Aviation and defence industries MRO specialist TRIUMPH has reported healthy profits for the last financial year to March 2023.

In a full year trading update the company reported net sales of $1.38 billion and net income of $89.6 million.

Operating income was $238.1 million including $101.5 million gain from the sale of its Stuart, Florida business. Adjusted operating income stood at $158.7 million.

Adjusted EBITDAP, a measure of profitability, came in at $195.7 million, a margin of 14%.

Dan Crowley, TRIUMPH chairman, president, and chief executive, said the firm had seen increased demand in its MRO business.

“TRIUMPH ended our fiscal year 2023 on an upswing and exceeded both our net sales and our adjusted earnings per share guidance and successfully extending our debt maturities to enhance liquidity and financial flexibility.

“As our markets improve, we generated 21% organic sales growth from continuing operations in the quarter as a result of increasing commercial OEM production rates, accelerating MRO demand, and recovering military volumes.

“In addition, we delivered strong cash generation for the quarter and improved profitability on a year over year basis as supply chain constraints eased.”

In a forecast for the current financial year,  TRIUMPH said it expects net sales to be between $1.39 billion and $1.43 billion.

This will be driven by an organic growth rate of 7-10 per cent, after excluding approximately $77.9 million in fiscal 2023 revenues from exited businesses.

The firm added it expects fiscal 2024 operating income of $165.0 million to $180.0 million, and Adjusted EBITDAP of $210.0 million to $225.0 million.

Cashflow from operations in 2024 was forecast to be $60.0 million to $80.0 million and approximately $25.0 million to $30.0 million for capital expenditures, resulting in expected free cash flow of $35.0 million to $50.0 million.

Crowley added: “As a result of our healthy backlog and recent wins, we anticipate organic growth of 7-10 per cent as well as continued margin expansion and positive free cash flow generation in fiscal 2024.

“We will also maintain our focus on deleveraging and optimising our capital structure over time.

“As we execute on our financial and operational goals, TRIUMPH remains on track to deliver profitable growth and enhance shareholder value.”