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TDG

TransDigm Group Incorporated

TDG

TransDigm Group Incorporated • NYSE
$1360.17 ▲ 0.38% (+5.16)
Market Cap $76.60 B
52w High $1623.83
52w Low $1183.60
Dividend Yield 90.00%
P/E 42.37
Volume 102.46K
Outstanding Shares 56.32M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2025 $2.437B ▲ $350M ▲ $610M ▲ 25.031% ▲ $11.31 ▲ $1.172B ▲
Q3-2025 $2.236B ▲ $236M ▼ $492M ▲ 22.004% ▼ $8.47 ▲ $1.13B ▲
Q2-2025 $2.15B ▲ $283M ▲ $479M ▼ 22.279% ▼ $8.244 ▲ $1.089B ▲
Q1-2025 $2.006B ▼ $261M ▼ $493M ▲ 24.576% ▲ $7.616 ▲ $1.087B ▲
Q4-2024 $2.186B $316M $468M 21.409% $5.793 $1.041B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.792B ▲ $22.7B ▲ $27.696B ▲ $-5.004B ▲
Q2-2025 $2.426B ▼ $21.905B ▲ $27.569B ▼ $-5.671B ▲
Q1-2025 $2.459B ▼ $21.515B ▼ $27.766B ▼ $-6.258B ▲
Q4-2024 $6.261B ▲ $25.586B ▲ $31.869B ▲ $-6.29B ▼
Q3-2024 $3.36B $21.828B $24.338B $-2.518B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $493M ▲ $631M ▲ $-158M ▲ $-129M ▼ $366M ▲ $573M ▲
Q2-2025 $479M ▼ $148M ▼ $-167M ▼ $-24M ▲ $-33M ▲ $92M ▼
Q1-2025 $493M ▲ $752M ▲ $-24M ▲ $-4.516B ▼ $-3.802B ▼ $710M ▲
Q4-2024 $468M ▲ $572M ▼ $-702M ▲ $3.019B ▲ $2.901B ▲ $531M ▼
Q3-2024 $461M $608M $-1.568B $-516M $-1.478B $568M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025Q4-2025
Airframe
Airframe
 $950.00M ▲$1.00Bn ▲$1.06Bn ▲$1.11Bn ▲
NonAviation Related Business
NonAviation Related Business
 $30.00M ▲$40.00M ▲$40.00M ▲$50.00M ▲
Power And Control
Power And Control
 $1.03Bn ▲$1.11Bn ▲$1.14Bn ▲$1.28Bn ▲

Five-Year Company Overview

Income Statement

Income Statement TransDigm’s income statement shows a business with strong growth and very healthy profitability. Revenue has climbed steadily over the last several years, and profits have grown even faster than sales, which suggests improving efficiency and strong pricing power. Margins at multiple levels – gross, operating, and cash-based earnings – are all high for an industrial business and have generally trended upward. This points to a portfolio of specialized products where the company can charge premium prices and keep costs under control. Earnings per share have also risen sharply, helped both by higher profits and a capital structure that magnifies gains. The flip side is that this structure can also magnify downturns, so the strong recent trend needs to be viewed alongside the risks from leverage and the cyclicality of aerospace demand.

Balance Sheet

Balance Sheet The balance sheet is the main area of concern and reflects TransDigm’s aggressive financial model. The company carries a large amount of debt relative to its size, and reported shareholder equity is negative, which is unusual but consistent with its long-standing practice of using leverage and returning capital. On the positive side, the company holds a meaningful cash cushion and has sizable total assets, largely built through acquisitions. However, the heavy use of debt means interest costs and refinancing risk are important ongoing considerations. In a stable or growing aerospace environment this can work, but in a severe downturn or period of higher rates, the balance sheet would have far less flexibility than a more conservatively financed peer. Overall, the balance sheet is deliberately engineered for high returns rather than safety, which enhances profitability but raises financial risk and sensitivity to shocks.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has grown strongly in line with earnings, and free cash flow has followed a similar path, indicating that a large portion of accounting profits is backed by real cash. Capital spending needs are relatively modest, so the business does not require heavy ongoing investment to maintain its operations. This leaves more cash available for debt service, acquisitions, and returns to stakeholders. The key risk is that this strong cash flow is closely tied to aircraft production, flying activity, and aftermarket demand. If the aerospace cycle weakens, cash generation could fall, and the high fixed obligations from debt would become more constraining. But in normal or strong conditions, the cash profile is robust and a major support for the leveraged model.

Competitive Edge

Competitive Edge TransDigm’s competitive position is exceptionally strong and is the core reason its financials look so attractive. The company focuses on proprietary, highly engineered aircraft components where it is often the only approved supplier. Once one of its parts is designed and certified into an aircraft, replacing it is complex, costly, and time-consuming for customers. A large share of revenue comes from the aftermarket – replacement and service parts for planes that stay in use for decades. This creates a long-lived, recurring revenue stream with high margins. The broad presence across many commercial and military platforms further reduces dependence on any single program. High switching costs, regulatory certification barriers, and deep engineering know‑how combine to form a powerful moat. The main risks are regulatory or customer pushback on pricing, potential changes in procurement behavior by airlines and defense agencies, and technological shifts that could favor new competitors in specific niches. But today, TransDigm’s market position is among the strongest in aerospace components.

Innovation and R&D

Innovation and R&D Innovation at TransDigm is more evolutionary than revolutionary, but it is tightly linked to its moat. The company builds and refines specialized parts that are critical to aircraft performance and safety, often through acquisitions of niche businesses with proprietary technologies. R&D spending is steady rather than flashy, supporting improvements in power and control systems, airframe components, avionics, and other specialized technologies. The decentralized structure encourages each operating unit to focus on its own product niche and customer relationships, which can lead to practical, customer-driven innovation. Looking ahead, key themes include lighter, more efficient components, use of advanced materials, and systems that support more electrified aircraft. TransDigm appears positioned to participate in these trends, though much of its innovation will likely continue to be acquired and then optimized, rather than developed from scratch. The risk is that if it misjudges where to invest or acquire, it could fall behind in certain emerging technologies.

Summary

TransDigm combines a powerful competitive moat with an aggressive financial strategy. On the income statement and cash flow side, it looks like a standout: strong growth, very high margins, and solid conversion of profits into cash, supported by a portfolio of proprietary, hard‑to‑replace aerospace components and a lucrative aftermarket business. The trade‑off is on the balance sheet. The company is heavily leveraged with negative equity, by design, which amplifies returns when things go well but leaves less room for error in a downturn or in a higher‑rate environment. Future performance will depend heavily on continued health in commercial and defense aviation, ongoing success in disciplined acquisitions, and the ability to adapt its components to future aircraft technologies. Overall, TransDigm is a high‑quality, high‑moat aerospace components business built on strong cash generation and significant financial leverage. Strengths lie in its market position and profitability; key risks center on leverage, regulatory and pricing scrutiny, acquisition execution, and exposure to the aerospace cycle.

NEWS

November 12, 2025 · 7:15 AM UTC

TransDigm Group Reports Fiscal 2025 Fourth Quarter and Year-End Results

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November 3, 2025 · 8:00 AM UTC

TransDigm Fourth Quarter Earnings Report and Conference Call Set for Wednesday, November 12, 2025

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October 6, 2025 · 7:49 AM UTC

TransDigm Completes Acquisition of the Simmonds Precision Products, Inc. Business of Goodrich Corporation from RTX Corporation

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