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Triumph (TGI) - 2025 Q4 - Annual Report
TGITriumph (TGI)2025-05-28 20:57

Backlog and Revenue Potential - As of March 31, 2025, the company's backlog was approximately 1.90billion,with1.90 billion, with 1.54 billion related to Systems & Support and 0.36billiontoInteriors[23].−ThebacklogasofMarch31,2024,wasalsoapproximately0.36 billion to Interiors [23]. - The backlog as of March 31, 2024, was also approximately 1.90 billion, indicating stability in order volume year-over-year [23]. - Approximately 1.19billionoftheexistingbacklogisestimatedtobeshippedbyMarch31,2026,reflectingfuturerevenuepotential[23].CustomerDependencyandCompetition−AsignificantportionofnetsalesisdependentonBoeing,highlightingtheriskoffinancialimpactfromreducedsalestothismajorcustomer[24].−ThecompanycompetesprimarilywithTier1andTier2systemssuppliersandcomponentmanufacturersintheaerospaceindustry[25].EmployeeSafetyandLaborRelations−Thetotalrecordableincidentrate(TRIR)improvedfrom1.17in2022to0.6in2024,indicatingenhancedemployeesafetymeasures[44].−Approximately371.19 billion of the existing backlog is estimated to be shipped by March 31, 2026, reflecting future revenue potential [23]. Customer Dependency and Competition - A significant portion of net sales is dependent on Boeing, highlighting the risk of financial impact from reduced sales to this major customer [24]. - The company competes primarily with Tier 1 and Tier 2 systems suppliers and component manufacturers in the aerospace industry [25]. Employee Safety and Labor Relations - The total recordable incident rate (TRIR) improved from 1.17 in 2022 to 0.6 in 2024, indicating enhanced employee safety measures [44]. - Approximately 37% of net sales are derived from facilities where at least some employees are unionized, indicating a significant labor presence [39]. - The company employs approximately 3,696 permanent employees, with 465 represented by labor unions, reflecting a diverse workforce [39]. - The company emphasizes human capital management, focusing on talent acquisition, retention, and employee engagement metrics [37]. Merger and Acquisition Activity - The company entered into a Merger Agreement with Titan BW Acquisition Holdco Inc., with each share of common stock to be converted into 26.00 in cash at the closing of the Merger [54]. - Stockholders approved the Merger on April 16, 2025, and the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired on March 10, 2025 [55]. - The Merger is expected to close in the second half of calendar year 2025, pending customary closing conditions and regulatory approvals [55]. Financial Risks and Debt Management - The company is subject to foreign currency exchange rate risk and uses foreign currency forward contracts to hedge against this risk [229]. - A 10% change in the exchange rate of the company's foreign currency contracts would not have a material impact on unrecognized gains or losses within operating income [229]. - The company's long-term debt is carried at amortized cost, and fluctuations in interest rates do not impact consolidated financial statements [230]. - The fair value of outstanding debt, which pays interest at a fixed rate, will fluctuate with movements of interest rates [230]. - The weighted average interest rates for fixed rate cash flows range from 7.33% to 8.96% as of March 31, 2025 [232]. - Total fixed rate cash flows amount to approximately 983,720,000,withsignificantcashflowsexpectedinthenext12monthsand13−24months[232].−Therearenoothersignificantmarketriskexposuresidentifiedbythecompany[232].CommunityEngagement−TheTriumphGroupCharitableFoundationallocatedapproximately983,720,000, with significant cash flows expected in the next 12 months and 13-24 months [232]. - There are no other significant market risk exposures identified by the company [232]. Community Engagement - The Triumph Group Charitable Foundation allocated approximately 0.5 million to around 130 recipient organizations in fiscal year 2025, demonstrating commitment to community support [46].