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, with 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 advanced motion control products[37] - 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 Management - 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 conducts an extensive talent review annually, including succession planning for critical roles[36] - Moog's leadership development programs include an 18-month Moog Leadership Program and a nine-month Emerging Leadership Program[34] - The company’s leadership development strategy focuses on internal growth and development of leaders through on-the-job experiences[33] 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 established baselines for water consumption and hazardous waste from 2022 data, with improvement goals set[43] - Moog launched a pilot of paid Volunteer Time Off, allowing employees one paid shift per year to volunteer, with plans to expand in 2025[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] - 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 in sales levels[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, an increase of 14.1% compared to $919,395 for the same period in 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, compared to $6.45 in 2024, 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 Assets - 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 substantial improvement in cash generation[41] - The company reported a free cash flow conversion rate of 46% for the twelve months ended September 27, 2025, compared to just 8% for the same period in 2024[41] - 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] - Cash and cash equivalents at the end of the period were $62,213 thousand, a decrease from $64,537 thousand at the end of the previous year[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 an operating margin of 13.4% for fiscal 2026, up from 11.6% in fiscal 2025, despite anticipated tariff pressures[15] - Total operating profit for the three months ended September 27, 2025, was $125,040, an increase of 34.5% from $92,881 in the same period of 2024[31] - Total adjusted operating profit for the twelve months ended September 27, 2025, was $501,268, reflecting an increase from $457,862 in 2024[33] Future Outlook - 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 are projected to be $10.00, compared to $8.69 in fiscal 2025[15] - The adjusted operating margin for fiscal 2026 is also expected to be 13.4%, reflecting continued operational strength[15] Segment Performance - Space and Defense segment net sales for the three months ended September 27, 2025, were $307,355, up 16.9% from $262,824 in 2024[31] - Military Aircraft segment operating profit margin improved to 14.0% for the three months ended September 27, 2025, compared to 11.9% in the same period of 2024[31] Liabilities and Equity - Current liabilities rose to $1,119,068 thousand, an increase of 10.43% from $1,013,414 thousand in the previous year[36] - Long-term debt, excluding current installments, increased to $944,123 thousand, up from $874,139 thousand, reflecting a rise of 7.98%[36] - Total shareholders' equity increased to $1,992,555 thousand, up from $1,828,817 thousand, marking a growth of 8.95%[36] Research and Development - Research and development expenses decreased to $23,679 for the three months ended September 27, 2025, from $26,021 in the same period of 2024, a decline of 8.9%[22] - Research and development expenses for the twelve months were $112,773 thousand, unchanged from the previous report, indicating consistent investment in innovation[53] Adjustments and Corrections - The company identified and corrected immaterial misstatements in previously issued financial statements, impacting prior periods but deemed not material to the overall financial condition[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 same period of 2024[11] - The company reported a comprehensive income of $114,703,000 for the three months ended June 28, 2025, compared to $51,769,000 for the same period in 2024, reflecting a significant increase[15] - Net earnings for the nine months ended June 28, 2025, were $168,574,000, compared to $164,175,000 for the same period in 2024, reflecting a growth of 2.4%[27] - 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, showing a growth of approximately 3.3%[11] - The company reported earnings before income taxes of $77,982,000 for the three months ended June 28, 2025, compared to $70,905,000 for the same period in 2024, marking an increase of about 9.3%[11] Expenses and Costs - 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] - Depreciation expenses increased to $69,292,000 for the nine months ended June 28, 2025, up from $64,302,000 in the prior year, representing an increase of 4.6%[27] - Operating lease cost for the three months ended June 28, 2025, was $8,261, compared to $7,897 for the same period in 2024, reflecting an increase of 4.6%[67] - Total finance lease cost for the nine months ended June 28, 2025, was $15,137, up from $10,251 in 2024, representing a 47.8% increase[67] 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] - 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 total shareholders' equity as of June 28, 2025, was $1,943,701,000, up from $1,860,633,000 as of September 28, 2024[18] - The company had outstanding foreign currency contracts with notional amounts of $45,035 as of June 28, 2025, maturing through December 23, 2026[82] Cash Flow - Net cash provided by operating activities was $32,463,000 for the nine months ended June 28, 2025, down from $46,555,000 in 2024, indicating a decrease of 30.2%[27] - The company had a net