MOGB Vaneck Esg Moat

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 strong fiscal fourth quarter 2024 results that marked another record year.

"Our fourth quarter was strong, bringing to a close an exceptional year with record sales and expanded margins," said Pat Roche, CEO. "Our performance reflects the success in pricing and simplification initiatives that continue to build momentum into 2025, with stronger sales, expanded margin and improved cash flow generation."

(in millions, except per share results)

Three Months Ended

Twelve Months Ended

 

Q4 2024

Q4 2023

Deltas

Q4 2024

Q4 2023

Deltas

Net sales

$

917

 

$

872

 

 

5

%

$

3,609

 

$

3,319

 

 

9

%

Operating margin

 

9.1

%

 

10.1

%

(100 bps)

 

11.0

%

 

10.3

%

70 bps

Adjusted operating margin

 

12.5

%

 

12.5

%

0 bps

 

12.4

%

 

10.9

%

150 bps

Diluted net earnings per share

$

1.33

 

$

1.23

 

 

8

%

$

6.40

 

$

5.34

 

 

20

%

Adjusted diluted net earnings per share

$

2.16

 

$

2.10

 

 

3

%

$

7.80

 

$

6.15

 

 

27

%

Net cash provided by operating activities

$

156

 

$

153

 

$

3

 

$

202

 

$

136

 

$

66

 

Free cash flow

$

109

 

$

105

 

$

5

 

$

21

 

$

(37

)

$

59

 

See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the periods ended September 28, 2024 and September 30, 2023.

Quarter Highlights

• Net sales increased driven by growth in defense businesses.
• Operating margin declined due to higher levels of charges related to simplification initiatives.
• Adjusted operating margin improved within Military Aircraft, Industrial and Space and Defense, while Commercial Aircraft declined from a strong quarter a year ago.
• Diluted net earnings per share increased due to improved operational performance, partially offset by the net of prior and current year one-time charges and benefits.
• Adjusted diluted net earnings per share increased due to incremental profit from higher sales and the benefit of capitalizing interest, partially offset by the absence of last year's favorable litigation settlement.
• Twelve-month backlog increased 3%, reaching a record level of $2.5 billion.

Year Highlights

• Net sales increased due to higher demand across our aerospace and defense businesses.
• Operating margin increased within Space and Defense and Military Aircraft, while Industrial and Commercial Aircraft declined.
• Adjusted operating margin expanded in Military Aircraft, Space and Defense and Industrial reflecting the benefits of pricing and simplification initiatives, while Commercial Aircraft declined from a strong prior year.
• Diluted net earnings per share increased due to largely the same factors as the fourth quarter.
• Adjusted diluted net earnings per share increased driven by operating margin expansion and incremental profit from higher sales.

Quarter Results "We had a great quarter," said Jennifer Walter, CFO. "Sales were very strong, adjusted operating margin was robust and on plan, and adjusted earnings per share exceeded the high end of our guidance range. In addition, we generated a substantial amount of free cash flow."

Sales in the fourth quarter of 2024 increased compared to the fourth quarter of 2023, with notable growth in Military Aircraft and Space and Defense. Military Aircraft sales increased 17% to $216 million due to the ramp of the FLRAA and other production programs. Space and Defense sales increased 9% to $263 million driven by strong European defense demand and launch vehicle activity. Commercial Aircraft sales increased 2% to $197 million due to increased production volume, muted by the absence of last year's retroactive pricing benefit and inventory sale from exiting a mature product line. Industrial segment sales decreased 5% to $242 million due to a slowdown in orders for industrial automation applications, partially offset by higher medical product and automotive test business demand.

Operating margin decreased 100 basis points to 9.1% in the fourth quarter of 2024 compared to the fourth quarter of 2023. Commercial Aircraft operating margin declined 680 basis points to 11.0%, driven by the absence of last year's benefits. Operating margins in Space and Defense and in Industrial declined 200 basis points and 130 basis points, respectively, due to incremental charges related to simplification initiatives. Military Aircraft operating margin improved 590 basis points to 11.8%, driven by reduced research and development expense, improved sales mix and cost absorption on the FLRAA program.

