Triumph Group, Inc. (NYSE:TGI) Q4 2024 Earnings Conference Call May 23, 2024 8:30 AM ET

Company Participants

Thomas Quigley - Investor Relations
Dan Crowley - Chairman, President & Chief Executive Officer
Jim McCabe - Senior Vice President & Chief Financial Officer

Conference Call Participants

Josh Korn - Barclays
Noah Poponak - Goldman Sachs
Peter J. Arment - Baird
Seth Seifman - JPMorgan
Cai von Rumohr - TD Cowen
Sheila Kahyaoglu - Jefferies
Sam Struhsaker - Truist Securities

Operator

Good day, and welcome to the Triumph Group Fourth Quarter Fiscal Year 2024 Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, today's event is being recorded.

I'd now like to turn the conference over to Thomas Quigley. Please go ahead, sir.

Thomas Quigley

Thank you. Good morning, and welcome to our fourth quarter fiscal 2024 earnings call.

Today, I'm joined by Dan Crowley, the company's Chairman, President, and Chief Executive Officer; and Jim McCabe, Senior Vice President and Chief Financial Officer of Triumph.

As we review the financial results for the quarter and full fiscal year, please refer to the presentation posted on our website this morning.

We'll discuss our adjusted results. Our adjustments and any reconciliation of non-GAAP financial measures to comparable GAAP measures are explained in the earnings press release and in the presentation.

Certain statements on this call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Triumph's actual results, performance or achievements to be materially different from any expected future results, performance or achievements expressed or implied in the forward-looking statements.

Dan, I'll turn it over to you.

Dan Crowley

Thanks Tom, and welcome to Triumph's fourth quarter call.

Before we get into the details of the quarter, I'd like to start by recapping the full fiscal year results. Fiscal '24 was a successful year for Triumph. We achieved or exceeded our strategic and financial objectives despite market dynamics, while improving safety and quality to all-time highs for the company.

Here are a few supporting facts. Triumph sold our third party maintenance business for 14.5 times EBITDA to allow us to focus on our core systems and OEM MRO business. We reduced total debt by over $700 million and accelerated our deleveraging by two years. We retired our outstanding warrants, generating $100 million in net proceeds. Triumph increased aftermarket revenues by 19%, which carries strong margins. And we improved Systems & Support adjusted EBITDA margin by 70 basis points, while improving our free cash flow by $60 million. We also held a successful Investor Day with over 200 in-person attendees and provided multi-year targets. And last, we met or exceeded all of our internal sustainability goals on our journey towards our long-term ESG objectives.