Triumph Group, Inc. has recently released its 10-Q report for the first quarter of the fiscal year ending March 31, 2025. The company, headquartered in Radnor, Pennsylvania, is a major supplier to the aerospace industry and operates in two segments: Systems & Support, which offers integrated solutions for aircraft components and systems, and Interiors, which primarily supplies commercial and regional manufacturers with aircraft interior components.
In the first quarter of the fiscal year ending March 31, 2025, Triumph Group reported net sales of $281.0 million, compared with $263.8 million for the prior year period. Operating income was $8.1 million, a significant improvement from an operating loss of $0.6 million in the prior year period. However, the company reported a loss from continuing operations of $18.8 million, or ($0.24) per diluted common share, compared with $21.7 million and $(0.33) per diluted common share, for the prior year period. The net loss, including income from discontinued operations, was $14.1 million, or ($0.18) per diluted common share, compared with a net loss, including income from discontinued operations, of $18.2 million, or ($0.27) per diluted common share, for the prior year period.
As of June 30, 2024, Triumph Group's backlog was $1.87 billion, with an estimated $1.13 billion expected to be shipped by June 30, 2025. The company used $104.5 million of cash in operating activities for the three months ended June 30, 2024, compared with cash used in operations of $63.7 million in the comparable prior year period.
Triumph Group also provided details about its warrants distribution, stating that approximately 8.1 million warrants were exercised from the initial distribution date of December 19, 2022, through July 6, 2023. The company redeemed all of the approximately 11.4 million outstanding warrants for a total redemption price of less than $0.1 million. As a result of the warrant exercises, the company increased its cash by approximately $84.1 million and reduced debt by approximately $14.4 million.
In terms of significant developments in key programs, Triumph Group reported that the Boeing 737 program represented approximately 12% of revenue for both the three months ended June 30, 2024 and 2023, inclusive of both OEM production and aftermarket sales. The company also stated that no other programs are expected to represent more than 10% of its consolidated net sales.
Furthermore, Triumph Group provided a detailed explanation of its non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDAP, and the financial items excluded from net (loss) income from continuing operations to calculate these measures. The company emphasized that these non-GAAP financial measures are used to internally measure its operating and management performance and to help investors evaluate the performance of its business. Following these announcements, the company's shares moved 4.3%, and are now trading at a price of $13.56. If you want to know more, read the company's complete 10-Q report here.
