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MOOG INC. (MOG-A)·Q2 2025 Earnings Summary

Executive Summary

  • Record Q2 2025 net sales of $935M; adjusted diluted EPS $1.92. Adjusted EPS and revenue were above Wall Street consensus; GAAP EPS $1.75 reflects absence of last year’s ERC benefit .
  • Guidance reiterated on sales and adjusted EPS but lowered GAAP operating margin and GAAP EPS vs Q1 guide, citing tariff pressures; potential net tariff impact to operating profit of $10–$20M noted .
  • Operational strength: Military Aircraft margin improved YoY; Industrial adjusted margin expanded on simplification; aftermarket strength supported Commercial Aircraft; free cash flow positive ($2M) on working capital tailwinds .
  • Catalysts: clarity on tariff mitigation, continued FLRAA ramp, aftermarket demand, and execution on simplification actions; backlog steady at $2.5B supports visibility .

What Went Well and What Went Wrong

What Went Well

  • “We achieved record sales and drove improved operating margin and earnings per share, both net of the prior year's one-time Employee Retention Credit” — CEO Pat Roche .
  • Military Aircraft operating margin up 280 bps YoY to 11.1% on stronger operational performance and lower restructuring/other charges .
  • Industrial adjusted operating margin rose 90 bps YoY to 13.4% driven by simplification initiatives; free cash flow positive with lower working capital requirements .

What Went Wrong

  • Reported operating margin down 30 bps YoY to 11.7% due to absence of last year’s one-time ERC (150 bps benefit), masking underlying improvements .
  • Space & Defense operating margin fell 370 bps YoY to 12.1% on ERC absence; Commercial Aircraft margin down 20 bps to 11.8% amid OEM production delays despite aftermarket strength .
  • GAAP guidance trimmed vs Q1 on tariff pressures (operating margin from 12.9% to 12.7%; diluted EPS from $8.06 to $7.89) and free cash flow conversion narrowed to 50% from 50–75% .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Net Sales ($USD Millions)$917 $910 $934.8
Operating Margin (%)9.1% 11.1% 11.7%
Adjusted Operating Margin (%)12.5% 11.8% 12.5%
Diluted EPS ($USD)$1.33 $1.64 $1.75
Adjusted Diluted EPS ($USD)$2.16 $1.78 $1.92
Net Cash from Operating Activities ($USD Millions)$156 $(132) $39.4
Free Cash Flow ($USD Millions)$109 $(165) $1.8

Segment Net Sales ($USD Millions)

SegmentQ4 2024Q1 2025Q2 2025
Space & Defense$262.8 $247.8 $270.2
Military Aircraft$215.6 $213.4 $213.8
Commercial Aircraft$197.1 $220.9 $216.4
Industrial$241.7 $228.2 $234.4

Segment Operating Margin (%) — Reported

SegmentQ4 2024Q1 2025Q2 2025
Space & Defense10.3% 11.5% 12.1%
Military Aircraft11.8% 10.7% 11.1%
Commercial Aircraft11.0% 11.0% 11.8%
Industrial3.8% 11.2% 11.6%

Segment Operating Margin (%) — Adjusted

SegmentQ4 2024Q1 2025Q2 2025
Space & Defense13.5% 11.9% 12.6%
Military Aircraft12.0% 11.0% 12.0%
Commercial Aircraft11.4% 11.0% 11.8%
Industrial12.8% 13.2% 13.4%

KPIs

KPIQ4 2024Q1 2025Q2 2025
Twelve-Month Backlog ($USD Billions)$2.5 $2.5 $2.5
Bookings ($USD Billions)—$1.3 —
Free Cash Flow Conversion (%)156% (286)% 3%

Estimate Comparison (Q2 2025)

MetricActualConsensusSurprise
Revenue ($USD Millions)$934.8 $903.9*+$30.9 / +3.4%
EPS (Adjusted Diluted) ($USD)$1.92 $1.775*+$0.145 / +8.2%

Values with asterisks (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious Guidance (Q1 2025)Current Guidance (Q2 2025)Change
Net Sales ($USD Billions)FY 2025$3.7 $3.7 Maintained
Operating Margin (GAAP)FY 202512.9% 12.7% Lowered
Adjusted Operating MarginFY 202513.0% 13.0% Maintained
Diluted EPS (GAAP)FY 2025$8.06 $7.89 Lowered
Adjusted Diluted EPSFY 2025$8.20 $8.20 Maintained
Free Cash Flow ConversionFY 202550–75% 50% Lowered range
Tariff Impact NoteFY 2025Excluded Current excludes potential net tariff risk; $10–$20M operating profit risk highlighted Added disclosure

