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Crow s Nest Holdings LP reduced its stake in shares of Transdigm Group Incorporated (NYSE: TDG) by 44.2% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 13,200 shares of the aerospace company's stock after selling 10,467 shares during the quarter.

HB Wealth Management LLC decreased its holdings in shares of Transdigm Group Incorporated (NYSE:TDG – Free Report) by 9.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 4,956 shares of the aerospace company’s stock after selling 543 shares during the quarter. HB Wealth Management LLC’s holdings in Transdigm Group were worth $6,602,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Elyxium Wealth LLC bought a new stake in shares of Transdigm Group during the 4th quarter worth $25,000. Burkett Financial Services LLC bought a new position in Transdigm Group in the 2nd quarter worth $25,000. MCF Advisors LLC lifted its position in Transdigm Group by 900.0% during the 4th quarter. MCF Advisors LLC now owns 20 shares of the aerospace company’s stock worth $27,000 after acquiring an additional 18 shares during the last quarter. Transamerica Financial Advisors LLC lifted its position in Transdigm Group by 1,900.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 20 shares of the aerospace company’s stock worth $27,000 after acquiring an additional 19 shares during the last quarter. Finally, Colonial Trust Co SC boosted its holdings in Transdigm Group by 162.5% during the fourth quarter. Colonial Trust Co SC now owns 21 shares of the aerospace company’s stock valued at $29,000 after acquiring an additional 13 shares during the period. Institutional investors and hedge funds own 95.78% of the company’s stock.

Transdigm Group Trading Up 0.0% Shares of NYSE:TDG opened at $1,162.19 on Monday. The firm has a market capitalization of $65.00 billion, a PE ratio of 35.26, a PEG ratio of 1.93 and a beta of 0.91. Transdigm Group Incorporated has a 1-year low of $1,123.61 and a 1-year high of $1,463.03. The business’s 50 day moving average is $1,242.41 and its 200-day moving average is $1,237.26.

Transdigm Group (NYSE:TDG – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $10.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.30 by $0.57. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The company had revenue of $2.74 billion during the quarter, compared to analysts’ expectations of $2.68 billion. During the same quarter in the prior year, the company posted $9.60 EPS. The business’s revenue was up 22.5% on a year-over-year basis. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. On average, sell-side analysts predict that Transdigm Group Incorporated will post 38.81 EPS for the current year. Wall Street Analyst Weigh In TDG has been the topic of a number of research analyst reports. Stifel Nicolaus reaffirmed a “hold” rating and issued a $1,405.00 target price (down from $1,525.00) on shares of Transdigm Group in a report on Wednesday, August 5th. UBS Group upped their price target on Transdigm Group from $1,585.00 to $1,695.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Morgan Stanley cut Transdigm Group from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $1,680.00 to $1,345.00 in a research report on Wednesday, July 15th. Weiss Ratings restated a “hold (c)” rating on shares of Transdigm Group in a research note on Friday, August 28th. Finally, BNP Paribas Exane dropped their target price on shares of Transdigm Group from $1,800.00 to $1,750.00 and set an “outperform” rating on the stock in a research report on Thursday, May 14th. Six analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $1,463.71.

Read Our Latest Stock Report on TDG

Insiders Place Their Bets In other Transdigm Group news, Director W. Howley sold 10,132 shares of Transdigm Group stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total transaction of $12,525,988.96. Following the completion of the transaction, the director directly owned 21,548 shares of the company’s stock, valued at approximately $26,639,361.44. This trade represents a 31.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Joel Reiss sold 3,900 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $1,238.76, for a total transaction of $4,831,164.00. Following the completion of the sale, the chief operating officer owned 3,600 shares in the company, valued at $4,459,536. This represents a 52.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 38,196 shares of company stock worth $48,027,598 over the last quarter. Company insiders own 3.20% of the company’s stock.

Transdigm Group Company Profile (Free Report)

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company’s product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset’s life cycle.

TransDigm’s operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.

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It has been about a month since the last earnings report for TransDigm Group (TDG - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is TransDigm due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Transdigm Group Incorporated before we dive into how investors and analysts have reacted as of late.

TransDigm's Q3 Earnings Surpass Estimates, Sales Increase Y/Y

TransDigm Group Incorporated reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.

The company reported GAAP earnings of $9.39 per share compared with $8.47 in the year-ago quarter.

TransDigm’s Q3 Sales DiscussionSales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%. Organic sales growth was 13%, supported by double-digit gains across all three major aerospace market channels.

TransDigm's Profitability Faces Margin PressureGross profit increased 22.2% year over year to $1.63 billion. The gross margin was 59.4%, slightly below 59.5% in the prior-year quarter.

Selling and administrative expenses rose to $332 million from $242 million. These expenses represented 12.1% of sales compared with 10.8% a year earlier. Net interest expense increased 29.5% to $514 million, reflecting interest on debt raised by the company.

EBITDA As Defined rose 18.9% to $1.45 billion. However, the related margin contracted to 52.8% from 54.4%, partly reflecting acquisition dilution. Management noted that the base businesses expanded margins year over year after excluding that dilution. GAAP net income increased 9.5% to $540 million, while reported earnings rose to $9.39 per share from $8.47.

TDG's Acquisition and Capital Moves Stay ActiveTransDigm completed the acquisitions of Jet Parts Engineering and Victor Sierra in April 2026 for approximately $2.2 billion in cash. The businesses expand the company’s exposure to proprietary aerospace aftermarket parts and repair solutions.

After the quarter ended, TDG agreed to acquire Prince & Izant for approximately $1.07 billion in cash, including certain tax benefits. The company expects the business to strengthen its position in aerospace and defense, aeroderivative turbine and transportation markets.

TDG also repurchased 809,101 shares during the quarter at an average price of $1,208 per share, returning $1 billion to shareholders. Fiscal year-to-date repurchases totaled $1.8 billion for nearly 1.5 million shares.

TransDigm’s Financial PositionCash and cash equivalents as of June 27, 2026, amounted to $2.77 billion, down from $2.81 billion recorded as of Sept. 30, 2025.

Total debt was $33.71 billion, while net debt was $30.93 billion. The company reported a total net leverage ratio of 5.8 times. About 75% of gross debt was hedged or fixed through fiscal 2029 using interest-rate caps, swaps and collars, limiting near-term exposure to variable-rate increases.

Net cash provided by operating activities for the first 39 weeks of fiscal 2026 increased to $1.69 billion from $1.53 billion.

TransDigm Raises Fiscal 2026 OutlookManagement raised fiscal 2026 guidance after bookings exceeded expectations and operating momentum remained strong. The updated outlook excludes contributions from the pending Prince & Izant acquisition.

Net sales are now projected to be between $10.47 billion and $10.55 billion, up $150 million at the midpoint from the prior forecast. EBITDA As Defined is expected to be in the range of $5.49 billion to $5.55 billion, representing a $100 million midpoint increase. The Zacks Consensus Estimate is pegged at $10.36 billion, which is lower than the company’s newly guided range.

Adjusted earnings are forecasted to be between $40.62 and $41.46 per share compared with the previous range of $38.83-$40.21. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $39.96 per share, lower than the company’s revised guidance.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 5.27% due to these changes.

VGM ScoresAt this time, TransDigm has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TransDigm has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Broad Run Investment Management LLC purchased a new position in Transdigm Group Incorporated (NYSE:TDG – Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm purchased 10,801 shares of the aerospace company’s stock, valued at approximately $14,387,000. Transdigm Group comprises 2.2% of Broad Run Investment Management LLC’s investment portfolio, making the stock its 15th largest position.

Several other institutional investors and hedge funds also recently made changes to their positions in TDG. Empowered Funds LLC boosted its stake in Transdigm Group by 5.0% during the first quarter. Empowered Funds LLC now owns 1,372 shares of the aerospace company’s stock worth $1,898,000 after buying an additional 65 shares in the last quarter. Acadian Asset Management LLC increased its holdings in Transdigm Group by 92.3% in the 1st quarter. Acadian Asset Management LLC now owns 273 shares of the aerospace company’s stock valued at $376,000 after buying an additional 131 shares during the period. NewEdge Advisors LLC raised its stake in shares of Transdigm Group by 152.9% in the 2nd quarter. NewEdge Advisors LLC now owns 2,064 shares of the aerospace company’s stock valued at $3,138,000 after buying an additional 1,248 shares in the last quarter. Sei Investments Co. boosted its position in shares of Transdigm Group by 25.4% during the 2nd quarter. Sei Investments Co. now owns 33,032 shares of the aerospace company’s stock valued at $50,227,000 after acquiring an additional 6,697 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its position in shares of Transdigm Group by 3.6% during the 2nd quarter. Treasurer of the State of North Carolina now owns 25,821 shares of the aerospace company’s stock valued at $39,264,000 after acquiring an additional 902 shares in the last quarter. Institutional investors own 95.78% of the company’s stock.

Transdigm Group Stock Performance NYSE TDG opened at $1,198.78 on Tuesday. The stock has a market capitalization of $67.05 billion, a P/E ratio of 36.37, a price-to-earnings-growth ratio of 2.00 and a beta of 0.91. Transdigm Group Incorporated has a 52 week low of $1,123.61 and a 52 week high of $1,463.03. The stock has a fifty day moving average of $1,268.22 and a 200-day moving average of $1,244.70.

Transdigm Group (NYSE:TDG – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $10.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.30 by $0.57. The business had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.68 billion. Transdigm Group had a negative return on equity of 23.65% and a net margin of 19.69%.The firm’s revenue for the quarter was up 22.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $9.60 earnings per share. Transdigm Group has set its FY 2026 guidance at 40.620-41.460 EPS. Equities research analysts forecast that Transdigm Group Incorporated will post 38.81 earnings per share for the current fiscal year. Insider Activity at Transdigm Group In other Transdigm Group news, Director W Nicholas Howley sold 10,132 shares of the firm’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $1,216.08, for a total value of $12,321,322.56. Following the transaction, the director directly owned 21,548 shares of the company’s stock, valued at approximately $26,204,091.84. This trade represents a 31.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Joel Reiss sold 3,900 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $1,238.76, for a total transaction of $4,831,164.00. Following the sale, the chief operating officer owned 3,600 shares of the company’s stock, valued at $4,459,536. The trade was a 52.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 38,196 shares of company stock worth $48,027,598 over the last 90 days. 3.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades A number of research analysts have commented on TDG shares. BNP Paribas Exane cut their price target on shares of Transdigm Group from $1,800.00 to $1,750.00 and set an “outperform” rating for the company in a research note on Thursday, May 14th. JPMorgan Chase & Co. increased their target price on Transdigm Group from $1,440.00 to $1,450.00 and gave the stock a “neutral” rating in a report on Monday, June 15th. BMO Capital Markets raised their target price on Transdigm Group from $1,450.00 to $1,525.00 and gave the stock an “outperform” rating in a research report on Thursday, July 2nd. Morgan Stanley cut Transdigm Group from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $1,680.00 to $1,345.00 in a research report on Wednesday, July 15th. Finally, Jefferies Financial Group lifted their price objective on Transdigm Group from $1,565.00 to $1,575.00 in a report on Monday, May 11th. Six equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $1,463.71.

View Our Latest Research Report on TDG

(Free Report)

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company’s product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset’s life cycle.

TransDigm’s operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.

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TransDigm Group (TDG - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for TransDigm basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For TransDigm, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for TransDigmFor the fiscal year ending September 2026, this aircraft components maker is expected to earn $40.96 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for TransDigm. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.6%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of TransDigm to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Even several years later, Boeing Co. NYSE: BA has yet to really recover from the COVID crisis. The company's stock has made gains as it tries to regain ground lost amid the collapse in global air travel and the grounding of its popular 737 MAX aircraft, with government support for airlines and a recovery in air traffic helping somewhat.

Boeing Today

$208.86 -5.34 (-2.49%)

As of 11:08 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$176.77▼

$254.3590.47

$272.58

It's only in 2026, though, that signs may be emerging that the major aerospace firm is ramping up production of its 737 MAX line.

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Rumors have been flying for months that Boeing would increase its 737 MAX production to 47 aircraft per month; now, though, there is additional speculation that the company could boost its manufacturing even further, encouraged by the U.S. Federal Aviation Administration's certification of the MAX-7 line.

