On this page of StockholderLetter.com we present the latest annual shareholder letter from MOOG INC. — ticker symbol MOG.A. Reading current and past MOG.A letters to shareholders can bring important insights into the investment thesis.

 •  12/17/2024 Letter Continued (Full PDF)
 •  12/19/2023 MOG.A Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  MOG.A Benford's Law Stock Score = 94

MOG.A Shareholder/Stockholder Letter Transcript:

moog
2024
ANNUAL REPOR T
SHAPI
NG
TH
E
W
AY
O
U
R
W
O
R
L
D
M
O
V
E

S

OFFICERS AND DIRECTORS
OFFICERS AND DIRECTORS
Left to Right: Michael Schaff, Mark Graczyk, Stuart McLachlan, Joseph Alfieri, Pat Roche, Jennifer Walter, Mark Trabert, Elwira Kelly, Paul Wilkinson
OFFICERS
Pat Roche
President; Chief Executive Officer; Director
Mark J. Trabert
Executive Vice President; Chief Operating Officer
Jennifer Walter
Executive Vice President; Chief Financial Officer
Joseph Alfieri
Vice President; President Space and Defense
Mark Graczyk
Vice President; President Military Aircraft
Stuart K. McLachlan
Nicholas Hart
Principal Accounting Officer; Controller
Elwira Kelly
Chairman; President; Chief Executive Officer of
Astronics Corporation
Senior Vice President; General Counsel and
Corporate Secretary
Kraig H. Kayser
Paul Wilkinson
Brian J. Lipke
DIRECTORS
Mahesh Narang
Executive Vice President; Chief Human Resources Officer
Janet M. Coletti
Retired Executive Vice President & Chief Human
Resources Officer of M&T Bank Corporation
Donald R. Fishback
Vice President; President Industrial
Retired Vice President & Chief Financial Officer of
Moog Inc.
Michael Schaff
William G. Gisel, Jr.
Vice President; President Commercial Aircraft
Peter J. Gundermann
Executive Vice Chair of Rich Products Corporation
Non-executive Chairman of Seneca Foods Corporation
Retired Chairman & Chief Executive Officer of
Gibraltar Industries
Executive Vice President; President Access Segment of
Oshkosh Corporation
Brenda L. Reichelderfer
Retired Senior Vice President & Managing Director of
TriVista
John R. Scannell
Non-executive Chairman and Director; Retired Chief
Executive Officer of Moog Inc.
KEY LEADERSHIP THEMES
Customer Focus     We Deliver
People, Community and Planet     We Care
Financial Strength     We Perform

Dear fellow shareholders,
This has been an exceptional year for our company.
Our relentless focus on delivering for our customers,
caring for our employees and driving improved
financial performance is clear in our accomplishments.
The impressive performance demonstrates the
effective execution of our strategy to build a stronger
and more valuable company for all stakeholders.
Moog employees are motivated by a passionate sense
of purpose. They know their work benefits millions of
people by enhancing national security, ensuring safe
transportation, supporting sustainable factories and
improving patients    quality of life. We offer a compelling
proposition to our customers: deep collaboration to
solve their most difficult technical challenges, in
applications when performance really matters, using
our depth of technical capabilities from components
to complex systems. Our vision is to deliver such a
profound impact for generations to come, accomplished
by investing in our business, our people and our innovation.
In 2023, we showed a clear path to significantly increase
shareholder value over the coming years. We projected
that revenue growth would continue through product
innovation and the capture of secular growth across
defense and commercial end-markets. We also
committed to significant margin enhancement delivered
by the disciplined execution of our strategic pricing
and simplification initiatives. Finally, we anticipated
balancing early-stage capital investments with a
significant improvement in free cash flow over the
projection period.
It is therefore with immense pride that I reflect on
another year of exceptional performance in 2024.
We have been highly effective in executing our strategy
and have delivered in line with our 2023 investor
day plans: stronger revenue growth than predicted,
solid margin enhancement in line with our plans,
and improved free cash flow. This significant
success comes from focusing on three key themes:
customer focus; people, community and planet;
and financial strength.
Customer Focus
A detailed Voice of Customer initiative conducted this
year confirmed that our customers see us as a partner
who delivers quality and technologically advanced
products. In this regard, we were delighted to receive
customer and industry recognitions for innovation and
supplier excellence. We also received excellent
feedback from AS9100, FAA and FDA audits, reflecting
our commitment to quality. Additionally, we leveraged
our depth of technical capability and breadth of product
offerings to expand scope and secure the first, of
potentially several, positions on once-in-a-generation
defense applications.
Pat Roche in the newly constructed Advanced Integrated Manufacturing facility
People, Community and Planet
This year, we ranked 21st on Glassdoor   s    100 Best
Places to Work 2024        the leading position amongst
manufacturing and aerospace companies. We deeply
value our collaborative and inclusive culture, which is
a key differentiator in attracting and retaining the best
employee talent. Furthermore, it leads to deeper customer
engagement and the development of better solutions.
We also strengthened our community engagement with
targeted donations and the creation of volunteering
opportunities in a pilot program accessible to almost
40% of our workforce. Our community work supports
quality education, access to food and clean drinking
water and health and well-being that aligns with the
United Nations Sustainable Development Goals.
In addition, we advanced our environmental
sustainability agenda. Our aspiration is to reduce
greenhouse gas emissions, to cut water consumption
and to reduce hazardous wastes. We set a goal of a
40% reduction in Scope 1 and 2 greenhouse gas
emissions and a goal of a 20% reduction in water
consumption in highly stressed and extremely stressed
regions, relative to a 2022 base year. I am pleased that
through our intentional work, we have achieved
reductions in greenhouse gas emissions again in fiscal
2024 and are on track to achieve our goals by 2030.
Financial Performance
Our disciplined execution of strategic initiatives on
pricing and simplification has resulted in exceptional
financial results for 2024. We achieved record sales,
increased adjusted operating margin and adjusted
earnings per share and had positive free cash flow.
Sales growth this year was driven by our impressive
performance in both the defense and commercial
aerospace end markets. We also reached a record level
of twelve-month backlog, giving us confidence in
the continued growth of the business.
Our solid margin enhancement was achieved through
an unrelenting focus on our pricing and simplification
initiatives. Pricing is now firmly embedded in how we
work, as we continue to ensure that pricing reflects the
value we create for our customers. Simplification continues
to drive transformative change. We have evolved the
80/20 principle to be at the center of our simplification
journey, ensuring that we focus resources on our most
valued customers. The success in simplifying our business
over the last two years means we delivered almost
20% greater sales, while managing headcount increases
to just 6% and reducing factory space by more than 10%.
Moog   s strong customer value proposition has enabled
us to drive sales growth, and our strategic initiatives
have delivered solid margin enhancement. Together,
these have increased shareholder value, as recognized
by excellent stock price gains over the last 12 months,
and an outstanding three-year Total Shareholder
Return of 173%.
Our success is the result of the collective effort of
over 13,500 engaged and highly committed Moog
employees around the world, coming together every
day and working diligently to make a difference.
Their commitment ensures that we deliver for our
customers and continues to strengthen our reputation
for innovation and quality. It is my privilege to lead this
fantastic, talented and motivated group of people.
I look forward with great confidence to the coming years
at Moog. Our growth will continue through the pursuit
of attractive opportunities across our business. Our
financial performance will continue to strengthen with
a clear line of sight to further improvements as we execute
our strategic initiatives. We are delivering substantial
performance improvement, in line with our 2023 investor
day plans, and I look forward to further successes in
the coming year.
I would like to thank you, our shareholders, for your
belief in our company.
Respectfully submitted,
Pat Roche
President, Chief Executive Officer, Director
CEO MESSAGE
CEO MESSAGE

