Innovative Aerosystems (ISSC) announced it closed the acquisition of the Moog (MOG.B) (MOG.A) S-TEC Model 3100 general aviation fixed wing autopilot product line. “This acquisition represents another important step in our strategy to deliver fully integrated avionics and flight control solutions to the global aerospace market,” said Shahram Askarpour, Chief Executive Officer of Innovative Aerosystems. “By adding this autopilot product line to our portfolio, we are expanding our flight control capabilities, ...

EXTON, Pa.--(BUSINESS WIRE)--Innovative Aerosystems (NASDAQ: ISSC) today announced it closed the acquisition of the Moog (NYSE: MOG.A) S-TEC® Model 3100 general aviation fixed wing autopilot product line, further strengthening the company's position as a leading provider of advanced avionics, flight control, and mission-critical aerospace systems for commercial, business, and military aircraft. The acquisition expands Innovative Aerosystems' integrated flight control capabilities and enhances i. ...

Moog (NYSE:MOG.A) FY Conference Summary Company Overview - **Company**: Moog Inc. - **Industry**: Aerospace and Defense - **Conference Date**: February 12, 2026 Key Points Company Performance and Strategy - Moog has been focusing on improving its operating margin, which has remained around 10% for a decade despite strong organic growth [6][5] - The leadership team initiated a transformation strategy in 2023, emphasizing pricing and simplification to enhance financial performance [6][5] - The company has set a three-year guidance up to fiscal 2026, aiming to drive change and improve margins [6][5] Transformation Initiatives - **80/20 Initiative**: A key focus has been on the 80/20 principle, which helps identify core customers and products that drive profitability [17][20] - **Portfolio Shaping**: Moog is actively disposing of non-core businesses, particularly those in the $10-$50 million range that do not align with performance goals [7][8] - **Footprint Rationalization**: The company is consolidating manufacturing resources to eliminate duplicative operations, particularly in the U.S. and Europe [11][12] - **Focused Factories**: Moog is restructuring factories to specialize in either industrial or defense products, reducing operational complexity [15][16] Customer and Product Rationalization - The company has shifted its philosophy from treating all customers equally to prioritizing high-value customers, leading to better resource allocation [25][26] - Moog has identified less profitable products and is either repricing them or phasing them out, focusing on more lucrative offerings [34][35] Financial Performance - Moog reported a $200 million revenue from missile programs in fiscal 2025, with expectations to grow to $250 million in fiscal 2026, reflecting a growth rate of over 20% [111][112] - Recent orders from Lockheed Martin include two contracts exceeding $100 million each, highlighting operational excellence and customer satisfaction [89][91] Market Position and Growth Opportunities - Moog is involved in multiple missile programs, including PAC-3 and THAAD, positioning itself well for future growth in defense markets [101][110] - The company is exploring strategic acquisitions to enhance capabilities and expand its market presence, particularly in Europe [190][200] Challenges and Mitigation Strategies - Moog has faced tariff impacts, approximately 80 basis points, but has implemented strategies to mitigate these effects, including working with airlines to streamline documentation processes [140][146] - The company is adjusting its supply chain to avoid tariffs by processing products outside the U.S. when feasible [146][153] Future Outlook - The leadership team is focused on continuous improvement and integrating the 80/20 initiative into all business processes [66][68] - Moog aims to balance capital deployment between organic growth, dividends, and opportunistic share repurchases [209][212] - Upside opportunities for sales and earnings are anticipated from acceleration in defense markets and robust commercial aftermarket activity [213][216] Additional Insights - The cultural shift towards the 80/20 initiative has gained momentum within the organization, fostering a mindset focused on impactful decision-making [40][42] - The company is committed to maintaining operational excellence, as evidenced by its recognition from Lockheed Martin for 100% on-time delivery and quality [93][95]

Group 1: Company Performance - Huntington Ingalls (HII) has gained approximately 21.5% year-to-date, outperforming the average return of 7.1% for Aerospace companies [4] - The Zacks Consensus Estimate for HII's full-year earnings has increased by 1.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - HII currently holds a Zacks Rank of 2 (Buy), suggesting a favorable investment outlook [3] Group 2: Industry Comparison - Huntington Ingalls is part of the Aerospace - Defense industry, which includes 30 companies and has an average year-to-date gain of 7.4%, indicating HII's superior performance [6] - In contrast, Moog (MOG.A), another Aerospace stock, has returned 32.2% year-to-date and is part of the Aerospace - Defense Equipment industry, which has a lower average gain of 6.4% [5][7] - The Aerospace sector as a whole ranks 1 in the Zacks Sector Rank, reflecting strong overall performance among its 68 individual stocks [2]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Moog ( MOG.A , MOG.B ) stock has surged 6% following the release of its Q1 2026 results. The company has now surged 53% since my last report, easily outperforming the S&P 500’s 3.4% return. TheDhierin-Perkash Bechai is an aerospace, defense and air ...

