# MOOG INC. (MOG-A)

Informational only - not investment advice.

CIK: 0000067887
SIC: 3590 Misc Industrial & Commercial Machinery & Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3590 Misc Industrial & Commercial Machinery & Equipment](/industry/3590/)
Latest 10-K filed: 2025-11-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=67887
Filing source: https://www.sec.gov/Archives/edgar/data/67887/000162828025054103/mog-20250927.htm

## At a glance

FY2025 · period end 2025-09-27 · filed 2025-11-26 · accession 0001628280-25-054103 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000067887.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 3,860,624,000 USD | 2025 | verified |
| Net income | 235,028,000 USD | 2025 | verified |
| Assets | 4,426,055,000 USD | 2025 | verified |
| Free cash flow | 128,355,000 USD | 2025 | computed |
| Net margin | 6.09% | 2025 | computed |
| Operating margin | 11.65% | 2025 | computed |
| Revenue YoY | +6.97% | 2025 | computed |
| ROE | 11.80% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MOG-A | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 6.1% | 7.7% | 39 | 110 |
| Operating margin | 11.6% | 13.1% | 43 | 104 |
| Revenue growth | 7.0% | 5.8% | 54 | 111 |
| FCF margin | 3.3% | 9.6% | 23 | 103 |
| ROE | 11.8% | 11.7% | 50 | 108 |
| ROA | 5.3% | 5.6% | 47 | 111 |
| Liabilities / equity | 1.22 | 1.10 | 55 | 108 |
| Current ratio | 2.12 | 2.02 | 53 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 3860624000 | USD | 2025 | 2025-11-26 |
| Net income | 235028000 | USD | 2025 | 2025-11-26 |
| Assets | 4426055000 | USD | 2025 | 2025-11-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000067887.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 2,411,937,000 | 2,497,524,000 | 2,709,468,000 | 2,904,663,000 | 2,884,554,000 | 2,851,993,000 | 3,035,783,000 | 3,316,190,000 | 3,608,960,000 | 3,860,624,000 |
| Net income | 126,745,000 | 141,280,000 | 95,240,000 | 174,548,000 | 9,205,000 | 157,220,000 | 155,177,000 | 175,156,000 | 208,786,000 | 235,028,000 |
| Operating income | 238,242,000 | 258,847,000 | 262,351,000 | 321,142,000 | 216,362,000 | 270,959,000 | 282,848,000 | 344,038,000 | 404,465,000 | 449,606,000 |
| Gross profit | 711,583,000 | 733,766,000 | 774,091,000 | 815,832,000 | 743,696,000 | 775,723,000 | 820,801,000 | 897,755,000 | 1,012,408,000 | 1,057,348,000 |
| Diluted EPS | 3.47 | 3.90 | 2.64 | 4.96 | 0.28 | 4.87 | 4.83 | 5.47 | 6.45 | 7.33 |
| Operating cash flow | 215,854,000 | 217,780,000 | 102,407,000 | 181,423,000 | 279,177,000 | 293,226,000 | 246,802,000 | 139,651,000 | 197,862,000 | 273,086,000 |
| Capital expenditures | 67,208,000 | 75,798,000 | 94,517,000 | 118,422,000 | 88,284,000 | 128,734,000 | 139,431,000 | 177,309,000 | 151,995,000 | 144,731,000 |
| Dividends paid | 0.00 | 0.00 | 17,889,000 | 34,857,000 | 25,210,000 | 32,106,000 | 32,970,000 | 34,074,000 | 35,476,000 | 36,430,000 |
| Share buybacks | 44,933,000 | 8,643,000 | 8,218,000 | 40,955,000 | 232,290,000 | 31,673,000 | 48,558,000 | 29,306,000 | 36,738,000 | 142,707,000 |
| Assets | 3,004,974,000 | 3,090,592,000 | 2,964,048,000 | 3,114,237,000 | 3,225,831,000 | 3,433,169,000 | 3,431,840,000 | 3,980,265,000 | 4,181,848,000 | 4,426,055,000 |
| Liabilities | 2,010,912,000 | 1,876,288,000 | 1,739,062,000 | 1,791,756,000 | 1,982,748,000 | 2,033,025,000 | 1,995,028,000 | 2,302,524,000 | 2,395,314,000 | 2,433,500,000 |
| Stockholders' equity | 988,411,000 | 1,214,304,000 | 1,224,986,000 | 1,322,481,000 | 1,243,083,000 | 1,400,144,000 | 1,436,813,000 | 1,677,741,000 | 1,786,534,000 | 1,992,555,000 |
| Cash and cash equivalents | 325,128,000 | 368,073,000 | 125,584,000 | 89,702,000 | 84,583,000 | 99,599,000 | 101,990,000 | 126,398,000 | 73,448,000 | 62,013,000 |
| Free cash flow | 148,646,000 | 141,982,000 | 7,890,000 | 63,001,000 | 190,893,000 | 164,492,000 | 107,371,000 | -37,658,000 | 45,867,000 | 128,355,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 5.25% | 5.66% | 3.52% | 6.01% | 0.32% | 5.51% | 5.11% | 5.28% | 5.79% | 6.09% |
| Operating margin | 9.88% | 10.36% | 9.68% | 11.06% | 7.50% | 9.50% | 9.32% | 10.37% | 11.21% | 11.65% |
| Return on equity | 12.82% | 11.63% | 7.77% | 13.20% | 0.74% | 11.23% | 10.80% | 10.44% | 11.69% | 11.80% |
| Return on assets | 4.22% | 4.57% | 3.21% | 5.60% | 0.29% | 4.58% | 4.52% | 4.40% | 4.99% | 5.31% |
| Liabilities / equity | 2.03 | 1.55 | 1.42 | 1.35 | 1.60 | 1.45 | 1.39 | 1.37 | 1.34 | 1.22 |
| Current ratio | 2.59 | 2.58 | 2.17 | 2.24 | 2.27 | 1.98 | 2.09 | 2.04 | 2.40 | 2.12 |

