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