8-K: Moog Inc. Reports Record Q4 & FY25 Results, Strong FY26 Outlook

Moog Inc. announced record fourth quarter and fiscal year 2025 financial results, alongside strong fiscal 2026 guidance and a quarterly cash dividend.

Summary

• Moog Inc. achieved record net sales of $1.049 billion in Q4 2025, a 14% increase year-over-year, and $3.861 billion for fiscal year 2025, up 7% from the prior year.
• The company reported record adjusted operating margin of 13.7% for Q4 2025 and 13.0% for fiscal year 2025, reflecting operational strength.
• Diluted net earnings per share reached a record $2.01 in Q4 2025 (up 53%) and $7.33 for fiscal year 2025 (up 14%). Adjusted diluted net earnings per share were $2.56 (up 19%) and $8.69 (up 11%) for the respective periods.
• Record free cash flow of $199 million was generated in Q4 2025, primarily driven by customer advances, with full-year free cash flow at $128 million.
• The twelve-month backlog increased by 20% to a record $3.0 billion by the end of fiscal 2025.
• Moog Inc. issued strong fiscal 2026 guidance, forecasting record net sales of $4.2 billion, operating margin of 13.4%, adjusted operating margin of 13.4%, and diluted net earnings per share of $10.00 (+/$0.20).
• The Board of Directors declared a quarterly dividend of $0.29 per share on Class A and Class B common stock, payable on December 17, 2025, to shareholders of record as of December 8, 2025.
• Previously issued consolidated financial statements for prior periods were revised to correct immaterial misstatements, mainly related to accounting for long-term aftermarket service contracts and an understatement of warranty costs.

Sentiment

Score: 9

Explanation: The company reported record financial results for both the quarter and the full fiscal year 2025, demonstrating strong operational performance and growth across key segments. The robust fiscal 2026 guidance further reinforces a positive outlook, projecting continued record sales and margin expansion. While there was a revision of prior financial statements for immaterial misstatements and ongoing tariff pressure, the overall financial health and future prospects presented are exceptionally strong.

Positives

• Achieved record quarterly and annual sales, adjusted operating margin, both earnings per share figures, and free cash flow.
• Sales increased across all segments in Q4 2025, with Commercial Aircraft up 27%, Space and Defense up 17%, Military Aircraft up 10%, and Industrial up 5%.
• Operating margin improved by 180 basis points in Q4 2025 to 11.9% and by 40 basis points for fiscal 2025 to 11.6%.
• Adjusted operating margin expanded by 20 basis points in Q4 2025 to 13.7% and by 30 basis points for fiscal 2025 to 13.0%.
• Record free cash flow of $199 million in Q4 2025 was driven by strong cash generation from changes in working capital, particularly customer advances.
• Twelve-month backlog increased 20% to a record $3.0 billion, indicating strong future revenue visibility.
• Issued strong fiscal 2026 guidance, projecting record sales of $4.2 billion, further expanded operating margins, and meaningful progress towards strong free cash flow conversion of 60%.

Negatives

• Previously issued consolidated financial statements for fiscal 2023 and 2024 were revised due to immaterial misstatements, primarily related to inaccurate inputs in revenue recognition calculations for long-term aftermarket service contracts and understatement of warranty costs.
• Tariff pressure impacted operating margins in fiscal 2025 by approximately 50 basis points and is forecasted to increase to 80 basis points in fiscal 2026.
• Commercial Aircraft operating margin decreased 400 basis points in Q4 2025 to 11.4%, primarily due to tariff pressure and an unfavorable sales mix.
• Space and Defense operating margin was essentially flat year-over-year in Q4 2025, as profitable sales growth was largely offset by charges associated with the settlement of a legal dispute.
• Industrial sales decreased 4% for fiscal 2025, attributed to divestitures completed at the beginning of the fiscal year.

Risks

• Operating in highly competitive markets where competitors may possess greater resources.
• Exposure to cyclical markets that are sensitive to domestic and foreign economic conditions and events.
• Heavy dependence on government contracts, which may not be fully funded or could be terminated.
• Supply chain constraints and inflationary impacts on prices for raw materials and components.
• Potential failure of subcontractors or suppliers to perform their contractual obligations.
• Risks associated with accounting estimations for over-time contracts and any necessary changes to these estimations.

Future Outlook

Moog Inc. projects a strong fiscal year 2026, anticipating record net sales of $4.2 billion, an operating margin of 13.4%, and an adjusted operating margin of 13.4%. Diluted and adjusted diluted net earnings per share are both forecasted at $10.00 (with a +/$0.20 range). The company also expects to make meaningful progress towards generating strong free cash flow, with a conversion rate of 60%. However, tariff pressure is expected to increase, impacting operating margins by 80 basis points in fiscal 2026, up from 50 basis points in fiscal 2025.

Management Comments

• "We finished fiscal 2025 with an exceptional fourth quarter performance, achieving record financial results. This performance capped an outstanding year of delivering for our customers and driving continuous operational improvements. The momentum reflects our strategy in action across the business, and positions us to deliver continued value creation." Pat Roche, CEO.
• "Fiscal year 2026 will be another great year in which we continue to build our financial strength. We will achieve a record level of sales, further expand our operating margin and make meaningful progress towards generating strong free cash flow." Jennifer Walter, CFO.

Industry Context

The company operates in robust aerospace and defense markets, evidenced by strong demand in military aircraft (MV-75 program), commercial aircraft (major production programs like 787 and A350, strong aftermarket), and space and defense (missile controls, satellite components). The industrial segment also saw increased demand in medical devices and data center cooling pumps. The mention of tariff pressure highlights ongoing global trade challenges impacting manufacturing costs across these sectors.

Comparison to Industry Standards

• NA

Corporate Governance

Legal Proceedings

• Charges associated with the settlement of a legal dispute impacted Space and Defense operating margin in Q4 2025.

Stakeholder Impact

• Shareholders: Benefit from strong financial performance, positive future outlook, and a declared cash dividend, potentially leading to increased share value and direct returns.
• Customers: The company's focus on 'delivering for our customers' and strong demand across segments suggests continued product and service delivery.
• Employees: Business growth and operational improvements may lead to stability and opportunities, though 'simplification initiatives' could imply some restructuring.
• Suppliers: Potential impact from supply chain constraints and inflationary pressures, requiring effective management of supplier relationships.

Next Steps

• Host a conference call on November 21, 2025, at 10:00 a.m. ET to discuss results and guidance.
• File the Annual Report on Form 10-K with the SEC, which will include Note 25 detailing the revision of previously issued consolidated financial statements.
• Pay the declared quarterly dividend on December 17, 2025, to shareholders of record as of December 8, 2025.

Key Dates

Recommendation

The company delivered exceptional financial performance in fiscal 2025, setting new records for sales, adjusted operating margin, EPS, and free cash flow. The robust 20% increase in backlog to $3.0 billion provides strong revenue visibility. Furthermore, the fiscal 2026 guidance projects continued record growth and margin expansion, indicating sustained positive momentum. While the revision of prior immaterial misstatements is noted, it does not detract from the current strong operational and financial trajectory. The consistent dividend payment further underscores financial health. These factors collectively suggest a compelling investment opportunity.

Keywords

Moog Inc., MOG.A, MOG.B, Q4 2025 earnings, fiscal 2025 results, fiscal 2026 guidance, aerospace, defense, industrial, commercial aircraft, space and defense, military aircraft, dividends, financial performance, operating margin, free cash flow, EPS, backlog, SEC filing