Moog Inc.

call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Aaron Astrakhan, Head of Investor Relations. Aaron, please go ahead.

Good morning and thank you for joining Moog's third quarter 2025 earnings release conference call. I'm Aaron Astrakhan, Director of Investor Relations. With me today is Pat Roach, our Chief Executive Officer and Jennifer Walter, our Chief Financial Officer. Earlier this morning, we released our results and our supplemental slides, both of which are available on our website. Our earnings press release, our supplemental slides, and remarks made during our call today contain adjusted non-GAAP results. Reconciliations for these adjusted results to GAAP results are contained within the provided materials. Lastly, our comments today may include statements related to expected future results and other forward-looking statements, which are not guarantees. Our actual results may differ materially from those described in our forward-looking statements and are subject to a variety of risks and uncertainties that are described in our earnings press release and in our other SEC filings. Now, I'm happy to turn the call over to Pat.

Good morning, and welcome to our earnings call. We've just delivered another quarter of robust financial results it is reflective of our unrelenting focus on driving improved business performance. We delivered both record sales and adjusted earnings per share, built our 12-month backlog to a record level, delivered strong adjusted operating margins, and generated solid free cash flow. We achieved these results despite the impact of tariffs. We feel bullish about the outlook for our business growth, Market conditions are positive, and our value proposition is winning. A strong order intake boosted our 12-month backlog. We updated our guidance and are anticipating another quarter of solid revenue. Our growth has been notable in areas important to our future financial success, namely commercial aftermarket, satellite components, missiles, defense components, and new military aircraft programs. This gives us confidence as we look towards fiscal year 26. We see the impact of our relentless focus on margin enhancement coming through in our results. We delivered strong adjusted operating margin despite tariff headwinds. In addition, we are pleased to deliver a strong free cash flow result in the quarter and are guiding further improvement in the fourth quarter. Now, let's look at the factors that are driving our robust growth, starting with the defense end market. We are experiencing a secular increase in defense spending within the U.S., NATO nations, and Indo-Pacific allies that will continue for the foreseeable future. In addition, there is a growing sense of urgency to increase industrial capacity in these regions. We are well positioned to respond to these demands. The recent U.S. budget reconciliation added $150 billion to the total defense budget to fund critical national security priorities. Those priorities, which are especially relevant to Moog, include Golden Dome that will depend on space-based and boost phase intercept capabilities and hypersonic defense systems. Emerging technologies, including small cruise missiles and hypersonic attack systems, Air superiority based on collaborative combat aircraft and sixth generation designs. Modernization of the nuclear triad and readiness and depot modernization. We're actively addressing a multitude of opportunities across these specific applications with primes and new entrants. The NATO Summit delivered a commitment to raise core defense spending from 2 to 3.5% of GDP. The increased demand is beyond the capacity of current industrial base, and US companies will play a significant role in meeting that increased demand. We are leveraging our long-established European operations in support of this need. The defence demand also comes with a growing sense of urgency, both in the US and in Europe. The recent UK Strategic Defence Review recommended moving to warfighting readiness due to the perceived threat. In addition, current conflicts have significantly depleted missile stocks. Taken together, the combination of urgent replenishment needs and strategic realignment is driving long-term specular demand for the defense businesses, which we are well positioned to capture. Moving to commercial aerospace, our customers have strong backlog and are intent to drive increased production rates. We see greater stability and growing confidence this can be achieved. We maintain a stable production plan that supports our customers' needs. On the aftermarket side, we continue to benefit from the increased airline activity, increased wide-body fleet utilization, and our ability to secure long-term support contracts that create a strong customer partnership in support of their fleets. Now, within industrial markets, we continue to have relative stability. Bookings exceed sales. The backlog has grown from the second to the third quarter. Industrial automation appears resilient and medical continues to grow. Overall, end market conditions are very favorable for our business. Before I finish on the macro environment, I want to share a brief update on tariffs. As a reminder, the most relevant tariffs to our business arise from the import of steel and aluminum, the import of goods from key facilities and suppliers in Costa Rica, the Philippines, Mexico, the European Union, Canada, and the United Kingdom. In this quarter, we faced a 25% tariff on steel and aluminum and a 10% country tariff during the so-called 90-day pause. The administration continues to evolve its trade policy and tariff regime as it negotiates with trading partners. We expect that this