## As-reported value updates

14 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/MOG-A/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000067887.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-04-02 |  |  | 0.91 | reported discrete quarter |
| 2022-Q3 | 2022-07-02 |  |  | 1.57 | reported discrete quarter |
| 2023-Q1 | 2022-12-31 |  |  | 1.44 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 | 836,792,000 | 43,013,000 | 1.34 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 | 850,176,000 | 42,387,000 | 1.32 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 872,051,000 | 39,582,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-30 | 856,850,000 | 47,812,000 | 1.48 | reported discrete quarter |
| 2024-Q2 | 2024-03-30 | 930,303,000 | 60,003,000 | 1.86 | reported discrete quarter |
| 2024-Q3 | 2024-06-29 | 904,735,000 | 56,360,000 | 1.74 | reported discrete quarter |
| 2024-Q4 | 2024-09-28 | 917,272,000 | 43,045,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-28 | 910,315,000 | 53,113,000 | 1.64 | reported discrete quarter |
| 2025-Q2 | 2025-03-29 | 934,840,000 | 55,754,000 | 1.75 | reported discrete quarter |
| 2025-Q3 | 2025-06-28 | 971,363,000 | 59,707,000 | 1.87 | reported discrete quarter |
| 2025-Q4 | 2025-09-27 | 1,044,106,000 | 66,454,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q3 | 2026-06-27 | 1,116,545,000 | 152,025,000 | 4.74 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MOG-A's latest 10-K: [/company/MOG-A/business/](/company/MOG-A/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MOG-A's latest 10-K: [/company/MOG-A/risk-factors/](/company/MOG-A/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/67887/000162828026051294/mog-20260627.htm

Extracted from Part I Item 2 to the first post-MD&A boundary after HTML sanitization. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-27

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Company’s Annual Report filed on Form 10-K for the fiscal year ended September 27, 2025. In addition, the following should be read in conjunction with our Consolidated Financial Statements and Notes to Consolidated Financial Statements contained herein. All references to years in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are to fiscal years. Amounts may differ due to rounding as dollar and percentage variances are computed based on reported values.

OVERVIEW

We are a worldwide designer, manufacturer and systems integrator of high performance precision motion and fluid control and control systems for a broad range of applications. We primarily operate in the aerospace and defense market, and also operate in the industrial and medical markets.

Within the aerospace and defense market, our products and systems include:

•Defense market - primary and secondary flight controls and components for military aircraft, tactical and strategic missile steering controls, defense ground vehicle systems including turreted weapon systems and various other defense components.

