounts of $174 million outstanding as of September 28, 2024, with a net fair value of $1 million as a net asset[253]. - A hypothetical 10% increase in the value of the U.S. dollar against all currencies would decrease the fair value of foreign currency contracts by approximately $16 million, while a 10% decrease would increase it by about $19 million[253]. - If average annual foreign exchange rates weakened or strengthened against the U.S. dollar by 10%, the company's net earnings in 2024 would have decreased or increased by $9 million from foreign currency translation[254].

Financial Performance - Net sales for Q4 2024 reached $917 million, a 5% increase from $872 million in Q4 2023, contributing to a total of $3.609 billion for the fiscal year, up 9% from $3.319 billion in 2023[2][9] - Diluted net earnings per share for Q4 2024 increased by 8% to $1.33, compared to $1.23 in Q4 2023, with adjusted diluted net earnings per share rising 3% to $2.16[2][3] - Net earnings for the three months ended September 28, 2024, were $43,045,000, up from $39,582,000 in the prior year, representing a 3.7% increase[19] - The company reported a net earnings increase to $207,220 thousand for the twelve months ended September 28, 2024, compared to $170,998 thousand in the previous year, a growth of 21.1%[24] Operating Margins - Operating margin for Q4 2024 decreased to 9.1%, down 100 basis points from 10.1% in Q4 2023, while the adjusted operating margin remained unchanged at 12.5%[2][6][7] - Adjusted operating margin for FY 2025 is also projected at 13%, up from 12.4% in FY 2024, reflecting ongoing pricing and simplification initiatives[12] - The adjusted operating margin in Military Aircraft improved by 300 basis points to 12.0% for FY 2024, attributed to cost absorption on the FLRAA program[11] Sales Performance - Military Aircraft sales surged 17% to $216 million in Q4 2024, driven by the ramp-up of the FLRAA program, while Space and Defense sales rose 9% to $263 million[5][9] - Commercial Aircraft sales increased by 18% to $788 million for FY 2024, supported by production ramps across various aircraft programs[9] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $109 million, a 5% increase from $105 million in Q4 2023, driven by strong customer collections[2][8] - Net cash provided by operating activities for the twelve months ended September 28, 2024, was $202,344 thousand, up from $135,935 thousand in the prior year, representing a 48.8% increase[24] - Free cash flow for the twelve months ended September 28, 2024, was $21,326 thousand, a significant improvement from a negative $37,351 thousand in the previous year[25] - The company emphasizes that free cash flow and free cash flow conversion are not GAAP measures but are useful for evaluating liquidity and financial condition[25] Assets and Liabilities - Total assets as of September 30, 2023, were $4,128,452 thousand, an increase from $3,808,036 thousand year-over-year[22] - Total liabilities as of September 30, 2023, were $2,267,819 thousand, compared to $2,171,949 thousand in the previous year, reflecting a rise of 4.4%[23] Research and Development - Research and development expenses decreased to $26,021,000 for the three months ended September 28, 2024, from $29,444,000 in the same period last year[17] Inventory and Write-downs - The company incurred an inventory write-down of $29,176 thousand for the twelve months ended September 28, 2024, compared to $18,973 thousand in the previous year, reflecting a significant increase in write-downs[24] Strategic Focus - The company continues to focus on improving its financial metrics and operational efficiency as part of its strategic initiatives[25]