Adjusted operating margin in the fourth quarter of 2024 was unchanged at 12.5% compared to the fourth quarter of 2023. We incurred charges primarily in Industrial and in Space and Defense. Adjusted operating margin in Industrial increased 90 basis points to 12.8% as the benefits of pricing more than offset an unfavorable sales mix and planned product transfers. Adjusted operating margin in Space and Defense increased 70 basis points to 13.5% associated with improved performance across the business.

Non-operating expenses in the fourth quarter of 2024 declined compared to the fourth quarter of 2023. The fourth quarter of 2024 included a $10 million adjustment to capitalize interest for 2023 and 2024. Non-operating expenses in the fourth quarter of 2023 included a pension settlement charge and a favorable litigation settlement.

Free cash flow in the fourth quarter was driven by strong customer collections and by timing of vendor payments.

Year Results Sales in 2024 increased compared to 2023 with notable growth in Commercial Aircraft, Military Aircraft and Space and Defense. Commercial Aircraft sales increased 18% to $788 million due to increased production ramps on widebody, narrowbody and business jet programs. Military Aircraft sales increased 13% to $812 million due largely to having a full year's worth FLRAA sales. Space and Defense sales increased 7% to $1 billion due to strong, broad-based, defense demand. Industrial sales increased slightly at 1% to $991 million, as softening industrial automation sales were compensated by growth in other sub-markets.

Operating margin in 2024 increased compared to 2023, reflecting the benefits of pricing and simplification efforts, partially offset by higher amounts of charges related to simplifying our operations. Operating margin increased in Space and Defense and Military Aircraft, while Commercial Aircraft operating margin decreased, all due to the same factors as the fourth quarter. Also, Industrial operating margin decreased due to higher amounts of simplification charges.

Adjusted operating margin increased in 2024 compared to 2023, inclusive of a 40 basis-point contribution from the Employee Retention Credit, and increased in all of our segments except for Commercial Aircraft. Adjusted operating margin in Military Aircraft increased 300 basis points to 12.0% due to cost absorption on the FLRAA program and due to lower research and development expense. Adjusted operating margin in Space and Defense increased 290 basis points to 13.4% due to strong operational performance, including improved performance on space vehicle programs. Adjusted operating margin in Industrial increased 90 basis points to 12.4% due largely to pricing initiatives. Adjusted operating margin in Commercial Aircraft decreased 90 basis points to 11.8% due to the absence of the prior year's one-time benefits, partially offset by efficiencies from the current year's higher production sales volume.

2025 Financial Guidance

(in millions, except per share results)

FY 2025

FY 2024

Net sales

$

3,700

 

$

3,609

 

Operating margin

 

13.0

%

 

11.0

%

Adjusted operating margin

 

13.0

%

 

12.4

%

Diluted net earnings per share*

$

8.20

 

$

6.40

 

Adjusted diluted net earnings per share*

$

8.20

 

$

7.80

 

Free cash flow conversion

 

50 - 75

%

 

8

%

*Diluted net earnings per share figures for 2025 are forecasted to be within range of +/- $0.20.

When the company provides adjusted, non-GAAP figures on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort.

Conference call information

In conjunction with today’s release, Pat Roche, CEO, and Jennifer Walter, CFO, will host a conference call today beginning at 10:00 a.m. ET, which will be simultaneously broadcast live online. Listeners can access the call and supplemental financial materials at www.moog.com/investors/communications.

Cautionary Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as: “may,” “will,” “should,” “believes,” “expects,” “expected,” “intends,” “plans,” “projects,” “approximate,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “anticipates,” “presume,” “assume” and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, are neither historical facts nor guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements.

Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission (“SEC”) and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) our heavy dependence on government contracts that may not be fully funded or may be terminated; (iv) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (v) failure of our subcontractors or suppliers to perform their contractual obligations; and (vi) our accounting estimations for over-time contracts and any changes we need to make thereto. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties.

While we believe we have identified and discussed in our SEC filings the material risks affecting our business, there may be additional factors, risks and uncertainties not currently known to us or that we currently consider immaterial that may affect the forward-looking statements we make herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to update any forward-looking statement made in this press release, except as required by applicable law.

