C.H. Robinson will join the TriumphPay Network, a platform that connects brokers, shippers, factors and carriers for a streamlined payment experience. This collaboration provides the foundation for delivering new solutions and financial benefits to carriers at a scale never seen before. TriumphPay provides innovative payment processing solutions tailored for the transportation industry, empowering freight brokers to achieve heightened operational efficiency, improved financial transparency and enhanced risk ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Triumph Group designs, manufactures, and repairs aerospace and defense systems, significantly reducing debt after a major divestiture [Products and Services](index=5&type=section&id=Products%20and%20Services) - The company operates through two segments: Triumph Systems & Support (proprietary components, subsystems, complex assemblies) and Triumph Interiors (insulation, ducting, interior components)[10](index=10&type=chunk) Systems & Support Product Examples | Category | Products | | :--- | :--- | | **Drives & Controls** | Aircraft and engine-mounted accessory drives, Geared transmissions, Main engine gear box assemblies | | **Actuation & Power** | High lift and utility actuation, Hydraulic systems and components, Landing gear actuation systems | | **Fuel & Thermal** | Electronic engine controls, Main fuel pumps, Thermal control systems and components | [Backlog](index=6&type=section&id=Backlog) Backlog Comparison (in billions) | Date | Systems & Support | Interiors | Total Backlog | | :--- | :--- | :--- | :--- | | **March 31, 2024** | $1.56 | $0.34 | $1.90 | | **March 31, 2023** | $1.29 | $0.26 | $1.55 | - The total backlog increased by **22.6%** year-over-year. Of the **$1.90 billion** backlog at March 31, 2024, approximately **$1.15 billion** is expected to be shipped by March 31, 2025[21](index=21&type=chunk) [Dependence on Significant Customers](index=7&type=section&id=Dependence%20on%20Significant%20Customers) - A significant portion of the company's net sales are to The Boeing Company. A significant reduction in sales to Boeing could materially and adversely impact Triumph's financial position and results[22](index=22&type=chunk) [Human Capital Resources](index=9&type=section&id=Human%20Capital%20Resources) - As of March 31, 2024, **approximately 10%** of the company's **4,530 permanent employees** are represented by labor unions[42](index=42&type=chunk) Employee Safety Metrics (Calendar Year) | Safety Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **TRIR** | 0.8 | 1.2 | 1.8 | | **DART** | 0.2 | 0.5 | 1.0 | [Recent Developments](index=13&type=section&id=Recent%20Developments) - In December 2023, Triumph agreed to sell its Product Support MRO business to AAR CORP. The sale closed on March 1, 2024, resulting in a recognized gain of **approximately $548.3 million**. The results of this business are now classified as discontinued operations[56](index=56&type=chunk)[57](index=57&type=chunk) - Following the divestiture, the company used the proceeds to reduce long-term debt by **approximately $556.7 million** in March 2024 through redemptions of its 2028 First Lien Notes and 2025 Notes[58](index=58&type=chunk) - On May 30, 2024, the company completed an additional redemption of **$120.0 million** of its 2028 First Lien Notes[59](index=59&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces strategic, operational, financial, and legal risks including industry cyclicality, customer dependence, debt, and regulatory compliance - **Strategic Risks:** The business is highly dependent on the commercial aerospace market, which is cyclical, and on U.S. government defense spending, which can be unpredictable. A significant portion of net sales is to Boeing, making the company vulnerable to reductions in Boeing's purchases[63](index=63&type=chunk)[65](index=65&type=chunk)[74](index=74&type=chunk) - **Operational Risks:** The company is exposed to cybersecurity threats, relies on single-source suppliers for some essential raw materials, and faces potential liabilities from product warranties and claims related to past divestitures[86](index=86&type=chunk)[90](index=90&type=chunk)[95](index=95&type=chunk) - **Financial Risks:** The company's debt imposes significant operating and financial restrictions. Market volatility could impede access to capital, and high inflation poses a risk to profitability on fixed-price contracts[107](index=107&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk) - **Legal & Compliance Risks:** The aerospace industry is highly regulated by the FAA and other agencies. The company must also comply with U.S. export control laws (ITAR, EAR) and faces potential liabilities from environmental regulations[115](index=115&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Cybersecurity](index=30&type=section&id=Item%201C.%20Cybersecurity) Triumph's cybersecurity program, overseen by the Audit Committee, integrates into enterprise risk management, with no material incidents reported to date - The Board of Directors has delegated oversight of cybersecurity risks to the Audit Committee, which receives quarterly updates from the CAO and CISO[135](index=135&type=chunk) - The company utilizes a Computer Security Incident Response Team (CSIRT) and an Incident Response Plan, conducting periodic "tabletop" exercises to test preparedness[130](index=130&type=chunk)[131](index=131&type=chunk) - The company has not identified any cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect the company[134](index=134&type=chunk) [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) Triumph is vigorously defending two significant lawsuits from divestiture buyers, seeking damages for alleged breach of contract and undisclosed issues - Daher, buyer of the Stuart facility, is suing for **approximately $130.0 million** in damages, alleging failure to disclose paint, supplier, and production issues[139](index=139&type=chunk)[140](index=140&type=chunk) - Qarbon, buyer of the Red Oak facility, is suing for breach of contract and fraudulent inducement related to alleged undisclosed future losses on the Boeing T-7A program[142](index=142&type=chunk) - The company disputes the claims in both lawsuits and intends to vigorously defend itself, noting that potential losses cannot be reasonably estimated at this time[141](index=141&type=chunk)[143](index=143&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Triumph's common stock trades on NYSE, with its dividend program suspended since March 2020 and no recent share repurchases - The company's dividend program was suspended in March 2020 and remains suspended, with no dividends paid in fiscal 2024 or 2023[149](index=149&type=chunk) 5-Year Cumulative Total Return Comparison | Index | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Triumph Group, Inc.** | $100.00 | $35.73 | $97.15 | $133.63 | $61.26 | $79.50 | | **Russell 1000** | $100.00 | $91.97 | $147.70 | $167.30 | $153.26 | $199.03 | | **S&P Aerospace & Defense** | $100.00 | $73.62 | $102.91 | $117.68 | $122.55 | $135.51 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2024 net sales rose 5.4% to $1.19 billion, driven by aftermarket growth, while net income reached $512.4 million due to a divestiture gain and improved cash flow [Overview](index=36&type=section&id=Overview) - The sale of the Product Support business closed on March 1, 2024, resulting in a gain of **approximately $548.3 million**. This business is now reported as discontinued operations[158](index=158&type=chunk) FY 2024 Key Financial Results | Metric | Value | | :--- | :--- | | Net Sales | $1.19 billion (+5.4% YoY) | | Operating Income | $86.5 million | | Loss from Continuing Operations | $(34.5) million | | Net Income (incl. discontinued ops) | $512.4 million | | Backlog (continuing ops) | $1.90 billion (+22% YoY) | | Cash Flow from Operations | $9.4 million | - The Boeing 737 program represented **approximately 14%** of net sales for fiscal year 2024, up from **10%** in fiscal 2023[165](index=165&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Net Sales by End Market (FY2024 vs. FY2023, in thousands) | End Market | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Commercial OEM | $530,263 | $541,481 | | Military OEM | $261,918 | $261,051 | | Commercial Aftermarket | $164,014 | $126,148 | | Military Aftermarket | $183,108 | $165,814 | | **Total Net Sales** | **$1,192,043** | **$1,130,562** | - Commercial Aftermarket sales grew **30.0%** in FY2024, driven by the continued recovery in air travel. Military Aftermarket sales increased **10.4%**[177](index=177&type=chunk)[178](index=178&type=chunk) - Operating income for FY2024 decreased to **$86.5 million** from **$195.7 million** in FY2023, largely due to a **$113.7 million** decrease in the gain recognized on the sale of assets and businesses compared to the prior