Moog Inc.

Ladies and gentlemen, thank you for joining us and welcome to the Moog Inc. First Quarter Fiscal 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the conference over to Aaron Osterkamp, Head of Investor Relations. Aaron, please go ahead.

Good morning. And thank you for joining Moog's first quarter 2026 earnings release conference call. I'm Aaron Asterton, 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 SBC filings. Now, I'm happy to turn the call over to Pat.

Good morning and welcome to our earnings call. We started fiscal 26 with an outstanding quarter. We delivered exceptional revenue growth of over 20% relative to prior year, underpinned by record quarterly sales in all segments. We increased 12-month backlog by 30%, setting another record. We also improved adjusted operating margin relative to prior year and delivered record earnings per share. Our focus is on delivering for our customers and driving ongoing continuous improvement in pursuit of excellence. Our results are reflective of continuing success in driving both operational and financial performance. Now let's turn our attention to end markets and the macro environment, starting with defense. The defense market continues to be very strong. We are already seeing increased defense spending by governments in the US, Europe, Australia, and Japan, with further increases expected. In addition, there is an urgency to expand industrial capacity in these regions. Recent U.S. government announcements demonstrate strong commitment to raise production rates. These announcements make public the need which has underpinned our recent elevated levels of business investments. This positions us very well to respond to increasing production demands. Moving to commercial aerospace, Our customers have strengthened backlogs and are intent on driving increased production rates. We continue to see consistency in their production and have confidence in their growth plans. We're maintaining a production plan that supports our customers' needs. On the aftermarket side, we continue to benefit for increased airline activity and aging fleet, increased wide-body fleet utilization, and our ability to maintain a strong aftermarket position through excellent customer service. Finally, within industrial markets, we're seeing signs of recovery. This is reflected both in stronger book to bill and continued growth in our 12-month backlog over three successive quarters. We see particular strength in demand for data center cooling pumps and medical pumps and sets. Overall, end market conditions are very favorable for our business. Now, turning attention to our leadership priorities, starting with customer focus. We're pleased to have our operational performance officially recognized by another important customer. We received BAE Systems Gold Supplier of the Year Award for 2025, recognizing 100% quality and 100% on-time delivery performance. Our pursuit of operational excellence enables us to meet our customer's requirement, which drives our organic growth. Our strong customer value proposition was further reflected in several notable bookings and contract awards. We secured over $1 billion in commercial aircraft orders across several platforms, reflecting future growth in OE production. We secured an additional order for over $100 million for the PAC-3 missile program and see further potential given the recent contract between Lockheed Martin and the U.S. government. We also received over $50 million of missile orders across Pac-2 and THAAD programs. In addition, we won a new space vehicle contract for over $100 million for our existing meteor satellites. These orders account for close to half of what was a record space and defense segment bookings quarter. As we look to further develop our value proposition, We have strengthened our leadership team with the addition of a new C-suite role, namely that of Chief Strategy and Corporate Development Officer. This role will focus on ensuring the robustness of our business development plans and the strategic alignment of our acquisitions. Our ability to proactively pursue acquisitions and to follow through with effective integration will enhance our ability to create value. We will continue to have a balanced approach to capital allocations. Now, turning to our employees and communities. We believe that our unique culture is a critical asset. It defines our identity, supports the attraction and retention of extraordinary talent, and enhances collaboration with our customers. I'm exceptionally proud that we have been recognized by Glassdoor with a 2026 Best Places to Work Award, which ranks Moog within the top 100 large employers in the U.S. This is testament to our focus on creating a work environment that is rewarding for our employees and empowers them to make their best contribution. In addition, we were proud to receive the inaugural Business of the Year Award from the Buffalo Niagara Partnership, our regional chamber of commerce. We were also recognized for our impressive recovery efforts in Tewksbury, the Team of the Year Award from the local business community. Our financial performance continues to strengthen with solid growth and consistent focus on pricing and simplification. Our pursuit of continuous improvement is built on 80-20 principles. Having deployed 80-20 to all our significant manufacturing locations, our focus now is on further enhancing the maturity of 80-20 across the organization and to embed its principles into our management practices. The following practices are important exemplars. Portfolio reviews are shaping our focus on the profitable businesses that we want to invest in and grow. This is happening at site, business unit, and division levels and is informed by segmentation analysis. Portfolio reviews drive our decisions to sell or exit products, sites, and businesses and are an ongoing process allowing us to move resources to where they can have the most impact. Voice of the customer feedback directs our continuous improvement actions. We want to enhance the experience of those important customers which will drive our success and create an even more clearly differentiated offering. We are specifically responding to our customers' needs for greater agility and capacity to meet increased demand. Pricing reviews are integral to our business process and are happening at all levels in the organization. They are data-driven and informed by our simplification and segmentation analysis. Our pricing activities are ensuring that we are fairly compensated for the value that we create for our customers. Now, let me switch over to the work we're doing to optimize our balance sheet. Last quarter, I highlighted an opportunity to reduce trade network and capital requirements in our commercial aircraft business. This structural improvement is being achieved through the simplification of our global manufacturing and supply chain network and reshaping the relationship with our suppliers. We are committed to achieving these initiatives with the same zeal that we have brought to our margin enhancement journey. I'm pleased to share that over the last quarter we've made considerable progress. I'll share a couple of examples. We are shifting suppliers from long-term discrete purchase orders with fixed quantity and delivery dates to a more agile arrangement based on rolling forecast and short fixed commitment window. This approach allows us to respond to changes in customer demand more effectively and shares the burden of customer demand changes more equitably between us and our suppliers. This action is about two-thirds complete. We also used these strategic negotiations to optimally align material supply to production plan needs, ensuring that we're not carrying excess inventory materials to – sorry, excess to requirement. This builds on prior work and has already reduced expected material receipts for 2026 in line with our annual plan, an impact measured in tens of millions of dollars. We've made progress on these structural issues and will further build on this strong focus. Now turning to the full year, we've updated our guidance for fiscal 26, reflecting our excellent performance in the first quarter and a more positive market outlook. We've increased sales and adjusted earnings per share and held adjusted operating margin and free cash flow conversion unchanged. With this updated guidance, FY26 will be a year of double-digit year-over-year sales growth, further expansion in adjusted operating margin, strong growth in adjusted earnings per share, and improved free cash flow conversion. And with that, let me hand over to Jennifer for a detailed breakdown on the quarter and our updated Fiscal 26 guidance.