Executive Summary

Q3 FY2025 delivered 11% YoY sales growth to $315.6M, GAAP diluted EPS of $0.19 and adjusted EPS of $0.27; margins expanded with adjusted operating margin 14.5% and adjusted EBITDAP margin 17.6% on strong aftermarket (commercial +42% YoY; military +32% YoY) and recovering military OEM, partially offset by Boeing 737 MAX-related OEM softness .
Cash from operations was $33.1M and free cash flow $32.3M, aided by “strong operational performance across all our businesses,” per CEO Dan Crowley; backlog stood at $1.87B (24‑month firm book) .
Guidance suspended and earnings call canceled due to definitive agreement to be acquired by Warburg Pincus and Berkshire Partners for $26.00/share (~$3B EV); transaction expected to close 2H CY2025, subject to approvals .
Key narrative: aftermarket-driven margin expansion and Interiors price resets/cost actions support improving profitability into FY2026, while near-term OEM headwinds (Boeing strike timing) and a $6.2M legal contingency are offsets .

What Went Well and What Went Wrong

What Went Well
- “TRIUMPH achieved 18% EBITDAP margins in its eleventh consecutive quarter of year-over-year sales growth,” driven by aftermarket strength; commercial and military aftermarket sales grew >36% and military OEM >24% YoY, respectively .
- Commercial aftermarket +$14.8M (+42.3% YoY) on higher spares and repairs for 737, 787 and A380; military aftermarket +$12.1M (+31.5% YoY) on UH‑60 repairs and CH‑47 spares; non‑aviation revenue rose to $13.1M on geopolitical demand .
- Interiors benefited from “improved pricing across multiple programs,” contributing to higher adjusted operating margin (14.5%) and adjusted EBITDAP margin (17.6%) .
What Went Wrong
- Commercial OEM revenue down $16.9M (-11.8% YoY) primarily from 737 MAX production disruption tied to Boeing’s strike; some relief from Interiors pricing .
- Recognized a $6.2M legal contingencies loss (after-tax $6.2M; $0.08 EPS impact) and $0.2M restructuring, diluting GAAP earnings versus non‑GAAP .
- Guidance suspended and Q3 call canceled due to pending take‑private transaction, limiting forward visibility for public investors .

Financial Results

Consolidated performance vs prior year and sequentially

Metric	Q3 FY2024 (Dec 31, 2023)	Q1 FY2025 (Jun 30, 2024)	Q2 FY2025 (Sep 30, 2024)	Q3 FY2025 (Dec 31, 2024)
Revenue ($M)	$285.0	$281.0	$287.5	$315.6
Operating Income ($M)	$19.7	$8.1	$32.4	$39.3
Operating Margin (%)	6.9% adj	6.1% adj	12.5% adj	14.5% adj
Diluted EPS (GAAP, cont. ops)	$(0.15)	$(0.24)	$0.15	$0.19
Adjusted EPS	$(0.16)	$(0.06)	$0.20	$0.27
Adjusted EBITDAP ($M)	$27.7	$25.4	$42.6	$55.5
Adjusted EBITDAP Margin (%)	9.8%	9.0%	14.9%	17.6%
Cash From Operations ($M)	$27.6	$(104.5)	$(38.4)	$33.1
Free Cash Flow ($M)	$22.4	$(112.7)	$(44.7)	$32.3

End-market mix (Q3 FY2025 vs Q3 FY2024)

End-Market ($M)	Q3 FY2024	Q3 FY2025
Commercial OEM	$142.3	$125.4
Military OEM	$61.1	$75.9
Total OEM	$203.4	$201.3
Commercial Aftermarket	$35.1	$49.9
Military Aftermarket	$38.3	$50.4
Total Aftermarket	$73.4	$100.3
Non-Aviation	$7.3	$13.1
Amortization of Acquired Contract Liabilities	$0.8	$0.9
Total Net Sales	$285.0	$315.6

