1. Triumph Group, Inc. (NYSE:TGI)
Market Cap: $1.45 billion
Number of Hedge Fund Holders: 24
Triumph Group, Inc. (NYSE:TGI) is an American aerospace and defense company that designs, engineers, manufactures, repairs, and overhauls complex aerospace structures and systems for both the commercial and military markets.
Triumph Group, Inc. (NYSE:TGI) has been providing original equipment and Hydraulic Utility Actuation Valves (HUAV) for the F-35 fifth-generation fighter jets since 2014, and in August this year, it extended its sustainment agreement with Lockheed Martin to provide repair and technical support to ensure fleet readiness of one of the world’s most advance fighters.
In its latest Q2 2025 earnings call on November 12, Triumph Group, Inc. (NYSE:TGI) announced a military aftermarket revenue of $44 million, which remained flat compared to last year. CH-47 aftermarket sales grew 63% during the quarter but were offset by lower V-22 aftermarket sales. Military OEM revenue was posted at $64 million, growing $3 million compared to the prior year, with a significant volume increase in CH-47 and F/A-18 OEM sales.
Overall, consolidated revenue for the quarter stood at $287 million, with aftermarket revenue growing 13% year-over-year and contributing 60% of the company’s profit. Commercial aftermarket registered a 34% growth, driven by rising average fleet age. Adjusted operating income was posted at $36 million, up 44% from last year, while adjusted EBITDA increased 26% to a total of $43 million. Triumph Group, Inc. (NYSE:TGI)’s interior business also returned to profitability after deep cost cuts and a favorable commercial resolution with Boeing.
It ended the quarter with a backlog of $1.9 billion. This is 7% higher compared to last year and has been fueled by commercial and military platform growth. Triumph Group, Inc. (NYSE:TGI) is well-positioned to capitalize on the growing demand for advanced solutions as international travel increases and demand for military equipment remains robust amid ongoing regional conflicts.
Triumph Group, Inc. (NYSE:TGI) is one of the best defense stocks to buy now, with 24 hedge funds having a stake in the company, according to Insider Monkey’s database for Q3 2024.
Overall, TGI ranks first among the 8 Best Small Cap Defense Stocks to Buy Now. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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