MOOG INC.
For the period ended Jun 27, 2026. Filed Jul 31, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Jul 31, 2026
MOG-A$323.56+4.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-04-24.
0001628280-26-027064
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-07-31.
0001628280-26-051294
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 114 current paragraphs.
71 unchanged; 33 reworded; 10 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
U.S. GOVERNMENT TARIFFS AND IEEPA TARIFF REFUND CLAIMS
Current report
On February 20, 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were invalid. Following the ruling and related proceedings before the U.S. Court of International Trade (“CIT”), U.S. Customs and Border Protection (“CBP”) established a process to request refunds of certain tariffs previously paid under IEEPA.
Current report
We have paid IEEPA tariffs to the U.S. government and subsequently submitted refund requests to recover those amounts. Based on the following: the U.S. Supreme Court’s ruling, related CIT proceedings, CBP’s refund process, our receipt of $10 million of cash refunds under the initial phase of the refund process, our submission of refund requests for the remaining amounts and our assessment of the recoverability of amounts paid, we have concluded that recovery of previously incurred IEEPA tariffs is probable under a loss recovery accounting model.
Current report
During the three and nine months ended June 27, 2026, we recognized $30 million for the recovery of previously incurred IEEPA tariffs. This amount included $10 million of cash refunds received and $20 million recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets as of June 27, 2026. The recovery was recorded as a reduction of cost of sales in the Consolidated Statements of Earnings for the three and nine months ended June 27, 2026.
Current report
Gross margin increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by IEEPA tariff refund claims across all our segments, as well as by business performance.
Current report
The effective tax rate was lower in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by our re-evaluation and adjustment of our domestic research and development tax credits. For further information, refer to Note 14 - Income Taxes.
Current report
Operating margin increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by the absence of the prior year’s $8 million charge associated with the termination of a product development effort and business performance. In addition, we benefitted from the IEEPA tariff refund claims.
Current report
Operating margin increased in the third quarter of 2026 compared to the third quarter of 2025, driven by IEEPA tariff refund claims, partially offset by the benefit of the sale of a non-core product line that occurred in the third quarter of 2025 and an unfavorable sales mix.
Current report
Operating margin decreased in the first three quarters of 2026 compared to the first three quarters of 2025, driven by the benefit of the sale of a non-core product line that occurred in the third quarter of 2025 and an unfavorable sales mix. These were partially offset by IEEPA tariff refund claims.
Current report
Operating margin increased in the third quarter of 2026 compared to the third quarter of 2025, driven by IEEPA tariff refund claims, an asset impairment recorded in the third quarter of 2025 and the growing data center cooling pump business.
Removed paragraphs (5)
Previous report
Gross margin decreased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by higher tariffs across all our segments, particularly in Commercial Aircraft, partially offset by profitable sales growth in Space and Defense.
Previous report
The effective tax rate was higher in the second quarter of 2026 compared to the second quarter of 2025, driven by recently enacted legislation. The effective tax rate was unchanged in the first half of 2026 compared to the first half of 2025, as discrete items, primarily related to equity-based compensation, offset by the recently enacted legislation.
Previous report
Operating margin increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by profitable sales growth.
Previous report
Operating margin increased in the second quarter of 2026 compared to the second quarter of 2025. The increase was driven by pricing benefits, which were partially offset by tariff pressure.
Previous report
Operating margin decreased in the first half of 2026 compared to the first half of 2025. The decrease was driven by tariff pressure, which was partially mitigated by pricing benefits.
Reworded paragraphs (33)
Previous wording
Under ASC 606, 65% of revenue was recognized over time for the three months ended March 28, 2026, using the cost-to-cost method of accounting. The over-time method of revenue recognition is predominantly used in Space and Defense, Military Aircraft and Commercial Aircraft. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date.
