Triumph Group (TGI) to Support Mammoth in P2F Conversion
Triumph Group, Inc.’s TGI business unit, Triumph Interiors, recently secured a contract from Mammoth Freighters to supply composite air distribution ducts for Boeing 777 Passenger to Freighter (P2F) conversions.
In light of the current rise in P2F conversions in the aviation market, Mammoth Freighters is securing its position in 777 conversions and has contracts through 2026 and beyond. In this context, Triumph Interiors will offer manufacturing and engineering services to the redesigned air distribution ducting system in the cargo compartment of the converted aircraft.
With the current deal, Triumph Interiors will complement Mammoth's unique business model by offering an expanding portfolio of industry-leading P2F solutions, including integrated hydraulic power packs for the cargo door system.
Prospects for Triumph Group
The outbreak of COVID-19 has resulted in travel restrictions and the grounding of aircraft worldwide, which created an opportunity for converting passenger aircraft to freighters. The massive growth in e-commerce and the movement of COVID vaccines to different regions worldwide are creating the need for more freighters.
The higher demand for freighters is going to boost the growth prospects of companies like TGI that have an established position in manufacturing complex electro-hydraulic and mechanical systems and equipment for the aerospace and defense industry.
Per the report from Mordor Intelligence, the global freighter aircraft market is anticipated to witness a CAGR of more than 4.5% during the 2022-2027 period. Such abounding growth prospects bode well for Triumph Group as it is the leading supplier of aircraft parts and services to prominent defense companies.
Zacks Rank & Price Performance
Triumph Group presently has a Zacks Rank #3 (Hold). In the past six months, shares of TGI have declined 30.2% compared with the industry’s decline of 2.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
Some similar-ranked stocks from the same industry include CAE Inc. CAE, Heico Corporation HEI and Spirit Aerosystems Holdings Inc. SPR.
The long-term earnings growth of CAE, Heico and Spirit Aerosystems is projected at 16.9%, 12.6% and 8.5%, respectively.
The Zacks Consensus Estimate for 2022 earnings per share of CAE, Heico and Spirit Aerosystems has moved up 29.9%, 18.6% and 96.5%, respectively, year over year.
CAE, HEI and SPR delivered an average earnings surprise of 7.7%, 6.7% and 19.5%, respectively, in the last four quarters.
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Triumph Group, Inc. (TGI) : Free Stock Analysis Report
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