For investors, this presents a two-fold prospect. On one hand, it may be necessary to reevaluate BA stock in light of this production jolt. Additionally, other companies in the aircraft manufacturing space, such as TransDigm Group Inc. NYSE: TDG and Woodward Inc. NASDAQ: WWD, may benefit from downstream demand in the supply chain.

A Much-Needed Shift in Boeing's NarrativeBoeing's operational momentum shift relies on an increase in commercial aircraft production, which could materially improve its financial outlook. The company may be approaching this goal sustainably by creating a disciplined production ramp that will enable reliable, repeatable increases—the fourth 737 production line in Everett, Washington, is key to this development. Doing this is especially important for the company after major quality concerns leading to the 737 MAX grounding in recent years.

Deliveries are one of the most important metrics for Boeing, as each additional aircraft delivered fuels more revenue generation while also improving operating leverage and adding to free cash flow. The more that fixed manufacturing costs can be spread across additional aircraft, the better for the company's margins.

Investors need look no further than Boeing's latest earnings report to find some confirmation that the firm has been successful in its production ramp-up. In Q2 2026, Boeing delivered its highest quarterly volume of aircraft since 2018. It is also backed by a record $597 billion in backlog, or more than 6,200 airplanes. Still, risks remain. From maintaining quality standards to surmounting financial and operational obstacles, there are compelling reasons why many analysts remain skeptical.

The Industry-Wide Ripple Effect Could Be PronouncedA host of other companies in the aircraft manufacturing industry may benefit as well, particularly if they provide complex, specialized components that make their way into different aircraft across builders.

Transdigm Group Today

TDG

Transdigm Group

$1,193.13 -7.22 (-0.60%)

As of 11:08 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$1,123.61▼

$1,463.0336.19

$1,463.71

TransDigm is one contender thanks to its portfolio of pumps, valves, actuators, ignition systems, and similar components. Each additional Boeing aircraft produced and delivered represents an incremental opportunity for TransDigm.

With a standout fiscal Q3 2026—including nearly 23% year over year (YOY) revenue growth and a healthy raise to full-year guidance—the company is already positioned for a share price turnaround following its 13% year to date (YTD) decline.

TransDigm benefits doubly from more Boeing aircraft: not only may parts be included in new construction, but the company's aftermarket parts business notches wins when more aircraft require maintenance and replacement parts.

Woodward Could Also See a Demand BoomWoodward Today

$335.26 -8.00 (-2.33%)

As of 11:08 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$233.31▼

$450.920.38%

37.29

$419.00

Woodward occupies a similar position to TransDigm in some respects. The company provides fuel systems, combustion technologies, engine controls, and other components. The more aircraft Boeing is producing, the greater the demand for those types of niche products.

Besides the potential of a Boeing tailwind, Woodward's appeal also lies in its defense applications (the company caters to both the commercial air and defense industries).

Given that Woodward's commercial segment is one of its fastest-growing, with a 34% YOY increase in commercial original equipment manufacturing and a 24% improvement in commercial services for the latest quarter, defense may be a nice add-on, while the Boeing ramp-up could provide a core boost to the company's business.

It All Comes Down to ExecutionOf course, these benefits may not materialize—for Boeing or others in the industry—if Boeing is not able to successfully execute on its production plans. The draws are many, including much-needed revenue growth, improving margins, and stronger free cash flow, but investors could be forgiven for having middling expectations after the series of disappointments from Boeing in recent years. On the other hand, a win for Boeing's production capacity could enable BA shares to achieve the 28% upside that analysts have predicted.

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"Hidden gem" describes a high-performing stock that isn't generating much fanfare. In the hidden gem family, some names are undiscovered Hope Diamonds. That's the 45.5-carat gem with an estimated value of up to $350 million.

Admittedly, describing that level of jewelry prestige for any stock takes some liberties, but it is befitting of some names in the unheralded camp. TransDigm (TDG -0.14%) is a prime example.

First, let's address the recent goings-on at this aerospace and defense parts supplier. The company reported fiscal third-quarter results last week, telling investors sales jumped 23% to $2.74 billion while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 19% to $1.5 billion.

TransDigm stock has been a millionaire maker, and more long-term upside is possible. Image source: Getty Images.

The industrial stock pulled back following the report, extending its 2026 loss to nearly 8%. As of Aug. 7, TransDigm trades 16.3% below its 52-week high, but the stock's history indicates its recent weakness may also be a buying opportunity. Speaking of history...

TransDigm's history matters Acknowledging that financial markets are forward-looking enterprises, a quick TransDigm history lesson is worth the time because it reveals how this nondescript aerospace stock is the definition of a compounder and a millionaire maker.

The company was formed in 1993 with starting equity of $25 million. After that, no additional equity was raised, but here we are discussing a stock with a market capitalization of $69 billion. TransDigm went public in 2006 at $21 share, and it closed at $1,225.25 last Friday. So even if we're generous and dismiss the stock's lethargy in 2026, it delivered an annualized return of 23.1% through the end of 2025.

Investors who missed TransDigm's first decade as a public company weren't cheated if they got involved with the stock 10 years ago. Since then, the shares have risen nearly sixfold, beating the Nasdaq-100 index in the process while thumping the largest industrial exchange-traded fund (ETF).

TDG Total Return Level data by YCharts

It's safe to say TransDigm is a serial compounder, and part of the reason it attained that status is because it's a serial acquirer. Over the years, it has acquired dozens of purveyors of "mission-critical" aerospace and defense components. It's almost guaranteed that the next time you travel by air, the plane you're on will have at least a few parts manufactured by a TransDigm company. Put differently, TransDigm puts the "wide" in "wide moat."

Berkshire Hathaway comparisons TransDigm is often compared to a private equity firm because its approximately 100 divisions largely operate autonomously. That's comparable to the conglomerate-like structure of Berkshire Hathaway, where Warren Buffett was famous for letting the top executives of units such as Dairy Queen and BNSF Railway do their thing without day-to-day meddling from the boss.

Buffett was also famous for embracing wide-moat businesses, and TransDigm certainly checks that box. Buffett's affinity for wide-moat enterprises stems from their pricing power. He once said, "The single most important decision in evaluating a business is pricing power."

That wisdom is instructive in evaluating TransDigm's potential to continue compounding. Not only does TransDigm have pricing power, but some market observers also view the company as having a quasi-monopoly because many of its operating divisions face little or no competition. Put simply, TransDigm provides clients with essential products that can't be easily attained elsewhere, and that's an attribute long-term investors need to consider.

Airplane Maintenance Companies That Keep Flights Moving Are Ready to SoarTransDigm Group NYSE: TDG raised its fiscal 2026 sales, EBITDA and commercial aftermarket outlook after reporting third-quarter results that management said exceeded expectations, supported by growth across commercial OEM, commercial aftermarket and defense markets.

President and Chief Executive Officer Mike Lisman said the company generated healthy sequential and year-over-year revenue growth in all three primary market channels. He said TransDigm’s commercial transport aftermarket business grew 18% from the prior-year period, while commercial OEM sales rose into the double digits as Boeing and Airbus production rates continued to increase.

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RKLB, ASTS, TDG: Insiders are Selling These 3 Space Stocks“As a result, we are raising guidance for the year,” Lisman said. The company increased the midpoint of its fiscal 2026 revenue outlook by $150 million and raised the midpoint of EBITDA As Defined guidance by $100 million.

Third-Quarter Market Performance Co-Chief Operating Officer Patrick Murphy said total commercial OEM revenue increased approximately 17% year over year on a pro forma basis, with commercial transport OEM revenue rising 25%. The commercial transport figure excludes the business-jet submarket.

TransDigm’s Edge: From Spare Parts to Sky-High ProfitsMurphy attributed the commercial OEM growth primarily to production improvements at Boeing and Airbus. He also said commercial OEM bookings significantly outpaced sales during the quarter, and the company’s book-to-bill ratio remained “solidly positive.”

Total commercial aftermarket revenue increased approximately 17% from the prior-year period, excluding recently acquired Jet Parts Engineering and Victor Sierra Aviation Holdings. Commercial transport aftermarket revenue increased 18%, driven by growth in engine, passenger and interior-related markets, while freight revenue was roughly flat in the quarter.

Management said commercial aftermarket bookings exceeded expectations for a third consecutive quarter, while point-of-sale activity at distributors increased by a double-digit percentage. Although the conflict in the Middle East has affected revenue passenger miles and caused some airlines to adjust capacity, Lisman said TransDigm had not experienced a material impact on its aftermarket business.

Defense revenue rose approximately 11% year over year, with both OEM and aftermarket revenue increasing. Murphy said defense aftermarket growth ran slightly ahead of OEM growth, while bookings increased both sequentially and year over year and exceeded sales for the period.

Margins, Cash Flow and Capital Structure TransDigm reported an EBITDA As Defined margin of 52.8% in the third quarter. Lisman said the margin improved sequentially from the second quarter as higher volumes and operating performance supported results across market channels.

The quarterly margin included more than two percentage points of dilution from recent acquisitions, including an approximately half-percentage-point sequential headwind related to Jet Parts Engineering and Victor Sierra Aviation Holdings. Management said it expects margins at acquired businesses to expand over time.

Chief Financial Officer Sarah Wynne said organic growth was approximately 13% in the third quarter. The company generated approximately $870 million of free cash flow in the quarter and $2.1 billion year to date. TransDigm now expects full-year free cash flow of approximately $2.6 billion, up from its prior $2.5 billion outlook.

The company ended the quarter with $2.8 billion of cash and a net debt-to-EBITDA ratio of 5.8 times. Wynne said TransDigm targets a net debt-to-EBITDA range of five to seven times. Approximately 75% of its $33.7 billion gross debt balance is fixed through fiscal 2029 through fixed-rate notes and interest-rate instruments, she said.

During the quarter, TransDigm repurchased approximately $980 million of common stock, or about 800,000 shares, at an average price of approximately $1,208 per share. Year-to-date repurchases totaled $1.8 billion.

Acquisition Activity Lisman addressed TransDigm’s withdrawal from its proposed acquisition of Stellant Systems after the Department of Justice indicated it intended to challenge the transaction. He said the company disagreed with the DOJ’s view but decided that litigation-related complications and timing constraints in the purchase agreement warranted ending the pursuit.

Lisman characterized the outcome as a one-off event and said it would not alter the company’s M&A strategy. He said TransDigm continues to see activity across commercial and defense aerospace markets and retains more than $10 billion of acquisition capacity.

The company recently agreed to acquire Prince & Izant from Industrial Growth Partners for approximately $1.1 billion in cash. Prince & Izant designs and manufactures brazing alloys and specialty metal components for aerospace and defense, aeroderivative turbine and transportation applications. The business is expected to generate approximately $360 million of revenue in calendar 2026.

TransDigm also said its integrations of Simmonds Precision Products, Jet Parts Engineering and Victor Sierra Aviation Holdings were progressing well. Management did not include Jet Parts Engineering and Victor Sierra Aviation in its pro forma market reporting for the quarter because those businesses are still being integrated into its reporting structure.

Raised Fiscal 2026 Outlook At the midpoint of its revised guidance, TransDigm expects fiscal 2026 revenue of $10.51 billion, representing approximately 19% growth from the prior year. The company now expects:

Commercial OEM revenue growth in the mid-teens percentage range. Commercial aftermarket revenue growth in the low-double-digit percentage range. Defense revenue growth in the high-single-digit to low-double-digit percentage range. The midpoint of EBITDA As Defined guidance was raised to $5.52 billion, up approximately 16% from the prior year, with an expected margin of about 52.5%. Adjusted earnings per share are now expected to be $41.04 at the midpoint of guidance.

Management said the outlook assumes Boeing and Airbus maintain their production rates through the remainder of TransDigm’s fiscal year. Murphy said the company’s supply chain has performed sufficiently to support customer demand, though TransDigm continues to monitor broader supply-chain conditions.

About Transdigm Group (NYSE:TDG)TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company's product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset's life cycle.

TransDigm's operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.