•Commercial aircraft market - primary and secondary flight controls and components for commercial aircraft.

•Space market - satellite avionics, propulsion and positioning controls and components, launcher thrust vector controls and components, as well as integrated space vehicles.

Outside of the aerospace and defense market, our products and systems in the industrial and medical markets span a wide range of applications including:

•Industrial market - various components and systems used in applications including: heavy industrial machinery used for metal forming and pressing, flight simulation motion control systems, energy exploration and generation products, material and automotive structural and fatigue testing systems, as well as liquid cooling pumps used in data centers.

•Medical market - pumps and sets for enteral clinical nutrition and infusion therapy, slip rings used in CT scan medical equipment and various components used in ultrasonic sensors and surgical handpieces.

We operate under four segments, Space and Defense, Military Aircraft, Commercial Aircraft and Industrial. Our principal manufacturing facilities are located in the United States, Philippines, United Kingdom, Germany, Italy, Costa Rica, China, Netherlands, Japan, Canada, India and Lithuania.

Under ASC 606, 64% of revenue was recognized over time for the three months ended June 27, 2026, using the cost-to-cost method of accounting. The over-time method of revenue recognition is predominantly used in Space and Defense, Military Aircraft and Commercial Aircraft. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date.

For the three months ended June 27, 2026, 36% of revenue was recognized at the point in time control transferred to the customer. This method of revenue recognition is used most frequently in Industrial. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized.

Our products and technologies affect millions of people worldwide. Our solutions preserve national security, ensure safe air transportation, reduce industrial factory emissions and enhance patients' lives, while driving innovation. Moog engineers collaboratively design and manufacture the most advanced motion control products, to the highest quality standards, for use in demanding applications. By building on these core foundational capabilities, we believe we have achieved a leadership position in the high-performance, precision controls market, and are "Shaping the way our world moves™."

30

Table of Contents

We leverage our engineering expertise and close customer relationships to solve complex technical problems. This approach has allowed us to expand, organically and through acquisitions, our high-performance components business to also offer the design, manufacture and integration of high-performance systems across multiple markets. We continue to expand our content on existing platforms as well, seeking to be the leading precision motion-controls supplier across the niche markets we serve. We are also modernizing operations through productivity-enhancing technologies and targeted talent development to strengthen operational performance.

Our long-term strategies to achieve our financial objectives focus on pricing and simplification initiatives. Our pricing strategy seeks recognition for the value we deliver to our customers across our markets. Our simplification initiatives, guided by 80/20 principles, include:

•shaping our product and business portfolio to invest in growth areas and to divest non-core assets,

•rationalizing our global footprint to meet current and future business volumes,

•focusing our factories to meet the specific needs of each market, and

•investing in automation and technologies to improve operational efficiency.

We aim to improve shareholder value through strategic revenue growth, both organic and acquired, manufacturing and operating efficiencies and utilizing low-cost manufacturing facilities without compromising quality. Historically and over the long-term, our capital deployment strategy has balanced strategic acquisitions, share buybacks and dividend payments to maximize shareholder returns. In the near term, our capital deployment prioritizes investing in our organic growth while opportunistically pursuing acquisitions that complement our business.

Acquisitions and Assets Held for Sale

See Note 3 - Acquisitions and Assets Held for Sale in the Consolidated Financial Statements included in Item 1, Financial Statements of this report for details.

CRITICAL ACCOUNTING POLICIES

On a regular basis, we evaluate the critical accounting policies used to prepare our consolidated financial statements, including revenue recognition on long-term contracts, contract reserves, reserves for inventory valuation and income taxes.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 1 - Basis of Presentation in the Consolidated Financial Statements included in Item 1, Financial Statements of this report for further information regarding Financial Accounting Standards Board issued ASUs.

U.S. GOVERNMENT TARIFFS AND IEEPA TARIFF REFUND CLAIMS

On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were invalid. Following the ruling and related proceedings before the U.S. Court of International Trade (“CIT”), U.S. Customs and Border Protection (“CBP”) established a process to request refunds of certain tariffs previously paid under IEEPA.