Current wording
Under ASC 606, 64% of revenue was recognized over time for the three months ended June 27, 2026, using the cost-to-cost method of accounting. The over-time method of revenue recognition is predominantly used in Space and Defense, Military Aircraft and Commercial Aircraft. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date.
Previous wording
For the three months ended March 28, 2026, 35% of revenue was recognized at the point in time control transferred to the customer. This method of revenue recognition is used most frequently in Industrial. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized.
Current wording
For the three months ended June 27, 2026, 36% of revenue was recognized at the point in time control transferred to the customer. This method of revenue recognition is used most frequently in Industrial. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized.
Previous wording
We aim to improve shareholder value through strategic revenue growth, both organic and acquired, manufacturing and operating efficiencies and utilizing low-cost manufacturing facilities without compromising quality. Historically and over the long-term, our capital deployment strategy has balanced strategic acquisitions, share buybacks and dividend payments to maximize shareholder returns. In the near term, our capital deployment prioritizes organic growth while opportunistically pursuing acquisitions that complement our business.
Current wording
We aim to improve shareholder value through strategic revenue growth, both organic and acquired, manufacturing and operating efficiencies and utilizing low-cost manufacturing facilities without compromising quality. Historically and over the long-term, our capital deployment strategy has balanced strategic acquisitions, share buybacks and dividend payments to maximize shareholder returns. In the near term, our capital deployment prioritizes investing in our organic growth while opportunistically pursuing acquisitions that complement our business.
Previous wording
Net sales increased across all our segments in the second quarter and in the first half of 2026 compared to the second quarter and the first half of 2025.
Current wording
Net sales increased across all our segments in the third quarter and in the first three quarters of 2026 compared to the third quarter and the first three quarters of 2025.
Previous wording
Research and development expenses increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by activities supporting our current and future growth programs in Space and Defense.
Current wording
Research and development expenses increased in the third quarter and first three quarters of 2026 compared to the prior year periods, driven by activities supporting our current and future growth programs in Space and Defense.
Previous wording
Selling, general and administrative expenses as a percentage of sales decreased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, reflecting the incremental benefit from higher sales volume.
Current wording
Selling, general and administrative expenses as a percentage of sales decreased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, reflecting the incremental benefit from higher sales volume.
Previous wording
Interest expense decreased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by lower outstanding debt balances and lower interest rates.
Current wording
Interest expense decreased in the third quarter of 2026 compared to the third quarter of 2025, driven by lower outstanding debt balances. Interest expense decreased in the first three quarters of 2026 compared to the first three quarters of 2025, driven by lower outstanding debt balances and lower interest rates.
Previous wording
In the second quarter and first half of 2026 and in the second quarter and first half of 2025, restructuring charges included charges for various simplification activities, primarily within Industrial and Space and Defense.
Current wording
In the third quarter and first three quarters of 2026 and in the third quarter and first three quarters of 2025, we incurred restructuring charges for various simplification activities, primarily within Industrial and Space and Defense.
Previous wording
The twelve-month backlog as of March 28, 2026 increased as compared with the twelve-month backlog as of March 29, 2025. Military Aircraft's twelve-month backlog increased due to higher orders for new and current aircraft. Within Commercial Aircraft, we had higher orders for narrowbody and widebody OEM programs. Within Space and Defense, we had higher orders across the entire portfolio of the business, reflecting strong business capture and broad-based growth in both defense and space markets. Industrial's twelve-month backlog increased primarily due to higher demand for liquid cooling pumps used in data centers.
Current wording
The twelve-month backlog as of June 27, 2026 increased as compared with the twelve-month backlog as of June 28, 2025. Within Commercial Aircraft, we had higher orders for narrowbody and widebody OEM programs. Military Aircraft's twelve-month backlog increased due to higher orders for new and current aircraft. Within Space and Defense, we had higher orders across the entire portfolio of the business, reflecting strong business capture and broad-based growth in both defense and space markets. Industrial's twelve-month backlog increased primarily due to higher demand for data center cooling pumps.
