Triumph Group Inc (NYSE:TGI) recently reported its Q2 Fiscal 2024 earnings, showcasing a strong financial performance. The company recorded net sales of $354.1 million, marking a 16% organic growth rate. Despite a net loss of $1.3 million, the adjusted net income stood at $0.9 million. The operating income was $34.3 million, with a margin of 9.7%.
The company's financials showed a net loss of $1.3 million or $0.02 per share, inclusive of a debt extinguishment gain of $0.7 million. Triumph utilized ($32.2) million in operations for the second quarter, reflecting semi-annual interest payments and increased working capital for higher fiscal 2024 deliveries.
CEO Dan Crowley emphasized Triumph's sixth consecutive quarter of year over year organic sales growth driven by strong commercial aftermarket demand, as well as the redemption of $45 million of their 2025 bonds reducing leverage and interest expense. He also noted that the backlog is at its highest level since March 2020 and that free cash use was in line with expectations.
Triumph has raised its net sales guidance to between $1.43 billion and $1.47 billion, indicating 10 - 13% organic growth. The company plans to raise its operating income to between $152.0 million and $167.0 million, with an operating margin of 11%. The expected cash flow from operations is projected to be between $65.0 million and $85.0 million, with free cash flow ranging from $40.0 million to $55.0 million.
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