On May 23, 2024, Triumph Group Inc (TGI, Financial) released its 8-K filing detailing the financial results for its fourth quarter and fiscal year 2024, which ended on March 31, 2024. Triumph Group Inc designs and manufactures a broad portfolio of aerostructures, aircraft components, and systems for the aviation industry, serving commercial, business, and military markets globally.
Fourth Quarter Fiscal 2024 Highlights
Triumph Group Inc reported net sales of $358.6 million for the fourth quarter, reflecting an 11% organic sales growth. This figure surpassed the analyst estimate of $342.06 million. The company achieved an operating income of $44.8 million, with an operating margin of 12.5%. Adjusted operating income stood at $55.8 million, translating to an adjusted operating margin of 15.6%.
Net income from continuing operations was $5.5 million, or $0.07 per diluted share. Adjusted net income from continuing operations was $23.3 million, or $0.31 per diluted share, significantly higher than the estimated earnings per share of $0.23.
Cash provided by operations amounted to $77.7 million, with free cash flow reaching $72.1 million. The company also reported an adjusted EBITDAP of $58.3 million, with an adjusted EBITDAP margin of 16.3%.
Fiscal Year 2024 Overview
For the full fiscal year 2024, Triumph Group Inc reported net sales of $1.19 billion, marking a 13% organic sales growth. The company recorded an operating income of $86.5 million, with an operating margin of 7.3%. Adjusted operating income was $114.9 million, with an adjusted operating margin of 9.6%.
Despite a net loss from continuing operations of ($34.5) million, or $(0.46) per share, the adjusted net loss from continuing operations was ($4.4) million, or $(0.06) per share, which is better than the annual estimate of -$0.16 per share. Adjusted EBITDAP for the year was $144.3 million, with an adjusted EBITDAP margin of 12.1%.
Segment Performance
Triumph Group Inc operates under two segments: Systems and Support, and Interiors. The company reported the following segment performance for the fourth quarter and fiscal year:
| Segment | Q4 2024 Revenue ($ millions) | FY 2024 Revenue ($ millions) |
|---|---|---|
| Commercial OEM | 139.6 | 530.3 |
| Military OEM | 71.2 | 261.9 |
| Commercial Aftermarket | 56.4 | 164.0 |
| Military Aftermarket | 65.3 | 183.1 |
| Non-Aviation Revenue | 25.4 | 50.0 |
Financial Position
As of March 31, 2024, Triumph Group Inc reported total assets of $1.69 billion, with cash and cash equivalents of $392.5 million. The company’s total liabilities stood at $1.79 billion, resulting in a stockholders' deficit of $104.4 million. The company successfully retired over $550.0 million of debt during the fiscal year, significantly improving its balance sheet.
CEO Commentary
"TRIUMPH took important strategic actions during fiscal 2024 to create a more streamlined, value-added and IP-based business with a much stronger balance sheet," said Dan Crowley, TRIUMPH's chairman, president and chief executive officer. "We completed the divestiture of our third-party Product Support MRO business during the fourth quarter and retired over $550.0 million of debt with the sale proceeds to materially accelerate our de-leveraging as committed to our shareholders during our September 2023 Investor Day."
Fiscal 2025 Guidance
Looking ahead, Triumph Group Inc provided the following guidance for fiscal year 2025:
- Net sales of approximately $1.2 billion
- Operating income of approximately $140.0 million, reflecting an operating margin of 12%
- Adjusted EBITDAP of approximately $182.0 million, reflecting an adjusted EBITDAP margin of 15%
- Earnings per diluted share of approximately $0.42
- Cash flow from operations of $30.0 million to $50.0 million, with free cash flow of $10.0 million to $25.0 million
Triumph Group Inc's performance in fiscal 2024 demonstrates its resilience and strategic focus on growth and profitability. The company's strong organic sales growth, improved margins, and significant debt reduction position it well for continued success in the aerospace and defense industry.
Explore the complete 8-K earnings release (here) from Triumph Group Inc for further details.
