Triumph Group Sees Solid Growth in Q2 of Fiscal 2025 and Raises Year-End Guidance

Triumph

RADNOR, PATriumph Group, Inc. (NYSE: TGI) has reported its financial performance for the second quarter of fiscal 2025, showing an overall positive trajectory despite some challenges. The company posted net sales of $287.5 million, marking a 1% growth from the previous period. Operating income came in at $32.4 million, with a margin of 11%, while adjusted figures showed $36.0 million in operating income, reflecting a 13% margin.

Key financial highlights include a net income from continuing operations of $11.9 million, or $0.15 per diluted share. Adjusted net income was higher at $15.4 million, or $0.20 per share. The adjusted EBITDAP stood at $42.6 million, with a margin of 15%.

Looking ahead, Triumph is optimistic, revising its fiscal 2025 guidance upwards. The company now anticipates net sales around $1.2 billion and expects operating income to range between $140.5 million and $145.5 million, reflecting a 12% margin. Earnings per diluted share are projected to rise to between $0.47 and $0.53, with adjusted earnings expected to hit the $0.70 – $0.76 range. Additionally, Triumph forecasts its cash flow from operations to be between $40.0 million and $55.0 million, with free cash flow ranging from $20.0 million to $30.0 million.

Dan Crowley, Triumph’s chairman, president, and CEO, expressed confidence in the company’s performance, 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%.” He noted that these gains helped offset challenges in the commercial OEM sector and praised the company’s operational resilience, particularly within the Interiors division.

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Despite a decline in commercial OEM sales, primarily due to reduced volumes in several Boeing programs, Triumph saw a 26.2% rise in commercial aftermarket sales. This increase was driven by higher sales of spares and repair volumes, particularly on the Boeing 787 platform. Military OEM sales also saw an uptick, with a 4.9% increase due to higher volumes in programs like CH-47 and AH-64.

Triumph’s backlog, which indicates firm orders over the next 24 months, has grown to $1.90 billion, demonstrating strong demand across all sectors.

Crowley added, “Our strong aftermarket growth and operating performance, and historical seasonality will accelerate our free cash flow generation in the second half of FY25. We expect to deliver top and bottom-line growth rates at or above the market as we benefit from continuing strong aftermarket demand.”

The second quarter saw a cash use of $38.4 million in operations, better than anticipated, reflecting robust aftermarket demand and effective capital management. As Triumph heads into the latter half of the fiscal year, the company remains focused on sustaining its growth momentum and enhancing shareholder value.

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