RADNOR, Pa. - Triumph Group, Inc. (NYSE:TGI) announced its fourth-quarter fiscal 2024 results, surpassing analysts' expectations for earnings per share (EPS) but providing weaker guidance for fiscal year 2025 than anticipated.
The aerospace and defense company reported a Q4 EPS of $0.31, which was $0.10 higher than the analyst consensus of $0.21. Revenue for the quarter also exceeded expectations, coming in at $358.6 million against a consensus estimate of $352.23 million.
The company's fourth-quarter performance reflected an 11% organic sales growth, with notable increases in aftermarket volume in their remaining OEM businesses.
Triumph Group's adjusted operating income reached $55.8 million with an adjusted operating margin of 15.6%. The net income from continuing operations stood at $5.5 million, or $0.07 per diluted share, while adjusted net income from continuing operations was $23.3 million, or $0.31 per diluted share. Triumph's CEO Dan Crowley highlighted the company's strategic actions during the fiscal year, which led to a more streamlined business and a stronger balance sheet.
However, the company's guidance for fiscal 2025 fell short of analysts' forecasts. Triumph Group anticipates an EPS of approximately $0.42, which is significantly lower than the consensus estimate of $0.70. The revenue guidance was also below expectations, with the company projecting about $1.2 billion compared to the consensus of $1.28 billion.
Despite the lower guidance for the upcoming fiscal year, Triumph Group reported a robust fourth quarter with a year-over-year organic growth for the eighth consecutive quarter. The company's backlog increased by 22% from the previous fiscal year end, reaching the highest level since March 2020. Triumph also generated positive free cash flow and achieved its strongest margins of the fiscal year, attributed to higher overall sales and a strong aftermarket mix.
The company's management remains optimistic about the future, with Crowley stating, "We expect to deliver top and bottom-line growth rates at or above the market as we benefit from a focus on OEM and related aftermarket product lines." This optimism is set against the backdrop of an anticipated aerospace and defense upcycle, which Triumph expects to leverage for its growth.
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