leads to an increase in country tariffs during the fourth quarter. We implemented specific actions to mitigate the impact of these tariffs in the quarter. These steps included the use of the US-Mexico-Canada Agreement effective administration of import and re-export of repair goods, and price adjustments to reflect our new cost base. These mitigations have been effective in reducing tariff impact, but they were not in place for the full quarter due to the timing of implementation. We will continue to mature our approach on tariffs. Operationally, we expect that these actions will limit tariff impact to the range indicated 90 days ago. We are now incorporating that tariff impact into our guidance. Now, let me turn to those initiatives that are driving our strong underlying performance as a business. Firstly, customer focus. Paris Airshow provided an ideal opportunity to connect with many customers, suppliers, and investors over a few days in June. It reflected the positive market dynamic for both commercial and military aircraft. It appears that supply chain has become less volatile, although not without some persistent challenges. At the show, We were happy to announce the renewal of a 10-year support contract with All Nippon Airways for 787. We continue to build out our long-term support and partnership with the key airlines operating 787 and A350. We are intent on maintaining our leading aftermarket position. We signed a distribution contract with S3 Aerodefense to expand our aftermarket support on legacy military aircraft operated by foreign militaries. We also recently secured two contract wins for our avionics package, namely the T6A fleet retrofit for the U.S. Air Force, adding to a prior U.S. Navy award, and a C-130 Hercules fleet retrofit for Linden Air Cargo. We took an exciting step post-quarter close with the acquisition of Cotsworks, a defense components business with revenues of $30 million. They design and manufacture fiber optic transceivers and assemblies used in major aerospace and defense programs across both US and international markets with many customers in common to Moog. These mission-critical components are increasingly important as more sensor and control data is moved at ever higher rates across platforms used in space, air, land, and sea domains. The company is a leading player in this technology space and is actively collaborating with customers to define future platform architectures with its differentiated product portfolio. The acquisition further builds our optoelectronics capabilities and we have a clear integration plan aligned with our simplification agenda. These examples together highlight the continued strength in our core aerospace offering and how we're responding to the evolving customer needs with innovative, avionic and optoelectronic offerings. Turning to people, community and planet. Our ongoing environmental, social and governance work has been recognized in 2025 by EcoVadis with a bronze medal for our achievements. Over the last year, we moved from fourth quartile to second quartile performance. EcoVadis assesses over 150,000 companies in over 185 countries and it is an important independent resource for our customers. Finally, turning to financial strength, our focus on margin enhancement is well established, and we are consistent in our application of pricing and simplification to drive better results. We made substantial progress in the quarter. Our AB20 capability continues to mature. The AB20 mindset drives prioritization of improvement activities across the operating groups. Our customer engagement is shaped by our desire to invest our precious time and energy in building more business with our most strategically important customers. Also, more granular views of profitability at product line and value stream level are enabling data-driven business decisions. As part of 8020, we divested assets and intellectual property of a non-core helicopter emergency rotation and evacuation slide product line as we continue to shape our portfolio. We also engaged the distributor to simplify the support of our military aircraft aftermarket. Our footprint rationalization is proceeding well. Our exit from Reading and Nuremberg facilities are on track to complete in fiscal 26 and 27 respectively. The impact of this work is most pronounced in our industrial segment, which has reduced its facility count by 40% as per our investor data plan. We consolidated our space, launch, actuation, and avionics business into a dedicated focus factory. And in a similar vein, we've transferred several commercial products from military to commercial focused factories to structurally simplify manufacturing and supply chain. While the impact of these activities on margin is evident in our financial results, it also shows up in our ability to deliver significant growth efficiently. We delivered record sales in the current quarter, with fewer people than in the prior year. Our annualized revenue per head for the current quarter is 10% better than the prior year quarter. Guidance for 25. We are confident in the growth of our business and in delivering improved operational performance. We've put in place actions to mitigate the tariff challenge to our business and have greater confidence in our ability to limit the impact on our business. Our financial performance year to date puts us on a path to deliver another outstanding year of solid growth and robust margin enhancement. We expect to deliver 8% CAGR growth over the last three years and 260 basis points of margin enhancement, which I think is remarkable. And with that, let me hand over to Jennifer for a detailed breakdown on the quarter and an update on our guidance.