Triumph Group Inc. (NYSE:TGI) is a rollup that offers products and services to the aerospace industry. It consists of 47 operating companies in 73 locations. Their activities include designing, engineering, manufacturing, repairing, and overhauling of aerospace components, subassemblies, and systems. Industry coverage is very broad and consists of both commercial and regional airlines, air cargo carriers, and OEMs of commercial, regional, business, and military aircraft and components. Despite the breadth, exactly half of Triumph's business comes from just two customers: Boeing (NYSE:BA) and Gulfstream Aerospace Systems accounted for 38% and 12% of net sales, respectively, in fiscal 2016.
The company was founded in July 1993 by a group of 19 employees who bid for the aircraft businesses of a conglomerate named Alco Standard. The following fiscal year (ended March 1995), the business reported net sales of ~$71M. Under Founder and CEO Richard C. III's tutelage, Triumph expanded through acquisitions, and by the end of fiscal 2012 (March 2012), total revenue was at $3.4B. The stock also performed admirably: from IPO in 1996 at $9.5 per share (split adjusted) through March 2012, the stock returned over 6 times and was trading at ~$63 per share. In July 2012, Richard C. III retired as CEO (still was Chairman) and was replaced by Jeffry D. Frisby. Frisby came to Triumph from their acquisition of Frisby Aerospace in 1998. The stock price peaked the following March at ~$80 per share. Frisby's tenure ended abruptly in April 2015 as he was replaced by Richard C. III as interim CEO. As seen below, operational issues that resulted in a drop in the company's profitability were partly to blame:
