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Triumph Group Q2 Earnings Beat Estimates, Sales Increase Y/Y

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Triumph Group, Inc. (TGI - Free Report) 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 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.

TGI’s Zacks Rank
 

Triumph Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases
 

RTX Corporation’s (RTX - Free Report) third-quarter 2024 adjusted earnings per share of $1.45 beat the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago level of $1.25.

RTX’s third-quarter sales totaled $20.09 billion, which surpassed the Zacks Consensus Estimate of $19.91 billion by 0.9%. The top line also surged a solid 49.2% from $13.46 billion recorded in the third quarter of 2023.

Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2024 adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's recorded figure of $6.77.

Net sales were $17.10 billion, which missed the Zacks Consensus Estimate of $17.28 billion by 1%. , However, the top line increased 1.3% from $16.88 billion reported in the year-ago quarter.

Hexcel Corporation (HXL - Free Report) reported third-quarter 2024 adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.

In the third quarter, the company’s net sales totaled $456.5 million, which beat the Zacks Consensus Estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s reported sales of $419.5 million.


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