Moog Inc.'s Q2 2025: Navigating Contradictions in Aerospace Demand, Aftermarket Growth, and Tariff Strategies

Impact of Boeing and Airbus changes on business, Commercial Aftermarket revenue growth, and tariff exposure and mitigation are the key contradictions discussed in Moog Inc.'s latest 2025Q2 earnings call



Strong Financial Performance and Revenue Growth:
- Moog Inc. reported record sales of $935 million in Q2 2025, slightly above last year's second quarter.
- The company's revenue is up 3% year-to-date, with expectations for increased revenue in the second half of the year.
- The growth was driven by strong performance in Defense businesses and improved operating margins due to secured pricing and optimistic market conditions.

Defense Segment Performance:
- Military Aircraft sales were $214 million, up 6% over the second quarter of last year, and Space and Defense sales were $270 million, up 1%.
- The increase in sales was attributed to strong demand from defense programs like FLRAA and broad-based defense demand.

Commercial Aerospace Market Dynamics:
- Commercial Aircraft sales were $216 million, indicating a 4% increase over the same quarter a year ago.
- Aftermarket sales were particularly strong, driven by increased airline activity, while OE sales slowed due to Airbus' changes in ordering patterns.

Tariff and Trade Policy Impact:
- Moog anticipates a potential net pressure of $10 million to $20 million on operating profit due to tariffs in FY’25, primarily impacting Commercial Aircraft and Industrial segments.
- The company is taking immediate steps, such as optimizing manufacturing footprint and supply chain, to mitigate the impact of tariffs on its business.