RADNOR, PA — Triumph Group, Inc. (NYSE: TGI) has reported strong financial results for the third quarter of fiscal 2025, ending December 31, 2024, alongside the announcement of a $3 billion merger agreement with affiliates of Warburg Pincus LLC and Berkshire Partners LLC.
Third-Quarter Performance
Triumph recorded net sales of $315.6 million, reflecting an 11% year-over-year increase. The company achieved an operating income of $39.3 million (12% margin) and an adjusted operating income of $45.7 million (14% margin). Income from continuing operations was $14.6 million, or $0.19 per diluted share, with adjusted earnings per share at $0.27. Adjusted EBITDAP rose to $55.5 million, representing an 18% margin.
The company also exceeded its cash targets, generating $33.1 million in cash flow from operations and $32.3 million in free cash flow during the quarter. Triumph now holds a backlog worth $1.87 billion, an indicator of robust demand spanning the next 24 months.
“We achieved 18% EBITDAP margins in our eleventh consecutive quarter of year-over-year sales growth,” said Dan Crowley, Triumph’s chairman, president, and CEO. “Strong performance across all businesses, combined with ramping aftermarket demand and increasing OEM production rates, continues to drive our results.”
Segment Highlights
- Commercial Aftermarket Sales surged 42.3%, driven by increased demand for spares and repairs across platforms including Boeing 737 and 787, and Airbus A380.
- Military OEM Sales grew by 24.1%, attributed to higher volumes in V-22 and CH-53K programs.
- Military Aftermarket Sales increased by 31.5%, spurred by repairs and spares demand for UH-60 and CH-47 platforms.
However, Commercial OEM Sales declined by 11.8%, largely due to decreased volume on the Boeing 737 MAX program caused by a temporary work stoppage during a strike, which has since been resolved.
Triumph also benefited from non-aviation revenue tied to geopolitical conflicts and defense industry modernization, further solidifying its diversification strategy.
Merger Agreement
Triumph also announced a definitive agreement to be acquired by affiliates of private equity giants Warburg Pincus and Berkshire Partners for a total enterprise value of approximately $3 billion. The transaction, scheduled for completion in the second half of calendar year 2025, is subject to Triumph shareholder approval and customary regulatory conditions.
“With this strategic partnership, Triumph is well-positioned to enhance its IP-based business model and drive long-term growth,” Crowley stated.
Looking Ahead
Triumph’s strategy, developed in collaboration with its Board over the past decade, focuses on transitioning to a more IP-based OEM and aftermarket business model while improving its Interiors segment. The third-quarter results reinforce the company’s momentum as it prepares to capitalize on favorable market trends and strengthen its industry leadership under new ownership in fiscal 2026 and beyond.
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