TRIUMPH Reports Fouth Quarter Fiscal 2023 Results


RADNOR, PA —Triumph Group, Inc. (NYSE: TGI) recenlty reported financial results for its fourth quarter and fiscal 2023, which ended March 31, 2023.

Fourth Quarter Fiscal 2023

  • Net sales of $393.3 million
  • Operating income of $56.2 million with operating margin of 14%; adjusted operating income of $59.9 million with adjusted operating margin of 15%
  • Net loss of ($17.5) million, or ($0.27) per share; adjusted net income of $34.5 million, or $0.39 per diluted share
  • Adjusted EBITDAP of $68.1 million with Adjusted EBITDAP margin of 17.3%
  • Cash flow generated from operations of $60.0 million; free cash flow of $51.8 million

Fiscal 2023

  • Net sales of $1.38 billion
  • Operating income of $238.1 million with operating margin of 17%, including $101.5 million gain on sale from our Stuart, Florida business; adjusted operating income of $158.7 million with adjusted operating margin of 11%
  • Net income of $89.6 million, or $1.20 per diluted share; adjusted net income of $55.4 million, or $0.77 per diluted share
  • Adjusted EBITDAP of $195.7 million with Adjusted EBITDAP margin of 14.0%
  • Cash flow used in operations of ($52.3) million; free cash use of ($72.9) million
  • Proactively addressed near term maturities through new $1.2 billion first lien secured financing

Fiscal 2024 Guidance

  • Net sales of $1.39 billion to $1.43 billion, reflecting 7 – 10% organic growth
  • Operating income of $165.0 million to $180.0 million, reflecting operating income margin of 12 – 16%
  • Adjusted EBITDAP of $210.0 million to $225.0 million, reflecting Adjusted EBITDAP margin of 15 – 16%
  • Cash flow from operations of $60.0 million to $80.0 million; free cash flow of $35.0 million to $50.0 million

“TRIUMPH ended our fiscal year 2023 on an upswing and exceeded both our Net Sales and our adjusted earnings per share guidance and successfully extending our debt maturities to enhance liquidity and financial flexibility,” said Dan Crowley, TRIUMPH’s chairman, president, and chief executive officer. “As our markets improve, we generated 21% organic sales growth from continuing operations in the quarter as a result of increasing commercial OEM production rates, accelerating MRO demand, and recovering military volumes. In addition, we delivered strong cash generation for the quarter and improved profitability on a year over year basis as supply chain constraints eased.”

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Mr. Crowley continued, “As a result of our healthy backlog and recent wins, we anticipate organic growth of 7 – 10% as well as continued margin expansion and positive free cash flow generation in fiscal 2024.  We will also maintain our focus on deleveraging and optimizing our capital structure over time.  As we execute on our financial and operational goals, TRIUMPH remains on track to deliver profitable growth and enhance shareholder value.”

Fourth Quarter and Full Year Fiscal 2023 Overview

Three Months Ended March 31,

Year Ended March 31,

($ in millions)





Commercial OEM

$ 140.7 $ 165.0 $ 543.5 $ 645.9
Military OEM 80.1 74.7 261.1 292.4
Total OEM Revenue 220.8 239.7 804.6 938.3
Commercial Aftermarket 95.6 65.6 325.5 245.0
Military Aftermarket 63.9 54.6 213.0 224.4
Total Aftermarket Revenue 159.5 120.2 538.5 469.4
Non-Aviation Revenue 12.3 24.5 33.6 46.4
Amortization of acquired contract liabilities 0.7 2.2 2.5 5.9

Total Net Sales*


393.3 $ 386.7 $ 1,379.1 $ 1,459.9

* Differences due to rounding

Note> Aftermarket sales include both repair & overhaul services and spare parts sales.

Excluding impacts from divestitures and exited or sunsetting programs, fiscal year organic Commercial OEM sales increased $104.5 million, or 28.7% with over half the improvement driven by increased production volumes on the Boeing 737 program, as well as an increases across other commercial fixed wing and rotorcraft programs and an intellectual property transaction.

Military OEM sales decreased $31.3 million, or (10.7)% primarily due to divestitures, as well as lower sales related to the E2-D and AH-64 programs. The decreased sales were partially offset by increased sales related to the CH-53K, and CH-47 programs.

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Commercial Aftermarket sales increased  $80.6 million, or 32.9%.  Excluding impacts from divestitures, organic Commercial Aftermarket sales increased $86.9 million, or 36.8%, driven by the recovery in overall air travel metrics and including increased sales primarily across Boeing 737 commercial platform fleets.

Military aftermarket sales increased $9.3 million, or 17.1% for the fourth quarter of fiscal 2023 relative to the prior year, partially reversing the headwinds experienced in this end market from earlier in the fiscal year.

Increased aftermarket sales improved margins in both the fourth quarter and full fiscal year.

Fourth quarter operating income of $56.2 million includes $2.1 million of restructuring costs and $1.6 million reduction of prior period gain on sale assets and businesses. Net loss for the fourth quarter of 2023 was ($17.5) million or $(0.27) per share and includes $31.6 million in debt extinguishment costs associated with our recent refinancing, $14.6 million in pension settlement charges associated with a multi-employer plan obligation and $2.1 for warrant related items.

TRIUMPH’s results included the following:

($ millions except EPS)



Diluted EPS

Loss from Continuing Operations – GAAP








Warrant related items

2.1 2.1 0.09

Loss on sale of assets and businesses, net

1.6 1.6 0.02

Restructuring costs

2.1 2.1 0.02

Debt extinguishment losses

31.6 31.6 0.36

Spokane withdrawal liability

14.6 14.6 0.17
Adjusted Income from Continuing Operations – non-GAAP $ 36.7 $ 34.6 $ 0.39
The number of shares used in computing adjusted diluted earnings per share for the fourth quarter of 2023 was 87.9 million.

Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was $1.58 billion, up 11% from prior fiscal year end, after adjusting for the impact of the Stuart divestiture. This increase was primarily on commercial narrow body platforms.

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For the fourth quarter of fiscal 2023, cash flow provided by operations was $60.0 million.


The Company expects net sales for fiscal 2024 will be $1.39 billion to $1.43 billion, reflecting an organic growth rate of 7% – 10%, after excluding approximately $77.9 million in fiscal 2023 revenues from exited businesses.

The Company expects fiscal 2024 operating income of $165.0 million to $180.0 million, and Adjusted EBITDAP of $210.0 million to $225.0 million.

The Company expects fiscal 2024 cash flow from operations of $60.0 million to $80.0 million and approximately $25.0 million to $30.0 million for capital expenditures, resulting in expected free cash flow of $35.0 million to $50.0 million.

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