Financial Performance - Net sales for the three months ended January 3, 2026, were $1,100,346, an increase of 21.2% compared to $907,882 for the same period in 2024[10] - Gross profit for the same period was $294,240, representing a gross margin of 26.8%, up from $245,078 and a gross margin of 27.0% in the prior year[10] - Net earnings increased to $78,851, a 37.0% rise from $57,526 in the previous year, resulting in diluted earnings per share of $2.46 compared to $1.78[10] - Operating profit for the same period was $135,446, up 30.7% from $103,604 in the prior year[87] - Earnings before income taxes for the three months ended January 3, 2026, were $101,214, an increase from $74,435 in the prior year[87] Research and Development - Research and development expenses rose to $24,634, reflecting a focus on innovation and new product development, compared to $23,605 in the prior year[10] - Research and development expenses totaled $24,634, slightly up from $23,605 in the same period last year[86] Assets and Liabilities - Total assets increased to $4,551,893 as of January 3, 2026, up from $4,426,055 as of September 27, 2025[15] - Total liabilities increased to $2,486,093 from $2,433,500, indicating a rise in financial obligations[15] - The company had contract reserves of $80,863,000 as of January 3, 2026, indicating potential future liabilities related to contracts[38] - Long-term debt increased to $1,052,312 million as of January 3, 2026, up from $944,123 million in September 2025[64] Cash Flow and Liquidity - Cash and cash equivalents increased to $73,359, compared to $62,013 in the previous period, indicating improved liquidity[15] - Net cash used by operating activities was $(44,768,000) for the three months ended January 3, 2026, compared to $(132,910,000) for the same period in 2024, indicating a significant improvement[22] - The company reported a net cash provided by financing activities of $87,722,000 for the three months ended January 3, 2026, compared to $163,867,000 for the same period in 2024[22] Shareholder Equity and Dividends - Total shareholders' equity increased to $2,065,800 from $1,992,555, reflecting strong financial performance and retained earnings growth[15] - The company declared cash dividends of $0.29 per share for the three months ended January 3, 2026, compared to $0.28 per share in the previous year[18] - A quarterly dividend of $0.30 per share was declared on January 29, 2026, payable on February 26, 2026, to shareholders of record on February 17, 2026[94] Inventory and Receivables - Total inventories, net amounted to $915,691 as of January 3, 2026, slightly up from $914,302 in September 27, 2025[52] - The net receivables, after accounting for the allowance for credit losses, increased to $554,295 as of January 3, 2026, from $506,768 as of September 27, 2025[46] - As of January 3, 2026, total unbilled receivables increased to $817,605 from $744,352 in September 27, 2025, reflecting a growth of approximately 9.5%[42] Foreign Currency and Contracts - The company reported a foreign currency translation adjustment of $4,656, compared to a loss of $41,596 in the prior year, indicating improved currency stability[13] - The company has outstanding foreign currency contracts with notional amounts of $25,415 million as of January 3, 2026, to manage foreign exchange risk[69] - The company recorded a net gain of $9 million on foreign currency contracts for the three months ended January 3, 2026[71] Capital Expenditures - Total capital expenditures for the three months ended January 3, 2026, were $34,380, up from $32,778 in the previous year[87] - The company purchased property, plant, and equipment for $(34,380,000) during the three months ended January 3, 2026, compared to $(32,778,000) in the same period in 2024[22] Acquisitions - The company acquired COTSWORKS, Inc. on July 1, 2025, enhancing its capabilities in rugged optical components for harsh environments[44] Tax and Legal Matters - The effective tax rate for the three months ended January 3, 2026, was 22.1%, slightly lower than 22.7% for the same period in 2024[77] - The company is engaged in administrative and legal proceedings related to environmental matters, with adequate reserves established for estimated costs, not expected to materially affect financial condition or cash flows[90]

