Moog Inc. Delivers Record Q2 2026 Results and Raises Full-Year Guidance

East Aurora, NY – April 24, 2026: Moog Inc. (NYSE: MOG.A and MOG.B), a leading global designer, manufacturer, and integrator of high-performance precision motion and fluid controls, has announced exceptional financial results for its fiscal second quarter ended March 28, 2026. The company reported robust demand and stronger operational execution across all segments, resulting in performance that exceeded its prior guidance and prompted an increase in its full-year outlook.

Key Highlights for Investors

• Net Sales Surge: Q2 2026 net sales reached \$1.05 billion, up 13% from \$934 million in Q2 2025, marking broad-based growth across all four business segments.
• Record Operating Margins: Overall operating margin improved by 140 basis points to 13.1% (from 11.7% last year). Adjusted operating margin was 13.4%, up 90 bps.
• EPS at All-Time Highs: Diluted net earnings per share rose 49% to \$2.55 (from \$1.71). Adjusted diluted EPS was \$2.64, up 40% from \$1.88.
• Exceptional Cash Flow Generation: Free cash flow for Q2 reached \$98 million, a dramatic leap from \$2 million in the prior year period, driven by strong earnings and effective working capital management.
• Backlog Hits Record Level: The twelve-month backlog increased a staggering 33% to \$3.3 billion, reflecting continued robust demand across Moog’s end markets.
• Raised Full-Year Guidance: Management now expects full-year adjusted diluted EPS of \$10.60 (up from prior \$10.20), with net sales expected to be \$4.3 billion and adjusted operating margin at 13.4%—reaffirmed from previous guidance.

Segment Performance Details

• Space & Defense: Sales jumped 16% to \$314 million, driven by strong demand for space vehicles and missile controls. Operating margin increased 170 bps to 13.8%, despite higher R&D and business development investments.
• Commercial Aircraft: Revenue rose 15% to \$247 million, reflecting increased volume and improved pricing on key programs. The operating margin reached 11.9%, up 10 bps, aided by pricing but partly offset by tariff pressure.
• Military Aircraft: Sales climbed 10% to \$235 million, led by higher activity on the MV-75 program. Operating margin soared 260 bps to 13.7%.
• Industrial: Segment sales were up 9% to \$256 million, supported by strong demand for data center cooling pumps and favorable currency translation. Operating margin improved 130 bps to 12.9% (adjusted margin at 13.2%, slightly down due to tariff pressure).

Other Financial and Operational Insights

• Capital Expenditures: Capex was \$32 million in Q2, reflecting ongoing investment to support future growth.
• Balance Sheet Strength: Cash and cash equivalents rose to \$308 million at March 28, 2026, up significantly from \$62 million at the prior fiscal year-end.
• Debt Position: Current maturities of long-term debt stand at \$500 million, with another \$740 million in long-term debt, reflecting active balance sheet management.
• Free Cash Flow Conversion: Q2 free cash flow conversion was an impressive 116%, a clear sign of efficient earnings-to-cash conversion.

Price-Sensitive Information for Shareholders

• Guidance Raised: The company’s boost in full-year adjusted EPS guidance to \$10.60 is a positive signal to investors and may drive share price appreciation, especially given strong segment momentum and record backlog.
• Record Backlog: The backlog’s 33% YoY increase to \$3.3 billion underscores robust forward visibility and could support future revenue and earnings growth.
• Operational Execution: Moog’s ability to deliver margin expansion alongside double-digit sales growth, in a challenging macro environment, speaks to improving operational leverage and pricing power.
• Risks Highlighted: Management disclosed ongoing tariff pressures, increased investments in R&D and product development, and persistent supply chain challenges—all of which could impact future results.
• Non-GAAP Metrics: The company continues to focus on adjusted (non-GAAP) measures, with reconciliation details provided. Investors should be aware that these exclude certain restructuring, acquisition, and other non-recurring charges.

Risk Factors – Forward-Looking Statements

Moog’s management reiterated that while the outlook is strong, various risks remain. These include competition from larger rivals, cyclical and geopolitical risks (including wars, sanctions, and supply chain disruptions), heavy reliance on government contracts, inflationary pressures, cybersecurity threats, and challenges related to accounting estimates for long-term contracts. Investors should carefully consider these factors as they could materially impact future results.

Conference Call Information

CEO Pat Roche and CFO Jennifer Walter will host a live webcast conference call at 10:00 a.m. ET to discuss the results and outlook. Details and supplemental financial materials are available at Moog Investor Relations.

Conclusion

Moog Inc.’s second quarter was defined by double-digit sales and profit growth, strong cash generation, and a record backlog, culminating in raised full-year guidance. These results are likely to be well-received by the market and could have a significant positive impact on share value. However, investors should monitor tariff, supply chain, and geopolitical risks highlighted by management.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all available information, including official filings and consult with their financial advisor before making investment decisions. Past performance is not indicative of future results.

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