Moog (MOG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 sales of $1.1 billion, up 21% year-over-year, with all segments contributing to growth 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 orders, $100M+ for PAC-3 missile, and $100M+ for Meteosat satellites.

• Recognized for operational excellence with BAE Systems Gold Supplier Award, Glassdoor Best Places to Work, and Buffalo Niagara Partnership Business of the Year.

• Twelve-month backlog increased 30% to $3,260 million, reflecting strong order activity in all major markets.

Financial highlights

• Q1 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; operating margin rose to 12.3%.

• Adjusted EPS was $2.63, up from $1.92 in Q1'25; diluted EPS grew 38% to $2.46.

• Free cash flow usage was $79M, better than expected due to inventory management and working capital investments.

• Gross margin was 26.7%, down from 27.0% year-over-year, impacted by higher tariffs.

Outlook and guidance

• FY26 sales guidance raised to $4.3B, with adjusted EPS guidance increased to $10.20 ± $0.20.

• Adjusted operating margin guidance held at 13.4%, up 40 bps from FY25.

• Free cash flow conversion projected at 60%, improved from FY25.

• Q2 EPS forecasted at $2.25 ± $0.10.

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