TGI Triumph Group Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 20, 2024

 

 

TRIUMPH GROUP, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			1-12235	51-0347963
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
555 E Lancaster Avenue Suite 400
Radnor, Pennsylvania				19087
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 610 251-1000

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $.001 per share		TGI		New York Stock Exchange LLC
Purchase rights		N/A		New York Stock Exchange LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

On May 23, 2024, Triumph Group, Inc. issued a press release announcing its financial results for the fiscal year ended March 31, 2024 and conducted a conference call to further discuss the financial results. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure

On the conference call referenced in Item 2.02 above, certain information was presented. The information presented during such conference call is attached as Exhibit 99.2 to this Current Report on Form 8-K.

The information in this Item 7.01 of this Current Report on Form 8-K and Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 8.01 Other Events.

On May 20, 2024, Triumph Group, Inc. (the “Company”) issued a notice of redemption for $120,000,000 aggregate principal amount of its 9.000% Senior Secured First Lien Notes due 2028 (the “First Lien Notes”) at a redemption price equal to 103.000% of the principal amount of the Notes redeemed, plus accrued and unpaid interest to, but not including, the date of redemption, on May 30, 2024.

This report does not constitute an offer to sell, or a solicitation of an offer to buy, any security and it does not constitute a notice of redemption with respect to any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press release dated May 23, 2024
99.2		Presentation of Triumph Group, Inc. on May 23, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Triumph Group, Inc.
Date:	May 23, 2024	By:	/s/ Thomas A. Quigley, III
			Thomas A. Quigley, III, Vice President, Investor Relations, Mergers & Acquisitions, and Treasurer

 

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Exhibit 99.1

 

 

 

NEWS RELEASE

 

Contact: Thomas A. Quigley, III Vice President, Investor Relations, Mergers & Acquisition and Treasurer Phone (610) 251-1000 tquigley@triumphgroup.com

 

TRIUMPH REPORTS FOURTH QUARTER FISCAL 2024 RESULTS

PROVIDES FISCAL YEAR 2025 GUIDANCE

RADNOR, Pa. – May 23, 2024 – Triumph Group, Inc. (NYSE: TGI) ("TRIUMPH" or the “Company”) today reported financial results for its fourth quarter and fiscal 2024, which ended March 31, 2024.

 

Fourth Quarter Fiscal 2024

 

Fiscal 2024

 

Fiscal 2025 Guidance

 

“TRIUMPH took important strategic actions during fiscal 2024 to create a more streamlined, value-added and IP-based business with a much stronger balance sheet," said Dan Crowley, TRIUMPH's chairman, president and chief executive officer. “We completed the divestiture of our third-party Product Support MRO business during the fourth quarter and

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retired over $550.0 million of debt with the sale proceeds to materially accelerate our de-leveraging as committed to our shareholders during our September 2023 Investor Day."

 

"We were pleased to report our eighth consecutive quarter of year over year organic growth as aftermarket volume grew rapidly in our remaining OEM businesses. While sales increased in our Interiors business in the fourth quarter, its profit and cash flow continued to lag due to external cost drivers. We expect these headwinds to abate as narrowbody aircraft rates recover. However, TRIUMPH generated positive free cash flow overall and achieved our strongest margins of the fiscal year due to benefits from higher overall sales and strong aftermarket mix."

 

Mr. Crowley continued, “TRIUMPH accelerated new business capture with a year-to-date book to bill rate of 1.28, lifting our backlog 22% year over year to the highest level since March 2020. Our fiscal 2025 guidance reflects the strength of TRIUMPH's portfolio, helping to offset short-term end market headwinds, while enabling improvement across our key financial metrics, notably an estimated 300 basis point expansion in Adjusted EBITDAP margins. With the anticipated market demand from the coming aerospace and defense upcycle, 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.”

 

Fourth Quarter and Full Year Fiscal 2024 Overview

 

		Three Months Ended March 31,								Fiscal Year Ended March 31,
($ in millions)		2024				2023				2024				2023
Commercial OEM		$	139.6			$	144.3			$	530.3			$	541.5
Military OEM			71.2				80.2				261.9				261.1
Total OEM Revenue			210.8				224.4				792.2				802.5
Commercial Aftermarket			56.4				38.4				164.0				126.1
Military Aftermarket			65.3				54.1				183.1				165.8
Total Aftermarket Revenue			121.6				92.5				347.1				292.0
Non-Aviation Revenue			25.4				7.8				50.0				33.6
Amortization of acquired contract liabilities			0.8				0.7				2.7				2.5
Total Net Sales*		$	358.6			$	325.5			$	1,192.0			$	1,130.6
* Differences due to rounding
Note> Aftermarket sales include both repair & overhaul services and spare parts sales.

 

Excluding impacts from divestitures and exited or sunsetting programs, Commercial OEM sales decreased ($1.5) million, or (1.1%) in the quarter primarily on a year-to-date adjustment to non-aviation revenue, offset by increases in production volumes on the Boeing 787 program.

Aftermarket sales include both repair and overhaul services as well as the sales of spare parts. Commercial Aftermarket sales increased $18.0 million, or 47.1%, driven by the continued improvement in overall air travel metrics, favorably impacting both spare part sales and repair and overhaul services. The impacts from divestitures and exited or sunsetting programs on Commercial aftermarket sales was not significant.

Military OEM sales decreased ($9.0) million, or (11.2%) in the quarter, as decreased sales on military rotorcraft such as V-22 were partially offset by volume on other military programs, including fixed wing platforms.

Military aftermarket sales increased $11.2 million, or 20.7% in the quarter, primarily on increased spares and repairs for military rotorcraft programs.

Non-aviation sales include a year-to-date true-up adjustment, primarily from Commercial OEM sales.

 

TRIUMPH's results included the following:

($ millions except EPS)		Pre-tax				After-tax				Diluted EPS
Income from Continuing Operations - GAAP		$	9.2			$	5.5			$	0.07
Adjustments
Legal contingencies loss			6.0				6.0				0.08
Restructuring costs			5.0				5.0				0.06
Debt extinguishment loss			6.8				6.8				0.09
Adjusted income from continuing operations - non-GAAP*		$	27.0			$	23.3			$	0.31
*Difference due to rounding.

