EXTON, Pa.--(BUSINESS WIRE)--Innovative Aerosystems (NASDAQ: ISSC) today announced it closed the acquisition of the Moog (NYSE: MOG.A) S-TEC® Model 3100 general aviation fixed wing autopilot product line, further strengthening the company's position as a leading provider of advanced avionics, flight control, and mission-critical aerospace systems for commercial, business, and military aircraft. The acquisition expands Innovative Aerosystems' integrated flight control capabilities and enhances i. ...

Moog (NYSE:MOG.A) FY Conference Summary Company Overview - **Company**: Moog Inc. - **Industry**: Aerospace and Defense - **Conference Date**: February 12, 2026 Key Points Company Performance and Strategy - Moog has been focusing on improving its operating margin, which has remained around 10% for a decade despite strong organic growth [6][5] - The leadership team initiated a transformation strategy in 2023, emphasizing pricing and simplification to enhance financial performance [6][5] - The company has set a three-year guidance up to fiscal 2026, aiming to drive change and improve margins [6][5] Transformation Initiatives - **80/20 Initiative**: A key focus has been on the 80/20 principle, which helps identify core customers and products that drive profitability [17][20] - **Portfolio Shaping**: Moog is actively disposing of non-core businesses, particularly those in the $10-$50 million range that do not align with performance goals [7][8] - **Footprint Rationalization**: The company is consolidating manufacturing resources to eliminate duplicative operations, particularly in the U.S. and Europe [11][12] - **Focused Factories**: Moog is restructuring factories to specialize in either industrial or defense products, reducing operational complexity [15][16] Customer and Product Rationalization - The company has shifted its philosophy from treating all customers equally to prioritizing high-value customers, leading to better resource allocation [25][26] - Moog has identified less profitable products and is either repricing them or phasing them out, focusing on more lucrative offerings [34][35] Financial Performance - Moog reported a $200 million revenue from missile programs in fiscal 2025, with expectations to grow to $250 million in fiscal 2026, reflecting a growth rate of over 20% [111][112] - Recent orders from Lockheed Martin include two contracts exceeding $100 million each, highlighting operational excellence and customer satisfaction [89][91] Market Position and Growth Opportunities - Moog is involved in multiple missile programs, including PAC-3 and THAAD, positioning itself well for future growth in defense markets [101][110] - The company is exploring strategic acquisitions to enhance capabilities and expand its market presence, particularly in Europe [190][200] Challenges and Mitigation Strategies - Moog has faced tariff impacts, approximately 80 basis points, but has implemented strategies to mitigate these effects, including working with airlines to streamline documentation processes [140][146] - The company is adjusting its supply chain to avoid tariffs by processing products outside the U.S. when feasible [146][153] Future Outlook - The leadership team is focused on continuous improvement and integrating the 80/20 initiative into all business processes [66][68] - Moog aims to balance capital deployment between organic growth, dividends, and opportunistic share repurchases [209][212] - Upside opportunities for sales and earnings are anticipated from acceleration in defense markets and robust commercial aftermarket activity [213][216] Additional Insights - The cultural shift towards the 80/20 initiative has gained momentum within the organization, fostering a mindset focused on impactful decision-making [40][42] - The company is committed to maintaining operational excellence, as evidenced by its recognition from Lockheed Martin for 100% on-time delivery and quality [93][95]

Group 1: Company Performance - Huntington Ingalls (HII) has gained approximately 21.5% year-to-date, outperforming the average return of 7.1% for Aerospace companies [4] - The Zacks Consensus Estimate for HII's full-year earnings has increased by 1.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - HII currently holds a Zacks Rank of 2 (Buy), suggesting a favorable investment outlook [3] Group 2: Industry Comparison - Huntington Ingalls is part of the Aerospace - Defense industry, which includes 30 companies and has an average year-to-date gain of 7.4%, indicating HII's superior performance [6] - In contrast, Moog (MOG.A), another Aerospace stock, has returned 32.2% year-to-date and is part of the Aerospace - Defense Equipment industry, which has a lower average gain of 6.4% [5][7] - The Aerospace sector as a whole ranks 1 in the Zacks Sector Rank, reflecting strong overall performance among its 68 individual stocks [2]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Moog ( MOG.A , MOG.B ) stock has surged 6% following the release of its Q1 2026 results. The company has now surged 53% since my last report, easily outperforming the S&P 500’s 3.4% return. TheDhierin-Perkash Bechai is an aerospace, defense and air ...

