Core Viewpoint - Triumph Group, Inc. has completed its acquisition by Warburg Pincus and Berkshire Partners, transitioning to an independent privately-held company focused on aerospace systems and components [1][3]. Company Overview - Triumph Group, founded in 1993 and headquartered in Radnor, Pennsylvania, specializes in designing, developing, manufacturing, repairing, and providing spare parts for aerospace and defense systems [4]. - The company serves the global aviation industry, including original equipment manufacturers and military and commercial aircraft operators [4]. Leadership Changes - Jorge L. Valladares III has been appointed as the new CEO, succeeding Daniel J. Crowley, who held the position since 2016 [1][2]. - Valladares brings extensive leadership experience from his previous role as COO of TransDigm, a major player in the aerospace components sector [2]. Investment and Growth Potential - Warburg Pincus and Berkshire Partners are committed to supporting Triumph's growth as a leading aerospace and defense supplier [3]. - Both investment firms have a strong track record in the aerospace and defense sectors, with numerous successful investments [3][5][6]. Strategic Focus - Triumph aims to enhance its capabilities and meet the evolving needs of its customers in the aerospace and defense industries [2][3]. - The company is positioned to accelerate growth as a privately held entity, leveraging the expertise of its new investors [3].

Core Insights - Triumph Group, Inc. reported a 21% EBITDAP margin for the twelfth consecutive quarter of year-over-year sales growth, with significant operational performance across all business segments [4] - The company achieved cash flow positivity for fiscal 2025, with strong free cash flow of $144 million in the fourth quarter [4][9] - Triumph's strategy focuses on IP-based OEM and aftermarket business, positioning the company well for future growth [4] Financial Performance Overview - For the fourth quarter of fiscal 2025, net sales reached $377.9 million, reflecting a 5% increase compared to the previous year [9] - Operating income for the quarter was $59.6 million, with an operating margin of 16%, while adjusted operating income was $68.9 million with an adjusted operating margin of 18% [9] - The total net sales for fiscal 2025 were $1.26 billion, marking a 6% growth from fiscal 2024 [9] Segment Performance - Commercial OEM sales decreased by $7.9 million, or 1.5%, primarily due to lower sales volume on the Boeing 737 program [6] - Military OEM sales increased by $11.9 million, or 4.6%, driven by higher sales on various military platforms [7] - Commercial aftermarket sales rose by $41.3 million, or 25.2%, largely due to increased spares sales on Boeing platforms [8] - Military aftermarket sales increased by $27.6 million, or 15.0%, attributed to higher spares sales across several military platforms [10] Cash Flow and Backlog - Cash flow from operations for the fourth quarter was $147.7 million, contributing to a free cash flow of $144 million [9][37] - The company's backlog, representing the next 24 months of actual purchase orders, stood at $1.9 billion [12] Merger Agreement - Triumph announced a definitive agreement for acquisition by affiliates of Warburg Pincus and Berkshire Partners, with an enterprise value of approximately $3 billion, expected to close in the second half of 2025 [13] - In light of the pending transaction, Triumph has suspended quarterly earnings conference calls and will not provide financial guidance for fiscal 2026 [14]