Triumph Group (TGI) Q3 2025 earnings summary

Executive summary

• Entered definitive merger agreement with Warburg Pincus and Berkshire Partners to be acquired for $26.00 per share (~$3B enterprise value); closing expected in H2 2025, subject to approvals.

• Net sales for Q3 FY2025 were $315.6M, up 11% year-over-year, marking the eleventh consecutive quarter of sales growth.

• Operating income for Q3 was $39.3M (12% margin), with adjusted operating income at $45.7M (14% margin).

• Income from continuing operations was $14.6M ($0.19 per diluted share), adjusted to $21.0M ($0.27 per share).

• Free cash flow for Q3 was $32.3M, exceeding internal targets.

Financial highlights

• Q3 net sales increased to $315.6M from $285.0M year-over-year; nine-month sales were $884.1M, up from $833.5M.

• Commercial OEM sales declined 11.8% due to a temporary Boeing 737MAX work stoppage, partially offset by improved Interiors pricing.

• Commercial aftermarket sales rose 42.3% on higher spares and repair volumes, especially for Boeing 737/787 and Airbus A380.

• Military OEM sales increased 24.1% on V-22 and CH-53K programs; military aftermarket sales up 31.5% on UH-60 and CH-47 platforms.

• Backlog at December 31, 2024, was $1.87B, with $1.19B expected to ship by year-end 2025.

Outlook and guidance

• Merger expected to close in H2 2025, subject to shareholder and regulatory approvals; financial guidance for FY2025 suspended due to pending acquisition.

• Full-year capital expenditures for FY2025 expected in the range of $20M–$25M, focused on manufacturing efficiency and capability expansion.

• Backlog supports strong revenue visibility into FY2026.