Moog (MOG) Q3 2026 earnings summary

Executive summary

• Achieved record third-quarter sales of $1.12 billion, up 15% year-over-year, with strong demand and operational excellence across all segments.

• Adjusted EPS reached $3.72, up 60% year-over-year, driven by business performance, tariff refund, and tax benefits.

• Net earnings for Q3 2026 were $152 million, up 160% year-over-year; diluted EPS was $4.74.

• Twelve-month backlog increased 23% to $3.3 billion, reflecting robust order activity and market demand.

• On track to meet long-term financial objectives and investor day goals.

Financial highlights

• Third-quarter sales were $1.12 billion, up 15% year-over-year.

• Adjusted operating margin was 16.4%, up 280 basis points year-over-year, with a $30 million tariff refund contributing 270 basis points.

• Free cash flow was $133 million, exceeding adjusted net earnings and up $40 million year-over-year.

• Gross margin for Q3 2026 was 33.2%, up from 29.7% year-over-year.

• Effective tax rate for Q3 2026 was (10.6)%, reflecting significant tax benefits; adjusted effective tax rate was 20.7%.

Outlook and guidance

• Fiscal 2026 guidance raised: net sales expected at $4.4 billion, adjusted operating margin at 14.1%, and adjusted EPS at $11.65 ±$0.10.

• Free cash flow conversion guidance increased to 70%.

• Sales guidance increased by $50 million, with segment increases in Space & Defense, Military Aircraft, and Industrial.

• Guidance increases driven by business performance, tariff refunds, and tax credits.

• Backlog growth across all segments signals strong demand, especially in Commercial Aircraft, Military Aircraft, and Space and Defense.