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]

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 37.1% 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] - The company reported earnings before income taxes of $101,214, compared to $74,435 in the same period last year, marking a 36% increase[87] Research and Development - Research and development expenses rose to $24,634, up from $23,605, indicating continued investment in innovation[10] - Research and development expenses totaled $24,634, slightly higher than $23,605 in the prior year[86] Assets and Equity - Total assets as of January 3, 2026, were $4,551,893, an increase from $4,426,055 as of September 27, 2025[15] - Shareholders' equity grew to $2,065,800, up from $1,992,555, indicating a stronger financial position[15] - Cash and cash equivalents increased to $73,359 from $62,013, reflecting improved liquidity[15] Cash Flow and Financing - 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] - Proceeds from revolving lines of credit amounted to $372,900,000 for the three months ended January 3, 2026, while payments on revolving lines of credit were $261,900,000[22] Dividends - 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] - Receivables, net increased to $554,295 as of January 3, 2026, from $506,768 in September 27, 2025, marking a growth of about 9.4%[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] Liabilities - Long-term debt increased to $1,052,312 million as of January 3, 2026, compared to $944,123 million as of September 27, 2025[64] - The total lease liabilities as of January 3, 2026, were $68,644 for operating leases and $143,834 for finance leases[59] - Warranty accrual at the end of the period was $24,016 million, up from $22,502 million at the end of the previous period[67] Foreign Currency and Tax - The company reported a foreign currency translation adjustment of $4,656, contrasting with a loss of $41,596 in the prior year, indicating improved currency conditions[13] - 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 recorded a net gain of $9 million from foreign currency contracts for the three months ended January 3, 2026[71] Acquisitions and Capital Expenditures - The company acquired COTSWORKS, Inc. on July 1, 2025, enhancing its capabilities in rugged optical components for harsh environments[44] - Capital expenditures for the three months ended January 3, 2026, totaled $34,380, compared to $32,778 in the prior year[87] Other Financial Metrics - The company recognized additional revenue of $12,547,000 for the three months ended January 3, 2026, due to adjustments made to performance obligations satisfied in previous periods, compared to $8,669,000 for the same period in 2024[36] - The company is currently reviewing new accounting standards that may impact financial disclosures, with planned adoption dates in fiscal years 2026 and 2028[27]

Core Insights - Moog reported quarterly earnings of $2.63 per share, exceeding the Zacks Consensus Estimate of $2.24 per share, and showing a year-over-year increase from $1.78 per share, resulting in an earnings surprise of +17.54% [1] - The company achieved revenues of $1.1 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 11.13%, compared to $910.32 million in the same quarter last year [2] - Moog has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Moog's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $2.39, with expected revenues of $995.24 million, and for the current fiscal year, the EPS estimate is $9.95 on revenues of $4.2 billion [7] Industry Context - Moog operates within the Aerospace - Defense Equipment industry, which is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5] Stock Performance - Moog shares have increased approximately 18.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.8% [3] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for Moog, indicating expectations of continued outperformance in the near future [6]

