On August 7, 2024, Triumph Group Inc (TGI, Financial) released its 8-K filing detailing the financial results for the first quarter of fiscal 2025, which ended June 30, 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 through its Systems and Support and Interiors segments.
Performance Overview
Triumph Group Inc (TGI, Financial) reported net sales of $281.0 million for the first quarter, reflecting a 7% increase compared to the same period last year. This figure surpassed the analyst estimate of $269.97 million. The company achieved an operating income of $8.1 million, with an operating margin of 3%. Adjusted operating income stood at $17.2 million, translating to an adjusted operating margin of 6%.
Despite the revenue growth, Triumph Group Inc (TGI, Financial) faced a net loss from continuing operations of $18.8 million, or $0.24 per share. However, on an adjusted basis, the net loss from continuing operations was $4.3 million, or $0.06 per share, aligning with analyst expectations.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Net Sales | $281.0 million | $263.8 million |
| Operating Income | $8.1 million | $(0.6) million |
| Net Loss from Continuing Operations | $(18.8) million | $(21.7) million |
| Adjusted Net Loss from Continuing Operations | $(4.3) million | $(4.4) million |
Segment Performance
Commercial OEM sales increased by 1.4% to $118.7 million, driven by higher sales volumes on the Boeing 787 program and various business jet platforms. Commercial Aftermarket sales saw a significant rise of 42.6%, reaching $50.2 million, primarily due to increased spares sales and a spare parts intellectual property transaction.
Military OEM sales decreased by 6.0% to $61.8 million, attributed to lower volumes on the V-22 program. Conversely, Military Aftermarket sales grew by 11.4% to $41.1 million, bolstered by increased spares and repairs for several programs, including CH-47 and CH-53.
Financial Position
Triumph Group Inc (TGI, Financial) reported cash used in operations of $104.5 million and free cash use of $112.7 million for the quarter. The company's backlog, representing the next 24 months of actual purchase orders, stood at $1.87 billion, down 2% from the prior fiscal year end.
Management Commentary
"TRIUMPH achieved its ninth consecutive quarter of year-over-year sales growth as commercial aftermarket sales from our IP-based business grew by more than 42% and more than offset temporary commercial OEM and supply chain headwinds," said Dan Crowley, TRIUMPH's chairman, president, and chief executive officer. "We retired an additional $120.0 million of debt in the quarter, strengthening the balance sheet and earning credit upgrades from both of the rating agencies that follow TRIUMPH."
Fiscal 2025 Guidance
Triumph Group Inc (TGI, Financial) maintained its fiscal 2025 guidance, projecting net sales of approximately $1.2 billion and operating income of around $132.5 million, reflecting an operating margin of 11%. The company also anticipates adjusted EBITDAP of approximately $182.0 million, with an adjusted EBITDAP margin of 15%. Earnings per diluted share are expected to be approximately $0.33, with adjusted earnings per diluted share of around $0.52. Cash flow from operations is projected to be between $30.0 million and $50.0 million, with free cash flow ranging from $10.0 million to $25.0 million.
For more detailed financial data and insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Triumph Group Inc for further details.
