Moog (MOG) Q4 2024 earnings summary

Executive summary

• Achieved record sales of $3.61 billion in FY 2024, up 9% year-over-year, with strong growth in commercial and military aircraft, and space and defense segments.

• Expanded adjusted operating margin by 150 basis points to 12.4%, driven by pricing and simplification initiatives.

• Free cash flow improved over the prior year, with strong Q4 cash generation and a 12-month record backlog of $2.5 billion.

• Continued transformation through 80/20 deployment, portfolio shaping, and operational simplification, covering 70% of the business.

• Pricing and simplification initiatives contributed to improved operational performance and cash flow.

Financial highlights

• Adjusted earnings per share (EPS) for FY 2024 was $7.80; excluding one-time items, adjusted EPS was $7.24, up 18% year-over-year.

• Q4 sales were $917 million, up 5% from the prior year; adjusted operating margin was 12.5%.

• Q4 free cash flow was $109 million, with free cash flow conversion over 150%.

• Military aircraft Q4 sales rose 17% year-over-year; space and defense up 9%; commercial aircraft up 2%; industrial down 5%.

• Recorded $15 million in losses from divested industrial businesses, $12 million in restructuring charges, and $4 million in footprint rationalization in Q4.

Outlook and guidance

• FY 2025 sales projected at $3.7 billion, a 3% increase over FY 2024.

• Adjusted operating margin expected to rise to 13.0%, with margin expansion in all segments except commercial aircraft.

• Adjusted EPS guidance for FY 2025 is $8.20 (±$0.20), up 5% year-over-year, or 11% adjusting for one-time items.

• Free cash flow conversion targeted at 50%-75%, with elevated capital expenditures of $180 million (4.9% of sales) to support future growth.

• Q1 FY 2025 EPS forecasted at $1.60 (±$0.10).