Moog (MOG) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter results with double-digit revenue and EPS growth, surpassing guidance and reflecting robust demand and operational execution across all segments.

• Twelve-month backlog reached a record $3.3 billion, up 33% year-over-year, driven by strong demand in defense, commercial aerospace, and industrial markets.

• Raised full-year 2026 guidance for sales and adjusted EPS, reaffirming operating margin and free cash flow conversion targets.

• Productivity and operational simplification initiatives supported margin expansion and improved performance.

• Net earnings increased 50% to $82M for the quarter, with diluted EPS up 49% to $2.55.

Financial highlights

• Second quarter net sales increased 13% year-over-year to $1.1 billion, with all segments contributing to growth.

• Adjusted operating margin improved to 13.4%, up 90 basis points year-over-year, despite tariff pressures.

• Adjusted EPS grew 40% year-over-year to $2.64; diluted EPS was $2.55.

• Free cash flow for the quarter was $98 million, with conversion at 116%.

• Leverage ratio at quarter-end was 1.8x, below the target range.

Outlook and guidance

• FY 2026 net sales guidance raised to $4.3 billion, up $70 million from prior guidance.

• Adjusted EPS guidance increased to $10.60 (±$0.20), with operating margin guidance reaffirmed at 13.4%.

• Free cash flow conversion target remains at 60%; Q3 expected at 100%.

• Management expects even stronger performance in the second half of 2026.

• Sales guidance increased for Space & Defense (+$35M), Industrial (+$30M), and Military Aircraft (+$25M); Commercial Aircraft guidance reduced by $20M due to inventory timing.