 

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Fourth quarter operating income of $44.8 million includes $5.0 million of restructuring costs related to the $40.0 million in cost reduction actions noted last quarter and $6.0 million in legal contingencies loss related to updates in our previously disclosed arbitration in our legacy Structures business. Net income from continuing operations for the fourth quarter of fiscal 2024 was $5.5 million or $0.07 per diluted share. In addition to the adjustments impacting operating income, the company incurred $6.8 million in debt extinguishment loss related to the retirement of debt in the quarter.

 

 

The number of shares used in computing diluted income per share for the fourth quarter of 2024 was 77.8 million.

 

Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was $1.9 billion up 22% from prior fiscal year end. This increase was primarily on commercial OEM platforms.

 

For the fourth quarter of fiscal 2024, cash flow provided by operations was $77.7 million, which was in line with expectations previously provided.

 

Conference Call

TRIUMPH will hold a conference call today, May 23rd, at 8:30 a.m. (ET) to discuss the fourth quarter of fiscal 2024 results. The conference call will be available live and archived on the Company’s website at http://www.triumphgroup.com. A slide presentation will be included with the audio portion of the webcast, and the presentation has been posted on the Company’s website at https://www.triumphgroup.com/filings-financial/quarterly-results. An audio replay will be available from May 23rd to May 30th by calling (844) 344-7529 (Domestic) or (412) 317-0088 (International), passcode #8487447.

 

About TRIUMPH

TRIUMPH, headquartered in Radnor, Pennsylvania, designs, develops, manufactures, repairs and provided spare parts across a broad portfolio of aerospace and defense systems and components. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.

More information about TRIUMPH can be found on the Company’s website at www.triumphgroup.com.

Forward Looking Statements

Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations of or assumptions about guidance, financial and operational performance, revenues, earnings per share, cash flow or use, cost savings, operational efficiencies and organizational restructurings and our evaluation of potential adjustments to reported amounts, as described above. All forward-looking statements involve risks and uncertainties which could affect the Company’s actual results and could cause its actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph Group’s reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

 

FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES

 

 

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)

 

		Three Months Ended								Year Ended
		March 31,								March 31,
CONDENSED STATEMENTS OF OPERATIONS		2024				2023				2024				2023
Net sales		$	358,587			$	325,458			$	1,192,043			$	1,130,562
Cost of sales (excluding depreciation shown below)			250,459				221,873				869,201				809,882
Selling, general & administrative			44,770				49,069				180,247				191,087
Depreciation & amortization			7,563				7,786				29,625				32,259
Legal contingencies loss			6,000				—				7,338				—
Restructuring costs			4,985				2,098				6,970				3,172
Loss (gain) on sale of assets and businesses, net			—				1,640				12,208				(101,523	)
Operating income			44,810				42,992				86,454				195,685
Interest expense and other, net			28,667				31,949				123,021				115,211
Debt modification and extinguishment loss			6,819				31,603				1,694				33,044
Warrant remeasurement gain			—				(3,146	)			(8,545	)			(8,683	)
Non-service defined benefit expense (income)			88				6,061				(2,372	)			(19,664	)
Income tax expense			3,775				691				7,123				3,360
Income (loss) from continuing operations			5,461				(24,166	)			(34,467	)			72,417
Income from discontinued operations, net of tax			542,284				6,623				546,851				17,176
Net income (loss)		$	547,745			$	(17,543	)		$	512,384			$	89,593
Earnings (loss) per share - basic:
Earnings (loss) per share - continuing operations		$	0.07			$	(0.37	)		$	(0.46	)		$	1.12
Earnings per share - discontinued operations			7.05				0.10				7.38				0.26
Earnings (loss) per share - basic		$	7.12			$	(0.27	)		$	6.92			$	1.38
Weighted average common shares outstanding - basic			76,919				65,189				74,149				65,021
Earnings (loss) per share - diluted:
Earnings (loss) per share - continuing operations		$	0.07			$	(0.37	)		$	(0.46	)		$	0.96
Earnings per share - discontinued operations			6.97				0.10				7.38				0.24
Earnings (loss) per share - diluted		$	7.04			$	(0.27	)		$	6.92			$	1.20
Weighted average common shares outstanding - diluted			77,817				65,189				74,149				71,721

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except share data)

 

BALANCE SHEETS		Unaudited March 31, 2024				Unaudited March 31, 2023
Assets
Cash and cash equivalents		$	392,511			$	227,403
Accounts receivable, net			138,272				156,116
Contract assets			74,289				86,740
Inventory, net			317,671				309,084
Prepaid and other current assets			16,626				14,073
Assets held for sale			—				140,096
Current assets			939,369				933,512
Property and equipment, net			144,287				138,622
Goodwill			510,687				509,449
Intangible assets, net			65,063				73,898
Other, net			26,864				28,697
Assets held for sale - noncurrent			—				30,666
Total assets		$	1,686,270			$	1,714,844
Liabilities & Stockholders' Deficit
Current portion of long-term debt		$	3,200			$	3,162
Accounts payable			167,349				173,575
Contract liabilities			55,858				44,095
Accrued expenses			129,855				141,679
Liabilities related to assets held for sale			—				34,413
Current liabilities			356,262				396,924
Long-term debt, less current portion			1,074,999				1,688,620
Accrued pension and post-retirement benefits, noncurrent			283,634				359,375
Deferred income taxes, noncurrent			7,268				7,268
Other noncurrent liabilities			68,521				59,988
Liabilities related to assets held for sale - noncurrent			—				65
Stockholders' Deficit:
Common stock, $.001 par value, 200,000,000 and 100,000,000 shares authorized, 76,923,691 and 65,432,589 shares issued			77				65
Capital in excess of par value			1,107,750				964,741
Accumulated other comprehensive loss			(517,069	)			(554,646	)
Accumulated deficit			(695,172	)			(1,207,556	)
Total stockholders' deficit			(104,414	)			(797,396	)
Total liabilities and stockholders' deficit		$	1,686,270			$	1,714,844

