Triumph Group, Inc. ( TGI ) shares are trading lower after the company reported fourth-quarter FY24 results.

Sales of $358.6 million (+11% Y/Y organically) beat the consensus of $342.1 million. The company reported an adjusted EPS of $0.31, beating the consensus of $0.20.

Backlog was $1.9 billion, up 22% Y/Y, led by commercial OEM platforms. Adjusted operating income was $55.8 million (vs. $46.7 million a year ago), and the adjusted operating margin was 15.6%, up from 14.4% a year ago.

Adjusted EBITDAP rose to $58.3 million from $54.2 million in the prior year quarter, and the margin contracted to 16.3% from 16.7% a year ago.

Operating cash flow stood at $77.7 million, and free cash flow reached $72.1 million. As of March-end, cash and cash equivalents stood at $392.5 million.

Dan Crowley, chairman, president and chief executive officer, said, “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.”

FY25 Outlook: Triumph expects net sales of $1.2 billion versus $1.28 billion street view.

Triumph now projects an operating income of $140.0 million. Adjusted EBITDAP of $182.0 million, reflecting a 15% adjusted EBITDAP margin.

Triumph projects a cash flow from operations outlook of $30.0 million-$50.0 million.

Crowley added, “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.”

Investors can gain exposure to the stock via Gabelli Commercial Aerospace And Defense ETF ( GCAD ) .

Price Action: TGI shares are down 13.5% at $12.98 at the last check Thursday.