TRIUMPH REPORTS STRONG SECOND QUARTER FISCAL 2025 RESULTS AND RAISES FY25 GUIDANCE
Triumph Group (NYSE: TGI) reported strong Q2 FY2025 results with net sales of $287.5 million, representing 1% growth. The company achieved operating income of $32.4 million with 11% margin, and net income from continuing operations of $11.9 million ($0.15 per share). Commercial aftermarket sales grew by 34%, offsetting OEM and supply chain challenges.
Based on strong performance, TRIUMPH raised its FY2025 guidance, projecting net sales of $1.2 billion, operating income of $140.5-145.5 million, and free cash flow of $20-30 million. The company's backlog stands at $1.90 billion, showing increases across all end markets.
Triumph Group (NYSE: TGI) ha riportato risultati solidi per il secondo trimestre dell'FY2025 con un fatturato netto di $287,5 milioni, che rappresenta una crescita dell'1%. L'azienda ha raggiunto un reddito operativo di $32,4 milioni con un margine dell'11% e un reddito netto dalle operazioni continuative di $11,9 milioni ($0,15 per azione). Le vendite commerciali del mercato post-vendita sono cresciute del 34%, compensando le sfide legate agli OEM e alla catena di fornitura.
Basandosi su queste performance solide, TRIUMPH ha innalzato le sue previsioni per l'FY2025, prevedendo un fatturato netto di $1,2 miliardi, un reddito operativo compreso tra $140,5 e $145,5 milioni e un flusso di cassa libero tra $20 e $30 milioni. L'azienda ha un portafoglio ordini di $1,90 miliardi, mostrando un incremento in tutti i mercati finali.
Triumph Group (NYSE: TGI) reportó resultados sólidos en el segundo trimestre del FY2025 con ventas netas de $287.5 millones, lo que representa un crecimiento del 1%. La empresa logró un ingreso operativo de $32.4 millones con un margen del 11%, y un ingreso neto de las operaciones continuadas de $11.9 millones ($0.15 por acción). Las ventas post-venta comerciales crecieron un 34%, compensando los desafíos del OEM y de la cadena de suministro.
Con base en un sólido desempeño, TRIUMPH elevó su guía para el FY2025, proyectando ventas netas de $1.2 mil millones, un ingreso operativo de $140.5-145.5 millones y un flujo de caja libre de $20-30 millones. La empresa tiene una cartera de pedidos de $1.90 mil millones, mostrando incrementos en todos los mercados finales.
트라이엄프 그룹 (NYSE: TGI)는 FY2025 2분기 실적을 발표했으며, 순매출은 $287.5 백만으로 1% 성장했습니다. 회사는 11%의 마진을 기록하며 $32.4 백만의 운영 이익을 달성했고, 지속 운영에서의 순이익은 $11.9 백만 ($0.15 주당)입니다. 상업용 애프터마켓 판매는 34% 증가하여 OEM 및 공급망 문제를 상쇄했습니다.
강력한 실적을 바탕으로, 트라이엄프는 FY2025 전망을 상향 조정했으며, 순매출을 $1.2 억에, 운영 이익을 $140.5-145.5 백만에, 자유 현금 흐름을 $20-30 백만으로 예측하고 있습니다. 회사의 미결 주문은 $1.90 억으로, 모든 최종 시장에서 증가세를 보이고 있습니다.
Triumph Group (NYSE: TGI) a annoncé de solides résultats pour le deuxième trimestre de l'exercice 2025, avec des ventes nettes de $287,5 millions, représentant une croissance de 1 %. L'entreprise a enregistré un revenu d'exploitation de 32,4 millions de dollars avec une marge de 11 %, et un revenu net des opérations continues de 11,9 millions de dollars (0,15 $ par action). Les ventes sur le marché secondaire commercial ont augmenté de 34 %, compensant les défis liés aux OEM et à la chaîne d'approvisionnement.