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

		Fiscal Year Ended March 31
		2024				2023
Operating Activities
Net income		$	512,384			$	89,593
Adjustments to reconcile net income to net cash provided by (used in)    operating activities:
Depreciation and amortization			33,250				35,581
Amortization of acquired contract liability			(2,721	)			(2,500	)
(Gain) loss on sale of assets and businesses			(556,161	)			(101,523	)
Curtailments, settlements, withdrawals, and special termination benefits loss, net			—				14,644
Loss on modification and extinguishment of debt			1,694				32,613
Other amortization included in interest expense			5,925				6,416
Provision for credit losses			1,136				1,594
Provision for deferred income taxes			—				14
Warrants remeasurement gain			(8,545	)			(9,796	)
Share-based compensation			9,445				8,913
Changes in other assets and liabilities, excluding the effects of    acquisitions and divestitures:
Trade and other receivables			7,879				(26,433	)
Contract assets			9,584				(9,055	)
Inventories			(17,460	)			(28,187	)
Prepaid expenses and other current assets			(2,919	)			1,970
Accounts payable, accrued expenses, and contract liabilities			13,506				(35,733	)
Accrued pension and other postretirement benefits			(3,916	)			(32,562	)
Other, net			6,362				2,200
Net cash provided by (used in) operating activities			9,443				(52,251	)
Investing Activities
Capital expenditures			(21,827	)			(20,676	)
Proceeds from (payments on) sale of assets and businesses			713,413				(6,220	)
Investment in joint venture			(1,661	)			(272	)
Net cash provided by (used in) investing activities			689,925				(27,168	)
Financing Activities
Proceeds from issuance of long-term debt			2,000				1,235,000
Retirement of debt and finance lease obligations			(608,701	)			(1,126,501	)
Payment of deferred financing costs			(2,368	)			(17,097	)
Proceeds on issuance of common stock, net of issuance costs			79,961				4,090
Premium on redemption of long-term debt			(3,600	)			(26,157	)
Repurchase of shares for share-based compensation    minimum tax obligation			(1,629	)			(3,547	)
Net cash (used in) provided by financing activities			(534,337	)			65,788
Effect of exchange rate changes on cash			77				156
Net change in cash and cash equivalents			165,108				(13,475	)
Cash and cash equivalents at beginning of period			227,403				240,878
Cash and cash equivalents at end of period		$	392,511			$	227,403

 

 

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(CONTINUED)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

 

		Three Months Ended								Year Ended
		March 31,								March 31,
		2024				2023				2024				2023
Systems & Support
Net sales to external customer		$	310,116			$	285,583			$	1,027,630			$	918,960
Inter-segment sales (eliminated in consolidation)			71				90				795				391
Segment EBITDAP			71,336				64,134				200,074				172,415
Segment EBITDAP Margin			23.1	%			22.5	%			19.5	%			18.8	%
Depreciation & amortization			6,468				6,655				25,273				26,460
Interiors
Net sales to external customer		$	48,471			$	39,875			$	164,413			$	211,602
Inter-segment sales (eliminated in consolidation)			14				3				27				45
Segment EBITDAP			1,137				3,047				(5,000	)			31,937
Segment EBITDAP Margin			2.3	%			7.6	%			-3.0	%			14.0	%
Depreciation & amortization			594				624				2,505				3,683

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC, AND SUBSIDIARES

(dollars in thousands)

 

Non-GAAP Financial Measure Disclosures

We prepare and publicly release annual audited and quarterly unaudited financial statements prepared in accordance with U.S. GAAP. In accordance with Securities and Exchange Commission (the "SEC") rules, we also disclose and discuss certain non-GAAP financial measures in our public filings and earning releases. Currently, the non-GAAP financial measures that we disclose are Adjusted EBITDA, which is our income (loss) from continuing operations before interest and gains or losses on debt extinguishment, income taxes, amortization of acquired contract liabilities, consideration payable to customer related to divestitures, legal contingencies loss, gains/loss on divestitures, gains/losses on warrant remeasurements and warrant-related transaction costs, share-based compensation expense, depreciation and amortization (including impairment of long-lived assets), other non-recurring impairments, and the effects of certain pension charges such as curtailments, settlements, withdrawals, and other early retirement incentives; and Adjusted EBITDAP, which is Adjusted EBITDA, before pension expense or benefit (excluding pension charges already adjusted in Adjusted EBITDA). We disclose Adjusted EBITDA on a consolidated and Adjusted EBITDAP on a consolidated and a reportable segment basis in our earnings releases, investor conference calls and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors more meaningfully evaluate and compare our future results of operations with our previously reported results of operations.

 

We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the U.S. GAAP financial measure most directly comparable to such measures is income (loss) from continuing operations. In calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from income (loss) from continuing operations the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. Adjusted EBITDA and Adjusted EBITDAP are not measurements of financial performance under U.S. GAAP and should not be considered as a measure of liquidity, as an alternative to income (loss) from continuing operations, or as an indicator of any other measure of performance derived in accordance with U.S. GAAP. Investors and potential investors in our securities should not rely on Adjusted EBITDA or Adjusted EBITDAP as a substitute for any U.S. GAAP financial measure, including income (loss) from continuing operations. In addition, we urge investors and potential investors in our securities to carefully review the reconciliation of Adjusted EBITDA and Adjusted EBITDAP to income (loss) from continuing operations set forth below, in our earnings releases, and in other filings with the SEC and to carefully review the U.S. GAAP financial information included as part of our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K that are filed with the SEC, as well as our quarterly earnings releases, and compare the U.S. GAAP financial information with our Adjusted EBITDA and Adjusted EBITDAP.