cash used in investing activities of $92,398,000 for the nine months ended June 28, 2025, compared to $114,546,000 for 2024[27] - 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] Segment Performance - Space segment net sales for the three months ended June 28, 2025, were $118.66 million, compared to $108.97 million in 2024, reflecting an increase of approximately 8.5%[102] - Defense segment net sales for the three months ended June 28, 2025, were $169.04 million, up from $149.44 million in 2024, marking a growth of about 13.1%[102] - Military Aircraft segment net sales rose to $224.66 million for the three months ended June 28, 2025, from $207.18 million in 2024, indicating an 8.00% increase[102] - Commercial Aircraft segment operating profit increased to $32.62 million for the three months ended June 28, 2025, compared to $24.37 million in 2024, a growth of 33.83%[104] Acquisitions and Investments - The company acquired Data Collection Limited for a purchase price of $5,911 on October 20, 2023, and COTSWORKS, Inc. for $63,000 on July 1, 2025[51][52] - The company recorded losses of $14,897 related to asset impairment and fair value adjustment from divesting a motors business in the Czech Republic and a hydraulic systems business in Luxembourg[53] 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] Shareholder Information - The diluted weighted-average shares outstanding for the three months ended June 28, 2025, were 31,896,949, a decrease from 32,409,370 in the same period of 2024[101] - The company declared a quarterly dividend of $0.29 per share, payable on August 26, 2025, to shareholders of record as of August 8, 2025[110]

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 same quarter last year, while adjusted diluted earnings per share increased by 24% to $2.37[2][3]. - The operating profit for the three months ended June 28, 2025, was $111,867,000, compared to $105,380,000 in the prior year, reflecting an increase of 6.4%[26]. - The net earnings for the nine months ended June 28, 2025, were $194,466,000, up from $182,111,000 for the same period in 2024, indicating a growth of 6.5%[21]. - Diluted net earnings per share for the three months ended June 28, 2025, were $2.37, compared to $1.91 in the same period of 2024, marking a significant increase of 24.1%[21]. - Moog Inc. achieved an adjusted total operating profit of $131,680,000 for the three months ended June 28, 2025, compared to $111,309,000 in the same period of 2024, reflecting a growth of 18.3%[28]. - The adjusted net earnings for the nine months ended June 28, 2025, were $194,466 thousand, compared to $182,111 thousand for the same period in 2024, showing an increase of 6.5%[35]. Backlog and Guidance - The twelve-month backlog hit a record $2.7 billion, primarily driven by growth in Military Aircraft and Space and Defense sectors[6]. - Moog Inc. updated its FY 2025 guidance, increasing net sales expectations to $3.8 billion from $3.7 billion, while moderating free cash flow guidance to 30-50%[11]. - The operating margin guidance was adjusted to 11.9%, down from the previous estimate of 12.7% due to anticipated tariff pressures[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 14.1% for the three months ended June 28, 2025, up from 12.7% in the prior year[28]. - The Military Aircraft segment's operating profit was adjusted to $26,059,000 for the three months ended June 28, 2025, compared to $24,574,000 in the same period of 2024, indicating a growth of 6.0%[28]. - The Industrial segment's adjusted operating profit for the three months ended June 28, 2025, was $32,388,000, compared to $29,213,000 in the same period of 2024, representing an increase of 7.5%[28]. Cash Flow and Assets - Free cash flow improved to $93 million, with a conversion rate exceeding 120%[10]. - Free cash flow for the nine months ended June 28, 2025, was $(70,578) thousand, a decline from $(88,061) thousand in the same period of 2024, indicating a worsening cash flow situation[35]. - The company reported a free cash flow conversion rate of 123% for the three months ended June 28, 2025, compared to a negative conversion of (3)% in the same period of 2024[35]. - Total assets increased to $4,396,574 thousand as of June 28, 2025, up from $4,093,626 thousand in the previous year, representing a growth of 7.4%[31]. - Cash and cash equivalents at the end of the period were $59,014 thousand, up from $51,518 thousand, marking an increase of 14.5%[33]. Liabilities and Inventory - Total current liabilities decreased slightly to $988,614 thousand from $999,027 thousand year-over-year, a reduction of 1.4%[31]. - Long-term debt, excluding current installments, rose to $1,081,674 thousand, an increase of 23.8% from $874,139 thousand in the previous year[31]. - The company’s total liabilities increased to $2,452,873 thousand, up from $2,232,993 thousand, representing a growth of 9.8%[31]. - Inventories increased to $924,682 thousand as of June 28, 2025, from $863,702 thousand, reflecting a rise of 7.1%[31]. Tax and Other Financial Metrics - 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]. - Moog Inc. reported a total earnings before income taxes of $97,795,000 for the three months ended June 28, 2025, compared to $76,834,000 in the same period of 2024, reflecting a growth of 27.3%[21]. - Military Aircraft operating margin declined by 360 basis points to 8.0%, impacted by charges related to a product development termination[8]. - The adjusted operating margin rose to 13.6%, an increase of 130 basis points from 12.3% in the previous year[9]. - The company acquired COTSWORKS after the quarter-end, enhancing its Space and Defense product portfolio[6].

