Triumph (TGI) Clinches $52-Million Deal with Rolls Royce

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Triumph Group Inc.TGI announced that it has entered into an eight-year agreement with Rolls Royce to supply thrust links for the Rolls Royce Trent XWB engine program. The value of the contract is $52 million.

Triumphs Business Units Combine

Triumph Group's business units, Triumph Precision Components and Triumph Integrated Systems, will work together to complete the contract. Per the arrangement, Triumph Precision Components will deliver the first components in 2019, following a two-year development period, in which Triumph Integrated Systems will perform structural tests for the thrust link components.

Triumph Precision Components produces a wide range of aluminum, hard metal and composite structure capabilities. Triumph Integrated Systems provides integrated solutions, including design, development and support of proprietary components, subsystems and systems, as well as production of complex assemblies using external designs.

These two units jointly contribute nearly 58% of the total revenues of this company.

Importance of Triumph's Thrust Links

Thrust links are critical structural components used to transfer thrust loads from the engine casing to the aircraft structure. Strength, weight, and reliability are critical features of thrust links and Triumph's unit, Triumph Precision Components, has been manufacturing thrust links of various designs for the past two decades.

Wide Range of Offerings

Triumph's wide range of product offerings assures contracts at regular intervals. On Dec 21, 2016, Raytheon Company RTN awarded a contract to Triumph Group to provide 31 Servo Control Systems in support of the U.S. Navy's Next Generation Jammer Increment 1 program Engineering and Manufacturing Development phase.

Outlook of the Defense Space

Majority of the U.S. defense stocks rallied in Nov 2016 post Donald Trump's victory. This was primarily driven by Trump's hawkish comments about military spending. If the new administration sticks to its campaign promise of ramping up military spending, defense companies like the Lockheed Martin Corporation LMT and The Boeing Company BA will gain, among others, in the space.

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Boeing Company (The) (BA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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