year[179](index=179&type=chunk)[181](index=181&type=chunk) [Business Segment Performance](index=45&type=section&id=Business%20Segment%20Performance) Segment Net Sales (FY2024 vs. FY2023, in thousands) | Segment | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Systems & Support | $1,028,425 | $919,351 | +11.9% | | Interiors | $164,440 | $211,647 | -22.3% | Segment Adjusted EBITDAP (FY2024 vs. FY2023, in thousands) | Segment | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Systems & Support | $200,074 | $172,415 | +16.0% | | Interiors | $(5,000) | $31,937 | -115.7% | - Systems & Support sales grew across all end markets, driven by commercial OEM and aftermarket recovery. Its Adjusted EBITDAP increased **16.0%** due to higher sales volume[192](index=192&type=chunk)[196](index=196&type=chunk) - Interiors sales declined primarily due to divestitures and exited programs. Excluding these, sales increased **22%**. The segment's Adjusted EBITDAP turned negative due to inflationary cost pressures and unfavorable foreign exchange effects[193](index=193&type=chunk)[198](index=198&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash from operating activities was **$9.4 million** in FY2024, a **$61.7 million** improvement from a **$52.3 million** use of cash in FY2023, driven by timing of receivables and payables[224](index=224&type=chunk) - Net proceeds from the sale of assets and businesses were **$713.4 million** in FY2024, principally from the sale of Product Support[226](index=226&type=chunk) - The company used proceeds from the Product Support divestiture to reduce long-term debt by **approximately $556.7 million** in March 2024, which is expected to reduce interest expense by **approximately $44.7 million** in fiscal 2025[222](index=222&type=chunk) - As of March 31, 2024, the company had **$392.5 million** of cash on hand and **approximately $44.1 million** available under its Securitization Facility[227](index=227&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency risk with forward contracts, while its primary market risk stems from interest rate changes affecting fixed-rate debt - The company uses foreign currency forward contracts to hedge price risk associated with foreign-denominated payments[256](index=256&type=chunk) - The primary market risk is from interest rate changes affecting the fair value of the company's fixed-rate long-term debt, though this does not impact the financial statements as the debt is carried at amortized cost[257](index=257&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents consolidated financial statements and Ernst & Young's unqualified audit opinion, highlighting critical audit matters on deferred tax assets and pension obligations - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and the company's internal control over financial reporting as of March 31, 2024[261](index=261&type=chunk)[262](index=262&type=chunk) - The audit identified two Critical Audit Matters: the realizability of deferred tax assets due to significant judgment in assessing future taxable income, and the measurement of defined benefit pension obligations due to the judgmental nature of actuarial assumptions like discount rates[266](index=266&type=chunk)[270](index=270&type=chunk) [Controls and Procedures](index=126&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and Ernst & Young concluded that the company's disclosure controls and internal control over financial reporting were effective as of March 31, 2024 - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[517](index=517&type=chunk) - Based on the COSO framework, management believes the company maintained effective internal control over financial reporting as of March 31, 2024[520](index=520&type=chunk) - No changes were made to internal control over financial reporting in the fourth quarter of fiscal 2024 that materially affected, or are reasonably likely to materially affect, internal controls[534](index=534&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=130&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - All information required for this item is incorporated by reference from the company's 2024 Proxy Statement[539](index=539&type=chunk) [Executive Compensation](index=130&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2024 Proxy Statement - All information required for this item is incorporated by reference from the company's 2024 Proxy