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Key Takeaways TransDigm beat Q3 earnings and revenue estimates as organic sales climbed 13% across aerospace markets.TDG completed two acquisitions, announced another deal, and repurchased $1 billion of shares in the quarter.TDG raised fiscal 2026 sales, EBITDA, and adjusted EPS guidance following stronger-than-expected bookings. TransDigm Group Incorporated (TDG - Free Report) reported third-quarter fiscal 2026 adjusted earnings of $10.87 per share, which topped the Zacks Consensus Estimate of $10.29 by 5.6%. The bottom line also improved 13% from the prior-year quarter’s figure of $9.60.

The company reported GAAP earnings of $9.39 per share compared with $8.47 in the year-ago quarter.

TransDigm’s Q3 Sales DiscussionSales rose 23% to $2.74 billion and beat the consensus estimate of $2.65 billion by 2.6%. Organic sales growth was 13%, supported by double-digit gains across all three major aerospace market channels.

TransDigm's Profitability Faces Margin PressureGross profit increased 22.2% year over year to $1.63 billion. The gross margin was 59.4%, slightly below 59.5% in the prior-year quarter.

Selling and administrative expenses rose to $332 million from $242 million. These expenses represented 12.1% of sales compared with 10.8% a year earlier. Net interest expense increased 29.5% to $514 million, reflecting interest on debt raised by the company.

EBITDA As Defined rose 18.9% to $1.45 billion. However, the related margin contracted to 52.8% from 54.4%, partly reflecting acquisition dilution. Management noted that the base businesses expanded margins year over year after excluding that dilution. GAAP net income increased 9.5% to $540 million, while reported earnings rose to $9.39 per share from $8.47.

TDG's Acquisition and Capital Moves Stay ActiveTransDigm completed the acquisitions of Jet Parts Engineering and Victor Sierra in April 2026 for approximately $2.2 billion in cash. The businesses expand the company’s exposure to proprietary aerospace aftermarket parts and repair solutions.

After the quarter ended, TDG agreed to acquire Prince & Izant for approximately $1.07 billion in cash, including certain tax benefits. The company expects the business to strengthen its position in aerospace and defense, aeroderivative turbine and transportation markets.

TDG also repurchased 809,101 shares during the quarter at an average price of $1,208 per share, returning $1 billion to shareholders. Fiscal year-to-date repurchases totaled $1.8 billion for nearly 1.5 million shares.

TransDigm’s Financial PositionCash and cash equivalents as of June 27, 2026, amounted to $2.77 billion, down from $2.81 billion recorded as of Sept. 30, 2025.

Total debt was $33.71 billion, while net debt was $30.93 billion. The company reported a total net leverage ratio of 5.8 times. About 75% of gross debt was hedged or fixed through fiscal 2029 using interest-rate caps, swaps and collars, limiting near-term exposure to variable-rate increases.

Net cash provided by operating activities for the first 39 weeks of fiscal 2026 increased to $1.69 billion from $1.53 billion.

TransDigm Raises Fiscal 2026 OutlookManagement raised fiscal 2026 guidance after bookings exceeded expectations and operating momentum remained strong. The updated outlook excludes contributions from the pending Prince & Izant acquisition.

Net sales are now projected to be between $10.47 billion and $10.55 billion, up $150 million at the midpoint from the prior forecast. EBITDA As Defined is expected to be in the range of $5.49 billion to $5.55 billion, representing a $100 million midpoint increase. The Zacks Consensus Estimate is pegged at $10.36 billion, which is lower than the company’s newly guided range.

Adjusted earnings are forecasted to be between $40.62 and $41.46 per share compared with the previous range of $38.83-$40.21. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $39.96 per share, lower than the company’s revised guidance.

TDG’s Zacks RankTransDigm currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2026 adjusted earnings of $6.28 per share, which surpassed the Zacks Consensus Estimate of $5.78 by 8.7%. The bottom line also improved 20.8% from $5.20 recorded in the year-ago quarter.

TDY’s total sales were $1.66 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 5.9%. The top line also jumped 9.8% from $1.51 billion reported in the year-ago quarter.

Hexcel Corporation (HXL - Free Report) reported second-quarter 2026 adjusted earnings of 66 cents per share, which improved 32% from the year-ago quarter’s figure of 50 cents. The bottom line also surpassed the Zacks Consensus Estimate of 56 cents by 17.9%.

The company’s net sales were $529.3 million, which beat the Zacks Consensus Estimate of $522 million by 1.5%. The top line also witnessed an improvement of 8% from the year-ago quarter’s figure of $489.9 million.

Textron Inc. (TXT - Free Report) reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter.

The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.

, /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the third quarter ended June 27, 2026.

Third quarter highlights include:

Net sales of $2,741 million, up 23% from $2,237 million in the prior year's quarter; Net income of $540 million, up 10% from the prior year's quarter; Earnings per share of $9.39, up 11% from the prior year's quarter; EBITDA As Defined of $1,447 million, up 19% from $1,217 million in the prior year's quarter; EBITDA As Defined margin of 52.8%; Adjusted earnings per share of $10.87, up 13% from $9.60 in the prior year's quarter; and Upward revision to fiscal 2026 financial guidance. Quarter-to-Date Results

Net sales for the quarter increased 23%, or $504 million, to $2,741 million from $2,237 million in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 13%.

Net income for the quarter increased $47 million, or 10%, to $540 million from $493 million in the comparable quarter a year ago. The increase in net income primarily reflects the increase in net sales described above and the application of our value-driven operating strategy. The increase was partially offset by higher selling and administration expense and higher interest expense.

Adjusted net income for the quarter increased 12% to $624 million, or $10.87 per share, from $558 million, or $9.60 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 20% to $1,345 million from $1,123 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 19% to $1,447 million compared with $1,217 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 52.8% compared with 54.4% in the comparable quarter a year ago.

"Our team executed another strong quarter, and we are very pleased with our results," stated Mike Lisman, TransDigm Group's CEO. "All three of our major market channels again delivered double-digit growth compared to the prior year's third quarter. Commercial aftermarket growth of 17% remained strong this quarter. Commercial OEM grew nicely as well as the aircraft OEMs continue to increase build rates. Meanwhile, Defense saw another quarter of consistent growth and also built sizable backlog. Our reported EBITDA As Defined margin for the quarter was 52.8%. Adjusting for acquisition dilution, our base businesses continued to expand EBITDA margins on a year-over-year basis as the team executes on our value drivers.

After the quarter ended, we announced the acquisition of Prince & Izant for approximately $1.07 billion. Prince & Izant's highly engineered, proprietary products are sold primarily into the aerospace and defense,  aeroderivative turbine, and transportation end markets, and we believe the business will be an excellent fit within TransDigm.

Additionally, during the third quarter, we returned capital of approximately $1.0 billion to our shareholders through share repurchases bringing our year-to-date repurchases of our common stock to over $1.8 billion. As we look ahead to the remainder of fiscal 2026, we have significant liquidity and financial flexibility to address any likely range of capital requirements and remain highly focused on our capital allocation.

As always, we remain committed to our operating strategy and the TransDigm value drivers. We look forward to the opportunity to continue creating value for our shareholders as we finish our fiscal 2026."

Acquisition Activity

As previously announced on April 7, 2026, TransDigm completed the acquisition of Jet Parts Engineering  and Victor Sierra for approximately $2.2 billion in cash. Jet Parts Engineering is a leading independent designer and manufacturer of aerospace aftermarket solutions, primarily proprietary OEM-alternative parts and repairs. Victor Sierra is a leading designer, manufacturer, and distributor of proprietary PMA and other aftermarket parts serving the commercial aerospace end market — primarily the general aviation and business aviation sectors.

Subsequent to the quarter-end and as previously announced on July 27, 2026, TransDigm entered into a definitive agreement to acquire Prince & Izant ("P&I") from Industrial Growth Partners for approximately $1.07 billion in cash, including certain tax benefits. P&I is a global designer and manufacturer of highly engineered brazing alloys and specialty metal components used across a range of advanced performance and high cost-of-failure applications. P&I primarily supports the aerospace and defense, aeroderivative turbine, and transportation end markets. Additionally, but to a lesser degree, P&I serves the medical and general industrial end markets.

Financing Activity

During the quarter, on April 17, 2026, TransDigm completed an incremental debt offering of $1.5 billion of new debt consisting of an additional $0.5 billion of 6.125% Senior Subordinated Notes maturing July 31, 2034 and $1.0 billion of additional Tranche N term loans maturing February 13, 2033.

Share Repurchase Activity

During the third quarter of fiscal 2026, TransDigm repurchased 809,101 shares of its common stock at an average price per share of $1,208 for a total amount of $1.0 billion. For the thirty-nine week period ended June 27, 2026, TransDigm repurchased 1,496,383 shares of its common stock at an average price per share of $1,207 for a total amount of $1.8 billion.

Year-to-Date Results

Net sales for the thirty-nine week period ended June 27, 2026 increased 18%, or $1,175 million, to $7,569 million from $6,394 million in the comparable period a year ago. Organic sales growth as a percentage of net sales for fiscal 2026 was 10%.

Net income for the thirty-nine week period ended June 27, 2026 increased $56 million, or 4%, to $1,521 million from $1,465 million in the comparable period a year ago. The increase in net income primarily reflects the increase in net sales described above and the application of our value-driven operating strategy. The increase was offset by higher selling and administrative expenses and higher interest expense.

GAAP earnings per share were reduced for the thirty-nine week periods ended June 27, 2026 and June 28, 2025 by $1.02 per share and $0.83 per share, respectively, as a result of dividend equivalent payments made during each year. As a reminder, GAAP earnings per share are reduced when TransDigm makes dividend equivalent payments pursuant to its stock option plans. These dividend equivalent payments are made during TransDigm's first fiscal quarter each year and also upon payment of any special dividends.

Adjusted net income for the thirty-nine week period ended June 27, 2026 increased 9% to $1,677 million, or $28.94 per share, from $1,543 million, or $26.53 per share, in the comparable period a year ago.

EBITDA for the thirty-nine week period ended June 27, 2026 increased 15% to $3,781 million from $3,299 million for the comparable period a year ago. EBITDA As Defined for the period increased 16% to $3,981 million compared with $3,441 million in the comparable period a year ago. EBITDA As Defined as a percentage of net sales for the period was 52.6% compared with 53.8% in the comparable period a year ago.

Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income; a reconciliation of net cash provided by operating activities to EBITDA and EBITDA As Defined; and a reconciliation of earnings per share to adjusted earnings per share for the periods discussed in this press release.

Fiscal 2026 Outlook

Mr. Lisman stated, "Our strong third quarter performance is enabling us to increase our guidance for the full year. Bookings have exceeded expectations, and we see the current momentum continuing. At the mid-point, we are increasing guidance for sales by $150 million, EBITDA As Defined by $100 million, and adjusted EPS by $1.52.

Additionally, we are shifting our market channel guidance upward to reflect our latest market growth expectations." The guidance excludes any contribution from the pending acquisition of P&I.

TransDigm now expects fiscal 2026 financial guidance to be as follows:

Net sales are anticipated to be in the range of $10,470 million to $10,550 million compared with $8,831 million in fiscal 2025, an increase of 19% at the midpoint (an increase of $150 million at the midpoint from prior guidance); Net income is anticipated to be in the range of $2,102 million to $2,150 million compared with $2,074 million in fiscal 2025, an increase of 3% at the midpoint (an increase of $60 million at the midpoint from prior guidance); Earnings per share is expected to be in the range of $35.38 to $36.21 per share based upon weighted average shares outstanding of 57.7 million shares, compared with $32.08 per share in fiscal 2025, which is an increase of 12% at the midpoint (an increase of $1.20 per share at the midpoint from prior guidance); EBITDA As Defined is anticipated to be in the range of $5,490 million to $5,550 million compared with $4,760 million in fiscal 2025, an increase of 16% at the midpoint (an increase of $100 million at the midpoint from prior guidance and corresponding to an EBITDA As Defined margin guide of approximately 52.5% for fiscal 2026); Adjusted earnings per share is expected to be in the range of $40.62 to $41.46 per share compared with $37.33 per share in fiscal 2025, an increase of 10% at the midpoint compared to prior year (and an increase of $1.52 per share at the midpoint from prior guidance); and Fiscal 2026 outlook is based on the following market growth assumptions: Commercial OEM revenue growth in the mid-teens percentage range; Commercial aftermarket revenue growth in the low double-digit percentage range; and Defense revenue growth in the high single-digit to low double-digit percentage range. Please see the attached Table 6 for a reconciliation of EBITDA, EBITDA As Defined to net income and reported earnings per share to adjusted earnings per share guidance midpoint estimated for the fiscal year ending September 30, 2026. Additionally, please see attached Table 7 for comparison of the current fiscal year 2026 guidance versus the previously issued fiscal year 2026 guidance.

