Financial Performance - Net sales for the three months ended January 3, 2026, were $1,100,346, an increase of 21.2% compared to $907,882 for the same period in 2024[10] - Gross profit for the same period was $294,240, representing a gross margin of 26.8%, up from $245,078 and a gross margin of 27.0% in the prior year[10] - Net earnings increased to $78,851, a 37.0% rise from $57,526 in the previous year, resulting in diluted earnings per share of $2.46 compared to $1.78[10] - Operating profit for the same period was $135,446, up 30.7% from $103,604 in the prior year[87] - Earnings before income taxes for the three months ended January 3, 2026, were $101,214, an increase from $74,435 in the prior year[87] Research and Development - Research and development expenses rose to $24,634, reflecting a focus on innovation and new product development, compared to $23,605 in the prior year[10] - Research and development expenses totaled $24,634, slightly up from $23,605 in the same period last year[86] Assets and Liabilities - Total assets increased to $4,551,893 as of January 3, 2026, up from $4,426,055 as of September 27, 2025[15] - Total liabilities increased to $2,486,093 from $2,433,500, indicating a rise in financial obligations[15] - The company had contract reserves of $80,863,000 as of January 3, 2026, indicating potential future liabilities related to contracts[38] - Long-term debt increased to $1,052,312 million as of January 3, 2026, up from $944,123 million in September 2025[64] Cash Flow and Liquidity - Cash and cash equivalents increased to $73,359, compared to $62,013 in the previous period, indicating improved liquidity[15] - Net cash used by operating activities was $(44,768,000) for the three months ended January 3, 2026, compared to $(132,910,000) for the same period in 2024, indicating a significant improvement[22] - The company reported a net cash provided by financing activities of $87,722,000 for the three months ended January 3, 2026, compared to $163,867,000 for the same period in 2024[22] Shareholder Equity and Dividends - Total shareholders' equity increased to $2,065,800 from $1,992,555, reflecting strong financial performance and retained earnings growth[15] - The company declared cash dividends of $0.29 per share for the three months ended January 3, 2026, compared to $0.28 per share in the previous year[18] - A quarterly dividend of $0.30 per share was declared on January 29, 2026, payable on February 26, 2026, to shareholders of record on February 17, 2026[94] Inventory and Receivables - Total inventories, net amounted to $915,691 as of January 3, 2026, slightly up from $914,302 in September 27, 2025[52] - The net receivables, after accounting for the allowance for credit losses, increased to $554,295 as of January 3, 2026, from $506,768 as of September 27, 2025[46] - As of January 3, 2026, total unbilled receivables increased to $817,605 from $744,352 in September 27, 2025, reflecting a growth of approximately 9.5%[42] Foreign Currency and Contracts - The company reported a foreign currency translation adjustment of $4,656, compared to a loss of $41,596 in the prior year, indicating improved currency stability[13] - The company has outstanding foreign currency contracts with notional amounts of $25,415 million as of January 3, 2026, to manage foreign exchange risk[69] - The company recorded a net gain of $9 million on foreign currency contracts for the three months ended January 3, 2026[71] Capital Expenditures - Total capital expenditures for the three months ended January 3, 2026, were $34,380, up from $32,778 in the previous year[87] - The company purchased property, plant, and equipment for $(34,380,000) during the three months ended January 3, 2026, compared to $(32,778,000) in the same period in 2024[22] Acquisitions - The company acquired COTSWORKS, Inc. on July 1, 2025, enhancing its capabilities in rugged optical components for harsh environments[44] Tax and Legal Matters - The effective tax rate for the three months ended January 3, 2026, was 22.1%, slightly lower than 22.7% for the same period in 2024[77] - The company is engaged in administrative and legal proceedings related to environmental matters, with adequate reserves established for estimated costs, not expected to materially affect financial condition or cash flows[90]
Moog(MOG_B) - 2026 Q1 - Quarterly Report