Segment performance (Q3)

Segment	Net Sales ($M) Q3 FY2024	Net Sales ($M) Q3 FY2025	Segment EBITDAP ($M) Q3 FY2024	Segment EBITDAP ($M) Q3 FY2025	Segment EBITDAP Margin Q3 FY2024	Segment EBITDAP Margin Q3 FY2025
Systems & Support	$240.9	$277.8	$39.4	$64.3	16.4%	23.2%
Interiors	$44.1	$37.8	$(1.5)	$6.3	-3.5%	16.7%

Non-GAAP adjustments (Q3)
- Legal contingencies loss: $6.2M pre/post-tax; $0.08 EPS impact; restructuring $0.2M .
- Adjusted operating income: $45.7M; adjusted operating margin: 14.5% .
Balance sheet snapshot (12/31/2024)
- Cash & cash equivalents: $133.5M; LT debt: $961.8M; current portion of LT debt: $8.5M .
Backlog and working capital indicators

KPI	Q1 FY2025	Q2 FY2025	Q3 FY2025
Backlog (next 24 months)	$1.87B	$1.90B	$1.87B
CFO ($M)	$(104.5)	$(38.4)	$33.1
FCF ($M)	$(112.7)	$(44.7)	$32.3

Note: Q3 FY2025 earnings call and webcast were canceled due to the announced acquisition; management suspended FY2025 guidance .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY2025	≈ $1.2B (Q1 and Q2)	Suspended (Feb 6, 2025)	Suspended
Operating Income	FY2025	≈ $132.5M (Q1)	$140.5M–$145.5M (Q2)	Raised in Q2; then Suspended
Adjusted EBITDAP	FY2025	≈ $182.0M (Q1)	$190.0M–$195.0M (Q2)	Raised in Q2; then Suspended
GAAP EPS (diluted)	FY2025	≈ $0.33 (Q1)	$0.47–$0.53 (Q2)	Raised in Q2; then Suspended
Adjusted EPS (diluted)	FY2025	≈ $0.52 (Q1)	$0.70–$0.76 (Q2)	Raised in Q2; then Suspended
Cash From Operations	FY2025	$30M–$50M (Q1)	$40M–$55M (Q2)	Raised in Q2; then Suspended
Free Cash Flow	FY2025	$10M–$25M (Q1)	$20M–$30M (Q2)	Raised in Q2; then Suspended

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 FY2025)	Previous Mentions (Q2 FY2025)	Current Period (Q3 FY2025)	Trend
Aftermarket strength and margin mix	Aftermarket ~33% of sales but 73% of profit; strong 737/787/A320 spares & repairs; 787 landing gear overhaul cycle beginning	Aftermarket ~33% of sales and 61% of profit; 787 landing gear spares/repairs ramping; strong CH‑47 activity	Aftermarket up sharply YoY; CEO cites >36% IP-based aftermarket growth	Improving
Interiors turnaround	Rightsizing, pricing talks with Boeing; breakeven path depends on MAX rates	Boeing settlement and deep cost cuts restored profitability; full-year 5–6% EBITDAP margin	Improved pricing across programs; margins up to 16.7% segment EBITDAP	Improving
OEM headwinds (Boeing/MAX)	Anticipated H2 recovery; supplier timing/working capital build	MAX strike/pause impacted backlog timing; still diversified; backlog stable ex narrowbody	Commercial OEM down due to Boeing strike; partial Interiors pricing offset	Mixed
Pricing power	~$75M pricing planned; multi-year price ups underway	Greater contribution from price ups in H2	Improved Interiors pricing cited as tailwind	Improving
Cash flow seasonality/working capital	Heavy H1 build; Q4 strongest	Positive H2, strongest in Q4; Q3 CFO expected positive	CFO $33.1M; FCF $32.3M	Improving
M&A/Strategic	Board evaluates options; simplification and deleveraging ongoing	Market speculation acknowledged; focus on value creation	Definitive agreement to be acquired for $26/share; guidance and call suspended	New development

Note: Q3 FY2025 earnings call was canceled; “Current Period” references management statements in the 8‑K/press release .