Previous wording
Space and Defense net sales increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, reflecting broad-based defense demand. Demand was particularly strong for space vehicles and missile controls.
Current wording
Space and Defense net sales increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, reflecting broad-based defense demand. Demand was particularly strong for space vehicles and missile controls.
Previous wording
Operating margin increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by profitable sales growth. This was partially offset by increased costs for business capture, product development and operational readiness.
Current wording
Operating margin increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by business performance and IEEPA tariff refund claims. These increases were partially offset by increased costs for product development, business capture and operational readiness.
Previous wording
Military Aircraft net sales increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025.
Current wording
Military Aircraft net sales increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025.
Previous wording
In the second quarter of 2026 compared to the second quarter of 2025, military OEM sales increased $18 million, driven by higher activity on the MV-75 program. Military aftermarket sales increased $3 million.
Current wording
In the third quarter of 2026 compared to the third quarter of 2025, military aftermarket sales increased $16 million, driven by higher repair activity and new contract awards. Military OEM sales increased $5 million, driven by higher activity on the MV-75 program.
Previous wording
In the first half of 2026 compared to the first half of 2025, military OEM sales increased $30 million, driven by higher activity on the MV-75 program. Military aftermarket sales increased $26 million, driven by a significant V-22 spares order in the first quarter of 2026.
Current wording
In the first three quarters of 2026 compared to the first three quarters of 2025, military aftermarket sales increased $42 million, driven by a significant V-22 spares order in the first quarter of 2026 and higher repair activity and new contract awards. Military OEM sales increased $34 million, driven by higher activity on the MV-75 program.
Previous wording
Commercial Aircraft net sales increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025.
Current wording
Commercial Aircraft net sales increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025.
Previous wording
In the second quarter of 2026 compared to the second quarter of 2025, commercial OEM sales increased $28 million, driven by increased volume and pricing on certain production programs. Commercial aftermarket sales increased $3 million.
Current wording
In the third quarter of 2026 compared to the third quarter of 2025, commercial OEM sales increased $25 million, driven by increased volume and pricing on certain production programs. Commercial aftermarket sales increased $11 million, driven by higher repair activity.
Previous wording
In the first half of 2026 compared to the first half of 2025, commercial OEM sales increased $57 million, driven by increased volume and pricing on certain production programs. Commercial aftermarket sales increased $23 million, driven by the timing of repair volumes in the first quarter of 2026.
Current wording
In the first three quarters of 2026 compared to the first three quarters of 2025, commercial OEM sales increased $82 million, driven by increased volume and pricing on certain production programs. Commercial aftermarket sales increased $34 million, driven by higher repair activity.
Previous wording
Industrial net sales increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by strong demand for data center cooling pumps and other industrial automation products, as well as a favorable impact of foreign currency translation.
Current wording
Industrial net sales increased in the third quarter and first three quarters of 2026 compared to the third quarter and first three quarters of 2025, driven by strong demand for data center cooling pumps and higher demand for our medical device products and our energy products, as well as a favorable impact of foreign currency translation.
Previous wording
Operating margin increased in the second quarter and first half of 2026 compared to the second quarter and first half of 2025, driven by lower charges related to simplification initiatives and the benefits from business optimization, partially offset by tariff pressure.
Current wording
Operating margin increased in the first three quarters of 2026 compared to the first three quarters of 2025, driven by IEEPA tariff refund claims, lower charges related to simplification initiatives, an asset impairment recorded in the third quarter of 2025 and the growing data center cooling pump business.
Previous wording
Net cash provided by operating activities was $85 million in the first half of 2026. Net cash used by operating activities was $93 million in the first half of 2025. The year-over-year improvement was primarily driven by higher net earnings and increased customer advances on multiple Commercial Aircraft, Military Aircraft and Space and Defense programs. Also, reduced estimated tax payments related to research and development expense capitalization rules and lower inventory usage drove the year-over-year improvement. Inventory decreased in Commercial Aircraft primarily due to delayed material receipts during the first half of 2026.
