Triumph Group, Inc. TGI reported second-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of 20 cents per share, which beat the Zacks Consensus Estimate of 3 cents by a massive 566.7%. The bottom line also improved from the adjusted loss of 5 cents per share in the prior-year quarter.

Including one-time adjustments, TGI reported GAAP earnings of 15 cents per share in the second quarter of fiscal 2025 against the loss of 8 cents in the prior-year quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

TGI’s Total Sales

Triumph Group’s net sales in the quarter under review were $287.5 million, which beat the Zacks Consensus Estimate of $287 million by a whisker. The top line also improved 1% from $284.7 million in the year-ago quarter.

The rise was driven by higher commercial aftermarket sales and military original equipment manufacturer (OEM) sales.

Triumph Group, Inc. Price, Consensus and EPS Surprise

Triumph Group, Inc. price-consensus-eps-surprise-chart | Triumph Group, Inc. Quote

TGI’s Operational Highlights

In the second quarter of fiscal 2025, Triumph Group generated an adjusted operating income of $36 million, which increased 41.9% from the year-ago reported figure.

Interest expenses and others amounted to $21.9 million, down 26.7% from the prior-year quarter.

Triumph Group’s backlog was $1.90 billion, up from the prior quarter’s level of $1.87 billion.

TGI’s Segmental Performance

Interiors: The segment’s sales totaled $37.5 million, up 6.4% from $35.3 million in the year-ago quarter.

Systems & Support: The segment’s sales increased 0.2% year over year to $250 million.

TGI’s Financial Position

As of Sept. 30, 2024, TGI’s cash and cash equivalents totaled $104.9 million compared with $392.5 million as of March 31, 2024.

Its long-term debt (excluding the current portion) amounted to $0.96 billion as of Sept. 30, 2024, down from $1.07 billion as of March 31, 2024.

The net cash outflow from operating activities as of Sept. 30, 2024 was $142.9 million compared with a net cash outflow of $95.9 million in the year-ago period.

Triumph Group’s capital expenditures were $14.5 million as of Sept. 30, 2024 compared with $11 million in the prior year.

TGI’s 2025 Guidance

Triumph Group partially updated its financial guidance for fiscal 2025. It still expects to generate net sales of nearly $1.2 billion, which is almost in line with the Zacks Consensus Estimate of $1.21 billion.

The company now expects to generate adjusted earnings per share in the range of 70-76 cents in fiscal 2025 compared with the earlier projection of 52 cents per share.

TGI now expects cash flow from operations in the range of $40-$55 million in fiscal 2025 compared with the earlier projection of $30-$50 million. Free cash flow is currently anticipated in the band of $20-$30 million for fiscal 2025 compared with the earlier projection of $10-$25 million.