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] - 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 3.7%[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 million, compared to $107.815 million for the same period in 2024, reflecting a year-over-year increase of 0.97%[25] - The total operating profit for the company was $109.31 million for the three months ended March 29, 2025, down from $112.01 million in the same period of 2024, indicating a decline of about 2.4%[99] Expenses and Costs - 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] - 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 million for the six months ended March 29, 2025, compared to $42,276 million in the same period of 2024, indicating an increase of 12.0%[25] - Total finance lease cost for the six months ended March 29, 2025, was $10,365 million, an increase of 60.0% from $6,465 million for the same period in 2024[64] Assets and Liabilities - Total assets as of March 29, 2025, were $4,319,255,000, an increase from $4,093,626,000 as of September 28, 2024, representing a growth of 5.5%[16] - Long-term debt, excluding current installments, increased to $1,165,662,000 as of March 29, 2025, compared to $874,139,000 as of September 28, 2024, a rise of 33.3%[16] - The company reported a net cash used by investing activities of $58,957 million for the six months ended March 29, 2025, compared to $83,956 million in the same period of 2024, showing an improvement[25] - The company had outstanding foreign currency contracts with notional amounts of $55,326 million as of March 29, 2025, to manage foreign exchange risk[80] Shareholder Information - Cash dividends declared 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, reflecting a growth of 3.6%[20] - The company declared a quarterly dividend of $0.29 per share, payable on May 27, 2025, to shareholders of record as of May 9, 2025[105] - Total shareholders' equity at the end of the period was $1,835,417 thousand, up from $1,753,259 thousand a year earlier, reflecting an increase of 4.68%[22] Segment Performance - Operating profit for the Space and Defense segment was $32.78 million for the three months ended March 29, 2025, compared to $42.24 million in the same period of 2024, reflecting a decrease of approximately 22.5%[99] - Military Aircraft segment net sales were $213.85 million for the three months ended March 29, 2025, up from $202.50 million in the same period of 2024, reflecting an increase of approximately 5.7%[97] - The Space and Defense segment reported net sales of $270,184 million for the three months ended March 29, 2025, up from $266,787 million in the prior year, reflecting a growth of approximately 0.5%[98] Adjustments and Provisions - The company recorded an out of period adjustment of $7.540 million related to warranty expense in Commercial Aircraft, which increased cost of sales and decreased unbilled receivables[31] - The allowance for credit losses was $3,099 million, reflecting the company's assessment of customer account collectability[56] - The company recorded a warranty accrual of $21,782 million as of March 29, 2025, down from $23,616 million as of September 28, 2024[78] Future Expectations and Plans - The company expects additional costs of up to approximately $3,700 related to retention agreements under the 2023 restructuring plan, which will continue through 2027[88] - The company is reviewing the impact of new accounting standards, including ASU no. 2023-07 and ASU no. 2023-09, which will affect segment reporting and income tax disclosures, respectively[30] - The company expects restructuring payments to be made within a year, except for portions classified as long-term liabilities[88]

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[5][3]. - The twelve-month backlog remained steady at $2.5 billion, indicating stable future revenue prospects[5]. - Military Aircraft sales increased by 6% to $214 million, and Commercial Aircraft sales rose by 4% to $216 million, driven by strong demand[6]. - 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]. - Adjusted net earnings for Q1 2025 were $61,296,000, down from $70,898,000 in Q1 2024[27]. - Adjusted net earnings for the six months ended March 29, 2025, were $118,953,000, slightly down from $120,101,000 in the same period of 2024[27]. Cash Flow and Working Capital - Free cash flow for Q2 2025 was $2 million, a significant recovery from a negative $84 million in Q2 2024, driven by