S'appuyant sur cette solide performance, TRIUMPH a relevé ses prévisions pour l'exercice 2025, projetant des ventes nettes de 1,2 milliard de dollars, un revenu d'exploitation de 140,5 à 145,5 millions de dollars et un flux de trésorerie libre de 20 à 30 millions de dollars. Le carnet de commandes de l'entreprise s'élève à 1,90 milliard de dollars, montrant des augmentations dans tous les marchés finaux.
Triumph Group (NYSE: TGI) hat starke Ergebnisse für das 2. Quartal FY2025 gemeldet, mit Nettoumsätzen von $287,5 Millionen, was einem Wachstum von 1% entspricht. Das Unternehmen erzielte einen operativen Gewinn von $32,4 Millionen bei einer Marge von 11%, und einen Nettogewinn aus fortgeführten Betrieben von $11,9 Millionen ($0,15 pro Aktie). Die Verkaufszahlen im kommerziellen Aftermarket stiegen um 34% und kompensierten Herausforderungen in Bezug auf OEM und Lieferketten.
Basierend auf der starken Leistung hat TRIUMPH seine Prognose für FY2025 angehoben und rechnet mit Nettoumsätzen von $1,2 Milliarden, operativen Gewinnen von $140,5-145,5 Millionen und einem freien Cashflow von $20-30 Millionen. Der Auftragsbestand des Unternehmens beträgt $1,90 Milliarden und zeigt in allen Endmärkten Zuwächse.
- Commercial aftermarket sales increased 26.2% to $50.2 million
- Military OEM sales grew 4.9% to $64 million
- Operating margin improved to 11% with $32.4 million operating income
- Raised FY2025 guidance for earnings and cash flow
- Backlog increased to $1.90 billion
- Commercial OEM sales declined 8.9% to $118.9 million
- Cash flow used in operations was negative $38.4 million
- Free cash use of $44.7 million in Q2
Insights
TRIUMPH's Q2 FY25 results demonstrate robust performance with several key positives.
The company's raised FY25 guidance is particularly noteworthy, with operating income now expected between
However, cash flow remains a concern with
Second Quarter Fiscal 2025
- Net sales of
; sales growth of$287.5 million 1% - Operating income of
with operating margin of$32.4 million 11% ; adjusted operating income of with adjusted operating margin of$36.0 million 13% - Net income from continuing operations of
, or$11.9 million per diluted share; adjusted net income from continuing operations of$0.15 , or$15.4 million per share$0.20 - Adjusted EBITDAP of
with Adjusted EBITDAP margin of$42.6 million 15% - Cash used in operations of
( and free cash use of$38.4) million ( . Cash and available liquidity was$44.7) million at September 30th.$148 million
Fiscal 2025 Guidance
- Net sales of approximately
$1.2 billion - Increasing operating income to a range of
to$140.5 million , reflecting operating margin of$145.5 million 12% - Increasing Adjusted EBITDAP to a range of
to$190.0 million , reflecting Adjusted EBITDAP margin of$195.0 million 16% - Increasing earnings per diluted share to a range of
to$0.47 , and adjusted earnings per diluted share to a range of$0.53 -$0.70 $0.76 - Increasing cash flow from operations to a range of
to$40.0 million , and free cash flow to a range of$55.0 million to$20.0 million $30.0 million
"TRIUMPH achieved its tenth consecutive quarter of year-over-year sales growth as commercial aftermarket sales from our IP-based business grew by more than
Mr. Crowley continued, "TRIUMPH is raising its fiscal 2025 earnings and cash flow guidance on strong aftermarket demand and the improvement in Interiors, while maintaining sales guidance despite lower short-term OEM production rates which we expect to recover in our fourth quarter. Our strong aftermarket growth and operating performance, and historical seasonality will accelerate our free cash flow generation in the second half of FY25. We expect to deliver top and bottom-line growth rates at or above the market as we benefit from continuing strong aftermarket demand."
