- Triumph Group Inc (NYSE:TGI) reported a third-quarter sales decline of 25.1% year-over-year to $319.25 million, -5% Y/Y on an organic basis, which missed the consensus of $374.28 million.
- The operating income increased to $28.19 million compared to the loss of $(34.97) million a year ago, and the margin recovered to 8.8% from -8.2%. Adjusted operating margin expanded by 135 bps to 10.3%.
- Adjusted EPS improved to $0.21 from $0.09 in 3Q21, beating the consensus of $0.20.
- Sales by segments: Systems & Support $236.28 million (-10.5% Y/Y) and Aerospace Structures $82.97 million (-48.9% Y/Y).
- The cash flow provided by operations for the quarter was $15.5 million, and free cash flow was $7.2 million.
- Adjusted EBITDAP decreased to $41.02 million (-21.6% Y/Y), and the margin expanded by 40 bps to 13%.
- Backlog was $1.95 billion, up 4% year to date, primarily on commercial narrow-body platforms.
- FY22 Outlook: Triumph Group expects net sales of ~$1.5 billion (prior view $1.5 billion - $1.6 billion), versus the consensus $1.55 billion.
- The company sees adjusted EPS of $0.80 - $0.90 (prior view $0.68 - $0.88) vs consensus of $0.76.
- It expects cash used in operations of ~$125 million and free cash use of ~$150 million.
- Price Action: TGI shares closed higher by 5.83% at $19.98 on Tuesday.