lower working capital requirements[9]. - Net cash provided by operating activities for the six months ended March 29, 2025, was $(92,862) thousand, a decrease compared to $16,389 thousand for the same period in 2024[26]. - Net cash provided by operating activities for Q1 2025 was $39,422,000, compared to a cash used of $(44,002,000) in Q1 2024[27]. - Free cash flow for Q1 2025 was $1,818,000, a significant improvement from $(84,116,000) in Q1 2024[27]. - Free cash flow for the six months ended March 29, 2025, was $(163,244,000), compared to $(86,141,000) in the prior year[27]. - Free cash flow conversion for Q1 2025 was 3%, compared to (119)% in Q1 2024[27]. - Free cash flow conversion for the six months ended March 29, 2025, was (137)%, compared to (72)% in the prior year[27]. Operating Margins and Expenses - Operating margin for Q2 2025 was 11.7%, a decline of 30 basis points from the previous year, primarily due to the absence of a one-time benefit from the Employee Retention Credit[7]. - Adjusted operating margin decreased to 12.5% in Q2 2025, down 110 basis points from 13.6% in Q2 2024, reflecting operational challenges[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 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 Military Aircraft segment's operating profit margin improved to 12.0% for the six months ended March 29, 2025, compared to 9.4% for the same period in 2024[22]. - Research and development expenses for Q2 2025 were $24.5 million, down from $28.4 million in Q2 2024, indicating a focus on cost management[17]. Balance Sheet and Debt - 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 an increase of 8.9%[24]. - 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]. - The company experienced a decrease in inventories, which were $902,551 thousand as of March 29, 2025, compared to $863,702 thousand as of September 28, 2024, reflecting a rise of 4.5%[24]. - Cash, cash equivalents, and restricted cash at the end of the period were $62,726 thousand, an increase from $59,731 thousand at the end of the same period in 2024[26]. Guidance and Risks - The company reiterated its 2025 guidance, maintaining net sales expectations at $3.7 billion and adjusted operating margin at 13.0%[10]. - Potential net tariff risks to operating profit are estimated to be between $10 million to $20 million, which the company is actively addressing[5].

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 in the prior year, representing an increase of 11.6%[10] - Basic net earnings per share rose to $1.66 from $1.50, marking an increase of 10.7% year-over-year[10] - Operating profit for the same period was $101.2 million, up from $94.5 million, reflecting a 7.1% year-over-year growth[97] - The company reported a diluted net earnings per share of $1.64 for the three months ended December 28, 2024, compared to $1.48 in the same period of 2023, marking an increase of about 10.8%[10] 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 rise of 6.5%[16] - Cash and cash equivalents increased to $73,448,000 from $61,694,000, a growth of 19.5%[16] - Total current liabilities decreased to $913,819,000 from $999,027,000, a reduction of 8.6%[16] - Long-term debt, excluding current installments, increased to $1,104,151,000 from $874,139,000, an increase of 26.2%[16] - Total shareholders' equity decreased to $1,814,778,000 from $1,860,633,000, a decline of 2.5%[16] Cash Flow - Net cash provided by operating activities was $(132,284,000) for the three months ended December 28, 2024, compared to $60,391,000 for the same period in 2023, indicating a significant decrease in cash flow[24] - Cash, cash equivalents, and restricted cash at the end of the period totaled $73,808,000, down from $126,828,000 at the end of the same period last year, reflecting a decrease of approximately 41.8%[24] - The company reported a net cash used in investing activities of $(19,122,000) for the three months ended December 28, 2024, compared to $(43,107,000) in the same period last year, indicating an improvement in cash flow from investing activities[24] - Net cash used by operating activities was $(132,284,000), a significant decrease compared to $60,391,000 for the same period in 2023[24] Research and Development - Research and development expenses decreased to $23,605,000 from $30,579,000, a reduction 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][117] Revenue Recognition - The company recognized additional revenue of $8,669,000 for