Earnings Conference Call

TransDigm Group will host a conference call for investors and security analysts on August 4, 2026, beginning at 11:00 a.m., Eastern Time. To join the call telephonically, please register for the call at https://register-conf.media-server.com/register/BI7977bf81590d469998b139f1d3e8ff9a. Once registered, participants will receive the dial-in information and a unique pin to access the call. The dial-in information and unique pin will be sent to the email used to register for the call. The unique pin is exclusive to the registrant and can only be used by one person at a time. A live audio webcast of the call can also be accessed online at https://www.transdigm.com. A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website and click on "Presentations."

The call will be archived on the website and available for replay at approximately 2:00 p.m., Eastern Time.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Non-GAAP Supplemental Information

EBITDA, EBITDA As Defined, EBITDA As Defined margin, adjusted net income and adjusted earnings per share are non-GAAP financial measures presented in this press release as supplemental disclosures to net income and reported results. TransDigm Group defines EBITDA as earnings before interest, taxes, depreciation and amortization and defines EBITDA As Defined as EBITDA plus certain non-operating items recorded as corporate expenses, including non-cash compensation charges incurred in connection with TransDigm Group's stock option or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. Acquisition transaction and integration-related expenses represent costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses. TransDigm Group defines adjusted net income as net income plus purchase accounting backlog amortization expense, effects from the sale on businesses, non-cash compensation charges incurred in connection with TransDigm Group's stock option or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. EBITDA As Defined margin represents EBITDA As Defined as a percentage of net sales. TransDigm Group defines adjusted diluted earnings per share as adjusted net income divided by the total outstanding shares for basic and diluted earnings per share. For more information regarding the computation of EBITDA, EBITDA As Defined, adjusted net income and adjusted earnings per share, please see the attached financial tables.

TransDigm Group presents these non-GAAP financial measures because it believes that they are useful indicators of its operating performance. TransDigm Group believes that EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes, capitalized asset values and employee compensation structures, all of which can vary substantially from company to company. In addition, analysts, rating agencies and others use EBITDA to evaluate a company's ability to incur and service debt. EBITDA As Defined is used to measure TransDigm Inc.'s compliance with the financial covenant contained in its credit facility. TransDigm Group's management also uses EBITDA As Defined to review and assess its operating performance, to prepare its annual budget and financial projections and to review and evaluate its management team in connection with employee incentive programs. Moreover, TransDigm Group's management uses EBITDA As Defined to evaluate acquisitions and as a liquidity measure. In addition, TransDigm Group's management uses adjusted net income as a measure of comparable operating performance between time periods and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance.

None of EBITDA, EBITDA As Defined, EBITDA As Defined margin, adjusted net income or adjusted earnings per share is a measurement of financial performance under U.S. GAAP and such financial measures should not be considered as an alternative to net income, operating income, earnings per share, cash flows from operating activities or other measures of performance determined in accordance with U.S. GAAP. In addition, TransDigm Group's calculation of these non-GAAP financial measures may not be comparable to the calculation of similarly titled measures reported by other companies.

Although we use EBITDA and EBITDA As Defined as measures to assess the performance of our business and for the other purposes set forth above, the use of these non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

neither EBITDA nor EBITDA As Defined reflects the significant interest expense, or the cash requirements, necessary to service interest payments on our indebtedness; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor EBITDA As Defined reflects any cash requirements for such replacements; the omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA and EBITDA As Defined; neither EBITDA nor EBITDA As Defined includes the payment of taxes, which is a necessary element of our operations; and EBITDA As Defined excludes the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions. Forward-Looking Statements

Statements in this press release that are not historical facts, including statements under the heading "Fiscal 2026 Outlook," are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify forward-looking statements.

All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States ("U.S.") defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs and potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

Contact:

Investor Relations

216-706-2945

[email protected]

TRANSDIGM GROUP INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED

Table 1

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

NET SALES

$        2,741

$        2,237

$        7,569

$        6,394

COST OF SALES

1,113

905

3,078

2,553

GROSS PROFIT

1,628

1,332

4,491

3,841

SELLING AND ADMINISTRATIVE EXPENSES

332

242

859

689

AMORTIZATION OF INTANGIBLE ASSETS

69

51

185

148

INCOME FROM OPERATIONS

1,227

1,039

3,447

3,004

INTEREST EXPENSE—NET

514

397

1,472

1,152

OTHER EXPENSE (INCOME)

—

7

(10)

(24)

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

713

635

1,985

1,876

INCOME TAX PROVISION

173

142

464

411

NET INCOME

540

493

1,521

1,465

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(1)

(1)

(2)

(1)

NET INCOME ATTRIBUTABLE TO TD GROUP

$          539

$          492

$        1,519

$        1,464

NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS

$          539

$          492

$        1,460

$        1,415

Earnings per share attributable to TD Group common stockholders:

Earnings per share—Basic and diluted

$         9.39

$         8.47

$        25.20

$        24.31

Weighted-average shares outstanding:

Basic and diluted

57.4

58.1

57.9

58.2

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF

EBITDA, EBITDA AS DEFINED TO NET INCOME

FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED

Table 2

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net Income

$        540

$        493

$      1,521

$      1,465

Adjustments:

Depreciation and amortization expense

118

91

324

271

Interest expense-net

514

397

1,472

1,152

Income tax provision

173

142

464

411

EBITDA

1,345

$      1,123

3,781

3,299

Adjustments:

Acquisition transaction and integration-related expenses (1)

35

9

66

32

Non-cash stock and deferred compensation expense (2)

65

51

118

124

Other, net (3)

2

34

16

(14)

Gross Adjustments to EBITDA

102

94

200

142

EBITDA As Defined

$      1,447

$      1,217

$      3,981

$      3,441

EBITDA As Defined Margin (4)

52.8 %

54.4 %

52.6 %

53.8 %

(1)

Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses.

(2)

Represents the compensation expense recognized under our stock option plans and deferred compensation plans.

(3)

Primarily represents foreign currency transaction gains or losses, costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business.

(4)

The EBITDA As Defined Margin represents the amount of EBITDA As Defined as a percentage of net sales.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF REPORTED

EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE

FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED

Table 3

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Reported Earnings Per Share

Net income

$           540

$           493

$         1,521

$         1,465

Less: Net income attributable to noncontrolling interests

(1)

(1)

(2)

(1)

Net income attributable to TD Group

539

492

1,519

1,464

Less: Dividends paid on participating securities

—

—

(59)

(49)

Net income applicable to TD Group common stockholders—basic and diluted

$           539

$           492

$         1,460

$         1,415

Weighted-average shares outstanding under the two-class method

Weighted-average common shares outstanding

55.7

56.2

56.1

56.2

Vested options deemed participating securities

1.7

1.9

1.8

2.0

Total shares for basic and diluted earnings per share

57.4

58.1

57.9

58.2

Earnings per share—basic and diluted

$          9.39

$          8.47

$         25.20

$         24.31

Adjusted Earnings Per Share

Net income

$           540

$           493

$         1,521

$         1,465

Gross Adjustments to EBITDA

102

94

200

142

Purchase Accounting Backlog Amortization

7

6

23

14

Tax adjustment (1)

(25)

(35)

(67)

(78)

Adjusted net income

$           624

$           558

$         1,677

$         1,543

Adjusted diluted earnings per share under the two-class method

$         10.87

$          9.60

$         28.94

$         26.53

Diluted Earnings Per Share to Adjusted Earnings Per Share

Diluted earnings per share from net income attributable to TD Group

$          9.39

$          8.47

$         25.20

$         24.31

Adjustments to diluted earnings per share:

Inclusion of the dividend equivalent payments

—

—

1.02

0.83

Acquisition transaction and integration-related expenses

0.54

0.20

1.16

0.60

Non-cash stock and deferred compensation expense

0.87

0.67

1.55

1.62

Tax adjustment on income from continuing operations before taxes (1)

0.04

(0.19)

(0.20)

(0.67)

Other, net

0.03

0.45

0.21

(0.16)

Adjusted earnings per share

$         10.87

$          9.60

$         28.94

$         26.53

(1)

For the thirteen and thirty-nine week periods ended June 27, 2026 and June 28, 2025, the Tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate, as well as the impact on the effective tax rate when excluding the excess tax benefits on stock option exercises. Stock compensation expense is excluded from adjusted net income and therefore we have excluded the impact that the excess tax benefits on stock option exercises have on the effective tax rate for determining adjusted net income.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF NET CASH

PROVIDED BY OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED

FOR THE THIRTY-NINE WEEK PERIODS ENDED

Table 4

JUNE 27, 2026 AND JUNE 28, 2025

(Amounts in millions)

(Unaudited)

Thirty-Nine Week Periods Ended

June 27, 2026

June 28, 2025

Net cash provided by operating activities

$        1,691

$        1,531

Adjustments:

Changes in assets and liabilities, net of effects from acquisitions and sales of businesses

305

337

Interest expense-net (1)

1,437

1,124

Income tax provision-current

466

414

Gain on sale of businesses, net

—

17

Non-cash stock and deferred compensation expense (2)

(118)

(124)

EBITDA

3,781

3,299

Adjustments:

Acquisition transaction and integration-related expenses (3)

66

32

Non-cash stock and deferred compensation expense (2)

118

124

Other, net (4)

16

(14)

EBITDA As Defined

$        3,981

$        3,441

(1)

Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and premium and discount on debt.

(2)

Represents the compensation expense recognized under our stock option plans and deferred compensation plans.

(3)

Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses.

(4)

Primarily represents foreign currency transaction gains or losses, costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - BALANCE SHEET DATA

Table 5

(Amounts in millions)

(Unaudited)

June 27, 2026

September 30, 2025

Cash and cash equivalents

$           2,773

$           2,808

Trade accounts receivable—Net

1,817

1,617

Inventories—Net

2,586

2,095

Current portion of long-term debt

139

124

Short-term borrowings—trade receivable securitization facility

725

724

Accounts payable

434

368

Accrued and other current liabilities

1,276

966

Long-term debt

32,621

29,167

Total TD Group stockholders' deficit

(9,809)

(9,686)

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF EBITDA,

EBITDA AS DEFINED TO NET INCOME AND REPORTED EARNINGS PER

SHARE TO ADJUSTED EARNINGS PER SHARE GUIDANCE MIDPOINT

FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2026

Table 6

(Amounts in millions, except per share amounts)

(Unaudited)

GUIDANCE MIDPOINT

Fiscal Year Ended September 30, 2026

Net Income

$                       2,126

Adjustments:

Depreciation and amortization expense

438

Interest expense-net

2,020

Income tax provision

653

EBITDA

5,237

Adjustments:

Acquisition transaction and integration-related expenses (1)

90

Non-cash stock and deferred compensation expense (1)

170

Other, net (1)

23

Gross Adjustments to EBITDA

283

EBITDA As Defined

$                       5,520

EBITDA As Defined Margin (1)

52.5 %

Earnings per share

$                       35.80

Adjustments to earnings per share:

Inclusion of the dividend equivalent payments

1.03

Acquisition transaction and integration-related expenses

1.65

Non-cash stock and deferred compensation expense

2.33

Other, net

0.23

Adjusted earnings per share

$                       41.04

Weighted-average shares outstanding

57.7

(1)

Refer to Table 2 above for definitions of Non-GAAP measurement adjustments.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION

CURRENT FISCAL YEAR 2026 GUIDANCE VERSUS

PRIOR FISCAL YEAR 2026 GUIDANCE

Table 7

(Amounts in millions, except per share amounts)

(Unaudited)

Current

Fiscal Year 2026
Guidance Issued
August 4, 2026

Prior

Fiscal Year 2026
Guidance Issued
May 5, 2026

Change at
Midpoint

Net Sales

$10,470 to $10,550

$10,300 to $10,420

$150

GAAP Net Income

$2,102 to $2,150

$2,026 to $2,106

$60

GAAP Earnings Per Share

$35.38 to $36.21

$33.91 to $35.29

$1.20

EBITDA As Defined

$5,490 to $5,550

$5,370 to $5,470

$100

Adjusted Earnings Per Share

$40.62 to $41.46

$38.83 to $40.21

$1.52

Weighted-Average Shares Outstanding

57.7

58.0

(0.3)

SOURCE TransDigm Group Inc.

