Moog Inc. (MOG.B) Business Profile

What it does

Moog designs and manufactures precision motion and fluid controls: products that help equipment move, steer or regulate fluids. It also integrates components into control systems for aerospace, defense and industrial applications. The company is headquartered in Elma. Pat Roche is its chief executive officer.

For aircraft, Moog supplies primary and secondary flight controls and components used on both military and commercial planes. Its defense products include missile steering controls and systems for ground vehicles, including turreted weapons. In space, it provides satellite electronics, propulsion and positioning controls, launcher thrust-vector controls and integrated space vehicles.

Industrial customers use its components and systems in machinery for metal forming and pressing, flight simulators, energy exploration and generation, and materials and automotive testing. Its industrial products also include liquid-cooling pumps used in data centers. Medical products include pumps and sets for clinical nutrition and infusion therapy, as well as components used in scanning and surgical equipment.

Moog sells to equipment manufacturers and to end users that need parts, repairs and overhauls after equipment is in service. It operates through four segments: Space and Defense, Military Aircraft, Commercial Aircraft and Industrial. Its sales staff work with customers to understand their control requirements and connect them with Moog’s engineers.

How it makes money

Moog earns revenue by designing and supplying components and integrated control systems, and by supporting those products after delivery. Its aftermarket work includes spare and replacement parts, repairs and overhauls. Aftermarket sales accounted for 14% of total sales in 2025; the major aftermarket customers were the U.S. Government and commercial airlines.

The four segments serve different equipment markets. Space and Defense supplies satellite and launcher controls, missile steering controls and ground-vehicle systems. Military Aircraft and Commercial Aircraft supply flight controls and components for their respective aircraft markets. Industrial serves machinery, simulation, energy, testing, data-center cooling and medical applications. In FY2025, Space and Defense revenue was $1.1 billion and Commercial Aircraft revenue was $903.9 million.

Aerospace and defense equipment sales often sit within long-running programs, and many manufacturer relationships are governed by long-term agreements. Industrial sales are made to a wider range of customers and normally have shorter lead times. Moog’s pricing strategy seeks recognition for the value it delivers to customers across its markets.

Revenue is not always recorded when a finished product is delivered. For the year ended September 27, 2025, 64% of revenue was recognized over time using costs incurred to measure progress. This method is used predominantly in the aerospace and defense segments, including for government contracts and repair and overhaul arrangements. The remaining 36% was recognized when control transferred to the customer, a method used most frequently in Industrial.

Some contracts accounted for over time have fixed prices. Under those agreements Moog commits to a specified scope of work for a predetermined price, while its eventual profit depends on the costs of completing that work.

Customers and how it sells

Moog’s principal customers are equipment manufacturers and end users receiving aftermarket support. Aerospace and defense equipment manufacturers collectively represented 61% of 2025 sales, with the majority of those sales going to a small number of large companies. Net sales to the five largest customers represented approximately 31% of 2025 sales.

Boeing accounted for 10% of 2025 sales across military, commercial, space and defense applications. Sales under U.S. Government contracts represented 38% of total sales in 2025, primarily in Space and Defense and Military Aircraft. All U.S. Government contracts are subject to termination by the government. Sales to foreign governments represented 9% of total sales in 2025.

Moog’s technically specialized sales staff are the primary customer contact. It also uses manufacturers’ representatives in certain domestic aerospace markets and selectively uses distributors in industrial and medical markets. Industrial sales go to a wide range of global customers and are normally based on lead times of 90 days or less.

Outside the United States, Moog operates primarily through wholly owned subsidiaries, predominantly in Europe and the Asia-Pacific region. Its principal manufacturing facilities are in the United States and other countries including the Philippines, United Kingdom, Germany, Italy and Costa Rica.

Suppliers and costs

Moog purchases materials, supplies and components from numerous suppliers and relies on other companies for portions of its manufacturing process. It also obtains certain components and sub-assemblies from a single supplier or a limited group of suppliers. Moog believes the loss of any one supplier could be disruptive in the short term but would not materially affect operations in the long term.

The company has changed suppliers and brought some processes in-house to strengthen its supply chain. Those transitions can add costs and delays. Higher prices for materials, components and sub-assemblies have put pressure on operating margins, and Moog may not be able to raise its own prices enough to offset increases.

