- Triumph Group Inc (NYSE:TGI) reported a fourth-quarter sales decline of 17.2% year-over-year to $386.65 million, -2% Y/Y on an organic basis, which missed the consensus of $405.19 million.
- The operating income improved to $38.79 million compared to the loss of $(46.21) million a year ago, and the margin recovered to 10% from -9.9%. Adjusted operating margin expanded by 407 bps to 11.1%.
- Adjusted EPS was $0.39, missing the consensus of $0.42.
- Sales by segments: Systems & Support $286.97 million (-4.9% Y/Y) and Aerospace Structures $99.68 million (-39.7% Y/Y).
- The cash flow provided by operations for the quarter was $32.96 million, and free cash flow was $29.12 million.
- Adjusted EBITDAP increased to $46.26 million (+39.9% Y/Y), and the margin expanded by 488 bps to 11.9%.
- Backlog was $1.42 billion, up 6% Y/Y, primarily on commercial narrow-body platforms.
- FY23 Outlook: Triumph Group expects net sales of $1.2 billion - $1.3 billion versus the consensus of $1.5 billion.
- The company sees EPS of $0.40 - $0.60, well below the consensus of $1.09. It expects cash used in operations of ($30) million to ($40) million, including core cash flow from operations of $30 million - $45 million.
- Price Action: TGI shares are trading lower by 18% at $17.94 on the last check Wednesday.