Key Takeaways TransDigm's acquisitions are expected to expand its aerospace components and aftermarket portfolio.TDG may benefit from strong commercial aftermarket demand and steady defense sales backed by backlog.TDG is expected to post 19.5% EPS growth and 7.2% higher revenue year over year. TransDigm Group Incorporated (TDG - Free Report) is slated to report third-quarter fiscal 2026 results on Aug. 4, before market open. The company delivered an earnings surprise of 5.69% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors Likely to Affect TDG’s Q3 ResultsDuring the fiscal third quarter of 2026, TransDigm completed the acquisitions of Jet Parts Engineering and Victor Sierra. These acquisitions are expected to have contributed to fiscal third-quarter sales by expanding the company's portfolio of proprietary aerospace components and strengthening its aftermarket offerings. Management also noted continued progress in integrating earlier acquisitions, including Simmonds Precision and Servotronics, which is expected to have supported operational performance.

Healthy demand in the commercial aftermarket, supported by favorable booking trends and continued aircraft utilization, is likely to have supported revenue growth in the quarter. Ongoing recovery in commercial OEM production and sustained defense demand, backed by a healthy backlog, are also expected to have contributed positively to sales, despite uncertainty surrounding the evolving situation in the Middle East.

Overall, higher revenues and a favorable commercial aftermarket mix are likely to have supported margin improvement. Continued focus on operational efficiency, cost discipline and improving performance in recently acquired businesses is also expected to have strengthened profitability, supporting the company's quarterly earnings.

Estimates for TDGThe Zacks Consensus Estimate for earnings is pegged at $10.29 per share, indicating a year-over-year increase of 19.5%.

The consensus estimate for revenues is pinned at $2.67 billion, indicating a year-over-year improvement of 7.2%.

What the Zacks Model Unveils for TDGOur proven model does not conclusively predict an earnings beat for TransDigm this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

TDG’s Earnings ESP: TDG has an Earnings ESP of -0.36%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

TDG’s Zacks Rank: TDG currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to ConsiderBelow, we have mentioned a few players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases:

CurtissWright (CW - Free Report) is slated to report its second-quarter 2026 results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank of 3 at present.

CW’s long-term (three to five years) earnings growth rate is 14.3%. The Zacks Consensus Estimate for earnings is pegged at $3.62 per share, which suggests a year-over-year rise of 12.1%.

ATI INC (ATI - Free Report) is slated to report its second-quarter 2026 results on Aug. 6, before market open. It has an Earnings ESP of +1.32% and a Zacks Rank of 2 at present.

ATI’s long-term earnings growth rate is 28%. The Zacks Consensus Estimate for earnings is pegged at $1.03 per share, which suggests a year-over-year rise of 39.2%.

Vertical Aerospace (EVTL - Free Report) is set to report second-quarter 2026 earnings on Aug. 13, before market open. It has an Earnings ESP of +15.39% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for EVTL’s loss is pegged at 39 cents per share, indicating year-over-year improvement. The company delivered an earnings surprise of 4.76% in the last reported quarter.

, /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG) today announced it has entered into a definitive agreement to acquire Prince & Izant ("P&I" or "the Company"), a portfolio company of Industrial Growth Partners, for approximately $1.066 billion in cash, including certain tax benefits.

Headquartered in Cleveland, Ohio, Prince & Izant is a leading global designer and manufacturer of highly engineered brazing alloys and specialty metal components used across a range of advanced performance and high cost-of-failure applications. The Company primarily supports the aerospace and defense, aeroderivative turbine, and transportation end markets.  Within aerospace and defense, select applications include aircraft engine fuel nozzles and rocket engines.  Additionally, but to a lesser degree, the Company also serves the medical and general industrial end markets. 

The Company derives the majority of its revenue from the aftermarket and supports a large installed base globally.  Prince & Izant's products are highly proprietary in nature and support end customers through the Company's advanced metallurgy, precise chemistry requirements, and deep formulation expertise which are critical to supporting the evolving performance requirements in the markets which it serves.

The Company's products span nearly 10,000 active SKUs, and the majority of P&I's revenue is derived from specialty metals including gold, silver, and platinum alloys.  

P&I is expected to generate approximately $360 million in revenue for the calendar year ending December 31, 2026. The Company has manufacturing locations in Cleveland, Ohio; Tinley Park, Illinois; Franksville, Wisconsin; and Bay Shore, New York. Prince & Izant employs approximately 220 people.

Mike Lisman, TransDigm's Chief Executive Officer, stated, "We are excited to have an agreement to acquire Prince & Izant. The Company offers highly engineered, custom, proprietary products and provides excellent service to its customers - attributes that align well with TransDigm's acquisition criteria.  Further, we are familiar with the applications and benefits of these products. As with all TransDigm acquisitions, we expect this acquisition to create equity value in-line with our long-term private equity-like return objectives."

The acquisition is subject to regulatory approvals in the United States and customary closing conditions.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Forward-Looking Statements

All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States ("U.S.") defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs and potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

Contact:  
Investor Relations 
(216) 706-2945 
[email protected]

, /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG) today announced it has entered into a definitive agreement to acquire Prince & Izant ("P&I" or "the Company"), a portfolio company of Industrial Growth Partners, for approximately $1.066 billion in cash, including certain tax benefits.

Headquartered in Cleveland, Ohio, Prince & Izant is a leading global designer and manufacturer of highly engineered brazing alloys and specialty metal components used across a range of advanced performance and high cost-of-failure applications. The Company primarily supports the aerospace and defense, aeroderivative turbine, and transportation end markets.  Within aerospace and defense, select applications include aircraft engine fuel nozzles and rocket engines.  Additionally, but to a lesser degree, the Company also serves the medical and general industrial end markets. 

The Company derives the majority of its revenue from the aftermarket and supports a large installed base globally.  Prince & Izant's products are highly proprietary in nature and support end customers through the Company's advanced metallurgy, precise chemistry requirements, and deep formulation expertise which are critical to supporting the evolving performance requirements in the markets which it serves.

The Company's products span nearly 10,000 active SKUs, and the majority of P&I's revenue is derived from specialty metals including gold, silver, and platinum alloys.  

P&I is expected to generate approximately $360 million in revenue for the calendar year ending December 31, 2026. The Company has manufacturing locations in Cleveland, Ohio; Tinley Park, Illinois; Franksville, Wisconsin; and Bay Shore, New York. Prince & Izant employs approximately 220 people.

Mike Lisman, TransDigm's Chief Executive Officer, stated, "We are excited to have an agreement to acquire Prince & Izant. The Company offers highly engineered, custom, proprietary products and provides excellent service to its customers - attributes that align well with TransDigm's acquisition criteria.  Further, we are familiar with the applications and benefits of these products. As with all TransDigm acquisitions, we expect this acquisition to create equity value in-line with our long-term private equity-like return objectives."

The acquisition is subject to regulatory approvals in the United States and customary closing conditions.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Forward-Looking Statements

All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States ("U.S.") defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs and potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

Contact:  
Investor Relations 
(216) 706-2945 
[email protected]

SOURCE TransDigm Group Inc.

, /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG) today said it will report fiscal 2026 third quarter earnings before the market opens on Tuesday, August 4, 2026.

A conference call will follow at 11:00 a.m., Eastern Time. To join the call telephonically, please register for the call here. Once registered, participants will receive the dial-in information and a unique pin to access the call. A live audio webcast of the call can also be accessed online at http://www.transdigm.com.

The webcast will be archived on the website and available for replay later that day.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, cargo loading, handling and delivery systems and specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Contact:    Investor Relations
                   (216) 706-2945
                   [email protected]

Joel Reiss, Co-Chief Operating Officer of TransDigm Group Incorporated (TDG 0.29%), sold 3,486 shares of common stock on July 15, 2026, for approximately $4.2 million SEC Form 4 filing.

Transaction summaryMetricValueShares sold (directly held)3,486Transaction value$4.2 millionPost-transaction shares (directly held)4,014Post-transaction value$4.95 millionTransaction value based on SEC Form 4 weighted average sale price ($1216.21); post-transaction value based on July 15, 2026, market close ($1232.18).

Key questionsWhat was the financial result of the option exercise and subsequent liquidation?
Joel Reiss exercised 3,486 options at a strike price of $284.97 and sold the shares at a weighted average price of $1,216.21, capturing a gross spread of ~$3.2 million before taxes and fees.How does this transaction impact the executive's total equity exposure?
While the sale reduced the executive's direct common stock position by 46%, retaining 19,700 derivative securities, including vested and unvested awards, ensures significant ongoing exposure to the firm's equity performance.What is the valuation context for the remaining direct investment?
Following the transaction, the executive’s remaining 4,014 direct shares were valued at $4.95 million based on the $1,232.18 market close on July 15, 2026, transaction date.What was the market performance context at the time of the transaction?
The executive executed this sale on July 15, 2026, a date when the company's shares had experienced a one-year total return of -22%.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$1,231.11Market Capitalization$67.9 billionRevenue (TTM)$9.5 billionNet Income (TTM)$2.0 billionCompany SnapshotTransDigm Group manufactures and distributes a comprehensive portfolio of aerospace components, including electromechanical actuators, engine ignition systems, precision pumps and valves, and power distribution solutions across its Power & Control, Airframe, and Non-Aerospace divisions.The company generates revenue through the design, manufacturing, and distribution of critical aircraft components to original equipment manufacturers and aftermarket customers, with a business model centered on providing essential systems that are integrated into commercial, military, and business aircraft platforms.TransDigm serves commercial and military aircraft manufacturers, airlines, defense contractors, and aerospace aftermarket operators globally, positioning itself as a critical supplier to the aviation and aerospace industries.TransDigm Group is a global aerospace enterprise with $9.5 billion in TTM revenue and a market capitalization of $67.9 billion, employing 16,500 personnel across international operations. The company maintains a competitive advantage through its specialized focus on high-value, mission-critical aerospace components that demonstrate strong aftermarket demand and customer switching costs. TransDigm's diversified portfolio across power systems, airframe components, and non-aerospace applications provides revenue stability and growth opportunities across commercial aviation, defense, and industrial sectors.

Investors shouldn’t worry over Reiss’s sales as they were pre-planned transactions, rather than a vote on the stock one way or another. Furthermore, Reiss still has over 19,700 remaining derivative securities (stock options), so there is no doubt they still have plenty of “skin in the game” to align their interests with shareholders.

From a Foolish perspective on TransDigm stock, there is a lot to like about the company, especially while its shares trade near 52-week lows. While not blatantly “cheap” at 37 times earnings, this valuation is near its lowest in the last five years and isn’t outrageous for a company with TransDigm’s long history of success. TDG just grew sales by 18% in its latest quarter (11% organic) and expects revenue to grow by 18% for the full year.

While the serial acquirer appears to be doing just fine operationally, it just gave up on acquiring Stellant Systems from a private equity firm for $960 million due to regulatory uncertainty. Developments like these are worth investors’ noticing, because if TransDigm increasingly struggles to get M&A deals across the finish line, its main growth engine may start sputtering. That said, I think it’s far too early to panic and think shares are reasonably priced for access to a high-quality compounder that benefits from selling mission-critical aerospace parts.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TransDigm Group. The Motley Fool has a disclosure policy.