Second Quarter Fiscal 2025 Overview
Three Months Ended September 30, | ||||||||
($ in millions) | 2024 | 2023 | ||||||
Commercial OEM | $ | 118.9 | $ | 130.6 | ||||
Military OEM | 64.0 | 61.1 | ||||||
Total OEM Revenue | 183.0 | 191.6 | ||||||
Commercial Aftermarket | 50.2 | 39.7 | ||||||
Military Aftermarket | 43.8 | 43.6 | ||||||
Total Aftermarket Revenue | 93.9 | 83.3 | ||||||
Non-Aviation Revenue | 10.0 | 9.2 | ||||||
Amortization of acquired contract liabilities | 0.6 | 0.6 | ||||||
Total Net Sales* | $ | 287.5 | $ | 284.7 | ||||
* Differences due to rounding | ||||||||
Note> Aftermarket sales include both repair & overhaul services and spare parts sales. |
Commercial OEM sales decreased
Commercial Aftermarket sales increased
Military OEM sales increased
Military aftermarket sales increased
TRIUMPH's results included the following:
($ millions except EPS) | Pre-tax | After-tax | Diluted EPS | |||||||||
Income from Continuing Operations - GAAP | $ | 9.1 | $ | 11.9 | $ | 0.15 | ||||||
Adjustments | ||||||||||||
Restructuring costs | 3.6 | 3.6 | 0.05 | |||||||||
Adjusted income from continuing operations - non-GAAP | $ | 12.7 | $ | 15.5 | $ | 0.20 | ||||||
The number of shares used in computing earnings per share for the second quarter of 2025 was 77.7 million.
Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was
For the second quarter of fiscal 2025, cash flow used in operations was
Conference Call
TRIUMPH will hold a conference call today, November 12th, at 8:30 a.m. (ET) to discuss the second quarter of fiscal 2025 results. The conference call will be available live and archived on the Company's website at http://www.triumphgroup.com. A slide presentation will be included with the audio portion of the webcast, and the presentation has been posted on the Company's website at https://www.triumphgroup.com/filings-financial/quarterly-results. An audio replay will be available from November 12th to November 19th by calling (844) 344-7529 (Domestic) or (412) 317-0088 (International), passcode #6721044.
About TRIUMPH
More information about
Forward Looking Statements
Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations of or assumptions about guidance, financial and operational performance, revenues, earnings per share, cash flow or use, cost savings, operational efficiencies and organizational restructurings and our evaluation of potential adjustments to reported amounts, as described above. All forward-looking statements involve risks and uncertainties which could affect the Company's actual results and could cause its actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph Group's reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.
FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES
FINANCIAL DATA (UNAUDITED) TRIUMPH GROUP, INC. AND SUBSIDIARIES (in thousands, except per share data)
| ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | $ | 287,495 | $ | 284,678 | $ | 568,511 | $ | 548,501 | ||||||||
Cost of sales (excluding depreciation shown below) | 192,891 | 209,865 | 399,968 | 403,770 | ||||||||||||
Selling, general & administrative | 51,123 | 42,137 | 100,501 | 92,631 | ||||||||||||
Depreciation & amortization | 7,487 | 7,314 | 14,854 | 14,679 | ||||||||||||
Legal contingencies loss | — | 1,338 | 7,464 | 1,338 | ||||||||||||
Restructuring costs | 3,566 | 1,942 | 5,182 | 1,942 | ||||||||||||
(Gain) loss on sale of assets and businesses, net | — | (409) | — | 12,208 | ||||||||||||
Operating income | 32,428 | 22,491 | 40,542 | 21,933 | ||||||||||||
Interest expense and other, net | 21,869 | 29,833 | 40,853 | 61,935 | ||||||||||||
Debt modification and extinguishment (gain) loss | — | (688) | 5,369 | (4,079) | ||||||||||||
Warrant remeasurement gain | — | (544) | — | (8,545) | ||||||||||||
Non-service defined benefit expense (income) | 1,468 | (820) | 2,501 | (1,640) | ||||||||||||
Income tax (benefit) expense | (2,776) | 1,019 | (1,277) | 2,279 | ||||||||||||
