Moog Inc. (MOG-A) SEC Filings & Earnings Calls

Contract loss reserves

“As of June 27, 2026, we had contract reserves of $84,173 (thousands).” · word for word

Asset impairment

“In the third quarter of 2026, we recorded impairment charges of $5,058 for capitalized software costs... and $1,626 for owned assets in conjunction with exiting a product line within our Industrial segment.” · word for word

Dependence on tariff refund claims for margin expansion; sustainability uncertain.

“Operating margin benefitted from $30 million of claims related to previously incurred IEEPA tariffs, which accounted for 270 basis points of incremental margin.”

Income tax benefits from prior year R&D credits and simplification initiatives are non-recurring.

“Recognized income tax benefits related to U.S. federal research credits of $35 million related to prior years and $8 million discrete benefit from legal entity simplification.”

Tariff pressure partially offsetting margin gains, particularly in Industrial and Commercial Aircraft segments.

“partially offset by tariff pressure... Industrial adjusted operating margin decreased 20 basis points to 13.2%... as tariff pressure offset simplification benefits.”

Contract loss reserves on fixed-price development contracts

“Loss reserves are more common on firm fixed-price contracts that involve, to varying degrees, the design and development of new and unique controls or control systems to meet the customers’ specifications.” · word for word

Foreign exchange exposure

“We recorded net loss on foreign currency contracts of $3,335 for the three months ended March 28, 2026.”

Higher interest expense from coupon increase (4.250% to 5.500%) may pressure net income.

“5.500% Senior Notes due 2034 ... 4.250% Senior Notes due 2027”

Higher coupon on new notes increases interest expense

“New notes at 5.500% vs redeemed notes at 4.250%.”

Refinancing extends debt maturity, reducing near-term refinancing risk

“New notes due 2034 replace notes due 2027.”

Increased debt load with 5.500% coupon; refinancing risk if not executed.

“5.500% senior notes due 2034” · word for word

Refinancing at higher coupon (5.500% vs 4.250%) increases interest expense.

“5.500% senior notes due 2034 ... redeem ... 4.250% Senior Notes due 2027”

Contract loss reserves on fixed-price development contracts

“Loss reserves are more common on firm fixed-price contracts that involve, to varying degrees, the design and development of new and unique controls or control systems to meet the customers’ specifications.” · word for word

Working capital intensity

“Net cash used by operating activities was $44.8 million in Q1 2026, driven by increases in receivables and unbilled receivables.”

Tariff pressure on margins, particularly in Commercial Aircraft segment.

“Commercial Aircraft operating margin decreased 120 basis points to 10.6%, driven by tariff pressure.” · word for word

Free cash flow negative due to working capital investment for growth.

“Free cash flow was a use of $79 million, driven primarily by cash used by physical inventories to support growth.” · word for word

Material weakness in internal controls

“EY’s report on the Company’s internal control over financial reporting as of September 27, 2025 contained an adverse opinion, specifically, that the Company had not maintained effective internal control over financial reporting as of September 27, 2025, due to the effect of a material weakness identified by management in the design and operation of its contr” · word for word

Customer dispute and program termination costs

“Our reported earnings per share for fiscal 2025 of $7.33 included $1.36 per share of charges primarily associated with simplification initiatives, costs associated with a dispute with a customer and program terminations.” · word for word

Material weakness in internal controls

“We identified a material weakness in the design and operation of our controls over a distinct group of long-term aftermarket service revenue contracts in our Commercial Aircraft segment.” · word for word

Customer concentration

“Net sales to our five largest customers represented approximately 31% of our 2025 sales.” · word for word

Fixed-price contract risk

“In 2025, fixed-price contracts represented 90% of our over-time sales that we account for using the cost-to-cost method.” · word for word

Supply chain disruption

“A constrained supply chain could have a material impact on our ability to manufacture and ship products.” · word for word

Input cost inflation

“The prices for materials and components used in our products has increased, adding additional pressures to our operating margins.” · word for word

Tariff pressure impacting margins, especially in Commercial Aircraft segment

“Commercial Aircraft operating margin decreased 400bps to 11.4% primarily due to tariff pressure and unfavorable sales mix.”

No material risk; plan is standard deferred compensation.

“Plan is unsecured general obligation; no immediate cash impact.”