Financial Performance - Moog Inc. reported record net sales of $1.1 billion for Q1 2026, a 21% increase from $908 million in Q1 2025[2] - The company achieved a diluted net earnings per share of $2.46, up 38% from $1.78 in the previous year[2] - Net sales for the three months ended January 3, 2026, reached $1,100,346, a 21.2% increase from $907,882 for the same period in 2024[24] - Total operating profit for the same period was $135,446, representing a 30.7% increase from $103,604 in the prior year, with an operating margin of 12.3%[24] - Adjusted total operating profit increased to $142,498, with an adjusted operating margin of 13.0%, compared to 12.1% in the previous year[26] - Net earnings for the three months ended January 3, 2026, were $78,851, up from $57,526 in the same period last year[30] Bookings and Backlog - Bookings for the quarter totaled $2.3 billion, primarily driven by growth in Commercial Aircraft and new awards in Space and Defense[3] - The twelve-month backlog increased by 30% to a record $3.3 billion, indicating strong demand across all markets[3] Operating Margins - Operating margin improved by 90 basis points to 12.3%, while adjusted operating margin also increased by 90 basis points to 13.0%[5][6] - The adjusted operating margin for the Space and Defense segment increased by 280 basis points to 14.8%, reflecting higher sales and incremental profit[6] - Military Aircraft operating profit increased to $28,128, with an adjusted margin of 11.9%, compared to 11.3% in the previous year[26] - The company reported a significant increase in Space and Defense operating profit to $42,770, up from $28,780, with an adjusted margin of 14.8%[26] Cash Flow and Liquidity - Free cash flow was a use of $79 million, primarily due to cash used by physical inventories and timing of payments[7] - Free cash flow for the period was $(79,148), a slight improvement from $(165,688) in the prior year, with a free cash flow conversion rate of -94%[31] - Cash and cash equivalents increased to $73,359 from $62,013, reflecting improved liquidity[28] Capital Expenditures and Guidance - Capital expenditures for the quarter totaled $34 million, reflecting continued investment to support future growth[7] - The company raised its FY 2026 guidance for net sales to $4.3 billion from the previous $4.2 billion, and adjusted diluted net earnings per share to $10.20 from $10.00[8] Assets and Debt - Total assets rose to $4,551,893, up from $4,426,055, indicating growth in the company's asset base[28] - Long-term debt, excluding current installments, increased to $1,052,312 from $944,123, reflecting increased leverage[28] Segment Performance - Space and Defense segment sales rose by 31% to $324 million, driven by strong defense demand, particularly in missile controls and satellite components[4]

Financial Performance - Moog Inc. reported record net sales of $1.1 billion for Q1 2026, a 21% increase compared to $908 million in Q1 2025[4] - The company achieved a diluted net earnings per share of $2.46, reflecting a 38% increase from $1.78 in the previous year[2] - Bookings for the quarter totaled $2.3 billion, primarily driven by growth in Commercial Aircraft and new awards in Space and Defense[3] - The twelve-month backlog increased by 30% to a record $3.3 billion, indicating strong demand across all markets[3] - Operating margin improved by 90 basis points to 12.3%, while adjusted operating margin also increased by 90 basis points to 13.0%[5][6] - Operating profit for the total company was $135,446, representing a margin of 12.3%, up from 11.4% in the previous year[24] - The company reported net earnings of $78,851 for the three months ended January 3, 2026, compared to $57,526 in the same period last year[30] Cash Flow and Guidance - Free cash flow was a use of $79 million, an improvement from a use of $166 million in the prior year[7] - Free cash flow for the three months ended January 3, 2026, was $(79,148), with a free cash flow conversion rate of (94)%[31] - The company raised its FY 2026 guidance for net sales to $4.3 billion from the previous $4.2 billion[8] - Adjusted diluted net earnings per share guidance was increased to $10.20, up from $10.00[8] Segment Performance - The Space and Defense segment saw a 31% increase in sales to $324 million, driven by strong defense demand[4] - Space and Defense segment operating profit increased to $42,770, with an adjusted margin of 14.8%, compared to 12.0% in the prior year[26] - Military Aircraft segment reported an operating profit of $28,128, with an adjusted margin of 11.9%, up from 11.3%[26] Balance Sheet - Cash and cash equivalents at the end of the period were $73,794, slightly down from $73,808 at the end of the previous year[30] - Total assets increased to $4,551,893 from $4,426,055 in the previous period[28] - Total liabilities rose to $2,486,093, compared to $2,433,500 in the prior year[28] Interest Expense - Interest expense increased to $17,195 from $16,248 in the previous year[24]

Core Viewpoint - Wall Street anticipates a year-over-year increase in Moog's earnings driven by higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Moog is expected to report quarterly earnings of $2.24 per share, reflecting a year-over-year increase of +25.8% [3]. - Revenues are projected to reach $990.13 million, an increase of 8.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate for Moog has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. - Moog's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.56%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [9][10]. - Moog's combination of a negative Earnings ESP and a Zacks Rank of 2 makes it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Moog exceeded the expected earnings of $2.24 per share by delivering $2.56, resulting in a surprise of +14.29% [13]. - Over the past four quarters, Moog has consistently beaten consensus EPS estimates [14]. Industry Context - Teledyne Technologies, a peer in the aerospace and defense equipment industry, is expected to report earnings of $5.83 per share, with a year-over-year change of +5.6% and revenues of $1.57 billion, up 4.5% [18]. - Teledyne's consensus EPS estimate has been revised up by 0.3% over the last 30 days, but it also has a negative Earnings ESP of -0.52% [19].