RADNOR, Pa. - Triumph Group (NYSE:TGI), Inc. [NYSE:TGI], a leader in aerospace systems and components with a market capitalization of $1.46 billion, announced a significant milestone in its Actuation Products and Services business, having delivered over $28 million in aftermarket shipments for the Boeing (NYSE:BA) 787 and Airbus A380 landing gear systems. This marks the highest level of shipments for Triumph to date within a fiscal year, contributing to the company’s 6.73% year-over-year revenue growth. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 2.47, indicating robust ability to meet short-term obligations.
The company has seen an uptick in demand for its services as the Boeing 787 fleet begins to hit the 12-year mark, triggering mandatory heavy landing gear overhauls. With over 500 aircraft anticipated to require maintenance over the next five years, Triumph is positioned to benefit from the increased need for its overhaul services. InvestingPro analysts expect net income growth this year, with several additional ProTips available to subscribers regarding the company’s financial outlook.
Similarly, the Airbus A380 has contributed to Triumph’s aftermarket sales growth, especially for wing and body landing gear actuation components, as commercial air traffic continues to rise.
Triumph has been involved with the B787 and A380 programs since their inception and is experiencing the fruits of this long-term relationship as these aircraft enter their heavy maintenance periods. Natasha Trudeau, President of Triumph APS, highlighted the importance of these maintenance cycles to the company’s growth plans and stated that investments in Maintenance, Repair, and Overhaul (MRO) capacity and capabilities will support the anticipated demand.
The company, with its headquarters in Radnor, Pennsylvania, provides comprehensive solutions in design, engineering, manufacturing, repair, and overhaul across a wide range of aerospace and defense systems. Triumph serves a diverse array of clients, including original equipment manufacturers and various military and commercial aircraft operators.
This announcement is based on a press release statement from Triumph Group and reflects the company’s current performance in the aftermarket services sector, particularly in the context of the aviation industry’s maintenance cycles.
In other recent news, Triumph Group has reported substantial growth in its Q2 FY25 performance, showing a 13% year-over-year increase in aftermarket revenue and a 34% surge in commercial aftermarket sales. Total (EPA:TTEF) revenue for the quarter reached $287 million, with adjusted operating income and adjusted EBITDA rising by 44% and 26% respectively. Triumph’s interiors business has returned to profitability, and a new contract for the T-55 engine fleet is expected to generate significant revenue.
TD Cowen has adjusted its price target for Triumph Group shares, raising it to $20.00 from the previous $14.00, maintaining a Hold rating on the stock. This adjustment follows Triumph Group’s stronger-than-expected Q2 performance and credible financial guidance for FY25, which suggests potential for a financial turnaround.
However, Triumph Group’s current net debt leverage stands at 5.6 times, indicating that the full recovery process is still ongoing. Recent developments suggest a positive trajectory for Triumph Group, particularly with its raised FY25 guidance, now anticipating net sales of approximately $1.2 billion and adjusted EBITDA projected to be between $190 million and $195 million. The company has also reduced its net debt to $868 million, marking a substantial decrease from the previous year.
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