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].
Moog(MOG_A) - 2025 Q2 - Quarterly Results