In This Article:
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Revenue: $935 million in the second quarter, slightly above last year's second quarter.
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Military Aircraft Sales: $214 million, up 6% over the second quarter of last year.
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Commercial Aircraft Sales: $216 million, increased 4% over the same quarter a year ago.
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Space and Defense Sales: $270 million, up 1% over the second quarter last year.
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Industrial Sales: $234 million, down 7% from the same quarter a year ago.
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Adjusted Operating Margin: 12.5% in the second quarter, down from 13.6% in the prior year.
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Adjusted Earnings Per Share: $1.92, down 12% compared to last year's second quarter.
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Free Cash Flow: $2 million generated in the second quarter.
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Capital Expenditures: $38 million in the second quarter.
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Share Repurchases: 290,000 shares repurchased, spending about $60 million in the second quarter.
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Leverage Ratio: 2.6 times as of the end of the second quarter.
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Full Year Sales Guidance: Projected to be $3.7 billion.
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Full Year Earnings Per Share Guidance: Projected to be $8.20 plus or minus $0.20.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Moog Inc (NYSE:MOG.A) achieved record sales and improved operating margins, reflecting strong financial performance.
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The company reported a 3% increase in revenue year-to-date compared to the prior year, with expectations for further revenue growth in the second half.
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Moog Inc (NYSE:MOG.A) anticipates significant free cash flow generation in the latter half of the fiscal year due to optimized networking capital.
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The defense segment shows strong performance with increased budgets and alignment with key defense priorities, providing growth opportunities.
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Commercial aftermarket sales are robust, driven by strong fleet utilization and increased airline activity, contributing positively to margins.
Negative Points
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Tariff changes pose a significant risk, particularly affecting the import of steel and aluminum, and could impact operating profits by $10 million to $20 million.
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Commercial aircraft sales face challenges due to changes in Airbus' ordering patterns, leading to inventory pressures and potential cash flow impacts.
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Industrial sales decreased by 7% year-over-year, partly due to divestitures and purposeful product exits.
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Operating margins in the space and defense segment decreased by 330 basis points, influenced by the absence of last year's employee retention credit.
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The company faces uncertainties related to tariffs, which could affect various segments differently, with commercial and industrial segments being most vulnerable.