Current wording
Net cash provided by operating activities was $245 million and $32 million in the first three quarters of 2026 and 2025, respectively. The year-over-year improvement was primarily driven by higher net earnings and increased customer advances on multiple Commercial Aircraft, Space and Defense and Military Aircraft programs. Also, lower cash outflow for inventory drove the year-over-year improvement. The Commercial Aircraft inventory balance decreased, primarily due to delayed material receipts during the first three quarters of 2026. These were partially offset by accounts receivable, unbilled receivables and other assets and liabilities. Accounts receivable used more cash, driven by the timing of collections. Unbilled receivables also used more cash, driven by timing. Other assets and liabilities reflect the tariff refund receivables.
Previous wording
Net cash used by investing activities in the first half of 2026 included capital expenditures of $66 million.
Current wording
Net cash used by investing activities in the first three quarters of 2026 included capital expenditures of $94 million.
Previous wording
Net cash used by investing activities in the first half of 2025 included $70 million of capital expenditures and $13 million of proceeds from the sales of businesses.
Current wording
Net cash used by investing activities in the first three quarters of 2025 included $103 million of capital expenditures and $13 million of proceeds from the sales of businesses.
Previous wording
Net cash provided by financing activities in the first half of 2026 included $297 million of net borrowings on our credit facilities. This includes the issuance of $500 million of 5.5% senior notes. We also amended our $1.1 billion revolving credit facility and our $250 million term loan, extending the maturities of each out to five years. In addition, we made dividend payments of $19 million.
Current wording
Net cash used by financing activities in the first three quarters of 2026 included $27 million of net payments on our revolving credit facilities. In March 2026, we issued $500 million of 5.50% senior notes due 2034 and used the net proceeds of $491 million, together with cash on hand, to redeem all $500 million of our 4.25% senior notes due 2027 in April 2026. We also amended and restated our Credit Facility, extending the maturities of the $1.1 billion revolving loan and the $250 million term loan to February 2031. In addition, we made dividend payments of $28 million.
Previous wording
Net cash provided by financing activities in the first half of 2025 included $291 million of net borrowings on our credit facilities. Financing activities also included $100 million for shares under the authorized repurchase program and $18 million of cash dividends.
Current wording
Net cash provided by financing activities in the first three quarters of 2025 included $44 million of net payments on our revolving credit facilities. In addition, on May 30, 2025, we amended and restated our loan agreement to include a $250 million term loan, with a maturity date of October 2027. Financing activities also included $100 million for shares under the authorized repurchase program and $27 million of cash dividends.
Previous wording
At March 28, 2026, our cash balances were $308 million, the majority of which is held in the U.S. We regularly assess our cash needs, including repatriation of foreign earnings which may be subject to regulatory approvals and withholding taxes, where applicable by law. On April 3, 2026, we redeemed in full all $500 million aggregate principal amount of our outstanding 4.25% senior notes, due 2027, at a redemption price equal to 100.00%. See Note 9 - Indebtedness for additional details.
Current wording
At June 27, 2026, our cash balances were $68 million, the majority of which is held outside of the U.S. by foreign operations. We regularly assess our cash needs, including repatriation of foreign earnings which may be subject to regulatory approvals and withholding taxes, where applicable by law.
Previous wording
On February 26, 2026, we entered into the Eighth Amended and Restated Loan Agreement (the "Credit Facility"), which amended and restated our prior credit agreement and, among other things, extended the maturity date of our revolving loan from October 27, 2027 to February 26, 2031. The revolving loan has aggregate commitments of $1.1 billion. The agreement also permits us to request incremental revolving commitments and/or one or more incremental term loan facilities in an aggregate amount of up to $400 million, upon satisfaction of certain conditions. The weighted-average interest rate on the outstanding revolving loan borrowings is based on SOFR plus the applicable margin, which was 1.25% at March 28, 2026. There were no outstanding borrowings as of March 28, 2026. The agreement also includes a $250 million term loan maturing on February 26, 2031. The term loan amortizes in quarterly installments of $5 million in 2027, $6 million in 2028, $11 million in 2029, $9 million in 2030, $6 million in 2031 and the remaining balance on the maturity date of February 26, 2031. The interest rate on the term loan borrowings was 4.93% and is based on SOFR plus the applicable margin, which was 1.25% at March 28, 2026. As of March 28, 2026, we were in compliance with all covenants.