Financial Performance - Net sales for the three months ended January 3, 2026, were $1,100,346, an increase of 21.2% compared to $907,882 for the same period in 2024[10] - Gross profit for the same period was $294,240, representing a gross margin of 26.8%, up from $245,078 and a gross margin of 27.0% in the prior year[10] - Net earnings increased to $78,851, a 37.1% rise from $57,526 in the previous year, resulting in diluted earnings per share of $2.46 compared to $1.78[10] - Operating profit for the same period was $135,446, up 30.7% from $103,604 in the prior year[87] - The company reported earnings before income taxes of $101,214, compared to $74,435 in the same period last year, marking a 36% increase[87] Research and Development - Research and development expenses rose to $24,634, up from $23,605, indicating continued investment in innovation[10] - Research and development expenses totaled $24,634, slightly higher than $23,605 in the prior year[86] Assets and Equity - Total assets as of January 3, 2026, were $4,551,893, an increase from $4,426,055 as of September 27, 2025[15] - Shareholders' equity grew to $2,065,800, up from $1,992,555, indicating a stronger financial position[15] - Cash and cash equivalents increased to $73,359 from $62,013, reflecting improved liquidity[15] Cash Flow and Financing - Net cash used by operating activities was $(44,768,000) for the three months ended January 3, 2026, compared to $(132,910,000) for the same period in 2024, indicating a significant improvement[22] - The company reported a net cash provided by financing activities of $87,722,000 for the three months ended January 3, 2026, compared to $163,867,000 for the same period in 2024[22] - Proceeds from revolving lines of credit amounted to $372,900,000 for the three months ended January 3, 2026, while payments on revolving lines of credit were $261,900,000[22] Dividends - The company declared cash dividends of $0.29 per share for the three months ended January 3, 2026, compared to $0.28 per share in the previous year[18] - A quarterly dividend of $0.30 per share was declared on January 29, 2026, payable on February 26, 2026, to shareholders of record on February 17, 2026[94] Inventory and Receivables - Total inventories, net amounted to $915,691 as of January 3, 2026, slightly up from $914,302 in September 27, 2025[52] - Receivables, net increased to $554,295 as of January 3, 2026, from $506,768 in September 27, 2025, marking a growth of about 9.4%[46] - As of January 3, 2026, total unbilled receivables increased to $817,605 from $744,352 in September 27, 2025, reflecting a growth of approximately 9.5%[42] Liabilities - Long-term debt increased to $1,052,312 million as of January 3, 2026, compared to $944,123 million as of September 27, 2025[64] - The total lease liabilities as of January 3, 2026, were $68,644 for operating leases and $143,834 for finance leases[59] - Warranty accrual at the end of the period was $24,016 million, up from $22,502 million at the end of the previous period[67] Foreign Currency and Tax - The company reported a foreign currency translation adjustment of $4,656, contrasting with a loss of $41,596 in the prior year, indicating improved currency conditions[13] - The effective tax rate for the three months ended January 3, 2026, was 22.1%, slightly lower than 22.7% for the same period in 2024[77] - The company recorded a net gain of $9 million from foreign currency contracts for the three months ended January 3, 2026[71] Acquisitions and Capital Expenditures - The company acquired COTSWORKS, Inc. on July 1, 2025, enhancing its capabilities in rugged optical components for harsh environments[44] - Capital expenditures for the three months ended January 3, 2026, totaled $34,380, compared to $32,778 in the prior year[87] Other Financial Metrics - The company recognized additional revenue of $12,547,000 for the three months ended January 3, 2026, due to adjustments made to performance obligations satisfied in previous periods, compared to $8,669,000 for the same period in 2024[36] - The company is currently reviewing new accounting standards that may impact financial disclosures, with planned adoption dates in fiscal years 2026 and 2028[27]

Core Insights - Moog reported quarterly earnings of $2.63 per share, exceeding the Zacks Consensus Estimate of $2.24 per share, and showing a year-over-year increase from $1.78 per share, resulting in an earnings surprise of +17.54% [1] - The company achieved revenues of $1.1 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 11.13%, compared to $910.32 million in the same quarter last year [2] - Moog has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Moog's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $2.39, with expected revenues of $995.24 million, and for the current fiscal year, the EPS estimate is $9.95 on revenues of $4.2 billion [7] Industry Context - Moog operates within the Aerospace - Defense Equipment industry, which is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5] Stock Performance - Moog shares have increased approximately 18.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.8% [3] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for Moog, indicating expectations of continued outperformance in the near future [6]