Income (loss) from continuing operations | 11,867 | (6,309) | (6,904) | (28,017) | ||||||||||||
Income from discontinued operations, net of tax | — | 5,013 | 4,680 | 8,558 | ||||||||||||
Net income (loss) | $ | 11,867 | $ | (1,296) | $ | (2,224) | $ | (19,459) | ||||||||
Earnings (loss) per share - basic: | ||||||||||||||||
Earnings (loss) per share - continuing operations | $ | 0.15 | $ | (0.08) | $ | (0.09) | $ | (0.39) | ||||||||
Earnings per share - discontinued operations | — | 0.06 | 0.06 | 0.12 | ||||||||||||
Earnings (loss) per share - basic | $ | 0.15 | $ | (0.02) | $ | (0.03) | $ | (0.27) | ||||||||
Weighted average common shares outstanding - basic | 77,343 | 76,447 | 77,252 | 71,368 | ||||||||||||
Earnings (loss) per share - diluted: | ||||||||||||||||
Earnings (loss) per share - continuing operations | $ | 0.15 | $ | (0.08) | $ | (0.09) | $ | (0.39) | ||||||||
Earnings per share - discontinued operations | — | 0.06 | 0.06 | 0.12 | ||||||||||||
Earnings (loss) per share - diluted | $ | 0.15 | $ | (0.02) | $ | (0.03) | $ | (0.27) | ||||||||
Weighted average common shares outstanding - diluted | 77,718 | 76,447 | 77,252 | 71,368 | ||||||||||||
(Continued)
FINANCIAL DATA (UNAUDITED) TRIUMPH GROUP, INC. AND SUBSIDIARIES (dollars in thousands, except share data)
| ||||||||
BALANCE SHEETS | Unaudited | March 31, | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 104,893 | $ | 392,511 | ||||
Accounts receivable, net | 162,217 | 138,272 | ||||||
Contract assets | 84,719 | 74,289 | ||||||
Inventory, net | 393,824 | 317,671 | ||||||
Prepaid and other current assets | 15,661 | 16,626 | ||||||
Current assets | 761,314 | 939,369 | ||||||
Property and equipment, net | 148,809 | 144,287 | ||||||
Goodwill | 514,976 | 510,687 | ||||||
Intangible assets, net | 60,703 | 65,063 | ||||||
Other, net | 25,663 | 26,864 | ||||||
Total assets | $ | 1,511,465 | $ | 1,686,270 | ||||
Liabilities & Stockholders' Deficit | ||||||||
Current portion of long-term debt | $ | 8,126 | $ | 3,200 | ||||
Accounts payable | 145,566 | 167,349 | ||||||
Contract liabilities | 48,055 | 55,858 | ||||||
Accrued expenses | 105,876 | 129,855 | ||||||
Current liabilities | 307,623 | 356,262 | ||||||
Long-term debt, less current portion | 957,620 | 1,074,999 | ||||||
Accrued pension and post-retirement benefits, noncurrent | 269,266 | 283,634 | ||||||
Deferred income taxes, noncurrent | 7,284 | 7,268 | ||||||
Other noncurrent liabilities | 64,858 | 68,521 | ||||||
Stockholders' Deficit: | ||||||||
Common stock, | 77 | 77 | ||||||
Capital in excess of par value | 1,112,120 | 1,107,750 | ||||||
Accumulated other comprehensive loss | (509,987) | (517,069) | ||||||
Accumulated deficit | (697,396) | (695,172) | ||||||
Total stockholders' deficit | (95,186) | (104,414) | ||||||
Total liabilities and stockholders' deficit | $ | 1,511,465 | $ | 1,686,270 |
(Continued)
FINANCIAL DATA (UNAUDITED) TRIUMPH GROUP, INC. AND SUBSIDIARIES (dollars in thousands) | ||||||||
Six Months Ended September 30, | ||||||||
2024 | 2023 | |||||||
Operating Activities | ||||||||
Net loss | $ | (2,224) | $ | (19,459) | ||||
Adjustments to reconcile net loss to net cash used in | ||||||||
Depreciation and amortization | 14,854 | 16,160 | ||||||
Amortization of acquired contract liability | (1,213) | (1,165) | ||||||
(Gain) loss on sale of assets and businesses | (5,018) | 12,208 | ||||||
Loss (gain) on modification and extinguishment of debt | 5,369 | (4,079) | ||||||
Other amortization included in interest expense | 2,052 | 2,980 | ||||||
Provision for credit losses | 329 | 781 | ||||||
Warrants remeasurement gain | — | (8,532) | ||||||
Share-based compensation | 6,365 | 7,346 | ||||||
Changes in other assets and liabilities, excluding the effects of | ||||||||
Trade and other receivables | (23,848) | 22,131 | ||||||
Contract assets | (10,419) | (6,426) | ||||||
Inventories | (75,053) | (45,394) | ||||||
Prepaid expenses and other current assets | 953 | (1,028) | ||||||
