Aftermarket Bolsters Triumph Amid OEM Struggles

Triumph Group is well-positioned to support Boeing’s anticipated production ramp-up both operationally and financially, leaning on a strengthening aftermarket business while it awaits the manufacturer’s supplier-focused cues coming out of the recent strike.

While the company slowed some shipments to Boeing amid the International Association of Machinists strike, its factories did not pause, Triumph president and CEO Day Crowley said. “We continue to produce, albeit at low rates in those plants,” he said on the company’s fiscal 2025 second quarter earnings call.

Looking ahead, Crowley expects Boeing to update its supplier shipping targets “in the next several months” as the post-strike ramp-up accelerates.

“I can’t comment on the shape of that ramp other than Boeing does typically do it in steps,” he said. “They don’t do it in a month-over-month [pattern], they do it for a period of time. So, I’d just say watch for those steps and know that the supply chain is ready to push the throttles forward.”

The strike, settled after more than seven weeks with a Nov. 4 vote, halted production on all Seattle-area programs, including 737, 767 and 777 final assembly.

Work stoppages are rarely beneficial for affected supply chains. But Crowley said the strike may have the unintended benefit of helping Boeing accumulate sufficient material to support its rising production rate targets—something most manufacturers have struggled with since the downturn.

“One of the silver linings of the production pause and the strike is that a large number of commodity parts have caught up and they have robust buffer stocks,” Crowley said. “I don’t think they’re going to be limited in the ramp by part availability as they were in prior ... post-COVID quarters.”

Meanwhile, Triumph Group’s aftermarket business is reaping the benefits of new-equipment delivery struggles and an imminent rise in demand for high-margin work on landing gear parts, helping the company offset sluggishness in its original equipment business.

Commercial aftermarket sales were up 26% year-over-year in the three months ended Sept. 30—the company’s fiscal 2025 second quarter.

Triumph reported a 215% rise in 787 landing gear work as the fleet’s oldest airframes begin entering the window for full gear overhauls. The company makes several key 787 landing gear components, including actuators and control valves.

The company also saw an 80% jump in 737 actuation and valve spares, driven in part by demand to keep older 737 Next Generation variants in service as nagging delivery delays and durability issues plague current-generation narrowbodies.

“We expect aftermarket revenue to grow due to the shortage of new aircraft entering the fleet and the emerging 787 landing gear overhaul cycle,” Crowley said.

Triumph earlier in 2024 sold its third-party MRO business to AAR Corp.  But the company continues to support the wide range of components it manufactures.

“We’ve been able to turn our focus to our own proprietary aftermarket spares and repairs business,” CFO Jim McCabe said. “The timing could not have been better in this regard.”

Aftermarket business accounted for 33%, or $93.9 million, of Triumph’s $287.5 million in sales last quarter, compared to 29% a year ago. Commercial aftermarket sales totaled $50.2 million.

The strong MRO performance helped offset a 9% decline on commercial OEM sales due to decreased volumes on the 737, 767, and 777 programs.

Triumph’s net income for the quarter was $11.8 million, compared to a $1.3 million loss a year ago.