Moog (MOG) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 6% to $905M, with double-digit defense growth and mid-single-digit commercial growth; industrial sales were flat, and backlog increased to $2.45B, up 7% year-over-year.

• Adjusted operating margin rose to 12.3%, up 210 basis points, driven by margin enhancement, better pricing, and productivity gains.

• Adjusted diluted EPS increased 39% year-over-year to $1.91, supported by profitable sales growth and operational improvements.

• Cash flow improved compared to the prior year, with confidence in closing fiscal 2024 as a record year.

• Gross margin improved to 27.8% in Q3, reflecting better performance in space vehicle programs and favorable mix in Commercial Aircraft.

Financial highlights

• Q3 sales reached $905 million, up 6% year-over-year; aerospace and defense led growth, industrial was flat.

• Adjusted operating margin was 12.3%, up 210 basis points from last year.

• Adjusted EPS of $1.91, up 39% year-over-year, exceeding guidance.

• Military aircraft sales rose 18%, space and defense up 7%, commercial aircraft up 6%, industrial down 1%.

• Operating profit for Q3 was $105M, up from $85M last year.

Outlook and guidance

• FY24 sales guidance raised to $3.58 billion, with 8% growth expected.

• Adjusted operating margin guidance held at 12.4%; adjusted EPS guidance increased to $7.40 ± $0.10, up 20% year-over-year.

• Segment sales guidance increased for military aircraft, space and defense, and industrial; commercial aircraft guidance reduced due to order timing.

• Free cash flow expected to recover in Q4, offsetting year-to-date use of $77 million.

• Capital expenditures projected at $150 million for the year.