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SummaryTransDigm Group is upgraded to Strong Buy, reflecting substantial upside potential and a 39% price target increase to $1,860.41.TDG’s proprietary aerospace components drive high-margin recurring aftermarket revenue, supported by robust aviation demand and a growing installed fleet.Recent acquisitions have temporarily compressed margins, but EBITDA and free cash flow estimates have increased, with margins expected to recover as integrations mature.TDG trades at a discount to peers, with strong sales, EBITDA, and free cash flow growth projected, and maintains high leverage typical for its acquisition-driven model.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » aapsky/iStock via Getty Images

TransDigm Group (TDG) represents one of the strongest long-term compounders in the aerospace sector. Its investment case is built on a unique portfolio of proprietary aircraft components that generate high-margin recurring aftermarket revenue, supported by robust aviation demand and a growing

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? TransDigm Group (TDG - Free Report) , which belongs to the Zacks Aerospace - Defense Equipment industry, could be a great candidate to consider.

This aircraft components maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 4.15%.

For the last reported quarter, TransDigm came out with earnings of $9.85 per share versus the Zacks Consensus Estimate of $9.32 per share, representing a surprise of 5.69%. For the previous quarter, the company was expected to post earnings of $8.02 per share and it actually produced earnings of $8.23 per share, delivering a surprise of 2.62%.

Price and EPS Surprise

For TransDigm, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

TransDigm currently has an Earnings ESP of +3.54%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

On June 24, 2026, we present a discounted cash flow (DCF) analysis for TransDigm Group Inc TDG , a company currently trading at $1297.68. Over the past year, TDG has experienced a price decline of 5.7%, and its year-to-date performance shows a decrease of 2.4%. The stock has seen a slight dip of 0.3% in the last week but has rebounded by 6.9% over the past month.

DCF Earnings-based intrinsic value of $727.53 versus current price of $1297.68 (margin of safety: -78.4%) DCF FCF-based intrinsic value of $558.88 versus current price (significantly overvalued with -132.2% margin of safety) GF Score™ of 91/100 indicates high reliability of the DCF inputs What Is TDG Worth? DCF Earnings-Based Model The DCF earnings-based model for TransDigm Group Inc TDG utilizes a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project the earnings per share (EPS) growth over the next ten years at a rate of 12.7%. In the second stage, we apply a terminal growth rate of 4% for the following ten years. The discount rate used for both stages is 11%, which is derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $37.97 10-Year Growth Rate 12.7% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), the EPS grows at 12.7% per year, leading to a calculated value of $413.18 per share. In the terminal phase (Years 11-20), the growth slows to a 4% terminal rate, resulting in a value of $314.35 per share. The combined intrinsic value from both stages yields:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 12.7%, discounted at 11% $413.18 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $314.35 Intrinsic Value Growth + Terminal $727.53 With the current price at $1297.68, the intrinsic value of $727.53 indicates that the stock is modestly overvalued, with a margin of safety of -78.4%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, you can access the TDG DCF Calculator.

What Does the Free Cash Flow DCF Say? In contrast to the earnings-based model, the free cash flow (FCF) DCF model yields an intrinsic value of $558.88 per share. This value is significantly lower than the earnings-based intrinsic value, indicating a divergence in the two valuation approaches. The FCF-based model also suggests that TDG is significantly overvalued, with a margin of safety of -132.2%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for TransDigm Group Inc stands at $1581.86, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest that TDG is overvalued, the GF Value™ indicates that the stock is undervalued by 18.0%. This discrepancy highlights the importance of considering multiple valuation methods. For more insights, visit the GF Value™ page.

What Does TDG's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). TransDigm Group Inc has a GF Score™ of 91/100, indicating strong performance across these metrics. The predictability rank is 3/5 stars, suggesting that the DCF model is reasonably reliable for this stock.

Metric Rating GF Score™ 91/100 Financial Strength 3/10 Profitability 10/10 Growth 10/10 Valuation 10/10 Momentum 5/10

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, like TDG's 3/5 stars, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions.

What This Means for Investors In summary, the DCF earnings-based model indicates that TransDigm Group Inc is modestly overvalued, while the FCF-based model suggests a more significant overvaluation. The GF Value™ provides an alternative perspective, indicating that the stock is undervalued. Overall, the consensus across these models leans towards TDG being overvalued.

For the full DCF analysis, visit the TDG DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is TDG's intrinsic value based on DCF?

earnings-based $727.52, FCF-based $558.88

Is TDG overvalued or undervalued?

Based on the DCF earnings model and FCF model, TDG is overvalued. However, the GF Value™ suggests it is undervalued.

How reliable is the DCF model for TDG?

The predictability rank of 3/5 indicates that the DCF model is reasonably reliable for this stock.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

B. Metzler seel. Sohn & Co. AG lifted its stake in shares of Transdigm Group Incorporated (NYSE:TDG – Free Report) by 139.2% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,995 shares of the aerospace company’s stock after buying an additional 1,161 shares during the period. B. Metzler seel. Sohn & Co. AG’s holdings in Transdigm Group were worth $2,653,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its stake in shares of Transdigm Group by 1.8% in the 3rd quarter. Vanguard Group Inc. now owns 6,814,938 shares of the aerospace company’s stock worth $8,982,225,000 after acquiring an additional 121,049 shares during the last quarter. Capital International Investors increased its position in shares of Transdigm Group by 4.1% during the 3rd quarter. Capital International Investors now owns 6,489,193 shares of the aerospace company’s stock worth $8,552,028,000 after purchasing an additional 254,750 shares during the last quarter. State Street Corp grew its position in Transdigm Group by 1.9% in the 3rd quarter. State Street Corp now owns 2,388,838 shares of the aerospace company’s stock valued at $3,148,536,000 after acquiring an additional 45,550 shares in the last quarter. Principal Financial Group Inc. grew its position in Transdigm Group by 18.3% in the 3rd quarter. Principal Financial Group Inc. now owns 2,379,816 shares of the aerospace company’s stock valued at $3,136,719,000 after acquiring an additional 367,756 shares in the last quarter. Finally, Capital Research Global Investors grew its position in Transdigm Group by 10.2% in the 3rd quarter. Capital Research Global Investors now owns 2,207,837 shares of the aerospace company’s stock valued at $2,909,850,000 after acquiring an additional 203,997 shares in the last quarter. Hedge funds and other institutional investors own 95.78% of the company’s stock.

Wall Street Analyst Weigh In A number of equities analysts have recently commented on the company. Weiss Ratings downgraded Transdigm Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, April 13th. Robert W. Baird reissued a “neutral” rating and set a $1,400.00 price objective on shares of Transdigm Group in a research report on Wednesday, February 4th. KeyCorp downgraded Transdigm Group from an “overweight” rating to a “sector weight” rating in a research report on Thursday, February 5th. Wells Fargo & Company assumed coverage on Transdigm Group in a research report on Wednesday, April 1st. They set an “equal weight” rating and a $1,200.00 price objective for the company. Finally, UBS Group lowered their price objective on Transdigm Group from $1,804.00 to $1,800.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Transdigm Group has an average rating of “Moderate Buy” and a consensus target price of $1,567.40.

View Our Latest Analysis on TDG

Transdigm Group Price Performance Transdigm Group stock opened at $1,147.03 on Friday. Transdigm Group Incorporated has a 12 month low of $1,123.61 and a 12 month high of $1,623.82. The business has a 50 day simple moving average of $1,235.27 and a 200-day simple moving average of $1,300.03. The stock has a market capitalization of $64.77 billion, a PE ratio of 36.91, a price-to-earnings-growth ratio of 2.46 and a beta of 0.98.

Transdigm Group (NYSE:TDG – Get Free Report) last released its quarterly earnings results on Tuesday, February 3rd. The aerospace company reported $8.23 EPS for the quarter, topping the consensus estimate of $7.99 by $0.24. Transdigm Group had a negative return on equity of 29.07% and a net margin of 20.50%.The business had revenue of $2.29 billion during the quarter, compared to analysts’ expectations of $2.26 billion. During the same quarter in the prior year, the business earned $7.83 earnings per share. The company’s quarterly revenue was up 13.9% compared to the same quarter last year. Transdigm Group has set its FY 2026 guidance at 37.420-39.340 EPS. As a group, equities research analysts anticipate that Transdigm Group Incorporated will post 36.71 EPS for the current year.

Insider Buying and Selling at Transdigm Group In other Transdigm Group news, Director W Nicholas Howley sold 10,132 shares of the stock in a transaction on Monday, April 20th. The stock was sold at an average price of $1,265.06, for a total value of $12,817,587.92. Following the completion of the transaction, the director owned 21,548 shares in the company, valued at approximately $27,259,512.88. This represents a 31.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Kevin M. Stein sold 36,925 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $1,425.79, for a total value of $52,647,295.75. Following the completion of the transaction, the director owned 19,233 shares of the company’s stock, valued at $27,422,219.07. The trade was a 65.75% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 86,522 shares of company stock valued at $117,197,926. Corporate insiders own 3.20% of the company’s stock.

Transdigm Group Company Profile (Free Report)

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components and systems for commercial and military aerospace applications. The company’s product portfolio covers a broad range of mission-critical parts and subsystems, including mechanical and electromechanical components, ignition and fuel system parts, sensors and actuators, cockpit and cabin systems, and other safety-critical hardware. TransDigm supplies original equipment manufacturers (OEMs) as well as the aftermarket, providing spare parts, repair and overhaul services and component support throughout an asset’s life cycle.

TransDigm’s operating model places emphasis on proprietary, niche components that are difficult to replace, and the company operates through a collection of independently run subsidiaries and brands that sell specialized products.

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April 28, 2026 07:00 ET  | Source: TDG Gold Corp

VANCOUVER, British Columbia, April 28, 2026 (GLOBE NEWSWIRE) -- TDG Gold Corp. (TSXV: TDG | OTCQX: TDGGF) (the “Company” or “TDG”) announces the appointment of Paul Geddes, P.Geo, as Senior Vice-President, Business Development and Strategy, effective April 27, 2026.

Fletcher Morgan, Director and CEO of TDG, commented: “Paul brings technical and strategic experience that is directly applicable to TDG’s focus on disciplined growth and capital efficiency. His proven track record of advancing projects from discovery through to resource definition supports our objective of delivering accelerated returns from our Toodoggone and Anyox assets.”

Mr. Geddes has more than 25 years of experience in mineral exploration and resource development in precious and base metals. His career spans greenfield discovery through to advanced-stage resource definition and expansion, with a demonstrated ability to expand mineral inventories through disciplined, capital-efficient exploration programs.

Mr. Geddes has held progressively senior technical and leadership roles with both major and junior mining companies, including Noranda Mining and Exploration, Teck Exploration, INCO Technical Services, North American Palladium, Rainy River Resources, Osisko Development, and most recently, Senior Vice President, Exploration and Resource Development at Skeena Gold + Silver.

In 2023, he and his team were awarded the A.O. Dufresne Exploration Achievement Award for exploration success and resource growth at the Eskay Creek gold-silver project in British Columbia.

Mr. Geddes is a registered Professional Geoscientist and a member in good standing with Engineers and Geoscientists British Columbia.

ON BEHALF OF THE BOARD

Fletcher Morgan
Chief Executive Officer

For further information contact:
TDG Gold Corp.
Telephone: +1.604.536.2711
Email:[email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Get a deeper insight into the potential performance of TransDigm (TDG) for the quarter ended March 2026 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.

Key Takeaways TransDigm heads into fiscal Q2 after a 2.62% earnings surprise in the prior quarter.TDG's $765M Simmonds Precision deal adds aerospace parts with aftermarket demand and recurring revenues.TDG consensus calls for $9.32 EPS and $2.42B revenues, up 2.3% and 11.7% year over year. TransDigm Group Incorporated (TDG - Free Report) is slated to report second-quarter fiscal 2026 results on May 5, before market open. The company delivered an earnings surprise of 2.62% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors Likely to Affect TDG’s Q2 ResultsDuring the fiscal first quarter of 2026, TransDigm acquired Simmonds Precision Products, Inc., a business of Goodrich Corp., for about $765 million. This acquisition strengthened TransDigm’s portfolio of specialized aerospace components, especially those with strong aftermarket demand. It also expanded the company’s presence across commercial and defense platforms and added a stable stream of recurring revenues, which is expected to have supported second-quarter sales.

Strong performance in the commercial aftermarket, driven by improving air travel, higher flight activity and increased aircraft usage, is likely to have supported revenue growth in the quarter. At the same time, higher U.S. defense spending is expected to have contributed positively to sales.