We have paid IEEPA tariffs to the U.S. government and subsequently submitted refund requests to recover those amounts. Based on the following: the U.S. Supreme Court’s ruling, related CIT proceedings, CBP’s refund process, our receipt of $10 million of cash refunds under the initial phase of the refund process, our submission of refund requests for the remaining amounts and our assessment of the recoverability of amounts paid, we have concluded that recovery of previously incurred IEEPA tariffs is probable under a loss recovery accounting model.

During the three and nine months ended June 27, 2026, we recognized $30 million for the recovery of previously incurred IEEPA tariffs. This amount included $10 million of cash refunds received and $20 million recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets as of June 27, 2026. The recovery was recorded as a reduction of cost of sales in the Consolidated Statements of Earnings for the three and nine months ended June 27, 2026.

31

Table of Contents

[[GREPCENT_TABLE]]
[["CONSOLIDATED RESULTS OF OPERATIONS"],["","Three Months Ended","","Nine Months Ended"],["(In millions, except per share data)","June 27, 2026","June 28, 2025","$ Variance","% Variance","","June 27, 2026","June 28, 2025","$ Variance","% Variance"],["Net sales","$","1,117","","$","970","","$","147","","15","%","","$","3,269","","$","2,811","","$","457","","16","%"],["Gross margin","31.1","%","27.5","%","","","","28.4","%","27.3","%"],["Research and development expenses","33","","22","","11","","51","%","","84","","70","","14","","20","%"],["Selling, general and administrative expenses as a percentage of sales","13.5","%","14.4","%","","","","13.3","%","14.3","%"],["Interest expense","16","","18","","(2)","","(11","%)","","49","","54","","(5)","","(9","%)"],["Asset impairment and fair value adjustment","7","","3","","4","","","","7","","3","","4"],["Restructuring expense","2","","3","","(1)","","","","5","","9","","(4)"],["Other","1","","5","","(4)","","","","1","","8","","(8)"],["Effective tax rate","(10.6)","%","23.4","%","","","","10.0","%","23.4","%"],["Net earnings","$","152","","$","58","","$","94","","160","%","","$","313","","$","171","","$","142","","83","%"],["Diluted earnings per share","$","4.74","","$","1.83","","$","2.91","","159","%","","$","9.76","","$","5.32","","$","4.44","","83","%"],["Twelve-month backlog","","","","","","$","3,250","","$","2,650","","$","600","","23","%"]]
[[/GREPCENT_TABLE]]

Net sales increased across all our segments in the third quarter and in the first three quarters of 2026 compared to the third quarter and the first three quarters of 2025.

Gross margin increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by IEEPA tariff refund claims across all our segments, as well as by business performance.

Research and development expenses increased in the third quarter and first three quarters of 2026 compared to the prior year periods, driven by activities supporting our current and future growth programs in Space and Defense.

Selling, general and administrative expenses as a percentage of sales decreased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, reflecting the incremental benefit from higher sales volume.

Interest expense decreased in the third quarter of 2026 compared to the third quarter of 2025, driven by lower outstanding debt balances. Interest expense decreased in the first three quarters of 2026 compared to the first three quarters of 2025, driven by lower outstanding debt balances and lower interest rates.

In the third quarter and first three quarters of 2026 and in the third quarter and first three quarters of 2025, we incurred restructuring charges for various simplification activities, primarily within Industrial and Space and Defense.

The effective tax rate was lower in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by our re-evaluation and adjustment of our domestic research and development tax credits. For further information, refer to Note 14 - Income Taxes.

The twelve-month backlog as of June 27, 2026 increased as compared with the twelve-month backlog as of June 28, 2025. Within Commercial Aircraft, we had higher orders for narrowbody and widebody OEM programs. Military Aircraft's twelve-month backlog increased

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/67887/000162828025054103/mog-20250927.htm
Complete FY 2025 MD&A: /company/MOG-A/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-26
Report date: 2025-09-27

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and the related notes appearing elsewhere in this report.

This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those under the heading “Risk Factors” in Item 1A of this report.

OVERVIEW

We are a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems for a broad range of applications in aerospace and defense and industrial markets.

Within the aerospace and defense market, our products and systems include:

•Defense market - primary and secondary flight controls and components for military aircraft, tactical and strategic missile steering controls, defense ground vehicle systems including turreted weapon systems and various other defense product components.

