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 For the transition period from _________ to _________ Commission file number 1-05129 MOOG Inc. (Exact name of registrant as specified in its charter) New York 16-0757636 ...

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, 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]