Statement[544](index=544&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=130&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information for beneficial owners and management is incorporated by reference from the 2024 Proxy Statement - All information required for this item is incorporated by reference from the company's 2024 Proxy Statement[545](index=545&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=130&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2024 Proxy Statement - All information required for this item is incorporated by reference from the company's 2024 Proxy Statement[546](index=546&type=chunk) [Principal Accountant Fees and Services](index=130&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2024 Proxy Statement - All information required for this item is incorporated by reference from the company's 2024 Proxy Statement[547](index=547&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=131&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with or incorporated by reference into the Form 10-K report - This section contains a list of all financial statements, schedules, and exhibits included with or incorporated by reference into the Form 10-K filing[549](index=549&type=chunk)[550](index=550&type=chunk)

Group 1 - Triumph Group is facing challenges due to ongoing issues at Boeing, which are delaying its recovery [1][4] - The company's shares have decreased by approximately 80% over the last decade, primarily due to unprofitable contracts and supply chain issues [2] - Triumph reported earnings of $0.31 per share on revenue of $358.59 million for the fiscal fourth quarter, exceeding Wall Street estimates [3] Group 2 - The company anticipates additional challenges in fiscal 2025, projecting earnings of $0.42 per share, significantly below the $0.70 per share expected by analysts [3] - Triumph's weak guidance is a direct result of Boeing's reduced aircraft production, leading to conservative sales forecasts [4] - Despite having a solid plan to improve profitability, Triumph's future performance remains uncertain until Boeing's situation stabilizes [4][5]

Core Insights - Triumph Group, Inc. (TGI) reported adjusted earnings of 31 cents per share for Q4 fiscal 2024, exceeding the Zacks Consensus Estimate of 12 cents by 158.3%, although this represents a 3.1% decline from 32 cents in the prior-year quarter [1] - For the full fiscal year 2024, TGI reported an adjusted loss of 6 cents per share compared to earnings of 51 cents in the previous year [2] Financial Performance - TGI's net sales for Q4 fiscal 2024 were $358.6 million, surpassing the Zacks Consensus Estimate of $337 million by 6.4% and reflecting a 10.2% increase from $325.5 million in the same quarter last year [3] - Total revenues for fiscal 2024 reached $1.19 billion, a 5.4% increase from $1.13 billion in fiscal 2023 [4] Operational Highlights - Adjusted operating income for Q4 fiscal 2024 was $55.8 million, up 19.4% from the previous year [5] - Interest expenses decreased to $28.7 million, down 10.3% from the prior-year quarter [5] - TGI's backlog stood at $1.9 billion, a 22% increase from the prior fiscal year-end, primarily driven by commercial OEM platforms [5] Segment Performance - The Interiors segment reported sales of $48.5 million, a 21.6% increase from $39.9 million in the year-ago quarter [6] - The Systems & Support segment's sales improved by 8.6% year over year to $310.1 million [6] Financial Position - As of March 31, 2024, TGI's cash and cash equivalents totaled $392.5 million, up from $227.4 million a year earlier [7] - Long-term debt (excluding the current portion) decreased to $1.07 billion from $1.69 billion as of March 31, 2023 [7] - Net cash provided from operating activities was $9.4 million, compared to a net cash outflow of $52.3 million in the prior year [7] Capital Expenditures - Capital expenditures for TGI were $21.8 million as of March 31, 2024, compared to $20.7 million in the previous year [8] Guidance - TGI has provided financial guidance for fiscal 2025, expecting net sales of nearly $1.2 billion, with the Zacks Consensus Estimate for revenues at $1.26 billion [9] - The company anticipates earnings per share of 42 cents for fiscal 2025 and expects cash flow from operations in the range of $30-$50 million [10]

Investors in Triumph Group, Inc. (TGI) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 21, 2024 $5 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also ...