Earnings Call Themes & Trends

Note: We searched for the Q2 2025 earnings call transcript and found none available in the document set or catalog for the requested period. Moog indicated a call occurred with webcast access, but the transcript is unavailable for review . The table below summarizes themes from press releases across quarters.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Tariffs/MacroNot highlighted in Q4; Q1 focused on pricing/simplification, cash generation in 2H Tariff pressure acknowledged; net risk $10–$20M; taking steps to mitigate Emerging headwind; mitigation underway
Simplification InitiativesKey driver of margin expansion; charges weighed on GAAP margins Industrial margin improved; restructuring/other charges lowered YoY; continued portfolio shaping Ongoing execution; benefits visible
FLRAA & Defense DemandFLRAA drove Military Aircraft growth; broad defense demand Military Aircraft sales +6%; FLRAA ramp sustained; Space & Defense +1% Continued program momentum
Commercial Aircraft AftermarketStrength in aftermarket and provisioning in Q1 Aftermarket strength; OEM production delays modestly pressured margin Aftermarket offsets OEM delays
Free Cash FlowQ4 FCF strong; Q1 FCF use on working capital, expected 2H improvement Q2 FCF modest positive on lower working capital; conversions low due to capex timing Improving trajectory as WC normalizes
Backlog/OrdersRecord backlog $2.5B in Q4; bookings $1.3B in Q1 Backlog steady $2.5B Solid demand visibility

Management Commentary

  • CEO: “We have delivered another quarter of strong financial results… We achieved record sales and drove improved operating margin and earnings per share, both net of the prior year's one-time Employee Retention Credit. In addition, we delivered free cash flow in line with our plan.” — Pat Roche .
  • CFO: “Our underlying business is strong, and we are reiterating our guidance on sales, adjusted operating margin and adjusted earnings per share… we are taking appropriate steps to significantly mitigate [tariff] impact.” — Jennifer Walter .
  • Q1 framing for year: “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… optimizing planning and sourcing activities will contribute to significant cash generation in the back half.” — Jennifer Walter .

Q&A Highlights

We attempted to locate the Q2 2025 earnings call transcript and found none in the available filings or transcripts catalog for the period; only webcast information was provided . As a result, Q&A details, clarifications, and tone shifts cannot be summarized from a transcript.

Estimates Context

  • Revenue beat: $934.8M vs consensus $903.9M* (+3.4%). Adjusted EPS beat: $1.92 vs $1.775* (+8.2%). GAAP diluted EPS was $1.75 per press release (difference vs SPGI’s “actual” reflects adjusted presentation) . Values with asterisks (*) retrieved from S&P Global.
  • With margin pressure from tariffs and absence of ERC YoY, estimate revisions may lift for adjusted EPS and revenue, while GAAP EPS may remain more conservative until tariff mitigation is clearer .

Key Takeaways for Investors

  • Strong operational execution: Record sales, adjusted margin holding at 12.5%, and positive FCF despite capex and working capital needs; Industrial and Military Aircraft showing notable margin resilience .
  • Tariffs are the key overhang: Management quantified net operating profit risk ($10–$20M) and is actively mitigating; watch for cadence of tariff offset actions and any guidance updates .
  • Defense programs underpin growth: FLRAA ramp and broad Space & Defense demand sustain backlog and revenue visibility; track program mix impacts on Military Aircraft margins .
  • Commercial Aircraft narrative: Aftermarket strength offsets OEM production delays; any normalization in OEM schedules is a positive margin lever .
  • Cash flow inflecting: Q2 FCF turned positive; company still targets FY conversion of ~50%; working capital normalization is a near-term FCF catalyst .
  • Guidance quality: Sales and adjusted EPS maintained; GAAP margin/EPS trimmed vs Q1 guide; absent ERC in comps explains YoY optics — focus on adjusted metrics for underlying performance .
  • Positioning: Simplification initiatives continue to expand adjusted margins across segments; backlog steady at $2.5B supports medium-term revenue trajectory .