RADNOR, PA — Triumph Group, Inc. (NYSE: TGI), a global aerospace manufacturer, has updated its financial guidance for the full fiscal year 2024, which concludes on March 31, 2024. The revision comes in the wake of the recent sale of its Product Support business and the expected subsequent paydowns of its debt.
The revised cash guidance incorporates the cash flows from the Product Support business through February 29, 2024. It also accounts for certain cash outflows related to the transaction, including transaction fees, taxes, the timing of interest, and accelerated employee-related obligations of the divested operations. These are anticipated to be paid in March 2024, along with modest working capital timing impacts on the continuing operations.
For the full fiscal year 2024, Triumph Group reaffirms net sales of $1.17 billion to $1.20 billion, an operating income of $100.0 million to $110.0 million, and adjusted EBITDAP of $157.0 million to $167.0 million. However, it updates the cash flow used in operations to a range of $(15.8) million to $(5.8) million and free cash use to a range of $(39.6) million to $(29.6) million.
The company’s implied guidance for the fourth quarter of fiscal 2024 reflects net sales of $336.5 million to $366.5 million, operating income of $58.4 million to $68.4 million, and adjusted EBITDAP of $71.0 million to $81.0 million. The update adjusts the cash flow from operations to a range of $52.5 million to $62.5 million and free cash flow to a range of $45.0 million to $55.0 million.
On the balance sheet front, Triumph Group recently completed the call of $120.0 million of its Senior Secured Notes due 2028 at 103%, plus accrued but unpaid interest for approximately $128.7 million. It also settled the asset sale tender of $1.1 million of its Senior Secured Notes due 2028 at par, plus accrued but unpaid interest for approximately $1.2 million. Furthermore, it completed the call of the remaining $435.6 million of Senior Notes due 2025 at par, plus accrued but unpaid interest for approximately $437.6 million.
A presentation detailing unaudited preliminary quarterly results for continuing operations, which reflects Product Support as discontinued operations, is now available on the company’s website.
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