Triumph Group, Inc. (NYSE:TGI) Q4 2024 Earnings Conference Call May 23, 2024 8:30 AM ET Company Participants Thomas Quigley - Investor Relations Dan Crowley - Chairman, President & Chief Executive Officer Jim McCabe - Senior Vice President & Chief Financial Officer Conference Call Participants Josh Korn - Barclays Noah Poponak - Goldman Sachs Peter J. Arment - Baird Seth Seifman - JPMorgan Cai von Rumohr - TD Cowen Sheila Kahyaoglu - Jefferies Sam Struhsaker - Truist Securities Operator Good day, and welcom ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of Triumph Group's financial performance, including fourth-quarter and full-year fiscal 2024 results, along with fiscal year 2025 guidance [Fourth Quarter Fiscal 2024 Performance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Performance) Triumph Group reported strong fourth-quarter results with net sales of $358.6 million, reflecting an 11% organic growth rate, a 12.5% operating margin, and $72.1 million in free cash flow Q4 Fiscal 2024 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Sales | $358.6 million | | Organic Sales Growth | 11% | | Operating Income | $44.8 million | | Operating Margin | 12.5% | | Adjusted Operating Margin | 15.6% | | Net Income from Continuing Operations | $5.5 million | | EPS from Continuing Operations (Diluted) | $0.07 | | Adjusted Net Income from Continuing Operations | $23.3 million | | Adjusted EPS from Continuing Operations (Diluted) | $0.31 | | Adjusted EBITDAP | $58.3 million | | Adjusted EBITDAP Margin | 16.3% | | Cash Provided by Operations | $77.7 million | | Free Cash Flow | $72.1 million | [Full Year Fiscal 2024 Performance](index=1&type=section&id=Full%20Year%20Fiscal%202024%20Performance) For the full fiscal year 2024, Triumph achieved net sales of $1.19 billion, marking a 13% organic sales growth, a 7.3% operating margin, and a net loss from continuing operations of ($34.5) million Full Year Fiscal 2024 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Sales | $1.19 billion | | Organic Sales Growth | 13% | | Operating Income | $86.5 million | | Operating Margin | 7.3% | | Adjusted Operating Margin | 9.6% | | Net Loss from Continuing Operations | ($34.5) million | | EPS from Continuing Operations | ($0.46) | | Adjusted Net Loss from Continuing Operations | ($4.4) million | | Adjusted EBITDAP | $144.3 million | | Adjusted EBITDAP Margin | 12.1% | | Cash Provided by Operations | $9.4 million | | Free Cash Use | ($12.4) million | [Fiscal Year 2025 Guidance](index=1&type=section&id=Fiscal%20Year%202025%20Guidance) Triumph anticipates net sales of approximately $1.2 billion for fiscal 2025, with projected operating income of ~$140.0 million (12% margin) and free cash flow between $10.0 million and $25.0 million Fiscal Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Net Sales | ~$1.2 billion | | Operating Income | ~$140.0 million | | Operating Margin | ~12% | | Adjusted EBITDAP | ~$182.0 million | | Adjusted EBITDAP Margin | ~15% | | Earnings per Diluted Share | ~$0.42 | | Cash Flow from Operations | $30.0 million to $50.0 million | | Free Cash Flow | $10.0 million to $25.0 million | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO emphasized key strategic achievements in fiscal 2024, including streamlining the business through divestitures, significantly de-leveraging the balance sheet, and achieving eight consecutive quarters of organic growth - Completed the divestiture of the third-party Product Support MRO business and used the proceeds to retire over **$550.0 million of debt**, accelerating de-leveraging[6](index=6&type=chunk)[7](index=7&type=chunk) - Achieved the **eighth consecutive quarter of year-over-year organic growth**, primarily driven by rapid growth in aftermarket volume[7](index=7&type=chunk) - Accelerated new business with a year-to-date book-to-bill rate of **1.28**, increasing the backlog by **22% year-over-year** to its highest level since March 2020[7](index=7&type=chunk) - The Interiors business profit and cash flow lagged due to external cost drivers, though these headwinds are expected to lessen as narrowbody aircraft rates recover[7](index=7&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of Triumph Group's revenue by market