Current wording
On February 26, 2026, we entered into the Eighth Amended and Restated Loan Agreement (the "Credit Facility"), which amended and restated our prior credit agreement and, among other things, extended the maturity date of our revolving loan from October 27, 2027 to February 26, 2031. The revolving loan has aggregate commitments of $1.1 billion. The agreement also permits us to request incremental revolving commitments and/or one or more incremental term loan facilities in an aggregate amount of up to $400 million, upon satisfaction of certain conditions. The weighted-average interest rate on the outstanding revolving loan borrowings was 4.88% and is based on SOFR plus the applicable margin, which was 1.25% at June 27, 2026. The agreement also includes a $250 million term loan maturing on February 26, 2031. The term loan amortizes in quarterly installments of $5 million in 2027, $6 million in 2028, $11 million in 2029, $9 million in 2030, $6 million in 2031 and the remaining balance on the maturity date of February 26, 2031. The interest rate on the term loan borrowings was 4.93% and is based on SOFR plus the applicable margin, which was 1.25% at June 27, 2026. As of June 27, 2026, we were in compliance with all covenants.
Previous wording
The SECT has a revolving loan with a borrowing capacity of $25 million, maturing on April 24, 2027. Interest was 5.91% as of March 28, 2026 and is based on SOFR plus a margin of 2.23%.
Current wording
The SECT has a revolving loan with a borrowing capacity of $25 million, maturing on April 24, 2028. Interest was 5.76% as of June 27, 2026 and is based on SOFR plus a margin of 2.13%.
Previous wording
At March 28, 2026, we had $1.1 billion of unused capacity, including $1.1 billion from the revolving loan after considering standby letters of credit and other limitations.
Current wording
At June 27, 2026, we had $952 million of unused capacity, including $932 million from the revolving loan after considering standby letters of credit and other limitations.
Previous wording
Our Receivables Purchase Agreement, which matures on February 20, 2028, allows the Receivables Subsidiary to sell receivables to the Purchasers in amounts up to a $125 million limit so long as certain conditions are satisfied. The receivables are sold to the Purchasers in consideration for the Purchasers making payments of cash. Each Purchaser’s share of capital accrues yield at a variable rate plus an applicable margin, which totaled 4.67% as of March 28, 2026.
Current wording
Our Receivables Purchase Agreement, which matures on February 20, 2028, allows the Receivables Subsidiary to sell receivables to the Purchasers in amounts up to a $125 million limit so long as certain conditions are satisfied. The receivables are sold to the Purchasers in consideration for the Purchasers making payments of cash. Each Purchaser’s share of capital accrues yield at a variable rate plus an applicable margin, which totaled 4.64% as of June 27, 2026.
Previous wording
Our aerospace and defense businesses currently represent 76% of our 2026 sales. Our defense market, which currently represents 52% of our 2026 sales, is directly affected by defense funding levels and product demand, which have recently increased. Our commercial aircraft market, which currently represents 24% of our 2026 sales, aligns with our customers' plans. Within our various industrial markets, which collectively represented 24% of our 2026 sales, our customers are affected by a broad range of factors.
Current wording
Our aerospace and defense businesses currently represent 76% of our 2026 sales. Our defense market, which currently represents 52% of our 2026 sales, is directly affected by defense funding levels and product demand, which have recently increased. Our commercial aircraft market, which currently represents 24% of our 2026 sales, aligns with our customers' plans. Within our various industrial and medical markets, which collectively represented 24% of our 2026 sales, our customers are affected by a broad range of factors.
