The following is a summary of the Triumph Group, Inc. (TGI) Q4 2024 Earnings Call Transcript:
Financial Performance:
Triumph Group reported a significant reduction in total debt by over $700 million and increased aftermarket revenues by 19% for FY '24.
Their adjusted EBITDA margin increased by 70 basis points and they improved their free cash flow by $60 million.
The company generated $100 million in net proceeds from the retirement of outstanding warrants and grew their total backlog by 22%.
Triumph reported $78 million cash flow from operations and $72 million of free cash flow for FY '24.
For FY '25, the company projects net sales of approximately $1.2 billion, a 22% increase in operating income over FY '24, and free cash flow between $10 million to $25 million.
Business Progress:
Triumph Group sold their third-party maintenance business to focus on core systems and OEM MRO business and achieved $40 million in cost reduction actions across the company.
They engaged in new development programs with major industry players and see the opportunity to capture new MRO orders.
Despite uncertainties with Boeing's commercial transport programs, the company remains committed to supporting Boeing's future production needs.
Triumph enters FY '25 with a stronger balance sheet and aims for strong EBITDAP expansion and cash flow generation in FY '26 and FY '28.
Engagement with Boeing has been reported, aiming at improvements in the manufacturing process, tooling, automation, and workforce.
More details: Triumph IR
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