segment, profitability, earnings, backlog, and cash flow performance [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) In Q4 FY2024, total net sales grew to $358.6 million from $325.5 million year-over-year, propelled by a strong recovery in the aftermarket that offset modest declines in OEM segments Net Sales by Market (in millions) | Segment | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Commercial OEM | $139.6 | $144.3 | $530.3 | $541.5 | | Military OEM | $71.2 | $80.2 | $261.9 | $261.1 | | **Total OEM Revenue** | **$210.8** | **$224.4** | **$792.2** | **$802.5** | | Commercial Aftermarket | $56.4 | $38.4 | $164.0 | $126.1 | | Military Aftermarket | $65.3 | $54.1 | $183.1 | $165.8 | | **Total Aftermarket Revenue** | **$121.6** | **$92.5** | **$347.1** | **$292.0** | | **Total Net Sales** | **$358.6** | **$325.5** | **$1,192.0** | **$1,130.6** | [Commercial OEM](index=2&type=section&id=Commercial%20OEM) Commercial OEM sales decreased by 3.3% in Q4, primarily due to a non-aviation revenue adjustment, partially offset by higher production volumes on the Boeing 787 program - Excluding divestitures and exited programs, Commercial OEM sales decreased by **$1.5 million (1.1%)** in Q4[9](index=9&type=chunk) [Military OEM](index=2&type=section&id=Military%20OEM) Military OEM sales fell 11.2% in the quarter, primarily due to reduced sales on military rotorcraft programs like the V-22, partly offset by increased volumes on other military programs - Military OEM sales decreased by **$9.0 million (11.2%)** in Q4, driven by lower sales on military rotorcraft like the V-22[11](index=11&type=chunk) [Commercial Aftermarket](index=2&type=section&id=Commercial%20Aftermarket) Commercial Aftermarket sales experienced robust growth of 47.1% in Q4, driven by the ongoing recovery in global air travel, which boosted demand for spare parts and repair and overhaul services - Commercial Aftermarket sales increased by **$18.0 million (47.1%)** in Q4, driven by the continued improvement in air travel metrics[10](index=10&type=chunk) [Military Aftermarket](index=2&type=section&id=Military%20Aftermarket) Military Aftermarket sales grew by a strong 20.7% in the quarter, primarily due to increased demand for spares and repairs related to military rotorcraft programs - Military Aftermarket sales increased by **$11.2 million (20.7%)** in Q4, mainly from increased spares and repairs for military rotorcraft[11](index=11&type=chunk) [Profitability and Earnings](index=2&type=section&id=Profitability%20and%20Earnings) In Q4 FY2024, GAAP operating income was $44.8 million, with net income from continuing operations at $5.5 million ($0.07 per share), adjusted to $23.3 million ($0.31 per share) due to one-time items Q4 FY2024 GAAP to Non-GAAP Reconciliation (in millions, except EPS) | Item | Pre-tax | After-tax | Diluted EPS | | :--- | :--- | :--- | :--- | | **Income from Continuing Operations - GAAP** | **$9.2** | **$5.5** | **$0.07** | | Adjustments: | | | | | Legal contingencies loss | $6.0 | $6.0 | $0.08 | | Restructuring costs | $5.0 | $5.0 | $0.06 | | Debt extinguishment loss | $6.8 | $6.8 | $0.09 | | **Adjusted income from continuing operations - non-GAAP** | **$27.0** | **$23.3** | **$0.31** | - Fourth quarter operating income of **$44.8 million** includes **$5.0 million** of restructuring costs and **$6.0 million** in legal contingencies loss[13](index=13&type=chunk) [Backlog and Cash Flow](index=4&type=section&id=Backlog%20and%20Cash%20Flow) The company's financial health improved, with the backlog growing 22% year-over-year to $1.9 billion, driven by commercial OEM platforms, and generating strong cash flow of $77.7 million from operations in the fourth quarter - Backlog, representing the next 24 months of firm orders, increased **22%** from the prior fiscal year-end to **$1.9 billion**, primarily on commercial OEM platforms[14](index=14&type=chunk) - For the fourth quarter of fiscal 2024, cash flow provided by operations was **$77.7 million**[14](index=14&type=chunk) [Unaudited Financial Statements](index=5&type=section&id=Unaudited%20Financial%20Statements) This section presents Triumph Group's unaudited condensed statements of operations, balance sheets, and cash flows for fiscal