Previous wording
The defense market is dependent on military spending for development and production programs. We have a growing development program order book for future generation aircraft and turret programs, and we strive to embed our technologies within these high-performance military programs of the future, including the Textron Bell MV-75. Aircraft production programs are typically long-term in nature, offering predictable capacity needs and future revenues. We maintain positions on numerous high priority programs, including the Lockheed Martin F-35 Lightning II. The large installed base of our products leads to attractive aftermarket sales and service opportunities. The tactical and strategic missile, missile defense and defense vehicle controls markets are dependent on many of the same market conditions as military aircraft, including overall military spending and program funding levels. At times when there are perceived threats to national security, U.S. and European defense spending can increase; at other times, defense spending can decrease. Future levels of defense spending have increased in the near-term given the current global tensions, and are subject to governmental approvals.
Current wording
The defense market is dependent on military spending for development and production programs. We have a growing development program order book for future generation aircraft and turret programs, and we strive to embed our technologies within these high-performance military programs of the future, including the Textron Bell MV-75 Cheyenne II. Aircraft production programs are typically long-term in nature, offering predictable capacity needs and future revenues. We maintain positions on numerous high priority programs, including the Lockheed Martin F-35 Lightning II. The large installed base of our products leads to attractive aftermarket sales and service opportunities. The tactical and strategic missile, missile defense and defense vehicle controls markets are dependent on many of the same market conditions as military aircraft, including missile stockpile levels, overall military spending and program funding levels. At times when there are perceived threats to national security, U.S. and international defense spending can increase; at other times, defense spending can decrease. Future levels of defense spending have increased in the near-term given the current global tensions, and are subject to governmental approvals.
Previous wording
We are affected by the movement of foreign currencies compared to the U.S. dollar. About one-sixth of our 2025 sales were denominated in foreign currencies. During the first six months of 2026, average foreign currency rates generally strengthened against the U.S. dollar to the comparable 2025 period. The translation of the results of our foreign subsidiaries into U.S. dollars increased sales by $23 million compared to the same period one year ago.
Current wording
We are affected by the movement of foreign currencies compared to the U.S. dollar. About one-sixth of our 2025 sales were denominated in foreign currencies. During the first nine months of 2026, average foreign currency rates generally strengthened against the U.S. dollar to the comparable 2025 period. The translation of the results of our foreign subsidiaries into U.S. dollars increased sales by $28 million compared to the same period one year ago.
Previous wording
Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission (“SEC”) and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) current and future geopolitical conditions and events, including wars, armed conflicts, sanctions, trade restrictions and related disruptions to global markets and supply chains; (iv) our heavy dependence on government contracts that may not be fully funded, delayed or terminated; (v) our ability to remediate the material weakness in internal control over financial reporting and maintain effective disclosure controls and procedures; (vi) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (vii) failure of our subcontractors or suppliers to perform their contractual obligations; (viii) risks related to information systems interruptions, intrusions, cybersecurity threats or new software implementations; and (ix) our accounting estimates for over-time contracts and any changes we may need to make thereto. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties.
Current wording
Although it is not possible to create a comprehensive list of all factors that may cause our actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission (“SEC”) and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) current and future geopolitical conditions and events, including wars, armed conflicts, sanctions, trade restrictions and related disruptions to global markets and supply chains; (iv) our heavy dependence on government contracts that may not be fully funded, delayed or terminated; (v) our ability to remediate the material weakness in internal control over financial reporting and maintain effective disclosure controls and procedures; (vi) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (vii) failure of our subcontractors or suppliers to perform their contractual obligations; (viii) risks related to information systems interruptions, intrusions, cybersecurity threats or new software implementations; and (ix) our accounting estimates for over-time contracts and any changes we may need to make thereto. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.