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]
Moog(MOG_B) - 2025 Q1 - Quarterly Report