Manufacturing facilities span North America, Europe and Asia. Research and development expense was $94 million in 2025. For contracts accounted for over time, Moog estimates the total costs needed to complete the work and updates its estimates as circumstances change. On fixed-price contracts, unexpected costs can reduce profit or cause a loss.

At September 27, 2025, Moog had contract reserves of $84 million, covering anticipated contract losses, recalls and other contract-related matters such as delivery issues.

Competitive position

Moog competes with suppliers at different levels of the supply chain and with manufacturers that make their own components. In aircraft, competitors specialize in precision flight controls and control systems. In space, they supply thrust-vector controls and spacecraft engines, mechanisms, electronics, structures and components. Defense competitors make turreted weapons, missile-steering equipment and power and data transfer systems. Industrial competition includes precision-control and medical-device manufacturers. No competitors are named in the supplied business descriptions.

Moog identifies quality, reliability, price, engineering, adherence to customer specifications, delivery and support after the sale among the factors on which it competes. Some industrial and medical competitors are larger and have greater financial, marketing, production and research resources.

Our reading: Engineering expertise and long-term customer relationships can help Moog retain positions on aerospace and defense programs, although competition and continued investment requirements limit their protection. Our reading: Its patent portfolio offers a more specific source of protection in medical devices, where several products work exclusively together, than for the business as a whole, where Moog does not consider any individual patent or group of patents material. Our reading: Aftermarket parts and services support ongoing customer relationships, but the available evidence does not establish how difficult it is for customers to switch providers.

Growth opportunities

Moog seeks growth both organically and through acquisitions. Its near-term capital deployment prioritizes organic growth while it pursues acquisitions that complement its businesses when opportunities arise. It also seeks to expand the content it supplies on existing platforms, moving beyond individual components to the design, manufacture and integration of control systems.

The company’s operating plans include investing in growth areas, divesting non-core assets, adjusting its global footprint, focusing factories on particular market needs and investing in automation and technology. Its pricing strategy seeks recognition for the value it delivers across markets.

Commercial Aircraft revenue rose to $903.9 million in FY2025 from $788.1 million in FY2024. Space and Defense revenue was $1.1 billion in FY2025, compared with $1.0 billion in FY2024. Industrial revenue was $955.6 million in FY2025, compared with $991.1 million in FY2024.

Moog’s twelve-month backlog was $3.0 billion as of September 27, 2025, an increase of 20% compared with September 28, 2024. It defines this measure as confirmed orders it believes will be recognized as revenue within the following twelve months. Customers may not purchase all orders in backlog, and aircraft production schedules or government program changes can affect realization.

Structural risks

• Government and customer demand: Government funding can fluctuate, and programs can be modified or terminated. Boeing production changes or the loss of Boeing as a customer could reduce Moog’s sales and earnings. Aircraft production schedule changes can also affect demand for flight controls.

• Supply and manufacturing: Higher material and component prices can pressure margins. Shortages, supplier delays or defects can prevent Moog from shipping on time; moving work to new suppliers or bringing processes in-house can add costs and delays.

• Contract estimates and fixed prices: Changes in estimated costs on contracts accounted for over time can affect sales and profits. Cost overruns on fixed-price contracts can reduce profit or cause losses. In 2025, fixed-price contracts represented 90% of over-time sales accounted for using the cost-to-cost method.

• Financial reporting controls: Moog identified a material weakness in controls over a group of long-term Commercial Aircraft aftermarket service contracts. Its internal control over financial reporting and disclosure controls and procedures were not effective as of September 27, 2025. It is developing a remediation plan.

• Competition and technology: Competitors may offer better or less expensive products, manufacture more efficiently or adapt faster to customer requirements. Research and development spending may exceed estimates or fail to produce enough sales to cover the investment.

• Product quality and liability: Manufacturing or design defects can lead to late deliveries, recalls, warranty costs, cancellations or litigation. Insurance may not fully cover a product liability claim.

Bottom line

Our reading

Moog combines specialized controls for aircraft, defense, space and industrial equipment with parts and services for products already in use. Its engineering work and long-term program relationships support the business, while government funding, aircraft production schedules and a concentrated customer base shape demand. Fixed-price contracts and supply costs make execution important to profitability, and the identified reporting-control weakness adds another area to monitor.