year 2024 [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) For fiscal year 2024, Triumph reported net sales of $1.19 billion and operating income of $86.5 million, with a final net income of $512.4 million primarily due to income from discontinued operations FY 2024 vs FY 2023 Statement of Operations (in thousands) | Line Item | Year Ended March 31, 2024 | Year Ended March 31, 2023 | | :--- | :--- | :--- | | Net sales | $1,192,043 | $1,130,562 | | Operating income | $86,454 | $195,685 | | Income (loss) from continuing operations | ($34,467) | $72,417 | | Income from discontinued operations, net of tax | $546,851 | $17,176 | | **Net income (loss)** | **$512,384** | **$89,593** | | Diluted EPS - continuing operations | ($0.46) | $0.96 | | Diluted EPS - discontinued operations | $7.38 | $0.24 | | **Diluted EPS - total** | **$6.92** | **$1.20** | [Balance Sheets](index=6&type=section&id=Balance%20Sheets) As of March 31, 2024, Triumph's balance sheet reflects significant de-leveraging, with long-term debt reduced to $1.07 billion, cash increasing to $392.5 million, and stockholders' deficit improving dramatically Balance Sheet Highlights (in thousands) | Line Item | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $392,511 | $227,403 | | Total assets | $1,686,270 | $1,714,844 | | Long-term debt, less current portion | $1,074,999 | $1,688,620 | | Total liabilities | $1,790,684 | $2,512,240 | | Total stockholders' deficit | ($104,414) | ($797,396) | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) For fiscal year 2024, Triumph generated $9.4 million in cash from operating activities, with investing activities providing $689.9 million from asset sales, and financing activities using $534.3 million for debt retirement Cash Flow Summary (in thousands) | Line Item | Fiscal Year Ended March 31, 2024 | Fiscal Year Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $9,443 | ($52,251) | | Net cash provided by (used in) investing activities | $689,925 | ($27,168) | | Net cash (used in) provided by financing activities | ($534,337) | $65,788 | | **Net change in cash and cash equivalents** | **$165,108** | **($13,475)** | [Segment Performance](index=8&type=section&id=Segment%20Performance) This section analyzes the financial performance and key metrics for Triumph Group's Systems & Support and Interiors segments [Systems & Support](index=8&type=section&id=Systems%20%26%20Support) The Systems & Support segment demonstrated strong performance in fiscal 2024, with external sales rising to $1.03 billion, EBITDAP growing to $200.1 million, and the EBITDAP margin expanding to 19.5% Systems & Support Performance (in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales to external customer | $310,116 | $285,583 | $1,027,630 | $918,960 | | Segment EBITDAP | $71,336 | $64,134 | $200,074 | $172,415 | | Segment EBITDAP Margin | 23.1% | 22.5% | 19.5% | 18.8% | [Interiors](index=8&type=section&id=Interiors) The Interiors segment faced significant challenges in fiscal 2024, with external sales declining to $164.4 million, resulting in an EBITDAP loss of ($5.0) million and a negative 3.0% margin Interiors Performance (in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales to external customer | $48,471 | $39,875 | $164,413 | $211,602 | | Segment EBITDAP | $1,137 | $3,047 | ($5,000) | $31,937 | | Segment EBITDAP Margin | 2.3% | 7.6% | -3.0% | 14.0% | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of Triumph Group's key non-GAAP financial measures, including Adjusted EBITDAP, Adjusted Income from Continuing Operations, Adjusted Operating Income, and Free Cash Flow [Reconciliation of Adjusted EBITDAP](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDAP) Triumph reconciles its GAAP income from continuing operations to Adjusted EBITDAP, which was $58.3 million (16.3% margin) for Q4 FY2024 and $144.3 million (12.1% margin) for the full fiscal year Reconciliation to Adjusted EBITDAP (in thousands) | Line Item | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Income (loss) from continuing operations | $5,461 | ($24,166) | ($34,467) | $72,417 | | Adjustments (Net) | $52,725 | $72,348 | $178,719 | $77,602 | | **Adjusted EBITDAP** | **$58,274** | **$54,243** | **$144,254** | **$150,019** | | Net