| Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems, today reported fiscal first quarter 2025 diluted earnings per share of $1.64 and adjusted diluted earnings per share of $1.78, which includes an out-of-period warranty expense. |
| (in millions, except per share results) |
Three Months Ended |
|
Q1 2025 |
Q1 2024 |
Deltas |
| Net sales |
$ |
910 |
|
$ |
857 |
|
|
6 |
% |
| Operating margin(1) |
|
11.1 |
% |
|
11.0 |
% |
10 bps |
| Adjusted operating margin(1) |
|
11.8 |
% |
|
11.3 |
% |
50 bps |
| Diluted net earnings per share(2) |
$ |
1.64 |
|
$ |
1.48 |
|
|
11 |
% |
| Adjusted diluted net earnings per share(2) |
$ |
1.78 |
|
$ |
1.53 |
|
|
16 |
% |
| Net cash provided (used) by operating activities |
$ |
(132 |
) |
$ |
60 |
|
$ |
(193 |
) |
| Free cash flow |
$ |
(165 |
) |
$ |
(2 |
) |
$ |
(163 |
) |
| See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the periods ended December 28, 2024, and December 30, 2023. |
| (1) Q1 2025 includes 80 basis points for an out-of-period warranty expense. |
| (2) Q1 2025 includes $0.18 for an out-of-period warranty expense. |
Quarter Highlights |
- Net sales increased due to growth in aerospace and defence businesses, while sales declined in the Industrial segment, in part due to divestitures.
|
- Operating margin increased due to the benefits of simplification initiatives and improved operations, mostly offset by higher restructuring and other charges. Adjusted operating margin, excluding these charges, expanded across all of our segments.
|
- Commercial Aircraft operating profit includes an $8 million out-of-period warranty expense.
|
- Diluted earnings per share increased due to the incremental operating profit from higher sales.
|
- Adjusted diluted earnings per share increased due to the incremental operating profit from both higher sales and margin enhancement across all of our segments.
|
- Free cash flow use was driven by working capital requirements.
|
- Bookings of $1.3 billion were driven by record orders in Space and Defense and strong orders in Commercial Aircraft.
|
- Twelve-month backlog remained steady at $2.5 billion, as growth in Space and Defense was offset by declines in Industrial due to the impact of the divestitures and weaker foreign currencies.
|
| "We have delivered a great quarter with strong sales growth, impressive bookings and solid margin enhancement," said Pat Roche, CEO. "We are delivering value for our customers and are being rewarded with significant program wins. Our operational initiatives will deliver continued margin enhancement and strong free cash flow in the second half of 2025." |
| Segment Results |
| Sales in the first quarter of 2025 increased compared to the first quarter of 2024, driven by defence growth in Space and Defense and Military Aircraft, and by aftermarket demand in Commercial Aircraft. These increases were partially offset by a sales decline in Industrial. Space and Defense sales increased 8% to $248 million, supported by broad-based demand. Military Aircraft sales increased 15% to $213 million, driven by the ramp-up of activity on the FLRAA program and new production programs. Commercial Aircraft sales increased 14% to $221 million, reflecting strong repair activity and initial provisioning of spares. Industrial sales decreased 7% to $228 million, half due to the lost sales associated with our portfolio shaping activities. |
| Operating margin increased 10 basis points to 11.1% in the first quarter of 2025 compared to the first quarter of 2024. Space and Defense operating margin increased 50 basis points to 11.5% due to sales growth, partially offset by investments to prepare for upcoming major programs. Military Aircraft operating margin increased 20 basis points to 10.7%, driven by increased activity on the FLRAA program and lower research and development expenses, partially offset by an unfavourable sales mix. Commercial Aircraft operating margin increased 40 basis points to 11.0%, driven by higher levels of aftermarket sales, offset by a 340 basis-point out-of-period warranty expense. Excluding this warranty expense, Commercial Aircraft's operating margin would have been 14.4% in the first quarter of 2025. Industrial operating margin decreased 60 basis points to 11.2%, due to restructuring and other charges. |
| Adjusted operating margin excludes $6 million and $2 million in restructuring and other charges in the first quarter of 2025 and 2024, respectively. Industrial adjusted operating margin increased 60 basis points to 13.2% in the first quarter of 2025 compared to the first quarter of 2024, driven by simplification initiatives. |
| Free Cash Flow Results |
| Free cash flow in the first quarter was a use of cash of $165 million driven by working capital requirements. Physical inventories grew to support future sales growth. In addition, free cash flow was negatively impacted by the timing of collections and compensation payments. |
| 2025 Financial Guidance |
| "Fiscal year 2025 is shaping up to be another strong year, with growth in sales, continued operating margin expansion and enhanced free cash flow generation," said Jennifer Walter, CFO. "Both pricing and simplification will drive our operating margin expansion this year, while our focus on optimizing our planning and sourcing activities will contribute to our significant cash generation in the back half of the year." |
| (in millions, except per share results) |
|
|
|
FY 2025 Guidance |
|
Current |
Previous |
| Net sales |
$ |
3,700 |
|
$ |
3,700 |
|
| Operating margin |
|
12.9 |
% |
|
13.0 |
% |
| Adjusted operating margin |
|
13.0 |
% |
|
13.0 |
% |
| Diluted net earnings per share(1) |
$ |
8.06 |
|
$ |
8.20 |
|
| Adjusted diluted net earnings per share |
$ |
8.20 |
|
$ |
8.20 |
|
| Free cash flow conversion |
|
50 - 75 |
% |
|
50 - 75 |
% |
| (1) Diluted net earnings per share figures are forecasted to be within the range of +/- $0.20. |
Diluted net earnings per share for the second quarter of 2025 is forecasted to be $1.75, plus or minus $0.10 |
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| Moog Inc. |
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