Moog Inc.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(dollars in thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

Net sales

 

$

917,272

 

 

$

872,051

 

 

$

3,609,160

 

 

$

3,319,122

 

Cost of sales

 

 

666,541

 

 

 

623,808

 

 

 

2,605,214

 

 

 

2,423,245

 

Inventory write-down

 

 

5,252

 

 

 

4,345

 

 

 

7,027

 

 

 

4,345

 

Gross profit

 

 

245,479

 

 

 

243,898

 

 

 

996,919

 

 

 

891,532

 

Research and development

 

 

26,021

 

 

 

29,444

 

 

 

112,773

 

 

 

106,551

 

Selling, general and administrative

 

 

124,840

 

 

 

118,041

 

 

 

494,887

 

 

 

469,836

 

Interest (1)

 

 

9,262

 

 

 

18,227

 

 

 

62,112

 

 

 

63,578

 

Asset impairment and fair value adjustment

 

 

15,287

 

 

 

12,974

 

 

 

22,149

 

 

 

14,628

 

Restructuring

 

 

11,165

 

 

 

3,260

 

 

 

23,788

 

 

 

7,997

 

Loss on sale of businesses

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Gain on sale of buildings

 

 

(979

)

 

 

—

 

 

 

(979

)

 

 

(10,030

)

Pension settlement

 

 

—

 

 

 

12,542

 

 

 

—

 

 

 

12,542

 

Other

 

 

4,335

 

 

 

(599

)

 

 

14,376

 

 

 

9,478

 

Earnings before income taxes

 

 

55,548

 

 

 

49,109

 

 

 

267,813

 

 

 

216,052

 

Income taxes

 

 

12,503

 

 

 

9,527

 

 

 

60,593

 

 

 

45,054

 

Net earnings

 

$

43,045

 

 

$

39,582

 

 

$

207,220

 

 

$

170,998

 

 

 

 

 

 

 

 

 

 

Net earnings per share

 

 

 

 

 

 

 

 

Basic

 

$

1.35

 

 

$

1.24

 

 

$

6.48

 

 

$

5.37

 

Diluted

 

$

1.33

 

 

$

1.23

 

 

$

6.40

 

 

$

5.34

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

31,988,662

 

 

 

31,893,646

 

 

 

31,954,689

 

 

 

31,831,687

 

Diluted

 

 

32,458,411

 

 

 

32,187,501

 

 

 

32,359,338

 

 

 

32,044,226

 

(1) During the three months ended September 28, 2024, we capitalized interest associated with major capital projects for a total of $9,847, which included an adjustment of $4,023 related to 2023 and an adjustment of $4,206 related to the nine months ended June 29, 2024.

Moog Inc.

RECONCILIATION TO ADJUSTED NET EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTED NET EARNINGS PER SHARE (UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

As Reported:

 

 

 

 

 

 

 

 

Earnings before income taxes

 

$

55,548

 

 

$

49,109

 

 

$

267,813

 

 

$

216,052

 

Income taxes

 

 

12,503

 

 

 

9,527

 

 

 

60,593

 

 

 

45,054

 

Effective income tax rate

 

 

22.5

%

 

 

19.4

%

 

 

22.6

%

 

 

20.9

%

Net earnings

 

 

43,045

 

 

 

39,582

 

 

 

207,220

 

 

 

170,998

 

Diluted net earnings per share

 

$

1.33

 

 

$

1.23

 

 

$

6.40

 

 

$

5.34

 

 

 

 

 

 

 

 

 

 

Inventory Write-down, Restructuring and Other Charges:

 

 

 

 

 

 

Earnings before income taxes

 

$

16,930

 

 

$

7,605

 

 

$

32,226

 

 

$

13,391

 

Income taxes

 

 

4,270

 

 

 

1,746

 

 

 

8,122

 

 

 

3,050

 

Net earnings

 

 

12,660

 

 

 

5,859

 

 

 

24,104

 

 

 

10,341

 

Diluted net earnings per share

 

$

0.39

 

 

$

0.18

 

 

$

0.74

 

 

$

0.32

 

 

 

 

 

 

 

 

 

 

Asset Impairment

 

