Jul 31, 2026 earnings call — Record sales and capacity ramps
Record sales of $1.1 billion, up 15% year-over-year, and adjusted earnings per share of $3.72.
Revenue $1.1B (est $1.1B) · EPS $3.72 (est $2.66)
Key quotes
"We are experiencing a generational inflection in defense demand both in the United States and in Europe."
"Continued investment in AI data centers is fueling high demand for our data center cooling pump."
"there is a $30 million benefit included in operating profit for the tariff refund this quarter."
Analyst Q&A 6
Data center cooling pumps source and capacity
Q (JPMorgan): Analyst asked whether sales come from existing customer expansions or new wins, the Q4 opportunity, and details on the capacity expansion plan.
A: Management said the demand is through one large hyperscaler via two cooling distribution unit manufacturers, so not a customer expansion but more throughput. They said production was ramped, replicated, and now there are three production lines with capacity around 1.3 thousand pumps per week. They also said industrial margins have improved significantly from site rationalization and 80/20 initiatives.
"So we have 3 production lines running, capacity of about 1.3 thousand pumps per week." — Patrick J. Roche (CEO)
Origin and scale of RM44 pump; missile scaling
Q (Kristine Liwag · Morgan Stanley): Analyst asked where the RM44 product came from, whether it displaced others, prior penetration, and how big the business could grow. She also asked about missile program visibility and any CapEx needs to meet wins.
A: Management said the RM44 came to market in 2024 and is used for in-rack cooling for high-performance AI processors. They said the next-generation in-row product is being qualified to OCP V3 and that both products are expected in production in fiscal 27, with continuing demand. On missiles, they expect about $275 million in fiscal 26, growth over 20%, the seven-year agreements have not yet flowed into backlog, and scaling will use production optimization, replicated lines, some facility space, and mostly test-equipment CapEx.
"Expect both products to be in production during the course of fiscal 27, and we see continuing demand for these products in the marketplace." — Patrick J. Roche (CEO)
MV-75 work, tariff impact, aircraft production
Q (Gautam Khanna · TD): Analyst asked if MV-75 work slowed due to funding gaps and what visibility exists into calendar Q4. He also asked Jennifer to quantify tariff recovery by segment, and asked about any disconnect on A350/787 sell-in versus deliveries.
A: Management said MV-75 work levels remained consistent with no disruption and that activity is expected to continue through Q4 and is built into guidance; Textron is resolving its gap and may self-fund where needed. Jennifer said tariffs were $30 million consolidated, equal to 270 basis points of operating margin, and she gave segment breakouts (industrial, commercial, space and defense, military) and noted the tariff impact hit operating profit not sales. Patrick said production plans for A350 and 787 are consistent with customer needs and there is no disconnect.
"So again, it was $30 million on the consolidated basis, which is 270 basis points of operating margin." — Jennifer Walter (CFO)
7-year missile orders and data center customers
Q (Jonathan Tanwanteng · CJS): Analyst asked if recent prime orders (about $100 billion across seven-year programs) matched expectations, when that will flow to Moog's P&L, and whether Moog is on the low-cost PAC-3 derivative. He also asked if Moog is courting more data center customers and if capacity can serve more than one customer.
A: Management said the prime orders are in line with prior expectations and expect step-ups (e.g., 3x for PAC-3, 4x for THAAD); demand has not yet flowed into Moog's backlog but discussions with primes are active and Moog is preparing to scale. They said steering controls for the low-cost missile are similar, so Moog believes there is opportunity. For data center, they focused last 12 months on raising capacity and have already started outreach to multiple CDU manufacturers and hyperscalers.
"So we are preparing to step up appropriately to support that demand." — Patrick J. Roche (CEO)
Missile second-source opportunities and margins
Q (Alexandra Mandry · Truist): Analyst asked whether Moog can be a second source to gain share on missile platforms and whether margins will expand as volumes increase.
A: Management said they are actively pursuing increased scope on missile platforms and believe their content could support other missile aspects beyond the CAS system. They said operations and production capabilities are solid and they will scale up, and they have clear expectations for an acceptable margin profile as volumes grow.
"We have got solid operations and production capabilities currently." — Jennifer Walter (CFO)
Acquisition strategy: bolt-ons or larger deals
Q (Kristine Liwag · Morgan Stanley): Analyst asked if the mention of strategic acquisitions signals a change from historical bolt-on deals (typically under $100 million) or if it's a continuation.
A: Management said it is a continuation but they are more ready now to execute acquisitions because of simplification work and stronger integration readiness. They emphasized focus on organic growth and capex but will complement that with bolt-on acquisitions, possibly a bit larger than historical ones, and cited COTSWORKS as a recent successful integration.
"I would say it is a continuation, but with a more secure readiness." — Jennifer Walter (CFO)