 

Adjusted EBITDA and Adjusted EBITDAP are used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our U.S. GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business. We have spent more than 20 years expanding our product and service capabilities, partially through acquisitions of complementary businesses. Due to the expansion of our operations, which included acquisitions, our income (loss) from continuing operations has included significant charges for depreciation and amortization. Adjusted EBITDA and Adjusted EBITDAP exclude these charges and provide meaningful information about the operating performance of our business, apart from charges for depreciation and amortization. We believe the disclosure of Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year. We also believe Adjusted EBITDA and Adjusted EBITDAP are measures of our ongoing operating performance because the isolation of noncash charges, such as depreciation and amortization, and nonoperating items, such as interest, income taxes, pension and other postretirement benefits, provides additional information about our cost structure and, over time, helps track our operating progress. In addition, investors, securities analysts, and others have regularly relied on Adjusted EBITDA and Adjusted EBITDAP to provide financial measures by which to compare our operating performance against that of other companies in our industry.

 

 

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

Set forth below are descriptions of the financial items that have been excluded from our income (loss) from continuing operations) to calculate Adjusted EBITDA and Adjusted EBITDAP and the material limitations associated with using these non-GAAP financial measures as compared with income (loss) from continuing operations:

 

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

Management compensates for the above-described limitations of using non-GAAP measures by using a non-GAAP measure only to supplement our GAAP results and to provide additional information that is useful to gain an understanding of the factors and trends affecting our business.

 

The following table shows our Adjusted EBITDA and Adjusted EBITDAP reconciled to our income (loss) from continuing operations for the indicated periods (in thousands):

 

		Three Months Ended								Year Ended
		March 31,								March 31,
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization, and Pension (Adjusted EBITDAP):		2024				2023				2024				2023
Income (loss) from continuing operations		$	5,461			$	(24,166	)		$	(34,467	)		$	72,417
Add-back:
Income tax expense			3,775				691				7,123				3,360
Interest expense and other, net			28,667				31,949				123,021				115,211
Debt modification and extinguishment (gain) loss			6,819				31,603				1,694				33,044
Warrant remeasurement gain			—				(3,146	)			(8,545	)			(8,683	)
Legal contingencies loss			6,000				—				7,338				—
Consideration payable to customer related to divestiture			—				—				—				17,185
Shareholder cooperation expenses			—				—				1,905				—
Loss (gain) on sales of assets and businesses, net			—				1,640				12,208				(101,523	)
Share-based compensation			657				2,493				9,445				8,913
Amortization of acquired contract liabilities			(756	)			(668	)			(2,721	)			(2,500	)
Depreciation and amortization			7,563				7,786				29,625				32,259
Adjusted Earnings before Interest, Taxes, Depreciation    and Amortization ("Adjusted EBITDA")		$	58,186			$	48,182			$	146,626			$	169,683
Non-service defined benefit expense (income) (excluding settlements)			88				6,061				(2,372	)			(19,664	)
Adjusted Earnings before Interest, Taxes, Depreciation    and Amortization, and Pension ("Adjusted EBITDAP")		$	58,274			$	54,243			$	144,254			$	150,019
Net sales		$	358,587			$	325,458			$	1,192,043			$	1,130,562
Income (loss) from continuing operations margin			1.5	%			(7.4	%)			(2.9	%)			6.4	%
Adjusted EBITDAP margin			16.3	%			16.7	%			12.1	%			13.1	%

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

 

Non-GAAP Financial Measure Disclosures (continued)

 

Adjusted income from continuing operations, before income taxes, adjusted income from continuing operations and adjusted income from continuing operations per diluted share, before non-recurring costs have been provided for consistency and comparability. These measures should not be considered in isolation or as alternatives to income from continuing operations before income taxes, income from continuing operations and income from continuing operations per diluted share presented in accordance with GAAP. The following tables reconcile income from continuing operations before income taxes, income from continuing operations, and income from continuing operations per diluted share, before non-recurring costs.

 

		Three Months Ended March 31, 2024
(amounts in '000s, except per share amounts)		Pre-Tax				After-Tax				Diluted EPS
Income from continuing operations - GAAP		$	9,236			$	5,461			$	0.07
Adjustments:
Legal contingencies loss			6,000				6,000				0.08
Restructuring costs			4,985				4,985				0.06
Debt extinguishment loss			6,819				6,819				0.09
Adjusted income from continuing operations - non-GAAP*		$	27,040			$	23,265			$	0.31

 

		Year Ended March 31, 2024
		Pre-Tax				After-Tax				Diluted EPS
Loss from continuing operations - GAAP		$	(27,344	)		$	(34,467	)		$	(0.46	)
Adjustments:
Loss on sale of assets and businesses, net			12,208				12,208				0.16
Restructuring costs			6,970				6,970				0.09
Shareholder cooperation expenses			1,905				1,905				0.03
Debt modification and extinguishment loss			1,694				1,694				0.02
Legal contingencies loss			7,338				7,338				0.10
Adjusted loss from continuing operations - non-GAAP*		$	2,771			$	(4,352	)		$	(0.06	)
*Difference due to rounding.

 

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

 

		Three Months Ended March 31, 2023
		Pre-Tax				After-Tax				Diluted EPS
Loss from continuing operations - GAAP		$	(23,475	)		$	(24,166	)		$	(0.37	)
Adjustments:
Warrant related items			2,083				2,083				0.12
Loss on sale of assets and businesses, net			1,640				1,640				0.02
Restructuring costs			2,098				2,098				0.02
Debt modification and extinguishment loss			31,603				31,603				0.36
Spokane pension withdrawal			14,644				14,644				0.17
Adjusted income from continuing operations - non-GAAP		$	28,593			$	27,902			$	0.32

 

		Year Ended March 31, 2023
		Pre-Tax				After-Tax				Diluted EPS
Income from continuing operations - GAAP		$	75,777			$	72,417
GAAP EPS Numerator Adjustments:
Warrant related items		$	(3,626	)		$	(3,626	)
GAAP EPS Numerator:		$	72,151			$	68,791			$	0.96
Adjustments:
Gain on sale of assets and businesses, net			(101,523	)			(101,523	)			(1.42	)
Restructuring costs			3,172				3,172				0.04
Consideration payable to customer related to divestiture^			17,185				17,185				0.24
Debt modification and extinguishment loss			33,044				33,044				0.46
Spokane pension withdrawal			14,644				14,644				0.20
Warrant issuance costs			1,113				1,113				0.02
Adjusted income from continuing operations - non-GAAP*		$	39,786			$	36,426			$	0.51
*Difference due to rounding.
^Recorded in net sales.

