RADNOR, Pa. - Triumph Group, Inc. (NYSE:TGI) announced today that its Actuation Products & Services division has renewed a support agreement with Lockheed Martin (NYSE:LMT) for the F-35 Joint Strike Fighter program. The five-year contract extension will see Triumph's facility in Clemmons, North Carolina, continue to provide engineering and material support.
Since 2014, Triumph has been involved with the F-35 program, supplying Hydraulic Utility Actuation Valves (HUAV) and, since 2021, aftermarket parts for military depot operations. The sustained partnership underscores Triumph's role in military aftermarket services and its expertise in hydraulic power generation and actuation systems.
Natasha Trudeau, President of Triumph Actuation Product & Services, stated, "Our Clemmons team will provide exceptional service to Lockheed Martin and their customers over the next five years."
Triumph Group, with headquarters in Radnor, Pennsylvania, operates a broad portfolio of aerospace and defense systems and components, serving OEMs and a diverse range of aircraft operators.
The extension of this agreement is part of Triumph's ongoing strategy to bolster its military aftermarket presence and deliver comprehensive support for high-demand depot operations, such as those at MCAS Cherry Point. Triumph's continued collaboration with Lockheed Martin will contribute to the readiness and sustainment of the F-35 fleet.
Triumph Group has been the subject of several noteworthy updates. The company's stock was downgraded from 'Buy' to 'Hold' by TD Cowen due to moderated cash flow expectations and anticipated weaker military results. The firm also reduced the price target for the company's shares to $14.00, reflecting the revised earnings expectations and current market conditions.
Triumph Group exceeded its financial targets for fiscal year 2024. The company reported a 13% organic sales growth, a 19% increase in aftermarket revenues, and reduced its total debt by over $700 million. The company's backlog also grew by 22% to $1.9 billion.
However, Truist Securities reduced the stock's price target from $27.00 to $22.00 following mixed fourth-quarter financial results. Despite surpassing expectations in terms of revenue and overall earnings, the company's EBITDAP margins and guidance did not meet market expectations. The firm maintains a 'Buy' rating on the stock.
InvestingPro Insights
Triumph Group's recent contract extension with Lockheed Martin for the F-35 Joint Strike Fighter program marks a significant stride in reinforcing its military aftermarket services. In light of this development, a glance at the company's financial metrics and market performance provides valuable context for investors. Triumph Group (NYSE:TGI) has a market capitalization of approximately $1.2 billion, reflecting its standing in the aerospace and defense industry.
An InvestingPro Tip indicates that Triumph's net income is expected to grow this year, aligning with the company's strategic initiatives to enhance its military aftermarket presence. Additionally, Triumph's stock has experienced notable volatility, with a substantial decline over the last week, yet it has achieved a high return over the past year, with a 62.73% increase in one-year price total return. This volatility and performance could be of interest to investors seeking growth opportunities within the defense sector.
From a financial standpoint, Triumph's revenue for the last twelve months as of Q4 2024 stands at $1.192 billion, with a growth rate of 5.44%. The company's gross profit margin during the same period is 27.08%, demonstrating its ability to maintain profitability in its operations. Despite not paying dividends, Triumph's liquid assets exceed its short-term obligations, which may reassure investors of the company's financial stability.
For investors looking for more in-depth analysis and additional tips, there are 8 more InvestingPro Tips available on Triumph Group, providing a comprehensive view of the company's financial health and market prospects. To explore these insights further, visit https://www.investing.com/pro/TGI.
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