Triumph Group Optimizes Performance with Q2 Fiscal Results

Triumph Group Reports Impressive Second Quarter Results

Triumph Group, Inc. (NYSE: TGI), referred to as "Triumph," has shared its financial achievements for the second quarter of fiscal 2025. This reporting period concluded on September 30, 2024, and the results speak volumes about the company's resilience and growth in challenging market conditions.

Second Quarter Highlights

In the second quarter of fiscal 2025, Triumph achieved:

• Net sales of $287.5 million, indicating a sales growth of 1%.
• Operating income reached $32.4 million with an operating margin of 11%.
• Adjusted operating income was $36 million, demonstrating an adjusted operating margin of 13%.
• Net income from continued operations was $11.9 million, or $0.15 per diluted share, with adjusted net income totaling $15.4 million, or $0.20 per share.
• Adjusted EBITDAP noted at $42.6 million, yielding an adjusted EBITDAP margin of 15%.
• Cash utilized in operations amounted to ($38.4) million, with free cash use at ($44.7) million. Triumph ended the quarter with an available liquidity of $148 million.

Fiscal Year 2025 Guidance Upgraded

Encouragingly, Triumph has upgraded its fiscal 2025 guidance based on strong performance indicators:

• Projected net sales of approximately $1.2 billion.
• Operating income expected to range between $140.5 million and $145.5 million, correlating to an operating margin of 12%.
• Adjusted EBITDAP anticipated between $190 million and $195 million, with a corresponding adjusted EBITDAP margin of 16%.
• Earnings per diluted share projected to be between $0.47 and $0.53, while adjusted earnings are expected to be between $0.70 and $0.76.
• Cash flow from operations is estimated to be in the range of $40 million to $55 million, with free cash flow projected between $20 million and $30 million.

Triumph Chairman, Dan Crowley, articulated confidence in their operational achievements, stating, "Triumph achieved its tenth consecutive quarter of year-over-year sales growth as commercial aftermarket sales from our IP-based business grew by more than 34%, offsetting headwinds in commercial OEM and supply chains. We have successfully managed costs and restructured our Interiors business, enhancing its profitability and aligning cash flow with annual objectives."

Operational Performance and Market Position

During the second quarter, Triumph benefited from strong demand in its aftermarket segment:

• Commercial OEM sales saw a decrease of ($11.6) million, primarily driven by reduced volume in Boeing 737, 767, and 777 programs, tempered by growth in the Boeing 787 program and positive outcomes in Interiors.
• Commercial aftermarket sales surged by $10.4 million, representing a 26.2% increase fueled by heightened repair and parts sales on various platforms, prominently the Boeing 787.
• Military OEM sales witnessed a $3 million, or 4.9%, rise, largely attributed to increased sales on the CH-47 and AH-64 platforms.
• Military aftermarket sales also increased slightly, attributed to repairs on the CH-47 platform and a significant intellectual property transaction.

Moreover, Triumph's backlog of orders remained robust at $1.90 billion, showcasing an overall increase across various markets despite some delays related to the Boeing 737MAX program.

Upcoming Conference Call

Triumph anticipates holding a conference call to elaborate on these results, providing stakeholders with a more intimate view of the company's strategic direction and fiscal health. This session will occur shortly after the release of the fiscal results, ensuring that investors receive timely information directly from top management.

About Triumph Group, Inc.

Triumph Group, headquartered in Pennsylvania, designs, develops, manufactures, and repairs aerospace and defense systems and components. They serve the global aviation industry, addressing the diverse needs of both military and commercial aircraft operators.

Frequently Asked Questions

What were Triumph's total net sales for Q2 FY2025?

Triumph reported net sales of $287.5 million for the second quarter of fiscal 2025.

How has Triumph's operating income changed?

The company experienced an operating income of $32.4 million with an operating margin of 11% in Q2 FY2025.

What factors influenced Triumph's fiscal 2025 guidance?

The increased guidance reflects strong demand in the aftermarket sector and improved performance in their Interiors business.

How did Triumph's backlog change?

Triumph's backlog reached $1.90 billion, indicating solid demand across all markets.

What services does Triumph offer?

Triumph Group designs, develops, manufactures, and repairs a wide range of aerospace and defense systems and components.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.