Overall, higher revenues are likely to have supported margin improvement. Continued focus on cost control and operational efficiency is also expected to have strengthened profitability, supporting the company’s quarterly earnings.

Estimates for TDGThe Zacks Consensus Estimate for earnings is pegged at $9.32 per share, indicating a year-over-year increase of 2.3%.

The consensus estimate for revenues is pinned at $2.42 billion, indicating a year-over-year improvement of 11.7%.

What the Zacks Model Unveils for TDGOur proven model does not conclusively predict an earnings beat for TransDigm this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

TDG’s Earnings ESP: TDG has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

TDG’s Zacks Rank: TDG currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to ConsiderBelow, we have mentioned a few players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases:

CurtissWright (CW - Free Report) is expected to report its first-quarter 2026 earnings on May 6, 2026, after market close. It has an Earnings ESP of +0.72% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for CW’s earnings is pegged at $3.32 per share, indicating year-over-year growth of 17.7%. The consensus estimate for its sales is pegged at $867.2 million, indicating year-over-year growth of 7.6%.

Redwire Corporation (RDW - Free Report) is set to report its first-quarter 2026 earnings on May 6, 2026, after market close. It has an Earnings ESP of +22.58% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for RDW’s loss is pegged at 16 cents per share, indicating year-over-year improvement. The consensus estimate for its sales is pegged at $103.5 million, indicating year-over-year growth of 68.5%.

Huntington Ingalls Industries (HII - Free Report) is expected to report its first-quarter 2026 earnings on May 5, 2026, before market open. It has an Earnings ESP of +3.05% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for HII’s earnings is pegged at $3.70 per share. The consensus estimate for its sales is pegged at $3.02 million, indicating year-over-year growth of 10.4%.

, /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the second quarter ended March 28, 2026.

Second quarter highlights include:

Net sales of $2,544 million, up 18% from $2,150 million in the prior year's quarter; Net income of $536 million, up 12% from the prior year's quarter; Earnings per share of $9.20, up 12% from the prior year's quarter; EBITDA As Defined of $1,337 million, up 15% from $1,162 million in the prior year's quarter; EBITDA As Defined margin of 52.6%; Adjusted earnings per share of $9.85, up 8% from $9.11 in the prior year's quarter; and Upward revision to fiscal 2026 financial guidance. Quarter-to-Date Results

Net sales for the quarter increased 18.3%, or $394 million, to $2,544 million from $2,150 million in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 11.0%.

Net income for the quarter increased $57 million, or 11.9%, from $479 million in the comparable quarter a year ago. The increase in net income primarily reflects the increase in net sales described above, the application of our value-driven operating strategy, and lower non-cash stock and deferred compensation expense. The increase was partially offset by higher interest expense as a result of the increase in TransDigm's year-over-year gross debt balance.

Adjusted net income for the quarter increased 8.5% to $574 million, or $9.85 per share, from $529 million, or $9.11 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 18.4% to $1,289 million from $1,089 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 15.1% to $1,337 million compared with $1,162 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 52.6% compared with 54.0% in the comparable quarter a year ago.

"We are pleased with our team's performance and operating results for the second quarter," stated Mike Lisman, TransDigm Group's CEO. "Total revenue continued ahead of our expectations with double-digit growth across all three of our major market channels compared to the prior year's second quarter. Commercial aftermarket exhibited the highest growth across our three end markets, driven by our commercial transport segment growing 16% in the quarter. Commercial OEM market revenue increased in the double digits on a percentage basis as we continued supporting higher build rates at the OEMs. Our reported EBITDA As Defined margin for the quarter was 52.6%. Adjusting for acquisition dilution, the EBITDA margins of our base businesses improved nicely on a year over year basis and in line with our expectations. The team continues to execute our value drivers.

Shortly after the quarter ended, we completed the acquisitions of the previously announced Jet Parts Engineering and Victor Sierra businesses for $2.2 billion. We are excited to have them as part of TransDigm. Additionally, during the second quarter and continuing into the first week of April, we returned $800 million of capital to our shareholders through share repurchases, bringing the total amount of share repurchases in the fiscal year to date to approximately $905 million.

As we look ahead to the remainder of fiscal 2026, we have significant liquidity and financial flexibility to address any likely range of capital requirements and remain highly focused on our capital allocation.

As always, we remain committed to our operating strategy and the TransDigm value drivers. We look forward to the opportunity to continue creating value for our shareholders through the second half of fiscal 2026."

Acquisition Activity

Subsequent to the quarter, on April 7, 2026, TransDigm completed the acquisition of Jet Parts Engineering  and Victor Sierra for $2.2 billion in cash. Jet Parts Engineering is a leading independent designer and manufacturer of aerospace aftermarket solutions, primarily proprietary OEM-alternative parts and repairs. Victor Sierra is a leading designer, manufacturer, and distributor of proprietary PMA and other aftermarket parts serving the commercial aerospace end market — primarily the general aviation and business aviation sectors.

As previously announced on December 31, 2025, TransDigm has entered into a definitive agreement to acquire Stellant Systems, Inc. from Arlington Capital Partners for approximately $960 million in cash. Stellant is a leading global designer and manufacturer of high-power electronic components and subsystems serving the aerospace and defense end market.

Financing Activity

During the quarter, on February 13, 2026, TransDigm successfully completed a private offering of $1.2 billion of 6.125% Senior Subordinated Notes maturing July 31, 2034 along with $0.8 billion of new Tranche N term loans maturing on February 13, 2033. TransDigm used the net proceeds from the offering, plus cash on hand, to fund the acquisition of Jet Parts Engineering and Victor Sierra which closed on April 7, 2026.

Subsequent to the quarter, on April 17, 2026, TransDigm completed an incremental debt offering of $1.5 billion of new debt consisting of an additional $0.5 billion of 6.125% Senior Subordinated Notes maturing July 31, 2034 and $1.0 billion of additional Tranche N term loans maturing February 13, 2033.

Share Repurchase Activity

During the second quarter of fiscal 2026, TransDigm repurchased 602,070 shares of its common stock at an average price per share of $1,201 for a total amount of $723 million. For the twenty-six week period ended March 28, 2026, TransDigm repurchased 687,282 shares of its common stock at an average price per share of $1,207 for a total amount of $829 million.

Subsequent to the quarter-end, TransDigm repurchased an additional 66,537 shares at an average price per share of $1,139 for a total amount of approximately $76 million. The total stock repurchases year-to-date is $905 million.

Year-to-Date Results

Net sales for the twenty-six week period ended March 28, 2026 increased 16.2%, or $672 million, to $4,828 million from $4,156 million in the comparable period a year ago. Organic sales growth as a percentage of net sales for fiscal 2026 was 9.3%.

Net income for the twenty-six week period ended March 28, 2026 increased $9 million, or 0.9%, to $981 million from $972 million in the comparable period a year ago. The increase in net income primarily reflects the increase in net sales described above, the application of our value-driven operating strategy, and lower non-cash stock and deferred compensation expense. The increase was mostly offset by higher interest expense and income tax expense.

GAAP earnings per share were reduced for the twenty-six week periods ended March 28, 2026 and March 29, 2025 by $1.02 per share and $0.83 per share, respectively, as a result of dividend equivalent payments made during each year. As a reminder, GAAP earnings per share are reduced when TransDigm makes dividend equivalent payments pursuant to its stock option plans. These dividend equivalent payments are made during TransDigm's first fiscal quarter each year and also upon payment of any special dividends.

Adjusted net income for the twenty-six week period ended March 28, 2026 increased 6.8% to $1,053 million, or $18.09 per share, from $986 million, or $16.94 per share, in the comparable period a year ago.

EBITDA for the twenty-six week period ended March 28, 2026 increased 11.9% to $2,436 million from $2,176 million for the comparable period a year ago. EBITDA As Defined for the period increased 13.9% to $2,534 million compared with $2,224 million in the comparable period a year ago. EBITDA As Defined as a percentage of net sales for the period was 52.5% compared with 53.5% in the comparable period a year ago.

Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income; a reconciliation of net cash provided by operating activities to EBITDA and EBITDA As Defined; and a reconciliation of earnings per share to adjusted earnings per share for the periods discussed in this press release.

Fiscal 2026 Outlook

Mr. Lisman stated, "We are pleased to once again raise our full year fiscal 2026 financial guidance to reflect our strong second quarter performance and incorporate the recently closed acquisition of Jet Parts Engineering and Victor Sierra. At the mid-point, we are increasing guidance for sales by $420 million, EBITDA As Defined guidance by $210 million, and adjusted EPS by $1.14. The large majority of this guidance increase is coming from stronger than expected performance in our base business, with a smaller amount of the increase derived from the inclusion of the recent acquisitions.

While increasing full-year guidance, we recognize there is uncertainty in the broader aerospace environment which, depending on the duration, may impact our markets, specifically commercial aftermarket. Based on the strong performance to date as well as our near-term outlook, we shifted our market channel guidance upward. This guidance excludes any contribution from the pending acquisition of Stellant.

The current environment is very dynamic and we will continue to monitor the markets closely as the year progresses."

TransDigm now expects fiscal 2026 financial guidance to be as follows:

Net sales are anticipated to be in the range of $10,300 million to $10,420 million compared with $8,831 million in fiscal 2025, an increase of 17.3% at the midpoint (an increase of $420 million at the midpoint from prior guidance); Net income is anticipated to be in the range of $2,026 million to $2,106 million compared with $2,074 million in fiscal 2025, a decrease of 0.4% at the midpoint primarily due to additional interest expense relating to the financing activities completed during the fourth quarter of fiscal 2025 and the second quarter of fiscal 2026 (an increase of $58 million at the midpoint from prior guidance); Earnings per share is expected to be in the range of $33.91 to $35.29 per share based upon weighted average shares outstanding of 58.0 million shares, compared with $32.08 per share in fiscal 2025, which is an increase of 7.9% at the midpoint (an increase of $1.17 per share at the midpoint from prior guidance); EBITDA As Defined is anticipated to be in the range of $5,370 million to $5,470 million compared with $4,760 million in fiscal 2025, an increase of 13.9% at the midpoint (an increase of $210 million at the midpoint from prior guidance and corresponding to an EBITDA As Defined margin guide of approximately 52.3% for fiscal 2026); Adjusted earnings per share is expected to be in the range of $38.83 to $40.21 per share compared with $37.33 per share in fiscal 2025, an increase of 5.9% at the midpoint compared to prior year (an increase of $1.14 per share at the midpoint from prior guidance); and  Fiscal 2026 outlook is based on the following market growth assumptions: Commercial OEM revenue growth in the low double-digit to mid-teens percentage range; Commercial aftermarket revenue growth in the high single-digit to low double-digit percentage range; and Defense revenue growth in the high single-digit percentage range. Please see the attached Table 6 for a reconciliation of EBITDA, EBITDA As Defined to net income and reported earnings per share to adjusted earnings per share guidance midpoint estimated for the fiscal year ending September 30, 2026. Additionally, please see attached Table 7 for comparison of the current fiscal year 2026 guidance versus the previously issued fiscal year 2026 guidance.

Earnings Conference Call

TransDigm Group will host a conference call for investors and security analysts on May 5, 2026, beginning at 11:00 a.m., Eastern Time. To join the call telephonically, please register for the call at https://register-conf.media-server.com/register/BI680a67e1f8be4f1d8817836c561ed39f . Once registered, participants will receive the dial-in information and a unique pin to access the call. The dial-in information and unique pin will be sent to the email used to register for the call. The unique pin is exclusive to the registrant and can only be used by one person at a time. A live audio webcast of the call can also be accessed online at https://www.transdigm.com. A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website and click on "Presentations."

The call will be archived on the website and available for replay at approximately 2:00 p.m., Eastern Time.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems, specialized flight, wind tunnel and jet engine testing services and equipment, electronic components used in the generation, amplification, transmission and reception of microwave signals, and complex testing and instrumentation solutions.