Management Commentary

“Commercial and military aftermarket sales from our IP-based business grew by more than 36% and military OEM sales grew by more than 24%. We exceeded our cash targets in the quarter through strong operational performance across all our businesses” — Dan Crowley, Chairman, President & CEO .
“Ramping aftermarket demand and the increasing OEM production rates benefited TRIUMPH in our third fiscal quarter… our strategy to focus on IP-based OEM and aftermarket business, and work to turnaround our Interiors business, positions TRIUMPH well for fiscal 2026 and beyond” .
On transaction backdrop and guidance: TRIUMPH suspended quarterly earnings calls and FY2025 financial guidance due to the pending Warburg Pincus/Berkshire Partners acquisition .

Q&A Highlights

No Q3 FY2025 Q&A (call canceled). From Q2 FY2025, key themes:

Profit drivers: Aftermarket mix and Interiors settlement were the main contributors to implied ~20% 2H margin trajectory; aftermarket ~61% of profit on 33% of sales .
Cash flow cadence: Large Q4 working capital release; confidence based on backlog and shipment plans .
Boeing/Airbus dynamics: Boeing inventory burn and step-ups expected; equitable adjustments discussed with both Boeing and Airbus .
Interiors outlook: Full-year 5–6% EBITDAP margin and path back to double-digit margins over FY26–29 .

Estimates Context

S&P Global (Capital IQ) consensus for Q3 FY2025 EPS and revenue was unavailable via our SPGI feed for TGI at time of analysis (mapping error). As a result, we cannot present “vs. consensus” deltas for this quarter. Values would typically be retrieved from S&P Global; consensus data was unavailable.
Attempted retrieval: Primary EPS Consensus Mean and Revenue Consensus Mean for Q3 2025 returned a missing mapping error (S&P Global) [Values retrieved from S&P Global unavailable].

Key Takeaways for Investors

Aftermarket-led operating leverage: Aftermarket strength (787/A380 landing gear overhauls; CH‑47 repairs/spares) drove margin expansion to 17.6% adjusted EBITDAP margin and positive Q3 FCF, validating the IP-based spares/repairs strategy .
Interiors inflection: Pricing resets and cost actions flipped Interiors from negative to 16.7% segment EBITDAP margin in Q3; supports structurally higher consolidated margins into FY2026 as OEM rates normalize .
OEM headwinds manageable: 737 MAX strike/travel impacts pressured Commercial OEM, but diversified program mix and S&S margin strength offset; non‑aviation revenues also rising on geopolitical demand .
Liquidity and balance sheet: $133.5M cash and total debt ~ $970M at Q3; sequential deleveraging benefited interest expense in prior quarters; cyclical Q4 cash release remains a core part of the model .
Corporate event path: Take‑private at $26.00/share (~$3B EV) is the near-term stock catalyst; next steps include shareholder vote and regulatory approvals; no guidance or calls in interim .
Trading lens: Near-term price anchored to deal spread and regulatory risk; fundamental beat/miss analysis less relevant until close. If deal risks increase, aftermarket momentum and Interiors recovery underpin the standalone story .
Execution watch‑items: 787/A380 MRO throughput, Interiors pricing durability with Airbus, Boeing production normalization, and continued working capital discipline into Q4 seasonality .

Additional relevant press releases during the period:

Triumph Actuation record aftermarket shipments supporting 787/A380 landing gear overhauls (capacity/mix tailwind) .
Acquisition announcement with Warburg Pincus/Berkshire Partners and explicit cancellation of Q3 call/webcast .
Previously scheduled webcast notice (later superseded by cancellation) .

TRIUMPH GROUP INC (TGI)·Q3 2025 Earnings Summary