Triumph Group Reports 5.9% Increase in Net Sales, Enters Merger Agreement

Triumph Group, Inc. reported a 5.9% increase in net sales for the fiscal year ending March 31, 2025, reaching $1.26 billion, compared to $1.19 billion in the previous year. The company achieved an operating income of $139.4 million, a significant rise from $86.5 million in the prior fiscal year. Income from continuing operations was $35.9 million, or $0.46 per diluted share, compared to a loss of $34.5 million in the previous year. The net income, including discontinued operations, was $40.9 million, or $0.52 per diluted share, reflecting a recovery from the previous year's net income of $512.4 million, which included substantial gains from divestitures.

The company maintained a consistent backlog of approximately $1.90 billion, with $1.54 billion attributed to its Systems & Support segment and $0.36 billion to Interiors. This stability in backlog indicates a steady demand for Triumph's products and services, particularly in the aerospace sector. The company generated $37.9 million in cash flows from operating activities, a notable improvement from $9.4 million in the previous year, driven by better management of receivables and payables.

Strategically, Triumph Group entered into a definitive merger agreement on February 2, 2025, with Titan BW Acquisition Holdco Inc., an affiliate of Warburg Pincus LLC and Berkshire Partners LLC. The merger, which is expected to close in the second half of 2025, will see Triumph's shareholders receive $26.00 in cash per share. This move is part of Triumph's broader strategy to enhance its operational capabilities and market position. The company also reported a significant increase in military OEM sales, which rose by 4.6% to $273.8 million, driven by demand for platforms such as the F/A-18 and AH-64.

Operationally, Triumph's workforce consisted of approximately 3,696 employees, with about 13% represented by labor unions. The company emphasized its commitment to employee engagement and safety, reporting a total recordable incident rate (TRIR) of 0.6 for the fiscal year, down from 0.8 in the previous year. The company continues to focus on enhancing its product offerings and expanding its market presence, particularly in the military and commercial aerospace sectors, which are expected to drive future growth.

Looking ahead, Triumph Group anticipates continued growth in fiscal 2026, particularly in its aftermarket services, as global flying activity increases. However, the company remains cautious about potential economic downturns and their impact on customer demand. The management's outlook reflects a commitment to optimizing operations and leveraging strategic partnerships to navigate the evolving aerospace landscape.