10 Worst Aerospace Stocks To Buy According to Short Sellers

3. Triumph Group, Inc. (NYSE:TGI)

Short % of Float: 11.50%

Number of Hedge Fund Holders: 25

Triumph Group (NYSE:TGI) serves the global aviation industry. It designs, manufactures, engineers, repairs, and overhauls a portfolio of aerospace and defense components, systems, subsystems, and structures. It also serves original equipment manufacturers (OEMs) and military and commercial aircraft operators through the aircraft life cycle. Triumph Group operates through two segments: Triumph Systems & Support and Triumph Interiors.

Triumph Systems & Support designs, develops, and supports proprietary components, systems, and subsystems. It also provides full life cycle solutions for regional, commercial, and military aircraft, while also producing complex assemblies using external designs. Triumph Interiors, in contrast, supplies business, commercial, regional, and military manufacturers with insulation parts and interior and composite components to Triumph and customer designs. It also encompasses environmental control system ducting, the manufacture of thermo-acoustic insulation, and other aircraft interior components for aerospace OEMs.

Triumph Group (NYSE:TGI) started 2024 on a positive note, and expects continued improvement throughout 2025 into seasonally stronger quarters. Its revenue grew by 7% to $281 million, translating to an additional $17 million. It retired an additional $120 million of debt, strengthening its balance sheet. The company recently received rating upgrades from both S&P and Moody’s.

The company is benefiting from a rising average fleet age, with its aftermarket sales growing 27% year over year. The need to fly older aircraft due to the shortage of new aircraft and the emergent 787 landing gear overhaul cycle are also important factors. In addition, the continual rise in repairs and spares on key platforms is benefitting the company’s sales mix and financials. These include the Boeing 737 and Airbus A320 fleet and the Boeing 787 and Airbus A380 wide-body fleets.

Overall, Triumph (NYSE:TGI) is on track to achieve its annual net sales, cash flow guidance, and adjusted EBITDA. It is well-positioned to capitalize on the strong aftermarket demand in the short term and the higher OEM build rates over the coming 18 months.