adjustments made to performance obligations satisfied in previous periods for the three months ended December 28, 2024[39] - The company utilizes the five-step model prescribed in ASC 606 for revenue recognition, ensuring compliance with contract terms and obligations[31] - The over-time method of revenue recognition is predominantly used for U.S. Government contracts and large commercial contracts, reflecting the nature of the work performed[37] - Revenue recognized at the point in time is primarily used in Industrial contracts where the asset has an alternative use, determined by specific indicators[38] Dividends and Shareholder Returns - 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] - A quarterly dividend of $0.29 per share was declared on January 23, 2025, payable on February 25, 2025[103] - The company authorized a share repurchase program allowing the buyback of up to 3 million common shares, with approximately 2 million shares remaining under this authorization[150] Segment Performance - Space and Defense segment net sales increased to $247.8 million, a 7.5% rise from $230.1 million in the prior year[95] - Military Aircraft segment net sales rose to $213.4 million, compared to $186.2 million, marking a 14.6% increase[95] - Commercial Aircraft segment net sales grew to $220.9 million, up from $194.2 million, representing a 13.8% increase[95] - Aerospace and defense businesses accounted for 73% of the company's 2024 sales, with the defense market representing 51% and commercial aircraft market 22%[154] - The industrial markets contributed 27% to the company's 2024 sales, benefiting from increased order demand in industrial automation, simulation and test, and energy markets[155] Future Outlook - The company plans to adopt new accounting standards related to segment reporting and income tax disclosures in fiscal years 2025 and 2026, respectively, which may impact future financial statements[29] - The defense market is expected to see increased spending due to current global tensions, which may positively impact future revenues[158] - The commercial aftermarket is experiencing higher demand for maintenance services and spare parts due to increased flight hours across existing fleets[160]

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 expanded by 50 basis points to 11.8% in Q1 2025, driven by simplification initiatives[9] - Space and Defense operating profit increased to $29.5 million in Q4 2024, up from $25.3 million in Q4 2023, with an adjusted margin of 11.9% compared to 11.0%[24] - Military Aircraft operating profit rose to $23.5 million in Q4 2024, up from $19.6 million in Q4 2023, with an adjusted margin of 11.0% compared to 10.5%[24] - Commercial Aircraft operating profit reached $24.2 million in Q4 2024, up from $20.6 million in Q4 2023, with a margin of 11.0% compared to 10.6%[24] - Industrial operating profit increased to $30.0 million in Q4 2024, up from $30.9 million in Q4 2023, with an adjusted margin of 13.2% compared to 12.6%[24] - Total adjusted operating profit for Q4 2024 was $107.2 million, up from $96.4 million in Q4 2023, with a margin of 11.8% compared to 11.3%[24] - Adjusted net earnings for Q4 2024 were $57.7 million, up from $49.2 million in Q4 2023[29] Cash Flow and Liquidity - Free cash flow was a use of $165 million in Q1 2025, primarily due to working capital requirements[10] - Cash and cash equivalents increased to $73.4 million in Q4 2024, up from $61.7 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] - Free cash flow conversion was negative 286% in Q4 2024, compared to negative 4% 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 - Net sales for the three months ended March 30, 2024, were $930.3 million, a 11.2% increase from $836.8 million for the same period in 2023[10] - Gross profit for the six months ended March 30, 2024, was $500.0 million, up 17.5% from $425.0 million in the prior year[10] - Net earnings for the three months ended March 30, 2024, were $60.0 million, representing a 39.6% increase compared to $43.0 million for the same period in 2023[10] - Basic net earnings per share for the three months ended March 30, 2024, were $1.88, up from $1.35 in the same period last year, reflecting a 39.1% increase[10] - For the six months ended March 30, 2024, net sales reached $1.787 billion, up from $1.597 billion in the prior year, reflecting a growth of about 11.9%[108] - Total operating profit for the three months ended March 30, 2024, was $112,012 million, an increase of 34% compared to $83,766 million for the same period in 2023[110] - Net earnings for the three months ended March 30, 2024, were $60 million, a 39% increase from $43 million in the same quarter of 2023[133] - Diluted earnings per share rose to $1.86 for the quarter ended March 30, 2024, up 39% from $1.34 in the same quarter of 2023[133] Assets and Liabilities - Total assets as of March 30, 2024, were $4.04 billion, an increase from $3.81 billion as of September 30, 2023[15] - Total liabilities increased to $2.29 billion as of March 30, 2024, compared to $2.17 billion as of September 30, 2023[15] - Cash and cash equivalents decreased to $59.1 million as of March 30, 2024, down from $69.0 million as of September 30, 2023[15] - Long-term debt as of March 30, 2024, was $948,615 million, an increase from $863,092 million as of September 30, 2023, representing an increase of 9.9%[80] - The fair value of long-term debt was estimated at $915,743 as of March 30, 2024, compared to a carrying value of $952,000, indicating a fair value discount of approximately 3.8%[94] Cash Flow and Investments - Operating cash flow for the six months ended March 30, 2024, was $16,389 thousand, compared to a cash outflow of $33,016 thousand in the prior year[23] - The company reported a net cash used by investing activities of $83,956 thousand for the six months ended March 30, 2024, compared to $74,200 thousand in the same period of 2023[23] - The company incurred $5,911 thousand in cash outflows for acquisitions of businesses during the six months ended March 30, 2024[23] - Capital expenditures in the first half of 2024 totaled $78 million, down from $90 million in the same period of 2023[169] Research and Development - Research and development expenses for the six months ended March 30, 2024, were $59.0 million, an increase of 16.4% from $50.6 million in the same period of 2023[10] - Research and development expenses for the quarter were $28 million, a 6% increase from $27 million in the same quarter of 2023[133] - Research and development expenses rose by $11 million in the first half of 2024, driven by new growth programs in Space and Defense[135] Dividends and Shareholder Returns - The company declared cash dividends of $0.28 per share for the three months ended March 30, 2024, compared to $0.27 per share for the same period in 2023[19] - The company declared a quarterly dividend of $0.28 per share, payable on May 28, 2024[116] Segment Performance - The Space and Defense segment generated net sales of $266.8 million for the three months ended March 30, 2024, compared to $245.9 million in the same period of 2023, marking an increase of approximately 8.5%[107] - The Military Aircraft segment reported net sales of $202.5 million for the three months ended March 30, 2024, up from $182.8 million in the same period of 2023, indicating a growth of about 10.0%[107] - Space and Defense net sales increased by 9% in Q2 2024, driven by higher demand for defense applications, with operating profit rising by 54%[140] - Military Aircraft net sales increased by 11% in Q2 2024, with OEM sales up by $15 million and aftermarket sales up by $5 million[145] - Commercial Aircraft net sales increased by 26% in Q2 2024, with OEM sales up by $29 million and aftermarket sales up by $14 million[151] - Industrial net sales increased by 4% in Q2 2024, with significant growth in simulation and test markets, despite a decline in industrial automation sales[156] Backlog and Future Projections - Twelve-month backlog increased to $2,500 million, a 9% rise from $2,300 million in the previous year[133] - Net sales for 2024 are projected to be $3,550 million, a 7% increase from $3,319 million in 2023[162] - Operating profit is expected to rise to $422 million in 2024, reflecting a 23% increase from $343 million in 2023[162] - Adjusted diluted earnings per share for 2024 are forecasted to range between $7.05 and $7.45, with a midpoint of $7.25, compared to $6.15 in 2023[162] Market Conditions and Trends - The space market consists of three customer segments: civil (NASA), U.S. Department of Defense, and commercial space, with increasing investments expected in satellite technologies and launch vehicles[200] - The industrial market is influenced by capital investment levels, product innovation pace, economic conditions, and the effects of the COVID-19 pandemic, leading to changing customer demands[202] - Stronger order demand