Sales | $358,587 | $325,458 | $1,192,043 | $1,130,562 | | **Adjusted EBITDAP Margin** | **16.3%** | **16.7%** | **12.1%** | **13.1%** | [Reconciliation of Adjusted Income from Continuing Operations](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Income%20from%20Continuing%20Operations) The company provides a reconciliation from GAAP to non-GAAP adjusted income from continuing operations, with Q4 FY2024 adjusted income at $23.3 million ($0.31/share) and FY2024 adjusted loss at ($4.4) million (($0.06)/share) FY 2024 GAAP to Non-GAAP Income Reconciliation (in thousands, except EPS) | Period | GAAP Loss from Cont. Ops | Adjustments (Net) | Adjusted Income (Loss) | Adjusted EPS | | :--- | :--- | :--- | :--- | :--- | | **Q4 2024** | $5,461 | $17,804 | $23,265 | $0.31 | | **FY 2024** | ($34,467) | $30,115 | ($4,352) | ($0.06) | [Reconciliation of Adjusted Operating Income](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income) Triumph reconciles GAAP operating income to an adjusted non-GAAP figure by excluding transformation-related expenses, resulting in Q4 FY2024 adjusted operating income of $55.8 million (15.6% margin) and FY2024 of $114.9 million (9.6% margin) Reconciliation to Adjusted Operating Income (in thousands) | Line Item | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Operating income - GAAP | $44,810 | $42,992 | $86,454 | $195,685 | | Adjustments (Net) | $10,985 | $3,738 | $28,421 | ($81,166) | | **Adjusted operating income - non-GAAP** | **$55,795** | **$46,730** | **$114,875** | **$114,519** | | **Adjusted operating margin - non-GAAP** | **15.6%** | **14.4%** | **9.6%** | **10.0%** | [Reconciliation of Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free cash flow is derived by subtracting capital expenditures from cash provided by operating activities, with Q4 FY2024 generating $72.1 million, FY2024 showing a ($12.4) million use, and FY2025 guidance projecting positive free cash flow Free Cash Flow Reconciliation (in millions) | Period | Cash from Ops | Capital Expenditures | Free Cash Flow (Use) | | :--- | :--- | :--- | :--- | | **Q4 2024** | $77.7 | ($5.6) | $72.1 | | **Q4 2023** | $60.0 | ($8.3) | $51.8 | | **FY 2024** | $9.4 | ($21.8) | ($12.4) | | **FY 2023** | ($52.3) | ($20.7) | ($72.9) | | **FY 2025 Guidance** | $30.0 - $50.0 | ($20.0) - ($25.0) | $10.0 - $25.0 |

Complete thermal system including cabin and avionics bay cooling (27 LRU's), loose gears, gun actuation, T700 electronic engine controls $560K CH-47 Complete landing gear hydraulic system including all actuation, nose wheel steering, ground service panel, cargo door actuation system, Trent 1000 engine gears, GEnx heat exchangers, insulation system, ECS ducting TRIUMPH / Q4 FY'24 / May 23, 2024 | 22 OPEB Expense (Income) ^ ≈ ($9) ≈ ($9) Fiscal 2026 $41 < $1 Thereafter $21 < $1 We view Adjusted EBITDA and Adj ...

Core Insights - Triumph Group (TGI) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, but down from $0.39 per share a year ago, indicating an earnings surprise of 158.33% [1] - The company generated revenues of $358.59 million for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 6.37%, but down from $393.29 million year-over-year [2] - The stock has underperformed the market, losing about 9.5% since the beginning of the year compared to the S&P 500's gain of 11.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $285.02 million, and for the current fiscal year, it is $0.63 on revenues of $1.26 billion [7] - The estimate revisions trend for Triumph Group is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Aerospace - Defense Equipment industry, to which Triumph Group belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

PROVIDES FISCAL YEAR 2025 GUIDANCE RADNOR, Pa., May 23, 2024 /PRNewswire/ -- Triumph Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") today reported financial results for its fourth quarter and fiscal 2024, which ended March 31, 2024. Fourth Quarter Fiscal 2024 Fiscal 2024 Fiscal 2025 Guidance "TRIUMPH took important strategic actions during fiscal 2024 to create a more streamlined, value-added and IP-based business with a much stronger balance sheet," said Dan Crowley, TRIUMPH's chairman, president and ...