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Dec 31, 2022

Triumph Group Q3 2023 Earnings Report

Triumph Group reported financial results with increased sales and operating income.

Key Takeaways

Triumph Group reported a net sales of $328.9 million and an operating income of $35.0 million. The company is raising its full year guidance for net sales and adjusted earnings per share.

Net sales of $328.9 million.

Operating income of $35.0 million with operating margin of 11%.

Net income of $11.0 million, or $0.08 per diluted share.

Cash flow from operations was breakeven; free cash use of $5.0 million.

Total Revenue
$329M
Previous year: $319M
+3.0%
EPS
$0.12
Previous year: $0.21
-42.9%
Adj. EBITDAP Margin
13.7%
Gross Profit
$88.7M
Previous year: $86.9M
+2.0%
Cash and Equivalents
$116M
Previous year: $206M
-43.5%
Free Cash Flow
-$5M
Previous year: $7.2M
-169.4%
Total Assets
$1.6B
Previous year: $1.75B
-8.9%

Triumph Group

Triumph Group

Forward Guidance

Triumph Group is raising its full year guidance for net sales and adjusted earnings per share while improving free cash use.

Positive Outlook

  • Raising net sales to a range of $1.30 billion to $1.35 billion, up from prior guidance of approximately $1.3 billion
  • Updating GAAP earnings per diluted share to a range of $1.59 to $1.79
  • Raising adjusted earnings per diluted share to a range of $0.48 to $0.68, up from prior guidance of $0.40 to $0.60, on increased sales volume
  • Cash used in operations of ($30.0) million to ($40.0) million
  • Free cash use of ($55.0) million to ($65.0) million, improved from prior guidance of ($60.0) million to ($70.0) million

Challenges Ahead

  • Updating GAAP earnings per diluted share to a range of $1.59 to $1.79, down from prior guidance of $1.66 to $1.86 due to additional share count from the warrant distribution
  • Cash used in operations of ($30.0) million to ($40.0) million
  • Free cash use of ($55.0) million to ($65.0) million
  • Proactively pursuing comprehensive de-leveraging plan to strengthen the balance sheet
  • Supply chain catches up to increasing customer demand