 

 

 

 

 

 

 

Earnings before income taxes

 

$

391

 

 

$

12,974

 

 

$

7,253

 

 

$

14,628

 

Income taxes

 

 

92

 

 

 

937

 

 

 

462

 

 

 

1,285

 

Net earnings

 

 

299

 

 

 

12,037

 

 

 

6,791

 

 

 

13,343

 

Diluted net earnings per share

 

$

0.01

 

 

$

0.37

 

 

$

0.21

 

 

$

0.42

 

 

 

 

 

 

 

 

 

 

Loss (Gain) on Sale of Businesses, Buildings and Fair Value Adjustments:

 

 

 

 

Earnings before income taxes

 

$

13,918

 

 

$

900

 

 

$

13,918

 

 

$

(9,130

)

Income taxes

 

 

(245

)

 

 

212

 

 

 

(245

)

 

 

(1,874

)

Net earnings

 

 

14,163

 

 

 

688

 

 

 

14,163

 

 

 

(7,256

)

Diluted net earnings per share

 

$

0.44

 

 

$

0.02

 

 

$

0.44

 

 

$

(0.23

)

 

 

 

 

 

 

 

 

 

Pension Settlement:

 

 

 

 

 

 

 

 

Earnings before income taxes

 

$

—

 

 

$

12,542

 

 

$

—

 

 

$

12,542

 

Income taxes

 

 

—

 

 

 

2,960

 

 

 

—

 

 

 

2,960

 

Net earnings

 

 

—

 

 

 

9,582

 

 

 

—

 

 

 

9,582

 

Diluted net earnings per share

 

$

—

 

 

$

0.30

 

 

$

—

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

As Adjusted:

 

 

 

 

 

 

 

 

Earnings before income taxes

 

$

86,787

 

 

$

83,130

 

 

$

321,210

 

 

$

247,483

 

Income taxes

 

 

16,620

 

 

 

15,382

 

 

 

68,932

 

 

 

50,475

 

Effective income tax rate

 

 

19.2

%

 

 

18.5

%

 

 

21.5

%

 

 

20.4

%

Net earnings

 

 

70,167

 

 

 

67,748

 

 

 

252,278

 

 

 

197,008

 

Diluted net earnings per share

 

$

2.16

 

 

$

2.10

 

 

$

7.80

 

 

$

6.15

 

The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding.

Results shown above have been adjusted to exclude impacts associated with restructuring and other charges related to continued portfolio shaping activities, asset impairments and other charges due to program termination and the devaluation of an investment, fair value adjustments from businesses being held for sale at year end, a one-time pension settlement charge, as well as impacts from the sale of buildings and a business. While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.

Moog Inc.

CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

Net sales:

 

 

 

 

 

 

 

 

Space and Defense

 

$

262,824

 

 

$

241,211

 

 

$

1,018,148

 

 

$

947,251

 

Military Aircraft

 

 

215,645

 

 

 

183,562

 

 

 

811,566

 

 

 

720,332

 

Commercial Aircraft

 

 

197,119

 

 

 

193,297

 

 

 

788,300

 

 

 

668,815

 

Industrial

 

 

241,684

 

 

 

253,981

 

 

 

991,146

 

 

 

982,724

 

Net sales

 

$

917,272

 

 

$

872,051

 

 

$

3,609,160

 

 

$

3,319,122

 

Operating profit:

 

 

 

 

 

 

 

 

Space and Defense

 

$

27,179

 

 

$

29,563

 

 

$

127,354

 

 

$

95,949

 

 

 

 

10.3

%

 

 

12.3

%

 

 

12.5

%

 

 

10.1

%

Military Aircraft

 

 

25,535

 

 

 

10,891

 

 

 

85,858

 

 

 

60,416

 

 

 

 

11.8

%

 

 

5.9

%

 

 

10.6

%

 

 

8.4

%

Commercial Aircraft

 

 

21,634

 

 

 

34,444

 

 

 

91,472

 

 

 

84,387

 

 

 

 

11.0

%

 

 

17.8

%

 

 

11.6

%

 

 

12.6

%

Industrial

 

 

9,065

 

 

 

12,982

 