 

Non-GAAP Financial Measure Disclosures (continued)

Adjusted Operating Income is defined as GAAP Operating Income, less expenses/gains associated with the Company's transformation, such as restructuring expenses, gains/losses on divestitures, impairments of goodwill and other assets. Management believes that this is useful in evaluating operating performance, but this measure should not be used in isolation. The following table reconciles our Operating income to Adjusted Operating income as noted above.

 

		Three Months Ended March 31,								Year Ended March 31,
		2024				2023				2024				2023
Operating income - GAAP		$	44,810			$	42,992			$	86,454			$	195,685
Adjustments:
Loss (gain) on sale of assets and businesses, net			—				1,640				12,208				(101,523	)
Legal contingencies loss			6,000				—				7,338				—
Restructuring costs (cash based)			4,985				2,098				6,970				3,172
Shareholder cooperation expenses			—				—				1,905				—
Consideration payable to customer related to divestiture			—				—				—				17,185
Adjusted operating income - non-GAAP		$	55,795			$	46,730			$	114,875			$	114,519
Adjusted operating margin - non-GAAP			15.6	%			14.4	%			9.6	%			10.0	%

 

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(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

		Fiscal 2025
($ in millions)		Guidance
Income from continuing operations, before taxes		$40.0
Adjustments:
Interest expense and other, net		~$95.0
Non-service defined benefit expense		~$5.0
Depreciation & Amortization		~$33.0
Amortization of acquired contract liabilities		~($4.0)
Share-based compensation		~$13.0
Adjusted EBITDAP - non-GAAP		$182.0

 

Cash provided by operations, is provided for consistency and comparability. We also use free cash flow as a key factor in planning for and consideration of strategic acquisitions and the repayment of debt. This measure should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating results presented in accordance with GAAP. The following table reconciles cash provided by operations to free cash flow.

		Three Months Ended March 31,								Fiscal Year Ended March 31,								Fiscal 2025 Guidance
$ in millions		2024				2023				2024				2023
Cash provided by (used in) operating activities		$	77.7			$	60.0			$	9.4			$	(52.3	)		$ 30.0 - $ 50.0
Less:
Capital expenditures			(5.6	)			(8.3	)			(21.8	)			(20.7	)		$ (20.0) - $ (25.0)
Free cash flow (use)*		$	72.1			$	51.8			$	(12.4	)		$	(72.9	)		$ 10.0 - $ 25.0
* Differences due to rounding

 

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Fourth Quarter FY’24 Earnings Conference Call Daniel J. Crowley, Chairman, President & CEO James F. McCabe, Jr., Senior Vice President & CFO

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This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are often, but not always, identified by words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “project”, “may”, “will”, “should”, “could”, or similar words suggesting future outcomes or outlooks. These forward-looking statements include, but are not limited to, statements of expectations of or assumptions about strategic actions (including the ability to complete previously announced transactions), objectives, expectations, intentions, aerospace market conditions, aircraft production rates, financial and operational performance, including with respect to preliminary results of discontinued operations, revenue and earnings growth and profitability and earnings results. These statements are based on the current projections, expectations and beliefs of TRIUMPH’s management. These forward looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from any expected future results, performance or achievements, including, but not limited to, competitive and cyclical factors relating to the aerospace industry, dependence on some of TRIUMPH’s business from key customers, requirements of capital, uncertainties relating to the integration of acquired businesses, general economic conditions affecting TRIUMPH’s business segments, product liabilities in excess of insurance, technological developments, limited availability of raw materials or skilled personnel, changes in governmental regulation and oversight, international hostilities and terrorism and bondholder response to any offer of ours to repurchase their notes. Further information regarding the important factors that could cause actual results, performance or achievements to differ from those expressed in any forward-looking statements can be found in TRIUMPH’s reports filed with the SEC, including in the risk factors described in TRIUMPH’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023. The presentation contains Non-GAAP measures. Please see slides titled “Non-GAAP Disclosures” for more information. TRIUMPH / Q4 FY’24 / May 23, 2024 | 2 Forward Looking Statement

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Q4 FY’24 Takeaways and Full Year Business Mix FY24 Sales by End Market FY24 Relative Profit Note: Operating companies presented in the chart based on relative net sales contribution.  Product Support sale complete Deleveraged from 7.6x to 4.9x two plus years early Strong Q4 Results: Non-aviation sales now 5% Strong finish to the year; Balance Sheet actions derisk multi-year forecast Organic Growth 11% Aftermarket 34% of sales Backlog up 22% TRIUMPH / Q4 FY’24 / May 23, 2024 | 3

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Top 5 Programs in backlog growing Backlog up 22% Profitability of backlog improving Long Term Rate Trend Top Programs in Backlog TRIUMPH / Q4 FY’24 / May 23, 2024 | 4

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FY21 – FY24 CAGR 9% Q4 Segment Awards Deliveries in FY25 and beyond: US Navy: SH-60 engine control unit upgrade Collins: A380 LG overhauls AeroPartners: CH-47 HMU spares U.S. Navy: V-22 PCA MRO Aftermarket Sales Trend and Recent Awards Strong Aftermarket Growth Enabled by Fleet Usage and TRIUMPH's IP/Sole Source Position TRIUMPH / Q4 FY’24 / May 23, 2024 | 5

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787 Landing Gear 787 LG O/H Market Size 2025 – 2031: $180M Actuators, valves, uplocks, hydraulic power pack, nose wheel steering 47 LRU's (Line Replaceable Units) A380 Landing Gear A380 LG O/H Market Size 2025 – 2031: $60M Actuators, valves, uplocks, body LG steering 76 LRU's (Line Replaceable Units) Aircraft Landing Gear Overhaul Momentum TRIUMPH / Q4 FY’24 / May 23, 2024 | 6 View of 787 Nose Landing Gear 787 Nose Gear 787 Main Gear