(USD in millions except for earnings per share)
SALES
OPERATING MARGIN
12.4%
$ 3,609
$ 3,319
$ 3,036
9.3%
FY 2022
10.3% 10.9%
FY 2022
FY 2024
FY 2023
10.2%
FY 2023
11.0%
FY 2024
       GAAP        Adjusted*
EARNINGS PER SHARE
FREE CASH FLOW*
$ 7.80
$ 6.15
$ 5.56
$ 4.83
$ 6.40
$ 21
$7
$ 5.34
$ (37)
FY 2022
FY 2024
FY 2023
FY 2022
FY 2023
       GAAP        Adjusted*
*Refer to Reconciliations of GAAP to Adjusted Results
SALES BY SEGMENT AND MARKET FY 2024
IAL
C
R
INDU
STR
IAL
ICAL
MED
INDUSTRIAL
27%
SPACE AND
DEFENSE
28%
COMMERCIAL
AIRCRAFT
22%
MILITARY
AIRCRAFT
23%
DEFENSE
CO
M
M
E
KEY FINANCIAL METRICS
KEY FINANCIAL METRICS
FY 2024

FY 2022
FY 2023
FY 2024
SPACE AND DEFENSE
$ 872
$ 947
$ 1,018
MILITARY AIRCRAFT
$ 742
$ 720
$ 812
COMMERCIAL AIRCRAFT
$ 514
$ 669
$ 788
INDUSTRIAL
$ 907
$ 983
$ 991
$ 3,036
$ 3,319
$ 3,609
OPERATING PROFIT
$ 283
$ 343
$ 395
ADJUSTED OPERATING PROFIT*
$ 308
$ 362
$ 449
ADJUSTED OPERATING PROFIT MARGIN*
10.2%
10.9%
12.4%
NET EARNINGS
$ 155
$ 171
$ 207
DILUTED NET EARNINGS PER SHARE
$ 4.83
$ 5.34
$ 6.40
ADJUSTED DILUTED NET EARNINGS PER SHARE*
$ 5.56
$ 6.15
$ 7.80
32.1
32.0
32.4
$ 3,432
$ 3,808
$ 4,128
$ 838
$ 863
$ 874
SHAREHOLDERS    EQUITY
$ 1,437
$ 1,636
$ 1,861
TWELVE-MONTH BACKLOG
$ 2,300
$ 2,420
$ 2,500
CASH FLOW FROM OPERATIONS
$ 247
$ 136
$ 202
CAPITAL EXPENDITURES
$ 139
$ 173
$ 156
$7
$ (37)
$ 21
$ 33
$ 34
$ 35
(USD in millions, except for per share data)
SALES
NET SALES
EARNINGS PER SHARE
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING (in millions)
YEAR-END FINANCIAL POSITION
TOTAL ASSETS
TOTAL DEBT
OTHER DATA
FREE CASH FLOW*
DIVIDENDS PAID
Note     numbers in tables may not add to totals due to rounding
*Refer to Reconciliations of GAAP to Adjusted Results
ULA Vulcan 2nd Certification Launch
Courtesy of ULA
SGT Stout (M-SHORAD Inc. 1)     Moog RIwP  
Courtesy of Leonardo DRS
Bell FLRAA
Moog Meteorite Spacecraft Bus
Moog CURLIN 8000 Ambulatory Infusion Pump
Gulfstream G400
Courtesy of Bell Textron Inc.
Courtesy of Gulfstream
HISTORICAL FINANCIALS
HISTORICAL FINANCIALS



 12/17/2024 Letter Continued (Full PDF)