Q4 2024 Triumph Group Inc Earnings Call Transcript
Key Points
- Triumph Group Inc (TGI) achieved or exceeded strategic and financial objectives for fiscal year 2024 despite market dynamics.
- The company reduced total debt by over $700 million and accelerated deleveraging by 2 years.
- Triumph Group Inc (TGI) increased aftermarket revenues by 19%, which carry strong margins.
- The company improved systems and support adjusted EBITDAP margin by 70 basis points and free cash flow by $60 million.
- Triumph Group Inc (TGI) grew its total company backlog by 22%, driven by strong aftermarket demand and expanding participation in various platforms and markets.
- Overall earnings were impacted by $5 million in restructuring charges and continued margin weakness in the interiors business.
- Interiors profitability and free cash flow continue to lag expectations due to external headwinds.
- The company adopted a conservative fiscal '25 plan, reducing prior internal rate assumptions by 20% to 30% for Boeing platforms, impacting sales guidance by approximately $70 million.
- Triumph Group Inc (TGI) experienced a significant reduction in free cash flow forecast for fiscal '26, from $100 million to $56 million.
- Working capital usage is expected to be around $20 million to $25 million for fiscal '25, driven by inventory and lower shipment rates.
Good day, and welcome to the Triumph Group Fourth Quarter Fiscal Year 2024 Results Conference Call. (Operator Instructions) Please note today's event is being recorded.
I'd now like to turn the conference over to Thomas Quigley. Please go ahead, sir.
Thank you. Good morning, and welcome to our fourth quarter fiscal 2024 earnings call. Today, I'm joined by Dan Crowley, the company's Chairman, President and Chief Executive Officer; and Jim McCabe, Senior Vice President and Chief Financial Officer of Triumph. As we review the financial results for the quarter and full fiscal year, please refer to the presentation posted on our website this morning. We'll discuss our adjusted results.
Our adjustments and any reconciliation of non-GAAP financial measures to comparable GAAP measures are explained in the earnings press release and in the presentation. Certain statements on this call constitute forward-looking statements within the meaning of the Private
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