Accounts payable, accrued expenses, and contract liabilities | (46,191) | (69,795) | ||||||
Accrued pension and other postretirement benefits | (2,540) | (2,386) | ||||||
Other, net | (6,344) | 713 | ||||||
Net cash used in operating activities | (142,928) | (95,945) | ||||||
Investing Activities | ||||||||
Capital expenditures | (14,458) | (11,028) | ||||||
Payments on sale of assets and businesses | (2,328) | (6,785) | ||||||
Investment in joint venture | — | (1,527) | ||||||
Net cash used in investing activities | (16,786) | (19,340) | ||||||
Financing Activities | ||||||||
Proceeds from issuance of long-term debt | — | 2,000 | ||||||
Retirement of debt and finance lease obligations | (121,594) | (19,865) | ||||||
Payment of deferred financing costs | — | (1,578) | ||||||
Proceeds on issuance of common stock, net of issuance costs | — | 79,961 | ||||||
Premium on redemption of long-term debt | (3,600) | — | ||||||
Repurchase of shares for share-based compensation | (2,273) | (1,282) | ||||||
Net cash (used in) provided by financing activities | (127,467) | 59,236 | ||||||
Effect of exchange rate changes on cash | (437) | (1,469) | ||||||
Net change in cash and cash equivalents | (287,618) | (57,518) | ||||||
Cash and cash equivalents at beginning of period | 392,511 | 227,403 | ||||||
Cash and cash equivalents at end of period | $ | 104,893 | $ | 169,885 |
(Continued)
FINANCIAL DATA (UNAUDITED) TRIUMPH GROUP, INC. AND SUBSIDIARIES (dollars in thousands)
| ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Systems & Support | ||||||||||||||||
Net sales to external customer | $ | 249,954 | $ | 249,385 | $ | 501,934 | $ | 476,638 | ||||||||
Inter-segment sales (eliminated in consolidation) | — | 411 | 8 | 490 | ||||||||||||
Segment EBITDAP | 54,823 | 48,487 | 102,220 | 89,301 | ||||||||||||
Segment EBITDAP Margin | 22.0 | % | 19.5 | % | 20.4 | % | 18.8 | % | ||||||||
Depreciation & amortization | 6,385 | 6,225 | 12,764 | 12,412 | ||||||||||||
Interiors | ||||||||||||||||
Net sales to external customer | $ | 37,541 | $ | 35,293 | $ | 66,577 | $ | 71,863 | ||||||||
Inter-segment sales (eliminated in consolidation) | 3 | — | 11 | 13 | ||||||||||||
Segment EBITDAP | 1,891 | (2,704) | (5,386) | (4,597) | ||||||||||||
Segment EBITDAP Margin | 5.0 | % | -7.7 | % | -8.1 | % | -6.4 | % | ||||||||
Depreciation & amortization | 524 | 644 | 1,100 | 1,327 | ||||||||||||
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC, AND SUBSIDIARES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures
We prepare and publicly release annual audited and quarterly unaudited financial statements prepared in accordance with
We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the
Adjusted EBITDA and Adjusted EBITDAP are used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Set forth below are descriptions of the financial items that have been excluded from our income (loss) from continuing operations) to calculate Adjusted EBITDA and Adjusted EBITDAP and the material limitations associated with using these non-GAAP financial measures as compared with income (loss) from continuing operations:
- Gains or losses from sale of assets and businesses may be useful for investors to consider because they reflect gains or losses from sale of operating units or other assets. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Warrants remeasurement gains or losses and Warrant-related transaction costs may be useful for investors to consider because they reflect the mark-to-market changes in the fair value of our Warrants and the costs associated with Warrants issuance. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Consideration payable to a customer related to a divestiture may be useful for investors to consider because it reflects consideration paid to facilitate the ultimate sale of operating units. We do not believe these charges necessarily reflect the current and ongoing cash earnings related to our operations.