Non-GAAP Supplemental Information

EBITDA, EBITDA As Defined, EBITDA As Defined margin, adjusted net income and adjusted earnings per share are non-GAAP financial measures presented in this press release as supplemental disclosures to net income and reported results. TransDigm Group defines EBITDA as earnings before interest, taxes, depreciation and amortization and defines EBITDA As Defined as EBITDA plus certain non-operating items recorded as corporate expenses, including non-cash compensation charges incurred in connection with TransDigm Group's stock option or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. Acquisition transaction and integration-related expenses represent costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses. TransDigm Group defines adjusted net income as net income plus purchase accounting backlog amortization expense, effects from the sale on businesses, non-cash compensation charges incurred in connection with TransDigm Group's stock option or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. EBITDA As Defined margin represents EBITDA As Defined as a percentage of net sales. TransDigm Group defines adjusted diluted earnings per share as adjusted net income divided by the total outstanding shares for basic and diluted earnings per share. For more information regarding the computation of EBITDA, EBITDA As Defined, adjusted net income and adjusted earnings per share, please see the attached financial tables.

TransDigm Group presents these non-GAAP financial measures because it believes that they are useful indicators of its operating performance. TransDigm Group believes that EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes, capitalized asset values and employee compensation structures, all of which can vary substantially from company to company. In addition, analysts, rating agencies and others use EBITDA to evaluate a company's ability to incur and service debt. EBITDA As Defined is used to measure TransDigm Inc.'s compliance with the financial covenant contained in its credit facility. TransDigm Group's management also uses EBITDA As Defined to review and assess its operating performance, to prepare its annual budget and financial projections and to review and evaluate its management team in connection with employee incentive programs. Moreover, TransDigm Group's management uses EBITDA As Defined to evaluate acquisitions and as a liquidity measure. In addition, TransDigm Group's management uses adjusted net income as a measure of comparable operating performance between time periods and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance.

None of EBITDA, EBITDA As Defined, EBITDA As Defined margin, adjusted net income or adjusted earnings per share is a measurement of financial performance under U.S. GAAP and such financial measures should not be considered as an alternative to net income, operating income, earnings per share, cash flows from operating activities or other measures of performance determined in accordance with U.S. GAAP. In addition, TransDigm Group's calculation of these non-GAAP financial measures may not be comparable to the calculation of similarly titled measures reported by other companies.

Although we use EBITDA and EBITDA As Defined as measures to assess the performance of our business and for the other purposes set forth above, the use of these non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

neither EBITDA nor EBITDA As Defined reflects the significant interest expense, or the cash requirements, necessary to service interest payments on our indebtedness; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor EBITDA As Defined reflects any cash requirements for such replacements; the omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA and EBITDA As Defined; neither EBITDA nor EBITDA As Defined includes the payment of taxes, which is a necessary element of our operations; and EBITDA As Defined excludes the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions. Forward-Looking Statements

Statements in this press release that are not historical facts, including statements under the heading "Fiscal 2026 Outlook," are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify forward-looking statements.

All forward-looking statements involve risks and uncertainties that could cause TransDigm Group's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitical or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate change and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States ("U.S.") defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs and potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

TRANSDIGM GROUP INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED

Table 1

MARCH 28, 2026 AND MARCH 29, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Twenty-Six Week Periods Ended

March 28, 2026

March 29, 2025

March 28, 2026

March 29, 2025

NET SALES

$            2,544

$            2,150

$            4,828

$            4,156

COST OF SALES

1,033

876

1,965

1,647

GROSS PROFIT

1,511

1,274

2,863

2,509

SELLING AND ADMINISTRATIVE EXPENSES

273

236

527

447

AMORTIZATION OF INTANGIBLE ASSETS

60

47

116

97

INCOME FROM OPERATIONS

1,178

991

2,220

1,965

INTEREST EXPENSE—NET

484

378

959

756

OTHER INCOME

(6)

(9)

(11)

(32)

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

700

622

1,272

1,241

INCOME TAX PROVISION

164

143

291

269

NET INCOME

536

479

981

972

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(1)

—

(1)

—

NET INCOME ATTRIBUTABLE TO TD GROUP

$               535

$               479

$               980

$               972

NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS

$               535

$               479

$               921

$               923

Earnings per share attributable to TD Group common stockholders:

Earnings per share—Basic and diluted

$              9.20

$              8.24

$            15.82

$            15.86

Weighted-average shares outstanding:

Basic and diluted

58.2

58.1

58.2

58.2

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF

EBITDA, EBITDA AS DEFINED TO NET INCOME

FOR THE THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED

Table 2

MARCH 28, 2026 AND MARCH 29, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Twenty-Six Week Periods Ended

March 28, 2026

March 29, 2025

March 28, 2026

March 29, 2025

Net Income

$            536

$            479

$            981

$            972

Adjustments:

Depreciation and amortization expense

105

89

205

179

Interest expense-net

484

378

959

756

Income tax provision

164

143

291

269

EBITDA

1,289

$         1,089

2,436

2,176

Adjustments:

Acquisition transaction and integration-related expenses (1)

19

9

31

22

Non-cash stock and deferred compensation expense (2)

26

48

53

73

Other, net (3)

3

16

14

(47)

Gross Adjustments to EBITDA

48

73

98

48

EBITDA As Defined

$         1,337

$         1,162

$         2,534

$         2,224

EBITDA As Defined Margin (4)

52.6 %

54.0 %

52.5 %

53.5 %

____________________

(1)

Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses.

(2)

Represents the compensation expense recognized under our stock option plans and deferred compensation plans.

(3)

Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business.

(4)

The EBITDA As Defined Margin represents the amount of EBITDA As Defined as a percentage of net sales.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF REPORTED

EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE

FOR THE THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED

Table 3

MARCH 28, 2026 AND MARCH 29, 2025

(Amounts in millions, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Twenty-Six Week Periods Ended

March 28, 2026

March 29, 2025

March 28, 2026

March 29, 2025

Reported Earnings Per Share

Net income

$                536

$                479

$                981

$                972

Less: Net income attributable to noncontrolling interests

(1)

—

(1)

—

Net income attributable to TD Group

535

479

980

972

Less: Dividends paid on participating securities

—

—

(59)

(49)

Net income applicable to TD Group common stockholders—basic and diluted

$                535

$                479

$                921

$                923

Weighted-average shares outstanding under the two-class method

Weighted-average common shares outstanding

56.4

56.1

56.4

56.2

Vested options deemed participating securities

1.8

2.0

1.8

2.0

Total shares for basic and diluted earnings per share

58.2

58.1

58.2

58.2

Earnings per share—basic and diluted

$               9.20

$               8.24

$             15.82

$             15.86

Adjusted Earnings Per Share

Net income

$                536

$                479

$                981

$                972

Gross Adjustments to EBITDA

48

73

98

48

Purchase Accounting Backlog Amortization

8

2

16

8

Tax adjustment (1)

(18)

(25)

(42)

(42)

Adjusted net income

$                574

$                529

$             1,053

$                986

Adjusted diluted earnings per share under the two-class method

$               9.85

$               9.11

$             18.09

$             16.94

Diluted Earnings Per Share to Adjusted Earnings Per Share

Diluted earnings per share from net income attributable to TD Group

$               9.20

$               8.24

$             15.82

$             15.86

Adjustments to diluted earnings per share:

Inclusion of the dividend equivalent payments

—

—

1.02

0.83

Acquisition transaction and integration-related expenses

0.36

0.14

0.62

0.40

Non-cash stock and deferred compensation expense

0.34

0.62

0.69

0.95

Tax adjustment on income from continuing operations before taxes (1)

(0.08)

(0.11)

(0.23)

(0.48)

Other, net

0.03

0.22

0.17

(0.62)

Adjusted earnings per share

$               9.85

$               9.11

$             18.09

$             16.94

___________________

(1)

For the thirteen and twenty-six week periods ended March 28, 2026 and March 29, 2025, the Tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate, as well as the impact on the effective tax rate when excluding the excess tax benefits on stock option exercises. Stock compensation expense is excluded from adjusted net income and therefore we have excluded the impact that the excess tax benefits on stock option exercises have on the effective tax rate for determining adjusted net income.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF NET CASH

PROVIDED BY OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED

FOR THE TWENTY-SIX WEEK PERIODS ENDED

Table 4

MARCH 28, 2026 AND MARCH 29, 2025

(Amounts in millions)

(Unaudited)

Twenty-Six Week Periods Ended

March 28, 2026

March 29, 2025

Net cash provided by operating activities

$               967

$               900

Adjustments:

Changes in assets and liabilities, net of effects from acquisitions and sales of businesses

294

322

Interest expense-net (1)

936

737

Income tax provision-current

292

271

Gain on sale of businesses, net

—

19

Non-cash stock and deferred compensation expense (2)

(53)

(73)

EBITDA

2,436

2,176

Adjustments:

Acquisition transaction and integration-related expenses (3)

31

22

Non-cash stock and deferred compensation expense (2)

53

73

Other, net (4)

14

(47)

EBITDA As Defined

$            2,534

$            2,224

______________________

(1)

Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and discount on debt.

(2)

Represents the compensation expense recognized under our stock option plans and deferred compensation plans.

(3)

Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related costs; transaction and valuation-related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses.

(4)

Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - BALANCE SHEET DATA

Table 5

(Amounts in millions)

(Unaudited)

March 28, 2026

September 30, 2025

Cash and cash equivalents

$                 3,884

$                 2,808

Trade accounts receivable—Net

1,720

1,617

Inventories—Net

2,400

2,095

Current portion of long-term debt

129

124

Short-term borrowings—trade receivable securitization facility

724

724

Accounts payable

425

368

Accrued and other current liabilities

1,162

966

Long-term debt

31,150

29,167

Total TD Group stockholders' deficit

(9,402)

(9,686)

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION - RECONCILIATION OF EBITDA,

EBITDA AS DEFINED TO NET INCOME AND REPORTED EARNINGS PER

SHARE TO ADJUSTED EARNINGS PER SHARE GUIDANCE MIDPOINT

FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2026

Table 6

(Amounts in millions, except per share amounts)

(Unaudited)

GUIDANCE MIDPOINT

Fiscal Year Ended September 30, 2026

Net Income

$                                2,066

Adjustments:

Depreciation and amortization expense

438

Interest expense-net

2,020

Income tax provision

635

EBITDA

5,159

Adjustments:

Acquisition transaction and integration-related expenses (1)

70

Non-cash stock and deferred compensation expense (1)

170

Other, net (1)

21

Gross Adjustments to EBITDA

261

EBITDA As Defined

$                                5,420

EBITDA As Defined Margin (1)

52.3 %

Earnings per share

$                                34.60

Adjustments to earnings per share:

Inclusion of the dividend equivalent payments

1.02

Acquisition transaction and integration-related expenses

1.42

Non-cash stock and deferred compensation expense

2.23

Other, net

0.25

Adjusted earnings per share

$                                39.52

Weighted-average shares outstanding

58.0

___________________

(1)

Refer to Table 2 above for definitions of Non-GAAP measurement adjustments.

TRANSDIGM GROUP INCORPORATED

SUPPLEMENTAL INFORMATION

CURRENT FISCAL YEAR 2026 GUIDANCE VERSUS

PRIOR FISCAL YEAR 2026 GUIDANCE

Table 7

(Amounts in millions, except per share amounts)

(Unaudited)

Current

Fiscal Year 2026
Guidance Issued
May 5, 2026

Prior

Fiscal Year 2026
Guidance Issued
February 3, 2026

Change at
Midpoint

Net Sales

$10,300 to $10,420

$9,845 to $10,035

$420

GAAP Net Income

$2,026 to $2,106

$1,952 to $2,064

$58

GAAP Earnings Per Share

$33.91 to $35.29

$32.47 to $34.39

$1.17

EBITDA As Defined

$5,370 to $5,470

$5,140 to $5,280

$210

Adjusted Earnings Per Share

$38.83 to $40.21

$37.42 to $39.34

$1.14

Weighted-Average Shares Outstanding

58.0

58.3

(0.3)

SOURCE TransDigm Group Inc.

TransDigm Group Incorporated (TDG) Q2 2026 Earnings Call Transcript

TransDigm Group (TDG - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for TransDigm is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for TransDigm imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for TransDigmThis aircraft components maker is expected to earn $39.83 per share for the fiscal year ending September 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for TransDigm. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.9%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of TransDigm to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.