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TRIUMPH REPORTS STRONG SECOND QUARTER FISCAL 2025 RESULTS AND RAISES FY25 GUIDANCE

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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.

Positive
  • 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
Negative
  • 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. $287.5 million in revenue shows modest 1% growth, while operating margins expanded to 11% (13% adjusted). The standout metric is commercial aftermarket growth of 34%, offsetting OEM weakness.

The company's raised FY25 guidance is particularly noteworthy, with operating income now expected between $140.5-145.5 million and adjusted EBITDAP of $190-195 million. The $1.90 billion backlog provides solid revenue visibility.

However, cash flow remains a concern with $44.7 million free cash use in Q2, though management expects improvement in H2. The turnaround in Interiors segment and strong aftermarket demand should support margin expansion and cash generation going forward.

RADNOR, Pa., Nov. 12, 2024 /PRNewswire/ -- Triumph Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") today reported financial results for its second quarter of fiscal 2025, which ended September 30, 2024.

Second Quarter Fiscal 2025

  • Net sales of $287.5 million; sales growth of 1%
  • Operating income of $32.4 million with operating margin of 11%; adjusted operating income of $36.0 million with adjusted operating margin of 13%
  • Net income from continuing operations of $11.9 million, or $0.15 per diluted share; adjusted net income from continuing operations of $15.4 million, or $0.20 per share
  • Adjusted EBITDAP of $42.6 million with Adjusted EBITDAP margin of 15%
  • Cash used in operations of ($38.4) million and free cash use of ($44.7) million. Cash and available liquidity was $148 million at September 30th.

Fiscal 2025 Guidance

  • Net sales of approximately $1.2 billion
  • Increasing operating income to a range of $140.5 million to $145.5 million, reflecting operating margin of 12%
  • Increasing Adjusted EBITDAP to a range of $190.0 million to $195.0 million, reflecting Adjusted EBITDAP margin of 16%
  • Increasing earnings per diluted share to a range of $0.47 to $0.53, and adjusted earnings per diluted share to a range of $0.70 - $0.76
  • Increasing cash flow from operations to a range of $40.0 million to $55.0 million, and free cash flow to a range of $20.0 million to $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 34%, more than offsetting temporary commercial OEM and supply chain headwinds," said Dan Crowley, TRIUMPH's chairman, president and chief executive officer.  "We exceeded our cash targets in the quarter through strong operational performance across all our businesses including Interiors where we turned around the business in Q2 through substantial cost reductions and a commercial resolution to bring its profit and cash flow in line with full year expectations."
 
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 ($11.6) million, or (8.9%) primarily due to decreased sales volume on the Boeing 737, 767, 777 programs, which were partially offset by increased sales on Boeing 787 program and a favorable settlement in Interiors across multiple programs.

Commercial Aftermarket sales increased $10.4 million, or 26.2%, primarily due to a combination of increased spares sales and repair sales volume across several platforms including the Boeing 787 program.

Military OEM sales increased $3.0 million, or 4.9%, as increased sales volumes on the CH-47 and AH-64 helped offset expected decreases on the V-22 program.

Military aftermarket sales increased $0.2 million, or 0.5%, as increased repairs on the CH-47 platform and a spare parts intellectual property transaction of approximately $5.0 million were partially offset by decreased repair and overhaul sales on the V-22 program.

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 $1.90 billion, an increase from prior fiscal year end. Our backlog includes increases across all end markets, partially offset by reductions due to the changes in timing of deliveries primarily under the Boeing 737MAX program.

For the second quarter of fiscal 2025, cash flow used in operations was ($38.4) million, which was better than expectations previously provided due to lower than expected working capital and strong aftermarket demand.

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 

TRIUMPH, headquartered in Radnor, Pennsylvania, designs, develops, manufactures, repairs and provided spare parts across a broad portfolio of aerospace and defense systems and components. The Company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.

More information about TRIUMPH can be found on the Company's website at www.triumphgroup.com.

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
September 30,
2024



March 31,
2024


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, $.001 par value, 200,000,000 shares authorized, 77,334,487
   and 76,923,691 shares issued and outstanding



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
   operating activities:







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
   acquisitions and divestitures:







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
   minimum tax obligation



(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 U.S. GAAP. In accordance with Securities and Exchange Commission (the "SEC") rules, we also disclose and discuss certain non-GAAP financial measures in our public filings and earning releases. Currently, the non-GAAP financial measures that we disclose are Adjusted EBITDA, which is our income (loss) from continuing operations before interest and gains or losses on debt modification and extinguishment, income taxes, amortization of acquired contract liabilities, costs incurred pertaining to shareholder cooperation agreements, consideration payable to customer related to divestitures, legal contingency losses (including legal judgments and settlements), gains/loss on divestitures, gains/losses on warrant remeasurements and warrant-related transaction costs, share-based compensation expense, depreciation and amortization (including impairment of long-lived assets), other non-recurring impairments, and the effects of certain pension charges such as curtailments, settlements, withdrawals, and other early retirement incentives; and Adjusted EBITDAP, which is Adjusted EBITDA, before pension expense or benefit (excluding pension charges already adjusted in Adjusted EBITDA). We disclose Adjusted EBITDA on a consolidated and Adjusted EBITDAP on a consolidated and a reportable segment basis in our earnings releases, investor conference calls and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors more meaningfully evaluate and compare our future results of operations with our previously reported results of operations.

We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the U.S. GAAP financial measure most directly comparable to such measures is income (loss) from continuing operations. In calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from income (loss) from continuing operations the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our continuing business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. Adjusted EBITDA and Adjusted EBITDAP are not measurements of financial performance under U.S. GAAP and should not be considered as a measure of liquidity, as an alternative to income (loss) from continuing operations, or as an indicator of any other measure of performance derived in accordance with U.S. GAAP. Investors and potential investors in our securities should not rely on Adjusted EBITDA or Adjusted EBITDAP as a substitute for any U.S. GAAP financial measure, including income (loss) from continuing operations. In addition, we urge investors and potential investors in our securities to carefully review the reconciliation of Adjusted EBITDA and Adjusted EBITDAP to income (loss) from continuing operations set forth below, in our earnings releases, and in other filings with the SEC and to carefully review the U.S. GAAP financial information included as part of our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K that are filed with the SEC, as well as our quarterly earnings releases, and compare the U.S. GAAP financial information with our Adjusted EBITDA and Adjusted EBITDAP.

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 U.S. GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business. We have spent more than 20 years expanding our product and service capabilities, partially through acquisitions of complementary businesses. Due to the expansion of our operations, which included acquisitions, our income (loss) from continuing operations has included significant charges for depreciation and amortization. Adjusted EBITDA and Adjusted EBITDAP exclude these charges and provide meaningful information about the operating performance of our business, apart from charges for depreciation and amortization. We believe the disclosure of Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year. We also believe Adjusted EBITDA and Adjusted EBITDAP are measures of our ongoing operating performance because the isolation of noncash charges, such as depreciation and amortization, and nonoperating items, such as interest, income taxes, pension and other postretirement benefits, provides additional information about our cost structure and, over time, helps track our operating progress. In addition, investors, securities analysts, and others have regularly relied on Adjusted EBITDA and Adjusted EBITDAP to provide financial measures by which to compare our operating performance against that of other companies in our industry.

(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,
Amortization, and Pension (Adjusted EBITDAP):


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
   and Amortization ("Adjusted EBITDA")


$

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
   and Amortization, and Pension ("Adjusted EBITDAP")


$

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
September 30, 2024


(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
September 30, 2024



Fiscal Year 2025
Diluted EPS
Guidance



Pre-Tax



After-Tax



Diluted EPS




Loss from continuing operations - GAAP


$

(8,181)



$

(6,904)



$

(0.09)



$0.47 - $0.53

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



$0.70 - $0.76

*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
September 30, 2023




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
September 30, 2023




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
September 30,



Six Months Ended
September 30,




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


$43.5-$48.5


Adjustments:




Interest expense and other, net


~$92.0


Non-service defined benefit expense


~$5.0


Depreciation & Amortization


~$32.0


Amortization of acquired contract liabilities


~($3.0)


Share-based compensation


~$13.0


Legal contingencies loss


~$7.5


Adjusted EBITDAP - non-GAAP


$190.0 - $195.0


 

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
September 30,



Six Months Ended
September 30,



Fiscal 2025
Guidance

$ 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)



$ (20.0) - $ (25.0)

Free cash (use) flow*


$

(44.7)



$

(36.9)



$

(157.4)



$

(107.0)



$ 20.0 - $ 30.0

* Differences due to rounding






























Cision 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?

Triumph Group reported a 1% revenue growth in Q2 FY2025, with net sales reaching $287.5 million.

How much did TGI's commercial aftermarket sales grow in Q2 2025?

Triumph's commercial aftermarket sales grew by 26.2%, increasing from $39.7 million to $50.2 million in Q2 FY2025.

What is Triumph Group's (TGI) updated FY2025 revenue guidance?

Triumph Group maintained its FY2025 revenue guidance at approximately $1.2 billion.

What was TGI's operating margin in Q2 2025?

Triumph Group achieved an operating margin of 11% with operating income of $32.4 million in Q2 FY2025.

Triumph Group, Inc.

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