for flight simulation systems has been observed as the airline training market recovers, aligning with increased domestic and foreign flight hours[203] - The energy generation and exploration market is affected by fluctuating oil and natural gas prices, global urbanization, and investments in power generation infrastructure[204] - The medical market is driven by economic conditions, regulatory environments, and advancements in medical technology, increasing the demand for medical devices and components[205] Currency and Risk Management - Approximately one-sixth of the company's 2023 sales were in foreign currencies, with a $5 million increase in sales due to favorable currency translation compared to the previous year[206] - The company had no outstanding foreign currency contracts or interest rate swaps as of March 30, 2024, indicating a shift in risk management strategy[86][87]

Financial Performance - Net sales for Q2 2024 reached $930 million, an 11% increase compared to $837 million in Q2 2023[4] - Adjusted diluted earnings per share rose 54% to $2.19, compared to $1.42 in Q2 2023, reflecting higher sales and the Employee Retention Credit[4] - Net earnings for the three months ended March 30, 2024, were reported at $60.0 million, a significant increase from $43.0 million in the prior year, marking a growth of 39.6%[20] - Diluted net earnings per share for the three months ended March 30, 2024, increased to $1.86, up from $1.34, representing a growth of 38.8%[20] - Net earnings for the six months ended March 30, 2024, increased to $107,815 thousand from $89,029 thousand in the same period last year, representing a growth of approximately 21%[25] Operating Performance - Operating margin improved to 12.0%, up 200 basis points from 10.0% in the prior year, driven by performance across all segments[4] - Operating profit for the same period rose to $112.0 million, compared to $83.8 million, reflecting a margin improvement from 10.0% to 12.0%[20] - The company reported an adjusted total operating profit of $126.4 million for the three months ended March 30, 2024, compared to $87.1 million in the prior year, an increase of 45.1%[21] - The Space and Defense segment's operating margin increased by 460 basis points to 15.8% due to improved program performance[6] - The Space and Defense segment's operating profit margin improved to 15.9% for the three months ended March 30, 2024, compared to 11.7% in the same period last year[21] Sales and Backlog - Commercial Aircraft sales surged 26% to $208 million, attributed to growth in widebody aircraft[5] - Twelve-month backlog increased 9% to a record $2.5 billion, indicating strong demand in aerospace and defense sectors[8] - Fiscal year 2024 guidance projects net sales of $3.55 billion, a 7% increase from the previous year[9] Cash Flow and Investments - Free cash flow improved by $17 million year-over-year, with a cash use of $84 million in Q2 2024[4] - Net cash provided by operating activities for the six months ended March 30, 2024, was $16,389 thousand, a significant improvement compared to a net cash used of $33,016 thousand in the prior year[25] - Free cash flow for the six months ended March 30, 2024, was $(61,141) thousand, an improvement from $(122,759) thousand in the same period last year, indicating a reduction in cash outflow[26] - The company invested $77,530 thousand in property, plant, and equipment during the six months ended March 30, 2024, compared to $89,743 thousand in the same period last year, reflecting a decrease of approximately 13.6%[25] Assets and Liabilities - Total assets as of March 30, 2024, increased to $4.04 billion, compared to $3.81 billion as of September 30, 2023, indicating a growth of 5.9%[23] - Current assets rose to $2.16 billion, up from $1.99 billion, reflecting an increase of 8.5%[23] - Long-term debt, excluding current installments, increased to $948.6 million from $863.1 million, representing a rise of 9.9%[23] Restructuring and Charges - Restructuring and impairment charges in Q2 2024 totaled $14 million, primarily affecting Military Aircraft and Industrial segments[7] Tax and Cash Equivalents - The effective income tax rate for the six months ended March 30, 2024, was 23.7%, consistent with the prior year rate of 23.6%[20] - Cash, cash equivalents, and restricted cash at the end of the period were $59,731 thousand, down from $109,654 thousand at the end of the same period last year, a decrease of approximately 45.5%[25]