- Shareholder cooperation expenses may be useful for investors to consider because they represent certain costs of corporate governance that may be incurred periodically when reaching cooperative agreements with shareholders. We do not believe these charges necessarily reflect the current and ongoing cash earnings related to our operations.
- Legal contingencies loss, when applicable, may be useful for investors to consider because it reflects gains or losses from legal disputes with third parties. We do not believe these gains or losses reflect the current and ongoing earnings related to our operations.
- Non-service defined benefit income or expense from our pension and other postretirement benefit plans (inclusive of certain pension related transactions such as curtailments, settlements, withdrawal, and early retirement or other incentives) may be useful for investors to consider because they represent the cost of postretirement benefits to plan participants, net of the assumption of returns on the plan's assets and are not indicative of the cash paid for such benefits. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Amortization of acquired contract liabilities may be useful for investors to consider because it represents the noncash earnings on the fair value of off-market contracts acquired through acquisitions. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Amortization expense and nonrecurring asset impairments (including goodwill and intangible asset impairments) may be useful for investors to consider because it represents the estimated attrition of our acquired customer base and the diminishing value of trade names, product rights, licenses, or, in the case of goodwill, other assets that are not individually identified and separately recognized under
U.S. GAAP, or, in the case of nonrecurring asset impairments, the impact of unusual and nonrecurring events affecting the estimated recoverability of existing assets. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure. - Depreciation may be useful for investors to consider because it generally represents the wear and tear on our property and equipment used in our operations. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
- Share-based compensation may be useful for investors to consider because it represents a portion of the total compensation to management and the board of directors. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
- The amount of interest expense and other, as well as debt extinguishment gains or losses, we incur may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of interest expense and other and debt extinguishment gains or losses to be a representative component of the day-to-day operating performance of our business.
- Income tax expense may be useful for investors to consider because it generally represents the taxes which may be payable for the period and the change in deferred income taxes during the period and may reduce the amount of funds otherwise available for use in our business. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day operating performance of our business.
Management compensates for the above-described limitations of using non-GAAP measures by using a non-GAAP measure only to supplement our GAAP results and to provide additional information that is useful to gain an understanding of the factors and trends affecting our business.
