Moog Inc. Q2 FY2026 earnings call

• Delivered outstanding second quarter with double-digit revenue growth, second highest revenue on record, strong segments, record backlog. • Defense market has increased need for U.S. defense industrial manufacturing capacity, Moog partnering with primes/agencies. • Commercial aerospace demand strong, managing inventory. • Industrial markets stable. • 3 leadership priorities: customer focus, people/community/planet, financial strength. • Artemis II mission role, received supplier awards. • Investing in capacity, simplifying operations, 80/20 mindset. • Refinanced debt, simplified supply chain, inventory destocking. • Updating guidance based on strong first half and positive market outlook

Second quarter sales were $1.1 billion, 13% higher than last year. Space and Defense: $314 million, up 16%, strong defense demand. Commercial Aircraft: $247 million, up 15%, driven by higher volume and pricing. Military Aircraft: $235 million, up 10%, MV-75 program activity. Industrial: $256 million, up 9%, data center cooling market. Adjusted operating margin 13.4%, up 90 basis points from last year. Excluding charges, margins varied by segment. Guidance updated: increased sales and adjusted EPS, reaffirmed operating margin and free cash flow conversion. Space and Defense and Industrial guidance increased, Commercial Aircraft decreased by $20 million, Military Aircraft increased by $25 million

• Increased sales and adjusted EPS guidance for 2026, reaffirmed operating margin and free cash flow conversion. • Space and Defense guidance increased by $35 million, Industrial by $30 million, Military Aircraft by $25 million, Commercial Aircraft decreased by $20 million. • Expect 110 basis points of tariff pressure in 2026, up 30 basis points. • Adjusted earnings per share guidance increased by $0.40 to $10.60 ±$0.20. • Third quarter EPS forecast $2.65 ±$0.10. • Free cash flow conversion expected around 60% with changes, next quarter expected 100%

• Middle Eastern war impacts: reduced flights in/out of Middle East, higher fuel costs affecting aircraft routes, potential supply chain and input cost impacts. • Tariff uncertainties and pressure, including evolving tariff landscape and impact on operating margin. • Operational challenges with physical inventories and working capital management

Q: Jon Tanwanteng asked about missile business growth outlook and Moog's position to capitalize on defense growth.

A: Moog's operational effectiveness (100% on-time, quality) wins business, technical capabilities allow scope expansion.

Q: Kristine Liwag asked about Moog's position in defense growth ahead.

A: Well positioned due to operational efficiency and technical capabilities.

Q: Gautam Khanna asked about Commercial Aircraft guidance revision.

A: Deliberate decision to manage inventory timing, not long-term change.

Q: Jon Tanwanteng asked about FLRAA MV-75 program.

A: Peak activity in second quarter due to customer and government focus, conversations about earlier flight and production