 

 

90,657

 

 

 

102,165

 

 

 

 

3.8

%

 

 

5.1

%

 

 

9.1

%

 

 

10.4

%

Total operating profit

 

 

83,413

 

 

 

87,880

 

 

 

395,341

 

 

 

342,917

 

 

 

 

9.1

%

 

 

10.1

%

 

 

11.0

%

 

 

10.3

%

Deductions from operating profit:

 

 

 

 

 

 

 

 

Interest expense

 

 

9,262

 

 

 

18,227

 

 

 

62,112

 

 

 

63,578

 

Equity-based compensation expense

 

 

3,658

 

 

 

2,461

 

 

 

14,959

 

 

 

10,582

 

Pension settlement

 

 

—

 

 

 

12,542

 

 

 

—

 

 

 

12,542

 

Non-service pension expense

 

 

3,119

 

 

 

2,986

 

 

 

12,685

 

 

 

12,324

 

Corporate and other expenses, net

 

 

11,826

 

 

 

2,555

 

 

 

37,772

 

 

 

27,839

 

Earnings before income taxes

 

$

55,548

 

 

$

49,109

 

 

$

267,813

 

 

$

216,052

 

Moog Inc.

RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

Space and Defense operating profit - as reported

 

$

27,179

 

 

$

29,563

 

 

$

127,354

 

 

$

95,949

 

Inventory write-down

 

 

1,918

 

 

 

—

 

 

 

1,918

 

 

 

—

 

Asset impairment

 

 

—

 

 

 

—

 

 

 

416

 

 

 

219

 

Restructuring and other

 

 

6,307

 

 

 

1,348

 

 

 

6,307

 

 

 

2,902

 

Space and Defense operating profit - as adjusted

 

$

35,404

 

 

$

30,911

 

 

$

135,995

 

 

$

99,070

 

 

 

 

13.5

%

 

 

12.8

%

 

 

13.4

%

 

 

10.5

%

 

 

 

 

 

 

 

 

 

Military Aircraft operating profit - as reported

 

$

25,535

 

 

$

10,891

 

 

$

85,858

 

 

$

60,416

 

Inventory write-down

 

 

—

 

 

 

1,616

 

 

 

175

 

 

 

1,616

 

Asset impairment

 

 

—

 

 

 

235

 

 

 

6,446

 

 

 

1,332

 

Loss on sale of business

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Restructuring and other

 

 

335

 

 

 

124

 

 

 

4,732

 

 

 

399

 

Military Aircraft operating profit - as adjusted

 

$

25,870

 

 

$

13,766

 

 

$

97,211

 

 

$

64,663

 

 

 

 

12.0

%

 

 

7.5

%

 

 

12.0

%

 

 

9.0

%

 

 

 

 

 

 

 

 

 

Commercial Aircraft operating profit - as reported

 

$

21,634

 

 

$

34,444

 

 

$

91,472

 

 

$

84,387

 

Asset impairment

 

 

391

 

 

 

—

 

 

 

391

 

 

 

338

 

Gain on sale of buildings

 

 

(979

)

 

 

—

 

 

 

(979

)

 

 

—

 

Restructuring and other

 

 

1,342

 

 

 

44

 

 

 

1,750

 

 

 

44

 

Commercial Aircraft operating profit - as adjusted

 

$

22,388

 

 

$

34,488

 

 

$

92,634

 

 

$

84,769

 

 

 

 

11.4

%

 

 

17.8

%

 

 

11.8

%

 

 

12.7

%

 

 

 

 

 

 

 

 

 

Industrial operating profit - as reported

 

$

9,065

 

 

$

12,982

 

 

$

90,657

 

 

$

102,165

 

Inventory write-down

 

 

3,334

 

 

 

2,729

 

 

 

4,934

 

 

 

2,729

 

Asset impairment

 

 

—

 

 

 

12,739

 

 

 

—

 

 

 

12,739

 

Fair value adjustment

 

 

14,897

 

 

 

—

 

 

 

14,897

 

 

 

—

 

Gain on sale of buildings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,030

)

Restructuring and other

 

 

3,694

 

 

 

1,744

 

 

 

12,410

 