The following table shows our Adjusted EBITDA and Adjusted EBITDAP reconciled to our income (loss) from continuing operations for the indicated periods (in thousands):
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation, | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Income (loss) from continuing operations | $ | 11,867 | $ | (6,309) | $ | (6,904) | $ | (28,017) | ||||||||
Add-back: | ||||||||||||||||
Income tax (benefit) expense | (2,776) | 1,019 | (1,277) | 2,279 | ||||||||||||
Interest expense and other, net | 21,869 | 29,833 | 40,853 | 61,935 | ||||||||||||
Debt modification and extinguishment (gain) loss | — | (688) | 5,369 | (4,079) | ||||||||||||
Warrant remeasurement gain | — | (544) | — | (8,545) | ||||||||||||
Legal contingencies loss | — | 1,338 | 7,464 | 1,338 | ||||||||||||
Shareholder cooperation expenses | — | — | — | 1,905 | ||||||||||||
(Gain) loss on sales of assets and businesses, net | — | (409) | — | 12,208 | ||||||||||||
Share-based compensation | 3,350 | 3,724 | 6,365 | 7,346 | ||||||||||||
Amortization of acquired contract liabilities | (622) | (590) | (1,213) | (1,165) | ||||||||||||
Depreciation and amortization | 7,487 | 7,314 | 14,854 | 14,679 | ||||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation | $ | 41,175 | $ | 34,688 | $ | 65,511 | $ | 59,884 | ||||||||
Non-service defined benefit expense (income) (excluding settlements) | 1,468 | (820) | 2,501 | (1,640) | ||||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation | $ | 42,643 | $ | 33,868 | $ | 68,012 | $ | 58,244 | ||||||||
Net sales | $ | 287,495 | $ | 284,678 | $ | 568,511 | $ | 548,501 | ||||||||
Income (loss) from continuing operations margin | 4.1 | % | (2.2) | % | (1.2) | % | (5.1) | % | ||||||||
Adjusted EBITDAP margin | 14.9 | % | 11.9 | % | 12.0 | % | 10.6 | % | ||||||||
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Adjusted income from continuing operations, before income taxes, adjusted income from continuing operations and adjusted income from continuing operations per diluted share, before non-recurring costs have been provided for consistency and comparability. These measures should not be considered in isolation or as alternatives to income from continuing operations before income taxes, income from continuing operations and income from continuing operations per diluted share presented in accordance with GAAP. The following tables reconcile income from continuing operations before income taxes, income from continuing operations, and income from continuing operations per diluted share, before non-recurring costs.
Three Months Ended | ||||||||||||
(amounts in '000s, except per share amounts) | Pre-Tax | After-Tax | Diluted EPS | |||||||||
Income from continuing operations - GAAP | $ | 9,091 | $ | 11,867 | $ | 0.15 | ||||||
Adjustments: | ||||||||||||
Restructuring costs | 3,566 | 3,566 | 0.05 | |||||||||
Adjusted income from continuing operations - non-GAAP | $ | 12,657 | $ | 15,433 | $ | 0.20 | ||||||
Six Months Ended | Fiscal Year 2025 | |||||||||||||
Pre-Tax | After-Tax | Diluted EPS | ||||||||||||
Loss from continuing operations - GAAP | $ | (8,181) | $ | (6,904) | $ | (0.09) | ||||||||
Adjustments: | ||||||||||||||
Legal contingencies loss | 7,464 | 7,464 | 0.10 | 0.10 | ||||||||||
Restructuring costs | 5,182 | 5,182 | 0.07 | 0.07 | ||||||||||
Debt extinguishment loss | 5,369 | 5,369 | 0.07 | 0.07 | ||||||||||
Adjusted income from continuing operations - non-GAAP* | $ | 9,834 | $ | 11,111 | $ | 0.14 | ||||||||
*Difference due to rounding. |
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Three Months Ended | ||||||||||||
Pre-Tax | After-Tax | Diluted EPS | ||||||||||
Loss from continuing operations - GAAP | $ | (5,290) | $ | (6,309) | $ | (0.08) | ||||||
Adjustments: | ||||||||||||
Legal contingencies loss | 1,338 | 1,338 | 0.02 | |||||||||
