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 aerospace and defense segments and a record 12-month backlog of $2.5 billion.

• 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 robust outlook for FY 2025.

• Operational initiatives, including 80/20 deployment and customer focus, contributed to performance and positioned the company for future growth.

• Twelve-month backlog reached a record $2.5 billion, up 3% year-over-year.

Financial highlights

• FY 2024 sales reached $3.61 billion, a 9% increase over FY 2023; commercial aircraft sales rose 18%, military aircraft 13%, space and defense 7%, and industrial 1%.

• Adjusted operating margin increased to 12.4% (up 150 bps); military aircraft margin up 300 bps to 12.0%, space and defense up 290 bps to 13.4%, industrial up 90 bps, commercial aircraft down 90 bps.

• Adjusted EPS was $7.80; excluding one-time items, adjusted EPS was $7.24, up 18% year-over-year.

• Q4 sales were $917 million, up 5% year-over-year; Q4 adjusted operating margin was 12.5%.

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

Outlook and guidance

• FY 2025 sales projected at $3.7 billion, up 2.5%–3% from FY 2024, with growth in space and defense (up 7%), commercial aircraft (up 6%), and military aircraft (up 4%), but a 5% decrease in industrial sales.

• Adjusted operating margin expected to rise to 13.0% (up 60 bps), with margin expansion in all segments except commercial aircraft.

• Adjusted EPS guidance for FY 2025 is $8.20 (±$0.20), up 5% (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.