NYSE:MOG-A
MOOG INC.
A premier provider of precision motion control systems serving the aerospace, defense, and industrial automation industries.
Key Metrics
Investment Thesis
Bull Case
MOOG-A is an attractive investment for growth-oriented investors seeking exposure to the expanding industrial automation market and resilient defense spending. The company's consistent revenue growth from $3.32B in 2023 to $3.86B in 2025 demonstrates robust demand for its precision motion control solutions, supported by a healthy balance sheet with $62M in cash equivalents.
Bear Case
Investors should be cautious regarding the company's high level of debt relative to equity, with total liabilities at $2.43B against only $1.99B in shareholders' equity. The significant accumulated other comprehensive loss of -$157.7M and a large retained earnings deficit suggest historical volatility or non-operational losses that may impact future valuation multiples.
About MOOG INC.
MOOG Inc. (MOG-A) designs, manufactures, and markets motion control systems for aerospace, defense, industrial automation, and energy sectors. The company serves global markets with high-precision components including actuators, servomechanisms, and structural assemblies critical to advanced manufacturing and national security applications.
Analysis
Management Discussion
MOOG delivered strong financial performance in 2025 with revenue reaching $3.86B and net income of $235M, reflecting a consistent growth trajectory over the last five years. Operational efficiency was evident as cash flow from operations ($273.1M) significantly exceeded net profit, indicating high quality earnings, though substantial capital expenditures ($144.7M) were required to maintain production capacity and modernize facilities.
Industry Overview
The motion control industry is experiencing robust expansion driven by the shift towards Industry 4.0, electrification of transportation, and increased investment in national defense infrastructure. This sector requires specialized manufacturing capabilities that only a few companies possess, creating a barrier to entry that protects established players like MOOG from commoditization.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.32B | $3.61B | $3.86B |
| Cost of Revenue | $2.42B | $2.61B | $2.79B |
| Gross Profit | $891.5M | $996.9M | $1.06B |
| Operating Expenses | $548.6M | $601.6M | $607.7M |
| Operating Income | $342.9M | $395.3M | $449.6M |
| R&D | $106.6M | $112.8M | $93.7M |
| G&A | $469.8M | $494.9M | $554.0M |
| Stock-Based Comp | $10.6M | $15.0M | $16.7M |
| D&A | $90.2M | $93.1M | $103.7M |
| Depreciation | $78.7M | $83.0M | $94.0M |
| Amortization | $11.5M | $10.1M | $9.7M |
| Other OpEx | $-27.8M | $-6.1M | $-39.9M |
| Non-Operating Income | $-126.9M | $-127.5M | $-137.0M |
| Interest Expense | $63.6M | $62.1M | $72.1M |
| Pre-Tax Income | $216.1M | $267.8M | $312.6M |
| Income Tax | $45.1M | $60.6M | $77.6M |
| Continuing Ops | $171.0M | $207.2M | $235.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $171.0M | $207.2M | $235.0M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $171.0M | $207.2M | $235.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.99B | $2.14B | $2.37B |
| Cash & Equivalents | $69.0M | $61.7M | $62.0M |
| Inventory | $724.0M | $863.7M | $914.3M |
| Prepaid Expenses | $50.9M | $86.2M | $142.3M |
| Other Current Assets | $1.14B | $1.13B | $1.25B |
| Long-Term Assets | $1.82B | $1.95B | $2.06B |
| PP&E (Net) | $814.7M | $929.4M | $1.02B |
| Intangibles | $71.6M | $63.5M | $66.1M |
| Goodwill | $821.3M | $833.8M | $842.3M |
| Operating Leases | $56.1M | $52.6M | $52.8M |
| Other LT Assets | $59.0M | $73.7M | $75.0M |
| Total Assets | $3.81B | $4.09B | $4.43B |
| Current Liabilities | $965.5M | $999.0M | $1.12B |
| Accounts Payable | $264.6M | $293.0M | $318.4M |
| Current Debt | $0 | — | $1.6M |
| Current Leases | $11.3M | $11.1M | $11.7M |
| Deferred Revenue | $378.0M | $299.7M | $373.0M |
| Taxes Payable | $29.6M | $52.0M | $30.4M |
| Other Current Liab | $70.2M | $38.0M | $64.0M |
| Long-Term Liabilities | $1.21B | $1.23B | $1.31B |
| Long-Term Debt | $863.1M | $874.1M | $944.1M |
| LT Operating Leases | $56.4M | $53.2M | $52.5M |
| Other LT Liab | $287.0M | $306.6M | $317.8M |
| Total Liabilities | $2.17B | $2.23B | $2.43B |
| Shareholders' Equity | $1.64B | $1.86B | $1.99B |
| Paid-In Capital | $608.3M | $784.5M | $839.3M |
| Retained Earnings | $2.50B | $2.67B | $2.83B |
| AOCI | $-254.6M | $-203.8M | $-157.7M |
| Treasury Stock | $1.06B | $1.08B | $1.21B |
| Total L&E | $3.81B | $4.09B | $4.43B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $171.0M | $207.2M | $235.0M |
| Non-Cash Adjustments | $-451.5M | $-114.1M | $-272.1M |
| Working Capital Changes | $416.5M | $109.2M | $310.2M |
| Cash from Operations | $135.9M | $202.3M | $273.1M |
| Capital Expenditures | $173.3M | $156.0M | $144.7M |
| Cash from Investing | $-163.1M | $-159.6M | $-175.3M |
| Share Buybacks | $29.3M | $36.7M | $142.7M |
| Dividends Paid | $34.1M | $35.5M | $36.4M |
| Cash from Financing | $-23.0M | $-48.7M | $-98.3M |
| FX Effect | $2.0M | $1.3M | $-1.9M |
| Net Change in Cash | $-48.2M | $-4.6M | $-2.3M |
| Beginning Cash | $117.3M | $69.1M | $64.5M |
| Ending Cash | $69.1M | $64.5M | $62.2M |
Frequently Asked Questions
How does MOOG INC. make money?
Revenue is primarily derived from three core segments: Aerospace and Defense, which supplies flight control actuators and mission-critical components; Industrial Automation, providing high-precision servomechanisms for manufacturing machinery; and Energy, offering specialized solutions for power generation and oil and gas exploration equipment.
What are the main risks for MOG-A?
Significant concentration risk exists due to heavy dependence on the aerospace and defense sectors, which are susceptible to government budget cuts and supply chain disruptions. Global inflationary pressures on raw materials like aluminum and steel could erode margins, while intense competition from lower-cost manufacturers in emerging markets threatens long-term pricing power.
What is MOG-A's competitive advantage?
The company maintains a deep moat through decades of proprietary technology and specialized engineering expertise required for high-stakes aerospace applications. Long-term contracts with major original equipment manufacturers (OEMs) provide revenue stability, while a diverse customer base across defense, industrial, and energy sectors mitigates reliance on any single market cycle.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.