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Sep 30, 2022

Triumph Group Q2 2023 Earnings Report

Reported financial results with double-digit organic sales growth in continuing operations, driven by improving commercial OEM production rates and expanded MRO demand.

Key Takeaways

Triumph Group reported second quarter fiscal year 2023 results with net sales of $307.6 million and operating income of $132.2 million. Net income was $106.5 million, or $1.63 per diluted share. The company generated double-digit organic sales growth in continuing operations and is on track to positive free cash flow in the second half of FY23 and beyond.

Net sales of $307.6 million.

Operating income of $132.2 million with operating margin of 43%; adjusted operating income of $30.4 million with adjusted operating margin of 10%.

Net income of $106.5 million, or $1.63 per diluted share; adjusted net income of $4.8 million, or $0.07 per diluted share.

Cash flow used in operations of $19.3 million; free cash use of $23.5 million.

Total Revenue
$308M
Previous year: $357M
-13.9%
EPS
$0.07
Previous year: $0.1
-30.0%
Adjusted Op. Margin
10%
Gross Profit
$99.5M
Previous year: $95.1M
+4.7%
Cash and Equivalents
$104M
Previous year: $194M
-46.2%
Free Cash Flow
-$23.5M
Previous year: -$41.4M
-43.2%
Total Assets
$1.57B
Previous year: $1.8B
-12.9%

Triumph Group

Triumph Group

Forward Guidance

The Company expects net sales for fiscal 2023 will be approximately $1.3 billion. The Company expects GAAP fiscal 2023 earnings per diluted share of $1.66 to $1.86 and adjusted earnings per diluted share of $0.40 to $0.60, up from prior guidance due to final pension assumptions. The Company expects fiscal 2023 cash used in operations of ($30.0) million to ($40.0) million, approximately $30.0 million for capital expenditures, resulting in expected free cash use of ($60.0) million to ($70.0) million.

Positive Outlook

  • Net sales of approximately $1.3 billion
  • GAAP earnings per diluted share of $1.66 to $1.86
  • Adjusted earnings per diluted share of $0.40 to $0.60
  • Cash used in operations of ($30.0) million to ($40.0) million
  • Free cash use of ($60.0) million to ($70.0) million