Financial Performance - Net sales for the three months ended March 30, 2024, were $930.3 million, a 11.2% increase from $836.8 million for the same period in 2023[10] - Gross profit for the six months ended March 30, 2024, was $500.0 million, up 17.5% from $425.0 million in the prior year[10] - Net earnings for the three months ended March 30, 2024, were $60.0 million, representing a 39.6% increase compared to $43.0 million for the same period in 2023[10] - Basic net earnings per share for the three months ended March 30, 2024, were $1.88, up from $1.35 in the same period last year, reflecting a 39.1% increase[10] - For the six months ended March 30, 2024, net sales reached $1.787 billion, up from $1.597 billion in the prior year, reflecting a growth of about 11.9%[108] - Total operating profit for the three months ended March 30, 2024, was $112,012 million, an increase of 34% compared to $83,766 million for the same period in 2023[110] - Net earnings for the three months ended March 30, 2024, were $60 million, a 39% increase from $43 million in the same quarter of 2023[133] - Diluted earnings per share rose to $1.86 for the quarter ended March 30, 2024, up 39% from $1.34 in the same quarter of 2023[133] Assets and Liabilities - Total assets as of March 30, 2024, were $4.04 billion, an increase from $3.81 billion as of September 30, 2023[15] - Total liabilities increased to $2.29 billion as of March 30, 2024, compared to $2.17 billion as of September 30, 2023[15] - Cash and cash equivalents decreased to $59.1 million as of March 30, 2024, down from $69.0 million as of September 30, 2023[15] - Long-term debt as of March 30, 2024, was $948,615 million, an increase from $863,092 million as of September 30, 2023, representing an increase of 9.9%[80] - The fair value of long-term debt was estimated at $915,743 as of March 30, 2024, compared to a carrying value of $952,000, indicating a fair value discount of approximately 3.8%[94] Cash Flow and Investments - Operating cash flow for the six months ended March 30, 2024, was $16,389 thousand, compared to a cash outflow of $33,016 thousand in the prior year[23] - The company reported a net cash used by investing activities of $83,956 thousand for the six months ended March 30, 2024, compared to $74,200 thousand in the same period of 2023[23] - The company incurred $5,911 thousand in cash outflows for acquisitions of businesses during the six months ended March 30, 2024[23] - Capital expenditures in the first half of 2024 totaled $78 million, down from $90 million in the same period of 2023[169] Research and Development - Research and development expenses for the six months ended March 30, 2024, were $59.0 million, an increase of 16.4% from $50.6 million in the same period of 2023[10] - Research and development expenses for the quarter were $28 million, a 6% increase from $27 million in the same quarter of 2023[133] - Research and development expenses rose by $11 million in the first half of 2024, driven by new growth programs in Space and Defense[135] Dividends and Shareholder Returns - The company declared cash dividends of $0.28 per share for the three months ended March 30, 2024, compared to $0.27 per share for the same period in 2023[19] - The company declared a quarterly dividend of $0.28 per share, payable on May 28, 2024[116] Segment Performance - The Space and Defense segment generated net sales of $266.8 million for the three months ended March 30, 2024, compared to $245.9 million in the same period of 2023, marking an increase of approximately 8.5%[107] - The Military Aircraft segment reported net sales of $202.5 million for the three months ended March 30, 2024, up from $182.8 million in the same period of 2023, indicating a growth of about 10.0%[107] - Space and Defense net sales increased by 9% in Q2 2024, driven by higher demand for defense applications, with operating profit rising by 54%[140] - Military Aircraft net sales increased by 11% in Q2 2024, with OEM sales up by $15 million and aftermarket sales up by $5 million[145] - Commercial Aircraft net sales increased by 26% in Q2 2024, with OEM sales up by $29 million and aftermarket sales up by $14 million[151] - Industrial net sales increased by 4% in Q2 2024, with significant growth in simulation and test markets, despite a decline in industrial automation sales[156] Backlog and Future Projections - Twelve-month backlog increased to $2,500 million, a 9% rise from $2,300 million in the previous year[133] - Net sales for 2024 are projected to be $3,550 million, a 7% increase from $3,319 million in 2023[162] - Operating profit is expected to rise to $422 million in 2024, reflecting a 23% increase from $343 million in 2023[162] - Adjusted diluted earnings per share for 2024 are forecasted to range between $7.05 and $7.45, with a midpoint of $7.25, compared to $6.15 in 2023[162] Market Conditions and Trends - The space market consists of three customer segments: civil (NASA), U.S. Department of Defense, and commercial space, with increasing investments expected in satellite technologies and launch vehicles[200] - The industrial market is influenced by capital investment levels, product innovation pace, economic conditions, and the effects of the COVID-19 pandemic, leading to changing customer demands[202] - Stronger order demand for flight simulation systems has been observed as the airline training market recovers, aligning with increased domestic and foreign flight hours[203] - The energy generation and exploration market is affected by fluctuating oil and natural gas prices, global urbanization, and investments in power generation infrastructure[204] - The medical market is driven by economic conditions, regulatory environments, and advancements in medical technology, increasing the demand for medical devices and components[205] Currency and Risk Management - Approximately one-sixth of the company's 2023 sales were in foreign currencies, with a $5 million increase in sales due to favorable currency translation compared to the previous year[206] - The company had no outstanding foreign currency contracts or interest rate swaps as of March 30, 2024, indicating a shift in risk management strategy[86][87]
Moog(MOG_B) - 2024 Q2 - Quarterly Report