Moog Inc.

Adjusted Q3 sales were $1.1 billion, up 15% year over year. Space and defense sales were $336 million, up 17%; military aircraft sales were $245 million, up 9%; commercial aircraft sales were $254 million, up 17%; and industrial sales were $282 million, up 18%. Adjusted operating margin was 16.4%, up 280 bps, and adjusted EPS was $3.72, up 60%. The quarter included a $30 million tariff-refund benefit in operating profit, representing 270 bps of operating margin and about $0.70 per share; management also cited a $35 million prior-year domestic R&D tax-credit benefit, an $8 million one-time tax benefit, and $13 million of simplification-related charges excluded from adjusted results. Free cash flow was $133 million and leverage was 1.5x. For FY26, Moog raised sales guidance by $50 million, adjusted operating margin guidance to 14.1% (up 70 bps), adjusted EPS guidance by $1.51 to $11.65 plus or minus $0.10, and free cash flow conversion guidance to about 70%. Segment guidance was raised by $10 million for space and defense, $10 million for military aircraft, and $30 million for industrial.

Patrick Roche said the quarter showed stronger momentum and better financial quality, with demand remaining strong across the portfolio. He highlighted a “generational inflection” in defense demand, robust commercial aerospace backlogs and aftermarket, and exceptional growth in industrial data-center cooling. His tone was constructive and confident, but he repeatedly stressed execution, capacity expansion, and disciplined scaling rather than complacency.

Jennifer Walter said the quarter’s results were boosted by a $30 million tariff refund in operating profit, equal to 270 bps of margin and about $0.70 of EPS. She broke out Q3 segment performance, noting space and defense margin of 15.7%, military aircraft at 14.7%, commercial aircraft at 15.2%, and industrial at 19.9%. She also emphasized strong cash generation, with $133 million of free cash flow, relatively stable working capital despite sales growth, and leverage at 1.5x. On capital allocation, she said priorities remain organic growth first, with strategic bolt-on acquisitions as a complement.

Analysts focused on data-center cooling, missile programs, MV-75, tariff refunds, and acquisition strategy. Management said data-center cooling demand is mainly from one hyperscaler through two CDU manufacturers, sales are nearing $100 million this fiscal year from about $25 million in fiscal 25, and two products should be in production during fiscal 27. On missiles, management said FY26 missile program revenue should be around $275 million, that 7-year agreements have not yet flowed into backlog, and that scaling will require mostly test equipment and added production lines rather than heavy machining. On MV-75, Moog said workflow has not slowed and Q4 is included in guidance; on acquisitions, Jennifer Walter said the company is still focused on bolt-ons, but is more ready to integrate them than a few years ago.