 

 

5,701

 

Industrial operating profit - as adjusted

 

$

30,990

 

 

$

30,194

 

 

$

122,898

 

 

$

113,304

 

 

 

 

12.8

%

 

 

11.9

%

 

 

12.4

%

 

 

11.5

%

 

 

 

 

 

 

 

 

 

Total operating profit - as adjusted

 

$

114,652

 

 

$

109,359

 

 

$

448,738

 

 

$

361,806

 

 

 

 

12.5

%

 

 

12.5

%

 

 

12.4

%

 

 

10.9

%

While management believes that these adjusted financial measures may be useful in evaluating the financial condition and results of operations of the Company, this information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.

Moog Inc.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)

 

 

 

September 28, 2024

 

September 30, 2023

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

61,694

 

 

$

68,959

 

Restricted cash

 

 

123

 

 

 

185

 

Receivables, net

 

 

388,517

 

 

 

434,723

 

Unbilled receivables

 

 

775,294

 

 

 

706,601

 

Inventories, net

 

 

863,702

 

 

 

724,002

 

Prepaid expenses and other current assets

 

 

86,245

 

 

 

50,862

 

Total current assets

 

 

2,175,575

 

 

 

1,985,332

 

Property, plant and equipment, net

 

 

929,357

 

 

 

814,696

 

Operating lease right-of-use assets

 

 

52,591

 

 

 

56,067

 

Goodwill

 

 

833,764

 

 

 

821,301

 

Intangible assets, net

 

 

63,479

 

 

 

71,637

 

Deferred income taxes

 

 

20,991

 

 

 

8,749

 

Other assets

 

 

52,695

 

 

 

50,254

 

Total assets

 

$

4,128,452

 

 

$

3,808,036

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

292,988

 

 

$

264,573

 

Accrued compensation

 

 

101,127

 

 

 

111,154

 

Contract advances and progress billings

 

 

334,558

 

 

 

377,977

 

Accrued liabilities and other

 

 

305,180

 

 

 

211,769

 

Total current liabilities

 

 

1,033,853

 

 

 

965,473

 

Long-term debt, excluding current installments

 

 

874,139

 

 

 

863,092

 

Long-term pension and retirement obligations

 

 

167,161

 

 

 

157,455

 

Deferred income taxes

 

 

27,738

 

 

 

37,626

 

Other long-term liabilities

 

 

164,928

 

 

 

148,303

 

Total liabilities

 

 

2,267,819

 

 

 

2,171,949

 

Shareholders’ equity

 

 

 

 

Common stock - Class A

 

 

43,835

 

 

 

43,822

 

Common stock - Class B

 

 

7,445

 

 

 

7,458

 

Additional paid-in capital

 

 

784,509

 

 

 

608,270

 

Retained earnings

 

 

2,668,723

 

 

 

2,496,979

 

Treasury shares

 

 

(1,082,240

)

 

 

(1,057,938

)

Stock Employee Compensation Trust

 

 

(194,049

)

 

 

(114,769

)

Supplemental Retirement Plan Trust

 

 

(163,821

)

 

 

(93,126

)

Accumulated other comprehensive loss

 

 

(203,769

)

 

 

(254,609

)

Total shareholders’ equity

 

 

1,860,633

 

 

 

1,636,087

 

Total liabilities and shareholders’ equity

 

$

4,128,452

 

 

$

3,808,036

 

Moog Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(dollars in thousands)

 

 

 

Twelve Months Ended

 

 

September 28, 2024

 

September 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Net earnings

 

$

207,220

 

 

$

170,998

 

Adjustments to reconcile net earnings to net cash provided (used) by operating activities:

 

 

 

 

Depreciation

 

 

82,957

 

 

 

78,692

 

Amortization

 

 

10,149

 

 

 

11,541

 

Deferred income taxes

 

 

(31,735

)

 

 

(35,531

)

Equity-based compensation expense

 

 

14,959

 

 

 

10,582

 

Loss on sale of businesses

 

 

—

 

 

 

900

 

Gain on sale of buildings

 

 

(979

)

 

 

(10,030

)

Inventory write-down, asset impairment and fair value adjustments

 

 

