Triumph Group Inc (TGI, Financial) released its second quarter fiscal 2024 earnings report on November 7, 2023. The company reported net sales of $354.1 million, marking an organic sales growth of 16%. The operating income stood at $34.3 million with an operating margin of 9.7%. Despite a net loss of $1.3 million, or $0.02 per share, the adjusted net income was $0.9 million, or $0.01 per diluted share.
Financial Performance
Triumph Group Inc (TGI, Financial) reported a net loss of $1.3 million or $0.02 per share for the second quarter of 2024, which includes $0.7 million in debt extinguishment gain. The number of shares used in computing diluted income per share for the second quarter of 2024 was 76.6 million. The backlog, representing the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was $1.82 billion, up 15% from the prior fiscal year end. This increase was primarily on commercial OEM platforms.
Financial Tables
The company's financial tables showed that for the second quarter of fiscal 2024, cash flow used in operations was ($32.2) million, which was in line with expectations previously provided and reflects semi-annual interest payments and increased working capital to support higher fiscal 2024 deliveries.
Company's Outlook
Triumph Group Inc (TGI, Financial) raised its net sales guidance to a range of $1.43 billion to $1.47 billion, reflecting 10 - 13% organic growth, up from prior guidance of approximately $1.39 billion to $1.43 billion. The company also updated its operating income to a range of $152.0 million to $167.0 million, reflecting an operating margin of 11%. The expected cash flow from operations was raised to a range of $65.0 million to $85.0 million, with free cash flow of $40.0 million to $55.0 million.
TRIUMPH generated its sixth consecutive quarter of year over year organic sales growth driven by continued strong commercial aftermarket demand," said Dan Crowley, TRIUMPH’s chairman, president, and chief executive officer. “Free cash use was in line with our expectations. We continue to expect free cash flow to improve over the course of the year, as the first half working capital build supports our higher second half deliveries. Backlog is at its highest level since March 2020 and TRIUMPH is well positioned to continue to grow organically and improve profitability, while also benefiting from the positive trends across our end markets.”
Mr. Crowley further added, "As TRIUMPH focuses on generating free cash flow and deleveraging, we recently redeemed $45 million of our 2025 bonds reducing leverage and interest expense. TRIUMPH remains on track to deliver profitable growth and we are raising our full year guidance as we continue to execute on our financial and operational goals.”
Explore the complete 8-K earnings release (here) from Triumph Group Inc for further details.
