Triumph (US:TGI)2025-02-06 21:14Financial Performance - Triumph Group reported net sales of $315.6 million for Q3 fiscal 2025, representing an 11% increase year-over-year[5]. - The company achieved an adjusted EBITDAP of $55.5 million, with an EBITDAP margin of 18%[5]. - Operating income for the quarter was $39.3 million, with an operating margin of 12%[5]. - Adjusted EBITDA for Q3 2024 was $54.2 million, compared to $28.6 million in Q3 2023, representing an increase of 89.6%[31]. - Net sales for the nine months ended December 31, 2024, were $884.1 million, up from $833.5 million in the same period of 2023, reflecting a growth of 6.1%[31]. - Income from continuing operations for Q3 2024 was $14.6 million, compared to a loss of $11.9 million in Q3 2023, marking a significant turnaround[31]. - Adjusted income from continuing operations for Q3 2024 was $21.0 million, with a diluted EPS of $0.27, compared to a loss of $12.9 million and an EPS of $(0.16) in Q3 2023[35]. - Adjusted operating income for Q3 2024 was $45.7 million, with an adjusted operating margin of 14.5%, compared to $19.8 million and a margin of 6.9% in Q3 2023[39]. - Free cash flow for Q3 2024 was $32.3 million, up from $22.4 million in Q3 2023, while cash used in operating activities increased to $33.1 million from $27.6 million[42]. - The company reported an adjusted EBITDAP margin of 17.6% for Q3 2024, compared to 9.8% in Q3 2023, indicating improved operational efficiency[31]. Sales Performance - Military aftermarket sales increased by $12.1 million, or 31.5%, driven by increased repairs on the UH-60 platform[8]. - Commercial aftermarket sales rose by $14.8 million, or 42.3%, due to increased spares and repair sales volume[8]. - Military OEM sales grew by $14.7 million, or 24.1%, on increased sales volumes for the V-22 and CH-53K programs[8]. - Net sales to external customers in the Systems & Support segment reached $779,739,000 for the nine months ended December 31, 2024, up from $717,514,000 in 2023, representing an increase of approximately 8.7%[23]. - The Interiors segment reported a decline in net sales to external customers, totaling $104,328,000 for the nine months ended December 31, 2024, down from $115,942,000 in 2023, a decrease of approximately 10.1%[23]. Financial Position and Cash Flow - The backlog stood at $1.87 billion, reflecting increases across all end markets[10]. - Triumph's cash flow from operations was $33.1 million for the quarter[10]. - Net cash used in operating activities increased to $109,758,000 for the nine months ended December 31, 2024, compared to $68,275,000 in the prior year, reflecting higher operational costs[21]. - The company reported a net cash used in financing activities of $128,386,000 for the nine months ended December 31, 2024, compared to a net cash provided of $28,361,000 in 2023, indicating a significant shift in financing strategy[21]. - Cash and cash equivalents at the end of the period decreased to $133,487,000 from $162,899,000 at the end of the previous year[21]. Strategic Developments - The company entered into a merger agreement with affiliates of Warburg Pincus and Berkshire Partners, with an enterprise value of approximately $3 billion[11]. - Triumph has suspended its financial guidance for fiscal 2025 due to the pending merger transaction[12]. - The company plans to continue focusing on strategic acquisitions and debt repayment as part of its financial strategy moving forward[41]. Other Financial Metrics - The provision for credit losses was $19,000 for the nine months ended December 31, 2024, a decrease from $855,000 in the same period of 2023, indicating improved credit quality[21]. - The company experienced a loss on the sale of assets and businesses amounting to $5,018,000 for the nine months ended December 31, 2024, compared to a gain of $12,208,000 in the prior year[21]. - Legal contingencies loss for Q3 2024 amounted to $6.2 million, contributing to the adjustments in income from continuing operations[35]. - The company incurred interest expense and other of $20.7 million in Q3 2024, down from $32.4 million in Q3 2023, reflecting a reduction in financing costs[31].