•Commercial aircraft market - primary and secondary flight controls and components for commercial aircraft.

•Space market - satellite avionics, propulsion and positioning controls and components, launcher thrust vector controls and components, as well as integrated space vehicles.

In the industrial market, our products are used in a wide range of applications including:

•Industrial market - various components and systems used in applications including: heavy industrial machinery used for metal forming and pressing, flight simulation motion control systems, energy exploration and generation products, material and automotive structural and fatigue testing systems, as well as liquid cooling pumps used in data centers.

•Medical market - pumps and sets for enteral clinical nutrition and infusion therapy, slip rings used in CT scan medical equipment and various components used in ultrasonic sensors and surgical handpieces.

We operate under four segments, Space and Defense, Military Aircraft, Commercial Aircraft and Industrial. Our principal manufacturing facilities are located in the United States, Philippines, United Kingdom, Germany, Italy, Costa Rica, China, Netherlands, Japan, Canada, India and Lithuania.

Under ASC 606, 64% of revenue was recognized over time for the year ended September 27, 2025, using the cost-to-cost method of accounting. The over-time method of revenue recognition is predominantly used in Space and Defense, Military Aircraft and Commercial Aircraft. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date.

For the year ended September 27, 2025, 36% of revenue was recognized at the point in time control transferred to the customer. This method of revenue recognition is used most frequently in Industrial. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized.

Our products and technologies affect millions of people worldwide. Our solutions preserve national security, ensure safe air transportation, reduce industrial factory emissions and enhance patients' lives, while driving innovation. Our engineers collaboratively design and manufacture the most advanced motion control products, to the highest quality standards, for use in demanding applications. By building on these core foundational capabilities, we believe we have achieved a leadership position in the high-performance, precision controls market, and are "Shaping The Way Our World Moves™."

23

We leverage our engineering expertise and close customer relationships to solve complex technical problems. This approach has allowed us to expand, organically and through acquisitions, our high-performance components business to also offer the design, manufacture and integration of high-performance systems across multiple markets. We continue to expand our content on existing platforms as well, seeking to be the leading precision motion-controls supplier across the niche markets we serve. We are also modernizing operations through productivity‑enhancing technologies and targeted talent development to strengthen operational performance.

Our long-term strategies to achieve our financial objectives focus on pricing and simplification initiatives. Our pricing strategy seeks recognition for the value we deliver to our customers across our markets. Our simplification initiatives, guided by 80/20 principles, include:

•shaping our product and business portfolio to invest in growth areas and divest non-core assets,

•rationalizing our global footprint to meet current and future business volumes,

•focusing our factories to meet the specific needs of each market, and

•investing in automation and technologies to improve operational efficiency.

We aim to improve shareholder value through strategic revenue growth, both organic and acquired, manufacturing and operating efficiencies and utilizing low-cost manufacturing facilities without compromising quality. Historically and over the long-term, our capital deployment strategy has balanced strategic acquisitions, share buybacks and dividend payments to maximize shareholder returns. In the near term, our capital deployment prioritizes organic growth while opportunistically pursuing acquisitions that complement our business.

Acquisitions, Divestitures and Assets Held for Sale

See Note 3 - Acquisitions, Divestitures and Assets Held for Sale, of Item 8, Financial Statements and Supplementary Data, of this report for details.

Equity Method and Other Investments

See Note 9 - Equity Method and Other Investments, of Item 8, Financial Statements and Supplementary Data, of this report for details.

24

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our financial statements and accompanying notes are prepared in accordance with U.S. generally accepted accounting principles. The preparation of these consolidated financial statements requires us to make estimates, assumptions and judgments that affect the amounts reported. These estimates, assumptions and judgments are affected by our application of accounting policies, which are discussed in Note 1 - Summary of Significant Accounting Policies, of Item 8, Financial Statements and Supplementary Data, of this report. We believe the accounting policies discussed below are the most critical in understanding and evaluating our financial results. These critical accounting policies have been reviewed with the Audit Committee of our Board of Directors.

