Moog (MOG) TD Cowen 47th Annual Aerospace & Defense Conference summary

Strategic transformation and operational initiatives

• Leadership implemented an 80/20 initiative to improve margins, focusing on pricing, simplification, and portfolio shaping since 2023.

• Rationalized manufacturing footprint, divested non-core businesses, and created focused factories to streamline operations.

• 80/20 analysis led to customer and product stratification, prioritizing high-value customers and products for growth and resource allocation.

• Over 80% of revenue now managed under the 80/20 framework, with ongoing efforts to embed this approach into management processes.

• Continuous improvement is emphasized, integrating Lean and other tools to sustain operational gains.

Customer and product rationalization outcomes

• Customers are now tiered (platinum to tin), with differentiated service levels and incentives for higher engagement.

• Product lines that are unprofitable or at end-of-life are repriced or discontinued, with some transitioned to distributors.

• Enhanced focus on top-tier customers has resulted in significant new and repeat orders, such as $100M+ contracts with Lockheed Martin.

• Operational excellence recognized by customers, including awards for on-time delivery and quality.

• The company is positioned on multiple high-growth missile programs, supporting future revenue expansion.

Capacity, growth, and capital investment

• Missile-related business expected to grow from $200M in FY25 to $250M in FY26, with 20%+ growth rate.

• Facility in Salt Lake City has capacity for 4x production rate increases without expansion, with new investments planned.

• CapEx has been double that of peers, supporting readiness for increased demand across multiple sites.