RADNOR, PA — Triumph Group, Inc. (NYSE: TGI), a global leader in aerospace manufacturing and repair services, recently announced its financial results for the second quarter of fiscal 2024, which ended on September 30, 2023. The company reported robust growth figures and raised its full-year guidance, reflecting strong commercial aftermarket demand.
For the second quarter, Triumph reported net sales of $354.1 million, marking an organic sales growth of 16%. The company also reported an operating income of $34.3 million with an operating margin of 9.7%, and an adjusted operating income of $37.1 million with an adjusted operating margin of 10.5%. Despite a net loss of $1.3 million, or $0.02 per share, the adjusted net income came in at $0.9 million, or $0.01 per diluted share. The adjusted EBITDAP stood at $46.4 million, representing an adjusted EBITDAP margin of 13.1%.
Dan Crowley, Triumph’s Chairman, President, and CEO, said, “Triumph generated its sixth consecutive quarter of year-over-year organic sales growth driven by continued strong commercial aftermarket demand. Backlog is at its highest level since March 2020 and Triumph is well positioned to continue to grow organically and improve profitability.”
Triumph also revealed its updated guidance for fiscal 2024. The company expects net sales to be in the range of $1.43 billion to $1.47 billion, reflecting 10 – 13% organic growth. The operating income is projected to be between $152.0 million and $167.0 million, reflecting an operating margin of 11%. The adjusted EBITDAP is expected to fall in the range of $216.0 million to $231.0 million, reflecting an Adjusted EBITDAP margin of 15 – 16%. Triumph also expects its cash flow from operations to be between $65.0 million and $85.0 million.
In a move to reduce leverage and interest expenses, Triumph recently redeemed $45 million of its 2025 bonds. “As Triumph focuses on generating free cash flow and deleveraging, we are raising our full year guidance as we continue to execute on our financial and operational goals,” added Crowley.
The company also detailed its sales figures by segment. Organic Commercial OEM sales increased by $5.6 million or 4.5%, primarily due to production volumes on Boeing 787 and 737 programs. Commercial Aftermarket sales saw a substantial increase of $31.4 million, or 48.2%, driven by the continued improvement in overall air travel metrics. Military aftermarket sales also saw an uptick, increasing by $10.8 million, or 24.0%.
Triumph’s announcement of its strong second-quarter results and raised guidance for fiscal year 2024 signals its solid position in the aerospace market and its commitment to deliver profitable growth.
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