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Triumph Group (NYSE:TGI) on Wednesday was downgraded to Hold from a previous investment rating of Buy among analysts at financial-services firm Truist Securities. They said the aerospace and defense supplier faces ongoing challenges and a heavy debt load.
“Triumph (TGI) has been involved in a complex turnaround and restructuring effort since CEO Dan Crowley joined the company in 2016,” Michael Ciarmoli, analyst at Truist, said in an August 21 report. “While the overall business has been completely transformed, several items have remained constant throughout this process — free cash generation has been poor, results have been inconsistent, and shareholder value creation has been non-existent.”
Triumph’s (TGI) net debt was $821 million at the end of its fiscal first quarter, with trailing-twelve month leverage at 5.66 times, according to Truist.
“Assuming the company can generate about $200 million of cash in 2H25 while growing its EBITDA we place TTM leverage at the close of FY25 at a more manageable 3.7 times,” Truist said.
Truist cut its price target on Triumph (TGI) to $15 a share from $17 a share previously.