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Customer Program Product Sole Source IP New Product GE Aerospace Mult. Fuel Pumps & HXs LTA     SAAB 787 Cargo Door Power & Actuation     Collins KF-21 Water Collector / Heat Exchanger     KAI KF-21 AMAD Gearbox     MD Helicopters MD500N Main Transmission     U.S. Navy V-22 Pylon Conversion Actuation MRO     U.S. Army AH-64 EMC-102 Spares & MRO     Bombardier Global 7500 High Lift Drive Mechanism     Moog F-16 Leading Edge Flap Drive Motor     FY24 Book-to-Bill: 1.28 Significant Diversity Between Fixed Wing, Rotorcraft, Commercial, and Military Notable Awards in the 4th Quarter TRIUMPH / Q4 FY’24 / May 23, 2024 | 7

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Strong Cash & Availability; > 50% Reduction in Net Debt Over FY’23 Cash & Availability ~$437M as of Mar 31 Called additional $120M First Lien Notes at 103% in May ’24 Greater than 50% reduction in Net Debt in FY ($ IN MILLIONS) FY’24 Q4 FY’23 Q4 9.000% First Lien Notes due Mar 2028 $1,079 $1,200 Receivable Securitization  $-  $- 7.750% Unsecured Notes due Aug 2025 $- $499 Finance Leases and Other $16 $15 Less: Cash ($393) ($227) Net Debt $702 $1,487 Net Leverage 4.9x 7.6x Net Debt, Net Leverage, and Liquidity TRIUMPH / Q4 FY’24 / May 23, 2024 | 8

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Strong Organic Sales Growth; Increased Aftermarket Contribution ($ IN MILLIONS) FY’24 FY’23 Net Sales $1,192 $1,130 Operating Income 86 196 Operating Margin 7% 17% Adjusted Operating Income* 115 115 Adjusted Operating Margin* 10% 10% Adjusted EBITDAP* 144 150 Adjusted EBITDAP Margin* 12% 13% *See Appendix for Non-GAAP reconciliation Consolidated Full Year Results TRIUMPH / Q4 FY’24 / May 23, 2024 | 9

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Seasonally Strong Sales and Margin Quarter   11% organic sales growth   31% growth in aftermarket sales   23% Adjusted EBITDAP margin in      Systems & Support in Q4   Sequential improvement in Interiors Lower military OEM volumes ($ IN MILLIONS) FY’24 Q4 FY’23 Q4 Net Sales $359 $325 Operating Income 45 43 Operating Margin 12% 13% Adjusted Operating Income* 56 47 Adjusted Operating Margin* 16% 14% Adjusted EBITDAP* 58 54 Adjusted EBITDAP Margin* 16% 16% *See Appendix for Non-GAAP reconciliation Consolidated Quarterly Results TRIUMPH / Q4 FY’24 / May 23, 2024 | 10

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OEM Commercial MRO Commercial Increasing 787 volume offset by lower Bell 429 output  Increased spares volumes across multiple business jet programs and legacy 737 aircraft Commercial Sales – Q4 FY’24 TRIUMPH / Q4 FY’24 / May 23, 2024 | 11 Sustained Commercial MRO demand; OEM end market fundamentals remain strong

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Military OEM Military MRO Military OEM volume declines offset by more profitable aftermarket sales CH-53K backlog growth and new military programs offset decreased V-22 & UH-60 deliveries. Increases in spares and repairs for V-22, CH-47 and F-15 programs offset declines in AH-64 related spares Military Sales – Q4 FY’24 TRIUMPH / Q4 FY’24 / May 23, 2024 | 12

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Positive FCF in Q4; Working capital benefit on strong deliveries and improving supply chain Cash flow positive in Q4 as expected, with significant working capital improvement, yielding a $19M YTD benefit Working capital anticipated grow in Q1 FY’25 and recover in 2H *Differences due to rounding ($ IN MILLIONS) FY’24 Q4 FY’24 YTD Cash Flow From Operations $78 $9 Less: Capital Expenditures (6) (22) Free Cash Flow* 72 $(12) Cash Flow TRIUMPH / Q4 FY’24 / May 23, 2024 | 13

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($ IN MILLIONS, EXCEPT WHERE NOTED) FY25E Net Sales ($B) ~ $1.2 Operating Income ~ $140 Adjusted EBITDAP – non-GAAP ~ $182 Cash flow from operations $30 - $50 Capital expenditure $20 - $25 Free cash flow $10 - $25 Interest Expense / Cash Interest $95 / $90 Income Taxes Expense / Cash $7 / $12 Modest Sales Growth Adjusted EBITDAP margin up to 15% Positive free cash flow FY25 Guidance TRIUMPH / Q4 FY’24 / May 23, 2024 | 14

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The Recursive Cycle of Deleveraging Benefits Reduce Debt and Increase EBITDAP Lower Rates; Less Debt; Less Interest Expense Credit Improves; Refinance Remaining Debt Increased Free Cash Flow TRIUMPH / Q4 FY’24 / May 23, 2024 | 15

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($B) FY24A FY25E FY26E FY28E Net Sales $ 1.2 ~$ 1.2 $ 1.4 $ 1.6 EBITDAP Margin % 12 % ~15 % ~16.5 % ~20 % Free Cash as % of Sales -- % ~2 % ~4 % ~10 % Net Leverage (Net Debt / EBITDAP) ~4.9 x ~3.5 x ~2.6 x < 1.5 x Sales growth, margin expansion and FCF generation reduce net leverage to ~2.6x in FY26 Longer Term Financial Targets TRIUMPH / Q4 FY’24 / May 23, 2024 | 16

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FY24 – FY26 Key Value Drivers Include Price, Volume, and Cost Outs TRIUMPH / Q4 FY’24 / May 23, 2024 | 17

