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.

• Notable contract wins included $1B+ in commercial aircraft, $100M+ for PAC-3 missile, and $100M+ for Meteosat satellites.

• Recognized with BAE Systems Gold Supplier of the Year, Glassdoor Best Places to Work, and Business of the Year awards.

• Backlog and bookings reached record levels, securing future revenue streams.

Financial highlights

• Q1 2026 sales reached $1.1B, up 21% year-over-year, with all segments posting 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, but negative due to working capital investments.

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

Outlook and guidance

• Full-year 2026 sales guidance raised to $4.3B, with adjusted EPS guidance increased to $10.20 ± $0.20.

• Adjusted operating margin guidance affirmed at 13.4%; free cash flow conversion target maintained at 60%.

• Q2 EPS forecast at $2.25 ± $0.10; segment sales guidance increased for Space & Defense, Commercial Aircraft, and Industrial.

• Management expects continued strong demand in defense, commercial aircraft, and industrial markets.

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