Financial Performance - Moog Inc. reported record net sales of $1.1 billion for Q1 2026, a 21% increase from $908 million in Q1 2025[2] - The company achieved a diluted net earnings per share of $2.46, up 38% from $1.78 in the previous year[2] - Net sales for the three months ended January 3, 2026, reached $1,100,346, a 21.2% increase from $907,882 for the same period in 2024[24] - Total operating profit for the same period was $135,446, representing a 30.7% increase from $103,604 in the prior year, with an operating margin of 12.3%[24] - Adjusted total operating profit increased to $142,498, with an adjusted operating margin of 13.0%, compared to 12.1% in the previous year[26] - Net earnings for the three months ended January 3, 2026, were $78,851, up from $57,526 in the same period last year[30] Bookings and Backlog - Bookings for the quarter totaled $2.3 billion, primarily driven by growth in Commercial Aircraft and new awards in Space and Defense[3] - The twelve-month backlog increased by 30% to a record $3.3 billion, indicating strong demand across all markets[3] Operating Margins - Operating margin improved by 90 basis points to 12.3%, while adjusted operating margin also increased by 90 basis points to 13.0%[5][6] - The adjusted operating margin for the Space and Defense segment increased by 280 basis points to 14.8%, reflecting higher sales and incremental profit[6] - Military Aircraft operating profit increased to $28,128, with an adjusted margin of 11.9%, compared to 11.3% in the previous year[26] - The company reported a significant increase in Space and Defense operating profit to $42,770, up from $28,780, with an adjusted margin of 14.8%[26] Cash Flow and Liquidity - Free cash flow was a use of $79 million, primarily due to cash used by physical inventories and timing of payments[7] - Free cash flow for the period was $(79,148), a slight improvement from $(165,688) in the prior year, with a free cash flow conversion rate of -94%[31] - Cash and cash equivalents increased to $73,359 from $62,013, reflecting improved liquidity[28] Capital Expenditures and Guidance - Capital expenditures for the quarter totaled $34 million, reflecting continued investment to support future growth[7] - The company raised its FY 2026 guidance for net sales to $4.3 billion from the previous $4.2 billion, and adjusted diluted net earnings per share to $10.20 from $10.00[8] Assets and Debt - Total assets rose to $4,551,893, up from $4,426,055, indicating growth in the company's asset base[28] - Long-term debt, excluding current installments, increased to $1,052,312 from $944,123, reflecting increased leverage[28] Segment Performance - Space and Defense segment sales rose by 31% to $324 million, driven by strong defense demand, particularly in missile controls and satellite components[4]

Financial Performance - Moog Inc. reported record net sales of $1.1 billion for Q1 2026, a 21% increase compared to $908 million in Q1 2025[4] - The company achieved a diluted net earnings per share of $2.46, reflecting a 38% increase from $1.78 in the previous year[2] - Bookings for the quarter totaled $2.3 billion, primarily driven by growth in Commercial Aircraft and new awards in Space and Defense[3] - The twelve-month backlog increased by 30% to a record $3.3 billion, indicating strong demand across all markets[3] - Operating margin improved by 90 basis points to 12.3%, while adjusted operating margin also increased by 90 basis points to 13.0%[5][6] - Operating profit for the total company was $135,446, representing a margin of 12.3%, up from 11.4% in the previous year[24] - The company reported net earnings of $78,851 for the three months ended January 3, 2026, compared to $57,526 in the same period last year[30] Cash Flow and Guidance - Free cash flow was a use of $79 million, an improvement from a use of $166 million in the prior year[7] - Free cash flow for the three months ended January 3, 2026, was $(79,148), with a free cash flow conversion rate of (94)%[31] - The company raised its FY 2026 guidance for net sales to $4.3 billion from the previous $4.2 billion[8] - Adjusted diluted net earnings per share guidance was increased to $10.20, up from $10.00[8] Segment Performance - The Space and Defense segment saw a 31% increase in sales to $324 million, driven by strong defense demand[4] - Space and Defense segment operating profit increased to $42,770, with an adjusted margin of 14.8%, compared to 12.0% in the prior year[26] - Military Aircraft segment reported an operating profit of $28,128, with an adjusted margin of 11.9%, up from 11.3%[26] Balance Sheet - Cash and cash equivalents at the end of the period were $73,794, slightly down from $73,808 at the end of the previous year[30] - Total assets increased to $4,551,893 from $4,426,055 in the previous period[28] - Total liabilities rose to $2,486,093, compared to $2,433,500 in the prior year[28] Interest Expense - Interest expense increased to $17,195 from $16,248 in the previous year[24]