MOOG Inc. Quarterly Report on Form 10-Q for the Quarter Ended March 30, 2024
Moog Inc. has filed its quarterly report for the period ended March 30, 2024. The company is a large accelerated filer and has filed all required reports during the preceding 12 months. The number of shares outstanding for Class A common stock is 28,759,355 and for Class B common stock is 3,209,711 as of April 19, 2024.
Company Overview
The company designs, manufactures, and integrates high-performance components and systems for the aerospace and defense and industrial markets. Key strategies focus on pricing initiatives, simplification, and investing in growth areas while divesting non-core businesses. The company aims to improve shareholder value through strategic revenue growth, operational improvements, low cost manufacturing, and balanced capital deployment.
Recent Acquisitions and Divestitures
Acquired Data Collection Limited, a New Zealand-based pavement measurement equipment provider, for $6 million. This expands offerings for the Military Aircraft segment.
Sold a UK-based sonar business for net proceeds of $13 million, recording a $15 million loss.
Sold the Navigation Aids business for net proceeds of $37 million, recording a $15 million gain.
Financial Results
| Financial Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Sales | $930M | $837M | +11% |
| Gross Margin | 28.7% | 26.4% | +230 bps |
| R&D Expenses | $28M | $27M | +6% |
| SG&A (as % of Sales) | 13.4% | 13.9% | -50 bps |
| Operating Profit | $101M | $84M | +20% |
| Effective Tax Rate | 23.8% | 23.6% | +20 bps |
| Net Earnings | $60M | $43M | +39% |
| Diluted EPS | $1.86 | $1.34 | +39% |
| 12-Month Backlog | $2,500M | $2,300M | +9% |
- Higher sales across all segments driven by aerospace and defense growth
- Gross margin increase due to employee retention credit and space program improvement
- Effective tax rate increased slightly
- Backlog rose on increased aerospace and defense orders
Segment Performance
Space and Defense
- Sales +9% on higher defense demand
- Operating margin 15.8% vs 11.2%
- Improved space program performance
- Employee retention credit benefit
Military Aircraft
- Sales +11% on increased production and new development
- Operating margin 8.3% vs 8.9%
- Gain on product line sale offset by impairment charges
Commercial Aircraft
- Sales +26% on growing widebody and aftermarket demand
- Operating margin 12.0% vs 9.5%
- Pricing initiatives
- Higher volumes
Industrial
- Sales +4% on growth in simulation and energy
- Operating margin 11.1% vs 10.0%
- Pricing initiatives and employee retention credit
2024 Outlook
| 2024 Outlook | 2023 Actual | Change | |
|---|---|---|---|
| Sales | $3,550M | $3,319M | +7% |
| Operating Profit | $422M | $343M | +23% |
| Diluted EPS | $6.87 | $5.34 | +29% |
| Adjusted Diluted EPS | $7.25 | $6.15 | +18% |
- Sales growth driven by aerospace and defense, decline in industrial
- Higher operating profit from pricing, simplification, employee retention credit
- Adjusted EPS excludes impairment and restructuring charges
Liquidity and Capital Resources
- $60M cash balance, all held internationally
- $679M available borrowing capacity
- Paid $18M in dividends
- Investing in business growth and exploring strategic acquisitions
The article summarizes the company’s key strategies, recent acquisitions/divestitures, Q2 2024 financial results, segment performance, and outlook. It analyzes the drivers behind revenue, margin, and earnings changes using simple explanatory language for a general audience. The article is formatted with markdown headings, tables, and bullet points to communicate the information clearly.
