Moog (MOG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 sales of $1.1 billion, up 21% year-over-year, with all segments contributing and a 30% increase in twelve-month backlog to $3.3 billion.

• Adjusted EPS rose 37% to $2.63, and diluted EPS increased 38% to $2.46, reflecting strong operational and financial performance.

• Major new contracts secured, including $1B+ in commercial aircraft, $100M+ for PAC-3 missiles, and $100M+ for Meteosat satellites.

• Recognized for operational excellence and workplace culture, receiving multiple industry and community awards.

• Twelve-month backlog and record bookings reflect robust demand across defense, aerospace, and industrial markets.

Financial highlights

• Q1 2026 sales reached $1.1B, up 21% year-over-year; all segments posted double-digit growth.

• Adjusted operating margin was 13.0%, up 90 bps year-over-year; gross margin was 26.7%.

• Adjusted EPS was $2.63, up 37% from Q1 last year; diluted EPS was $2.46, up 38%.

• Free cash flow usage was $79M, better than expected, mainly due to inventory and payment timing.

• Leverage ratio at 2.0x, at the low end of target range; cash and equivalents at quarter-end were $74 million.

Outlook and guidance

• FY26 sales guidance raised to $4.3B, with adjusted EPS guidance increased to $10.20 ± $0.20; operating margin guidance affirmed at 13.4%.

• Q2 EPS forecast at $2.25 ± $0.10.

• Free cash flow conversion projected at 60% for FY26.

• Segment sales guidance increased: +$30M for space/defense, +$15M for commercial aircraft, +$15M for industrial.

• Sufficient liquidity and funding sources expected to meet cash requirements for the next 12 months and beyond.