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Triumph Group (TGI) Arm Wins Deal to Support Boeing's Fleet
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Triumph Group, Inc.’s (TGI - Free Report) business unit, Actuation Products and Services, recently clinched a contract from Boeing (BA - Free Report) for supplying its wire control cables to the latter.
Per the deal, Triumph will manufacture variations of wire control cables for a series of Boeing’s jets, namely the 737 MAX, 767, 777 and 777X programs, along with providing life cycle support for these components. The work involved in the contract will be carried out at TGI's Shelbyville facility in Indiana.
Factors Favoring Triumph’s Growth
Triumph has been the key supplier of wire control cables to Boeing since 2003. The consistency in the order flow is mainly buoyed by its capability to manufacture mechanical and electro-mechanical control cables for commercial, military and industrial platform applications.
Going forward, Triumph may continue to witness strength in the order flow from Boeing as the latter enjoys the solid demand for its commercial aircraft, which can be gauged from its recent-quarter delivery numbers. These numbers indicate a year-over-year improvement of 53.2% in the second quarter of 2022, particularly driven by the shipments of 737 Max, which registered growth of a whopping 106%.
Growth Prospects
With gradual ease in travel restrictions, air passenger traffic is growing lately, a trend expected to continue in the coming days as well. This should boost the demand for commercial aircraft, particularly for Boeing, with the company being the United States’ largest plane maker. This, in turn, will provide a solid boost for Triumph’s growth prospects. Per the report from Mordor Intelligence, the global commercial aircraft market is anticipated to witness a CAGR of 5% during the 2022-2027 period.
Such abounding growth prospects bode well for TGI as it is the leading supplier of aircraft parts to prominent jet makers and boasts a solid portfolio of aerospace and defense systems and components. A few companies that can reap the benefits of the expanding commercial aircraft market are as follows:
Spirit AeroSystems(SPR - Free Report) , one of the largest independent, non-original equipment manufacturer in the world and delivers fuselage, propulsion and wing systems to Airbus, Boeing and other commercial and business aircraft companies.
The long-term earnings growth rate of Spirit is pegged at 8.5%. Shares of SPR have returned 13.3% in the past month.
Curtiss-Wright(CW - Free Report) has been supporting original equipment manufacturers like Boeing and Airbus, providing an expansive array of products and services for commercial airliners, business and regional jets and helicopters. In June 2022, Curtiss secured an order from Airbus to provide custom actuation technology.
The Zacks Consensus Estimate for CW’s sales suggest a growth rate of 2.4% from the prior-year period. Shares of Curtiss have risen 10.3% in the past year.
Price Performance
Shares of Triumph Group have rallied 10% in the past month compared with the industry’s rise of 5.9%.
Image: Bigstock
Triumph Group (TGI) Arm Wins Deal to Support Boeing's Fleet
Triumph Group, Inc.’s (TGI - Free Report) business unit, Actuation Products and Services, recently clinched a contract from Boeing (BA - Free Report) for supplying its wire control cables to the latter.
Per the deal, Triumph will manufacture variations of wire control cables for a series of Boeing’s jets, namely the 737 MAX, 767, 777 and 777X programs, along with providing life cycle support for these components. The work involved in the contract will be carried out at TGI's Shelbyville facility in Indiana.
Factors Favoring Triumph’s Growth
Triumph has been the key supplier of wire control cables to Boeing since 2003. The consistency in the order flow is mainly buoyed by its capability to manufacture mechanical and electro-mechanical control cables for commercial, military and industrial platform applications.
Going forward, Triumph may continue to witness strength in the order flow from Boeing as the latter enjoys the solid demand for its commercial aircraft, which can be gauged from its recent-quarter delivery numbers. These numbers indicate a year-over-year improvement of 53.2% in the second quarter of 2022, particularly driven by the shipments of 737 Max, which registered growth of a whopping 106%.
Growth Prospects
With gradual ease in travel restrictions, air passenger traffic is growing lately, a trend expected to continue in the coming days as well. This should boost the demand for commercial aircraft, particularly for Boeing, with the company being the United States’ largest plane maker. This, in turn, will provide a solid boost for Triumph’s growth prospects. Per the report from Mordor Intelligence, the global commercial aircraft market is anticipated to witness a CAGR of 5% during the 2022-2027 period.
Such abounding growth prospects bode well for TGI as it is the leading supplier of aircraft parts to prominent jet makers and boasts a solid portfolio of aerospace and defense systems and components. A few companies that can reap the benefits of the expanding commercial aircraft market are as follows:
Spirit AeroSystems(SPR - Free Report) , one of the largest independent, non-original equipment manufacturer in the world and delivers fuselage, propulsion and wing systems to Airbus, Boeing and other commercial and business aircraft companies.
The long-term earnings growth rate of Spirit is pegged at 8.5%. Shares of SPR have returned 13.3% in the past month.
Curtiss-Wright(CW - Free Report) has been supporting original equipment manufacturers like Boeing and Airbus, providing an expansive array of products and services for commercial airliners, business and regional jets and helicopters. In June 2022, Curtiss secured an order from Airbus to provide custom actuation technology.
The Zacks Consensus Estimate for CW’s sales suggest a growth rate of 2.4% from the prior-year period. Shares of Curtiss have risen 10.3% in the past year.
Price Performance
Shares of Triumph Group have rallied 10% in the past month compared with the industry’s rise of 5.9%.
Image Source: Zacks Investment Research
Zacks Rank
Triumph Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.