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Dec 31, 2019

Triumph Group Q3 2020 Earnings Report

Reported organic revenue growth and generated solid free cash flow.

Key Takeaways

Triumph Group reported strong third quarter results with organic revenue up 8% year-over-year, driven by increased volume on Airbus commercial programs and aftermarket demand for military rotorcraft components and engine mounted accessories. Free cash flow was positive for the quarter.

Net sales of $704.7 million.

Operating income of $1.7 million with operating margin of 0.2%; adjusted operating income of $64.0 million with adjusted operating margin of 9.1%.

Net loss of ($13.8) million, or ($0.27) per share; adjusted net income of $35.4 million, or $0.69 per diluted share.

Cash flow provided by operations of $49.9 million, and free cash flow of $39.6 million.

Total Revenue
$705M
Previous year: $808M
-12.8%
EPS
$0.69
Previous year: $0.42
+64.3%
Adjusted Op. Margin
9.1%
Gross Profit
$158M
Previous year: $94.6M
+67.4%
Cash and Equivalents
$53.6M
Previous year: $28.7M
+87.0%
Free Cash Flow
$39.6M
Total Assets
$2.63B
Previous year: $3.33B
-21.2%

Triumph Group

Triumph Group

Forward Guidance

The Company continues to expect that net sales for fiscal year 2020 will be approximately $2.8 billion to $2.9 billion. The Company has narrowed its expected GAAP fiscal year 2020 earnings per diluted share from a range of $1.34 to $2.35 to a range of $1.28 to $1.48 and adjusted earning per diluted share from a range of $2.35 to $2.95 to a range of $2.35 to $2.55.

Positive Outlook

  • Net sales of between $2.8 billion to $2.9 billion.
  • GAAP earnings per diluted share of between $1.28 and $1.48.
  • Adjusted earnings per diluted share of between $2.35 to $2.55.
  • Positive free cash flow of between $0 to $50.0 million.