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Expanding profitability and FCF supports de-leveraging Advancing TRIUMPH’s Value Proposition  Pure play engineered systems, components and MRO business Large and growing installed base with significant aftermarket tail Long-term forecast based on backlog and customer demand High barriers to entry, cost of switching, pricing leverage Significant upside as targets are achieved 1 2 3 4 6 5 FY’24-’25 Progress 90% Sole-sourced;  60% IP-based 29% aftermarket (Up 20% over FY23) Backlog up 22% $75M in price increases in FY25 300 bps Adj EBITDAP margin improvement in FY25 De-leveraging accelerated 2+ years TRIUMPH / Q4 FY’24 / May 23, 2024 | 18 As presented at TRIUMPH’s September 13, 2023 Investor Day

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Geared Solutions Progress TRIUMPH / Q4 FY’24 / May 23, 2024 | 19

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New GB’s (5 new NPI programs) ADM Fueldraulic & Elec. Eng Actuation High Performance Fuel Pumps Digital Concentrator Units & Cockpit Indicator Panels Large Thermal System Fuel Additive Injection Device (FAID) Cyber Enabled Processor & Controls Afterburner Fuel Controls New Product Lines Technology & Product Roadmaps Creating Demand / Pull for TRIUMPH Products Engaging Customers / Deploying Engineering Teams Strategy Enables Success Intellectual Property Fly-Wheel Propulsion Gearboxes TRIUMPH IP Flywheel – Long Term Value Creation TRIUMPH / Q4 FY’24 / May 23, 2024 | 20

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Appendix TRIUMPH / Q4 FY’24 / May 23, 2024 | 21

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Top Program Shipset Content Complete landing gear hydraulic system including all actuation, nose wheel steering, ground service panel, cargo door actuation system, Trent 1000 engine gears, GEnx heat exchangers, insulation system, ECS ducting 737MAX 787 A320NEO Landing gear actuation, spoiler actuation, steering actuation, valves, fuses, accumulators, LEAP gearbox, cabin insulation and ECS ducting $300K $1,000K Commercial Transport Military Vehicles Hydraulic power transfer unit, landing gear uplocks, cowl door opening actuators, valves, heat exchangers, LEAP gearbox (60% of fleet options) $200K A350 $330K Engine turbine case cooling control, valves, heat exchangers, auxiliary power pack, cargo door actuation, cabin insulation system Complete thermal system including cabin and avionics bay cooling (27 LRU’s), loose gears, gun actuation, T700 electronic engine controls Nose wheel shimmy damper, landing gear actuation, heat exchangers, blade fold system, blade dynamic damping system, refueling probe, ground support kneeling system, APU starter, rotor braking Gun drive motor, APU starter motor, valves, engine cables, thermal pump pack, heat exchangers $300K+ $560K AH-64 Apache CH-53K $880K $2,400K CH-47 F-15EX UBA’s & lag dampers, heat exchanger, engine electronic control units, hydromechanical units TRIUMPH / Q4 FY’24 / May 23, 2024 | 22

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Pension/OPEB Analysis ($ in millions) FY’25 FY’24 Pension Expense (Income) ^ ≈ $13 ≈ $5 OPEB Expense (Income) ^ ≈ ($9) ≈ ($9) ^ Excludes impact from one-time adjustments such as curtailments, settlements or special termination benefits. Est. required contributions ($ in millions) Pension OPEB Fiscal 2025 $23 < $1 Fiscal 2026 $41 < $1 Fiscal 2027 $36 < $1 Fiscal 2028 $32 < $1 Fiscal 2029 $25 < $1 Thereafter $21 < $1 Supplemental Data TRIUMPH / Q4 FY’24 / May 23, 2024 | 23

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We prepare and publicly release annual audited and quarterly unaudited financial statements prepared in accordance with U.S. GAAP. In accordance with Securities and Exchange Commission (the "SEC") rules, we also disclose and discuss certain non-GAAP financial measures in our public filings and earning releases. Currently, the non-GAAP financial measures that we disclose are Adjusted EBITDA, which is our income (loss) from continuing operations before interest and gains or losses on debt extinguishment, income taxes, amortization of acquired contract liabilities, consideration payable to customer related to divestitures, legal judgments and settlements, gains/loss on divestitures, gains/losses on warrant remeasurements and warrant-related transaction costs, share-based compensation expense, depreciation and amortization (including impairment of long-lived assets), other non-recurring impairments, and the effects of certain pension charges such as curtailments, settlements, withdrawals, and other early retirement incentives; and Adjusted EBITDAP, which is Adjusted EBITDA, before pension expense or benefit (excluding pension charges already adjusted in Adjusted EBITDA). We disclose Adjusted EBITDA on a consolidated and Adjusted EBITDAP on a consolidated and a reportable segment basis in our earnings releases, investor conference calls and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors more meaningfully evaluate and compare our future results of operations with our previously reported results of operations. We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the U.S. GAAP financial measure most directly comparable to such measures is income (loss) from continuing operations. In calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from income (loss) from continuing operations the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. Adjusted EBITDA and Adjusted EBITDAP are not measurements of financial performance under U.S. GAAP and should not be considered as a measure of liquidity, as an alternative to income (loss) from continuing operations, or as an indicator of any other measure of performance derived in accordance with U.S. GAAP. Investors and potential investors in our securities should not rely on Adjusted EBITDA or Adjusted EBITDAP as a substitute for any U.S. GAAP financial measure, including income (loss) from continuing operations. In addition, we urge investors and potential investors in our securities to carefully review the reconciliation of Adjusted EBITDA and Adjusted EBITDAP to income (loss) from continuing operations set forth below, in our earnings releases, and in other filings with the SEC and to carefully review the U.S. GAAP financial information included as part of our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K that are filed with the SEC, as well as our quarterly earnings releases, and compare the U.S. GAAP financial information with our Adjusted EBITDA and Adjusted EBITDAP. Adjusted EBITDA and Adjusted EBITDAP are used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our U.S. GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business. We have spent more than 20 years expanding our product and service capabilities, partially through acquisitions of complementary businesses. Due to the expansion of our operations, which included acquisitions, our income (loss) from continuing has included significant charges for depreciation and amortization. Adjusted EBITDA and Adjusted EBITDAP exclude these charges and provide meaningful information about the operating performance of our business, apart from charges for depreciation and amortization. We believe the disclosure of Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year. We also believe Adjusted EBITDA and Adjusted EBITDAP are measures of our ongoing operating performance because the isolation of noncash charges, such as depreciation and amortization, and nonoperating items, such as interest, income taxes, pension and other postretirement benefits, provides additional information about our cost structure and, over time, helps track our operating progress. In addition, investors, securities analysts, and others have regularly relied on Adjusted EBITDA and Adjusted EBITDAP to provide financial measures by which to compare our operating performance against that of other companies in our industry. Non-GAAP Disclosures TRIUMPH / Q4 FY’24 / May 23, 2024 | 24

