Moog Raises Outlook as Sales Growth Reaccelerates
Adjusted earnings climbed 60% to a record $3.72 a share.
Moog Inc. (MOG-A), the aerospace and defense components maker, reported record fiscal third-quarter sales as growth accelerated across all four of its operating segments.
Net sales rose 15% from a year earlier to $1.117 billion, accelerating from 13% growth in the second quarter after the rate had slowed from 21% in the first. Sales increased about 6% sequentially from $1.052 billion.
Adjusted diluted earnings rose to $3.72 a share from a year earlier and increased about 41% from $2.64 in the second quarter. GAAP earnings climbed to $4.74 a share from $1.83, helped by $43 million in newly recognized tax benefits, including prior-year federal research credits.
Adjusted operating margin widened 280 basis points from a year earlier to 16.4%, up from 13.4% in the second quarter. Claims totaling $30 million for previously incurred IEEPA tariffs contributed 270 basis points, accounting for nearly all of the year-over-year expansion after tariffs had weighed on second-quarter profitability.
Industrial led segment growth, with sales rising 18% to $282 million as demand for data-center cooling pumps, medical devices and energy products increased. Its adjusted margin reached 19.9%, reversing a second-quarter contraction. Space and Defense and Commercial Aircraft sales each grew 17%, while Military Aircraft sales increased 9%.
Moog raised its fiscal-2026 forecasts across sales, profitability, earnings and cash generation. The company now expects sales of $4.4 billion, adjusted operating margin of 14.1%, adjusted earnings of $11.65 a share and free-cash-flow conversion of 70%. Its previous outlook called for $4.3 billion in sales, a 13.4% margin, earnings of $10.60 a share and 60% cash conversion.
Free cash flow rose to $133 million from $98 million in the second quarter, while capital spending declined to $28 million because of investment timing. Twelve-month backlog held at $3.3 billion sequentially, though its year-over-year growth slowed to 23% from 33% in the prior quarter.