Triumph Group (TGI) Q1 2025 earnings summary

Executive summary

• Net sales reached $281 million, up 7% year-over-year, driven by strong aftermarket growth and favorable sales mix, offsetting OEM softness.

• Operating income improved to $8.1 million (3% margin), reversing a prior year loss; adjusted operating income was $17.2 million (6% margin).

• $120 million in debt was retired, leading to credit rating upgrades from Moody's and S&P.

• Transitioned to a pure-play systems, IP-based aftermarket, and interiors company after divesting Product Support.

• Backlog stood at $1.87 billion, with $1.13 billion expected to ship by June 2025.

Financial highlights

• Q1 revenue was $281 million, up 7% year-over-year; adjusted operating income was $17 million (6% margin).

• Adjusted EBITDAP was $25 million (9% margin), flat year-over-year.

• Free cash use was $113 million in Q1, driven by working capital build, seasonality, and supply chain issues.

• Aftermarket revenue was 33% of total, up from 27% last year, delivering 37% of profit.

• Capital expenditures were $8 million in Q1, with full-year guidance of $20–25 million.

Outlook and guidance

• FY 2025 guidance unchanged: net sales ~$1.2 billion, adjusted EBITDAP ~$182 million (15% margin), free cash flow $10–$25 million.

• Q2 expected free cash use of $70–$90 million, with strong cash generation in Q3 and Q4.

• Management expects continued improvement in operating cash flows for the remainder of fiscal 2025.

• Aftermarket demand and OEM production rates expected to drive recovery in 2H25.

• Capital investments will focus on manufacturing efficiency and capability expansion.