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Set forth below are descriptions of the financial items that have been excluded from our income (loss) from continuing operations to calculate Adjusted EBITDA and Adjusted EBITDAP and the material limitations associated with using these non-GAAP financial measures as compared with income from continuing operations: Gains or losses from sale of assets and businesses may be useful for investors to consider because they reflect gains or losses from sale of operating units or other assets. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations. Warrants remeasurement gains or losses and warrant-related transaction costs may be useful for investors to consider because they reflect the mark-to-market changes in the fair value of our warrants and the costs associated with warrants issuance or settlement. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations. Consideration payable to a customer related to a divestiture may be useful for investors to consider because it reflects consideration paid to facilitate the ultimate sale of operating units. We do not believe these charges necessarily reflect the current and ongoing cash earnings related to our operations. Shareholder cooperation expenses may be useful for investors to consider because they represent certain costs of corporate governance that may be incurred periodically when reaching cooperative agreements with shareholders.  We do not believe these charges necessarily reflect the current and ongoing cash earnings related to our operations. Legal loss contingencies, when applicable, may be useful for investors to consider because it reflects gains or losses from legal disputes with third parties. We do not believe these gains or losses reflect the current and ongoing earnings related to our operations.  Non-service defined benefit income or expense from our pension and other postretirement benefit plans (inclusive of certain pension related transactions such as curtailments, settlements, withdrawal, and early retirement or other incentives) may be useful for investors to consider because they represent the cost of postretirement benefits to plan participants, net of the assumption of returns on the plan's assets and are not indicative of the cash paid for such benefits. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.  Amortization of acquired contract liabilities may be useful for investors to consider because it represents the noncash earnings on the fair value of off-market contracts acquired through acquisitions. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.  Amortization expense and nonrecurring asset impairments (including goodwill and intangible asset impairments) may be useful for investors to consider because it represents the estimated attrition of our acquired customer base and the diminishing value of trade names, product rights, licenses, or, in the case of goodwill, other assets that are not individually identified and separately recognized under U.S. GAAP, or, in the case of nonrecurring asset impairments, the impact of unusual and nonrecurring events affecting the estimated recoverability of existing assets. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.  Depreciation may be useful for investors to consider because it generally represents the wear and tear on our property and equipment used in our operations. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.  Share-based compensation may be useful for investors to consider because it represents a portion of the total compensation to management and the board of directors. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.  The amount of interest expense and other, as well as debt extinguishment gains or losses, we incur may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of interest expense and other and debt extinguishment gains or losses to be a representative component of the day-to-day operating performance of our business.  Income tax expense may be useful for investors to consider because it generally represents the taxes which may be payable for the period and the change in deferred income taxes during the period and may reduce the amount of funds otherwise available for use in our business. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day operating performance of our business.  Non-GAAP Disclosures TRIUMPH / Q4 FY’24 / May 23, 2024 | 25

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Adjusted Operating Income is defined as GAAP Operating Income, less expenses/gains associated with the Company's transformation, such as restructuring expenses, gains/losses on divestitures, defined benefit plan gains/losses from curtailments, settlements, etc; impairments of goodwill and other assets. Management believes that this is useful in evaluating operating performance, but this measure should not be used in isolation. The following table reconciles our Operating income to Adjusted Operating income as noted above. Non-GAAP Disclosures TRIUMPH / Q4 FY’24 / May 23, 2024 | 26

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Management compensates for the above-described limitations of using non-GAAP measures by using a non-GAAP measure only to supplement our GAAP results and to provide additional information that is useful to gain an understanding of the factors and trends affecting our business. The following table shows our estimated Adjusted EBITDAP reconciled to our operating income for the indicated periods (in thousands): Non-GAAP Disclosures TRIUMPH / Q4 FY’24 / May 23, 2024 | 27

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Free Cash Flow Walk *See Appendix slide 13 for Non-GAAP reconciliation ($ IN MILLIONS) FY’24 Q4 FY’24 YTD Net Income 547 512 Non-Cash Items: Depreciation & Amortization 8 33 Interest Expense & Other 33 145 Amortization of Acquired Contracts (1) (3) Pension & OPEB Expense (Income) -- (2) Income Tax Expense 3 7 (Gain) loss on sale of assets (568) (556) Other non-cash items 9 10 Cash Sources (Uses): Working Capital Change 132 29 Interest Payments (77) (152) Capital Expenditures (6) (22) Tax Payments, Net (8) (13) Free Cash Flow (Use) 72 (12) TRIUMPH / Q4 FY’24 / May 23, 2024 | 28

v3.24.1.1.u2

Document And Entity Information	May 20, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 20, 2024
Entity Registrant Name	TRIUMPH GROUP, INC.
Entity Central Index Key	0001021162
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0347963
Entity File Number	1-12235
Entity Address, Address Line One	555 E Lancaster Avenue
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	610
Local Phone Number	251-1000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.001 per share
Trading Symbol	TGI
Security Exchange Name	NYSE
Purchase Rights [Member]
Document Information [Line Items]
Title of 12(b) Security	Purchase rights
No Trading Symbol Flag	true
Security Exchange Name	NYSE

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