Gain on sale of assets and businesses, net | (409) | (409) | (0.01) | |||||||||
Restructuring costs | 1,942 | 1,942 | 0.03 | |||||||||
Debt modification and extinguishment gain | (688) | (688) | (0.01) | |||||||||
Adjusted loss from continuing operations - non-GAAP | $ | (3,107) | $ | (4,126) | $ | (0.05) | ||||||
Six Months Ended | ||||||||||||
Pre-Tax | After-Tax | Diluted EPS | ||||||||||
Loss from continuing operations - GAAP | $ | (25,738) | $ | (28,017) | $ | (0.39) | ||||||
Adjustments: | ||||||||||||
Shareholder cooperation expenses | 1,905 | 1,905 | 0.03 | |||||||||
Loss on sale of assets and businesses, net | 12,208 | 12,208 | 0.17 | |||||||||
Restructuring costs | 1,942 | 1,942 | 0.03 | |||||||||
Debt modification and extinguishment gain | (4,079) | (4,079) | (0.06) | |||||||||
Legal contingencies loss | 1,338 | 1,338 | 0.02 | |||||||||
Adjusted loss from continuing operations - non-GAAP* | $ | (12,424) | $ | (14,703) | $ | (0.21) | ||||||
*Difference due to rounding. |
Adjusted Operating Income is defined as GAAP Operating Income, less expenses/gains associated with the Company's transformation, such as restructuring expenses, gains/losses on divestitures, impairments of goodwill and other assets. Management believes that this is useful in evaluating operating performance, but this measure should not be used in isolation. The following table reconciles our Operating income to Adjusted Operating income as noted above.
Three Months Ended | Six Months Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Operating income - GAAP | $ | 32,428 | $ | 22,491 | $ | 40,542 | $ | 21,933 | ||||||||
Adjustments: | ||||||||||||||||
(Gain) loss on sale of assets and businesses, net | — | (409) | — | 12,208 | ||||||||||||
Legal contingencies loss | — | 1,338 | 7,464 | 1,338 | ||||||||||||
Restructuring costs (cash based) | 3,566 | 1,942 | 5,182 | 1,942 | ||||||||||||
Shareholder cooperation expenses | — | — | — | 1,905 | ||||||||||||
Adjusted operating income - non-GAAP | $ | 35,994 | $ | 25,362 | $ | 53,188 | $ | 39,326 | ||||||||
Adjusted operating margin - non-GAAP | 12.5 | % | 8.9 | % | 9.4 | % | 7.2 | % |
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Fiscal 2025 | |||
($ in millions) | Guidance | ||
Income from continuing operations, before taxes | |||
Adjustments: | |||
Interest expense and other, net | |||
Non-service defined benefit expense | |||
Depreciation & Amortization | |||
Amortization of acquired contract liabilities | ~( | ||
Share-based compensation | |||
Legal contingencies loss | |||
Adjusted EBITDAP - non-GAAP |
Cash provided by operations, is provided for consistency and comparability. We also use free cash flow as a key factor in planning for and consideration of strategic acquisitions and the repayment of debt. This measure should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating results presented in accordance with GAAP. The following table reconciles cash used in operations to free cash use.
Three Months Ended | Six Months Ended | Fiscal 2025 | ||||||||||||||||
$ in millions | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
Cash (use) flow from operating activities | $ | (38.4) | $ | (32.2) | $ | (142.9) | $ | (95.9) | $ 40.0 - $ 55.0 | |||||||||
Less: | ||||||||||||||||||
Capital expenditures | (6.3) | (4.6) | (14.5) | (11.0) | ||||||||||||||
Free cash (use) flow* | $ | (44.7) | $ | (36.9) | $ | (157.4) | $ | (107.0) | ||||||||||
* Differences due to rounding | ||||||||||||||||||
View original content:https://www.prnewswire.com/news-releases/triumph-reports-strong-second-quarter-fiscal-2025-results-and-raises-fy25-guidance-302301983.html
SOURCE Triumph Group
FAQ
What was Triumph Group's (TGI) revenue growth in Q2 2025?
How much did TGI's commercial aftermarket sales grow in Q2 2025?
What is Triumph Group's (TGI) updated FY2025 revenue guidance?