29,176

 

 

 

18,973

 

Pension settlement

 

 

—

 

 

 

12,542

 

Other

 

 

6,512

 

 

 

6,244

 

Changes in assets and liabilities providing (using) cash:

 

 

 

 

Receivables

 

 

54,716

 

 

 

(56,575

)

Unbilled receivables

 

 

(63,424

)

 

 

(87,915

)

Inventories

 

 

(126,978

)

 

 

(130,378

)

Accounts payable

 

 

26,446

 

 

 

28,641

 

Contract advances and progress billings

 

 

(49,470

)

 

 

79,983

 

Accrued expenses

 

 

43,989

 

 

 

(1,692

)

Accrued income taxes

 

 

16,219

 

 

 

22,869

 

Net pension and post retirement liabilities

 

 

11,791

 

 

 

13,940

 

Other assets and liabilities

 

 

(29,204

)

 

 

2,151

 

Net cash provided (used) by operating activities

 

 

202,344

 

 

 

135,935

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Acquisitions of businesses, net of cash acquired

 

 

(5,911

)

 

 

—

 

Purchase of property, plant and equipment

 

 

(156,018

)

 

 

(173,286

)

Net proceeds from businesses sold

 

 

1,627

 

 

 

1,892

 

Net proceeds from buildings sold

 

 

1,453

 

 

 

19,702

 

Other investing transactions

 

 

(766

)

 

 

(11,455

)

Net cash provided (used) by investing activities

 

 

(159,615

)

 

 

(163,147

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Proceeds from revolving lines of credit

 

 

1,038,500

 

 

 

1,044,101

 

Payments on revolving lines of credit

 

 

(1,029,500

)

 

 

(1,017,420

)

Payments on long-term debt

 

 

—

 

 

 

(916

)

Payments on finance lease obligations

 

 

(6,496

)

 

 

(4,620

)

Payment of dividends

 

 

(35,476

)

 

 

(34,074

)

Proceeds from sale of treasury stock

 

 

15,685

 

 

 

19,785

 

Purchase of outstanding shares for treasury

 

 

(36,738

)

 

 

(29,306

)

Proceeds from sale of stock held by SECT

 

 

28,202

 

 

 

15,713

 

Purchase of stock held by SECT

 

 

(22,837

)

 

 

(14,251

)

Other financing transactions

 

 

—

 

 

 

(2,027

)

Net cash provided (used) by financing activities

 

 

(48,660

)

 

 

(23,015

)

Effect of exchange rate changes on cash

 

 

1,324

 

 

 

2,043

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

(4,607

)

 

 

(48,184

)

Cash, cash equivalents and restricted cash at beginning of year

 

 

69,144

 

 

 

117,328

 

Cash, cash equivalents and restricted cash at end of year (1)

 

$

64,537

 

 

$

69,144

 

(1) End of year cash balance at September 28, 2024 includes cash related to assets held for sale of $2,720.

Moog Inc.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)

(dollars in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

Net cash provided by operating activities

 

$

155,789

 

 

$

153,032

 

 

$

202,344

 

 

$

135,935

 

Purchase of property, plant and equipment

 

 

(46,402

)

 

 

(48,212

)

 

 

(156,018

)

 

 

(173,286

)

Receivables Purchase Agreement

 

 

—

 

 

 

—

 

 

 

(25,000

)

 

 

—

 

Free cash flow

 

$

109,387

 

 

$

104,820

 

 

$

21,326

 

 

$

(37,351

)

Adjusted net earnings

 

$

70,167

 

 

$

67,748

 

 

$

252,278

 

 

$

197,008

 

Free cash flow conversion

 

 

156

%

 

 

155

%

 

 

8

%

 

 

(19

)%

Free cash flow is defined as net cash provided (used) by operating activities, less purchase of property, plant and equipment, less the benefit from the Receivables Purchase Agreement. Free cash flow conversion is defined as free cash flow divided by adjusted net earnings. Free cash flow and free cash flow conversion are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. However, management believes these adjusted financial measures may be useful in evaluating the liquidity, financial condition and results of operations of the Company. This information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241101207281/en/

Aaron Astrachan 716.687.4225