Moog Inc. Delivers Record Q1 FY2026 Sales and EPS, Raises Full-Year Outlook
Company Overview and First Quarter Performance
Moog Inc., a global designer, manufacturer, and systems integrator of high-performance precision motion and fluid controls and control systems, reported record results for the fiscal first quarter of 2026, reflecting strong operational execution, robust customer demand, and continued progress toward the company’s long-term financial objectives.
Leadership Commentary on Q1 FY2026 Results
Pat Roche, Chief Executive Officer, stated that the company delivered an outstanding start to fiscal 2026, emphasizing that strong customer focus drove exceptionally high order activity, strengthened the backlog, and further secured Moog’s future growth while reinforcing its commitment to long-term value creation for stakeholders.
Key Financial Highlights for the First Quarter
For the three months ended Q1 2026, net sales reached a record $1.1 billion compared with $908 million in Q1 2025, representing a 21% year-over-year increase, while operating margin improved to 12.3% from 11.4% and adjusted operating margin rose to 13.0% from 12.1%, each expanding by 90 basis points.
Earnings Performance and Profitability Growth
Diluted net earnings per share increased 38% to $2.46 compared with $1.78 in the prior-year period, while adjusted diluted net earnings per share rose 37% to $2.63 from $1.92, driven primarily by higher sales volumes, improved operating margins, and disciplined cost management, partially offset by tariff-related pressures.
Cash Flow and Liquidity Overview
Net cash used by operating activities improved to $45 Moog million compared with $133 million in the prior year, while free cash flow was a use of $79 million versus $166 million in Q1 2025, reflecting investments in working capital, particularly inventories, to support higher demand and long-term growth initiatives.
Quarterly Operational Highlights
The quarter featured record net sales across all operating segments, expanding operating and adjusted operating margins despite tariff headwinds, record earnings per share results, and free cash flow usage driven mainly by working capital investment, while bookings reached $2.3 billion and the twelve-month backlog increased 30% year over year to a record $3.3 billion.
Segment Sales Performance Overview
Total first-quarter sales increased 21% to $1.1 billion, with Space and Defense sales rising 31% to $324 million, Commercial Aircraft sales growing 23% to $268 million, Military Aircraft sales increasing 16% to $247 million, and Industrial sales advancing 14% to $261 million.
Space and Defense Segment Performance
Space and Defense growth was driven by broad-based defense demand, particularly in missile controls and satellite components, supported by strong program execution and continued investment in advanced technologies.
Commercial Aircraft Segment Performance
Commercial Aircraft sales benefited from higher production volumes on major programs, increased aftermarket activity supported by strong global fleet utilization, and favorable pricing, partially offset by tariff-related cost pressures.
Military Aircraft Segment Performance
Military Aircraft sales growth reflected a significant V-22 spares order and continued ramp-up activity on the MV-75 program, contributing to improved segment Moog profitability and stable margin expansion.
Industrial Segment Performance
Industrial segment growth was driven by strong demand for data center cooling pumps, industrial automation solutions, and medical products such as enteral feeding and IV sets, supported by business optimization initiatives.
Operating Margin Analysis by Segment
Operating margin increased to 12.3% overall, Moog with Space and Defense margin rising to 13.2%, Military Aircraft margin improving to 11.4%, Commercial Aircraft margin declining to 10.6% due to tariffs, and Industrial margin expanding significantly to 13.9% due to productivity gains and sales growth.
Adjusted Operating Margin Trends
Adjusted operating margin increased to 13.0%, with Space and Defense adjusted margin rising to 14.8% as higher sales volumes and incremental profits more than offset investments in product development and business capture activities.
Capital Expenditures and Investment Strategy
Capital expenditures totaled $34 million during the quarter as Moog continued to invest in manufacturing capacity, operational efficiency, and technology development to support sustained long-term growth.
Updated Fiscal 2026 Financial Guidance
Chief Financial Officer Jennifer Walter highlighted the strong start to fiscal 2026 and announced an increase in full-year sales and adjusted earnings per share guidance, while reaffirming expectations for adjusted operating margin and free cash flow conversion.
Fiscal Year 2026 Outlook
For fiscal 2026, Moog now expects net sales of approximately $4.3 billion compared with prior guidance of $4.2 billion, adjusted operating margin of 13.4%, adjusted diluted net earnings per share of approximately $10.20, and free cash flow conversion of 60%.
Earnings Call and Investor Engagement
Moog’s executive leadership will host a conference call and webcast to discuss first-quarter results, business trends, and outlook, with supporting materials available through the company’s investor relations website.
Non-GAAP Financial Measures Explanation
Moog reported several non-GAAP financial measures, including adjusted operating margin, adjusted diluted earnings per share, free cash flow, and free cash flow conversion, which management believes provide additional insight into operational performance and financial health when evaluated alongside GAAP results.
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