Triumph Group looks at Investing.com's record aftermarket shipments for aircraft gear

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RADNOR, PA – Triumph Group (NYSE: ) Inc. (NYSE:TGI), a $1.46 billion market capitalization leader in aerospace systems and components, has achieved a significant milestone in its Actuation Products and Services business. $28 million in aftermarket supplies for Boeing (NYSE: ) 787 and Airbus A380 landing gear systems. This marks the highest shipment level for Triumph in the fiscal year, contributing to the company’s 6.73 percent year-on-year revenue growth. According to InvestingPro analysis, the company maintains a strong liquidity position with a current ratio of 2.47, which indicates its strength in meeting short-term obligations.

As Boeing’s 787 fleet begins to hit the 12-year mark, the company has increased demand for its services, prompting mandatory heavy landing gears. With more than 500 aircraft expected to require maintenance over the next five years, Triumph is positioned to benefit from increased maintenance demand. InvestingPro analysts expect more protips for subscribers regarding the company’s financial outlook for net income growth this year.

Likewise, the Airbus A380 contributed to growth in Triumph aftermarket sales due to increased commercial air traffic, particularly for wing and body landing gear launchers.

Triumph has been involved in the B787 and A380 programs since its inception and is seeing the fruits of that long-term relationship as these aircraft enter their critical maintenance periods. Triumph APS President Natasha Trudeau highlighted the importance of these maintenance cycles to the company’s growth plans, stating that investments in maintenance, repair and overhaul (MRO) capacity and capabilities will support expected demand.

Headquartered in Radnor, Pennsylvania, the company provides comprehensive solutions in the design, engineering, manufacturing, maintenance and repair of a variety of aerospace and defense systems. Triumph serves a variety of customers including OEMs and various military and commercial aircraft operators.

This announcement is based on a press release issued by Triumph Group and reflects the company’s current performance in the aftermarket service sector, particularly in the maintenance cycles of the aviation industry.

In other recent news, Triumph Group posted a strong improvement in its Q2 FY25 performance, reporting a 13% year-over-year increase in aftermarket revenue and a 34% increase in business-to-market sales. Total (EPA:) Revenue for the quarter was $287 million, with adjusted operating income and adjusted EBITDA up 44% and 26%, respectively. Triumph’s internal business has returned to profitability and a new contract for the T-55 engine fleet is expected to generate significant revenue.

TD Cowen adjusted their price target on shares of Triumph Group, upping their previous price from $14.00 to $20.00, and maintaining a hold rating on the stock. This adjustment follows Triumph Group’s stronger-than-expected Q2 performance and credible financial guidance for FY25, suggesting a possible financial turnaround.

However, Triumph Group’s current net debt ratio stands at 5.6 times, indicating that the full recovery process is still underway. Recent developments point to a positive direction for Triumph Group, especially with increased FY25 guidance, which now estimates net sales to be around $1.2 billion and adjusted EBTA between $190 million and $195 million. The company reduced its net debt to $868 million, a significant decrease compared to last year.

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