Revenue Recognition on Over-Time Contracts

We recognize revenue from contracts with customers using the five-step model prescribed in ASC 606. For contracts that qualify for over-time treatment, we recognize revenue as control of the promised goods or services is being transferred to the customer. This is accomplished by using the cost-to-cost method of accounting, which measures progress as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. We believe this is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Changes in estimates affecting sales, costs and profits are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting. Revenue recognized using the cost-to-cost method of accounting over time for the year ended September 27, 2025 was 64% of total revenue. Revenue and cost estimates for substantially all over-time contract performance obligations are reviewed and updated quarterly. For further information, refer to Note 2 - Revenue from Contracts with Customers and Note 22 - Segments, of Item 8, Financial Statements and Supplementary Data, of this report.

Contract Reserves

At September 27, 2025, we had contract reserves of $84 million. Contract reserves are comprised of contract loss reserves, recall reserves, and contract-related reserves. Contract loss reserves are recorded for open contracts where it is anticipated that contract costs will be greater than contract income and are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations that are treated as period expenses. In accordance with ASC 606, we calculate contract losses at the contract level, versus the performance obligation level. Recall reserves are recorded when additional work is needed on completed products for them to meet contract specifications. Contract-related reserves are recorded for other reasons, such as delivery issues outside of the ordinary scope of the contract. For all three types of reserves, a provision for the entire amount of the loss is charged against income in the period in which the loss becomes known and can be reasonably estimated by management. For further information, refer to Note 2 - Revenue from Contracts with Customers, of Item 8, Financial Statements and Supplementary Data, of this report.

Reserves for Inventory Valuation

At September 27, 2025, we had net inventories of $914 million, or 39% of current assets. Reserves for inventory were $146 million, or 14% of gross inventories. Inventories are stated at the lower of cost or net realizable value with cost determined primarily on the first-in, first-out method of valuation.

We record valuation reserves to provide for slow-moving or obsolete inventory by principally using a formula-based method that increases the valuation reserve as the inventory ages. We also take specific circumstances into consideration. We consider overall inventory levels in relation to firm customer backlog in addition to forecasted demand including aftermarket sales. Changes in these and other factors, such as low demand and technological obsolescence, could cause us to increase our reserves for inventory valuation, which would negatively impact our gross margin. As we record provisions within cost of sales to increase inventory valuation reserves, we establish a new, lower cost basis for the inventory.

25

Income Taxes

Our annual tax rate is based on our earnings before tax by jurisdiction, applicable statutory tax rates, the impacts of permanent differences, tax incentives and tax planning opportunities in the various jurisdictions in which we operate.  Significant judgment is required in determining our annual tax rate and in evaluating our tax positions.

An estimated annual effective tax rate is applied to our quarterly ordinary operating results. For certain significant, unusual or infrequent events, we recognize the tax impact in the quarter in which it occurs.

We record reserves against tax benefits when it’s more likely than not that we will not sustain a position if the appropriate taxing jurisdiction had full information and examined our position. We adjust these reserves when facts and circumstances change, such as when progress is made by taxing authorities in their review of our position. There is a considerable amount of judgment in making these assessments. There were no significant reserves taken in 2024. 

Val

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MOG-A/mda/fy2025/
All MD&A years: /company/MOG-A/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MOG-A/mda/fy2024/): filed 2024-11-27; accession 0000067887-24-000166 (https://www.sec.gov/Archives/edgar/data/67887/000006788724000166/mog-20240928.htm)
- [FY 2023 MD&A](/company/MOG-A/mda/fy2023/): filed 2023-11-14; accession 0000067887-23-000115 (https://www.sec.gov/Archives/edgar/data/67887/000006788723000115/mog-20230930.htm)
- [FY 2022 MD&A](/company/MOG-A/mda/fy2022/): filed 2022-11-14; accession 0000067887-22-000089 (https://www.sec.gov/Archives/edgar/data/67887/000006788722000089/mog-20221001.htm)
- [FY 2021 MD&A](/company/MOG-A/mda/fy2021/): filed 2021-11-15; accession 0000067887-21-000065 (https://www.sec.gov/Archives/edgar/data/67887/000006788721000065/mog-20211002.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3590 Misc Industrial & Commercial Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MOG-A.md · JSON record: /company/MOG-A.json · verified financials: /company/MOG-A/financials.json / /company/MOG-A/financials.csv · machine TOC for the whole site: /llms.txt