Moog Inc reported a standout second quarter of fiscal 2024 (QQ2 2024) with record quarterly sales of $930.3 million, up 11% year over year, and an adjusted operating margin of 13.6%, significantly above plan. The quarterly performance was driven by stronger demand across Commercial Aircraft, Space & Defense, Military Aircraft, and Industrial segments, underpinned by a broad-based recovery in commercial aviation and expanding defense opportunities. Management highlighted margin enhancement initiatives, including pricing and simplification through the 80/20 program, and noted a meaningful 150 basis point margin contribution from the employee retention credit (ERC). The company raised FY24 guidance, projecting $3.55 billion in sales and an adjusted EPS of $7.25 +/- $0.20, with segment margins updated to reflect a more favorable mix (Space & Defense 13.4%, Military Aircraft 12.0%, Commercial Aircraft 11.1%, Industrial 12.6%). Despite strong sales, free cash flow was negative by $84 million in the quarter due to working capital dynamics (unbilled receivables, inventories and customer advances), with the company guiding for a modest positive free cash flow for FY24 as working capital normalizes. Management emphasized portfolio rationalization and footprint optimization (including divestitures and site consolidations) as ongoing drivers of profitability and capital efficiency. The stance remains constructive given the defense demand tailwinds, improving aircraft production ramps, and a disciplined financial framework, though near-term cash flow questions warrant close monitoring of working capital and inventory turns.