TransDigm Group Reports Fiscal 2026 First Quarter Results

CLEVELAND, Feb. 3, 2026 /PRNewswire/ -- TransDigm Group Incorporated (NYSE:TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the first quarter ended December 27, 2025.

First quarter highlights include:

• Net sales of $2,285 million, up 14% from $2,006 million in the prior year's quarter;
• Net income of $445 million;
• Earnings per share of $6.62;
• EBITDA As Defined of $1,197 million, up 13% from $1,061 million in the prior year's quarter;
• EBITDA As Defined margin of 52.4%
• Adjusted earnings per share of $8.23, up 5% from $7.83 in the prior year's quarter; and
• Upward revision to fiscal 2026 financial guidance.

Quarter-to-Date Results

Net sales for the quarter increased 13.9%, or $279 million, to $2,285 million from $2,006 million in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 7.4%.

Net income for the quarter was $445 million, a decrease of $48 million, or 9.7%, compared to $493 million in the comparable quarter a year ago. The decrease in net income primarily reflects higher interest expense as a result of the increase in TransDigm's year-over-year gross debt balance. The decrease was partially offset by the increase in net sales described above and the application of our value-driven operating strategy.

GAAP earnings per share were reduced in the first quarter of fiscal 2026 and 2025 by $1.02 per share and $0.83 per share, respectively, as a result of dividend equivalent payments made during each quarter. 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 quarter increased 5.0% to $479 million, or $8.23 per share, from $456 million, or $7.83 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 5.5% to $1,147 million from $1,087 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 12.8% to $1,197 million compared with $1,061 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 52.4% compared with 52.9% in the comparable quarter a year ago.

"We are pleased with our team's performance and operating results for the first quarter. This is a solid start to the 2026 fiscal year," stated Mike Lisman, TransDigm Group's CEO. "Total revenue ran ahead of our expectations. Additionally, bookings were strong in all three of our major market channels. In the first quarter, our commercial OEM market revenue increased in the double digits on a percentage basis as we supported higher build rates at the OEMs. Further, both our commercial aftermarket and defense markets performed well, with each of these markets growing in the high single digits. Our reported EBITDA As Defined margin for the quarter was 52.4%. This margin includes a dilutive impact from our recent acquisitions of roughly 2.0%. Adjusting for acquisition dilution, the EBITDA margins of our base businesses improved nicely year over year. This solid margin performance was a result of the team's continued execution on our value drivers. 

Additionally, subsequent to quarter end, we announced two acquisitions, which when closed will bring three new operating units into TransDigm. We are excited to have agreements to acquire Stellant, Jet Parts Engineering, and Victor Sierra. In the aggregate, approximately $3.2 billion of capital is expected to be deployed for these acquisitions. These are good, growing businesses with proprietary products that generate significant aftermarket revenue and fit well within TransDigm. 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 throughout the remainder of fiscal 2026."

Acquisition Activity

As previously announced on October 6, 2025, TransDigm completed the acquisition of Simmonds Precision Products from RTX Corporation. Simmonds Precision Products is a leading global designer and manufacturer of fuel & proximity sensing and structural health monitoring solutions for the aerospace and defense end markets.

Subsequent to the quarter, and as previously announced on December 31, 2025, TransDigm has entered into a definitive agreement to acquire Stellant Systems, Inc. ("Stellant") 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.

Additionally subsequent to the quarter, and as previously announced on January 16, 2026, TransDigm has entered into a definitive agreement to acquire Jet Parts Engineering ("JPE") and Victor Sierra Aviation Holdings ("VSA") from Vance Street Capital for approximately $2.2 billion in cash. JPE is a leading independent designer and manufacturer of aerospace aftermarket solutions, primarily proprietary OEM-alternative parts and repairs. VSA 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.

Share Repurchase Activity

During the thirteen week period ended December 27, 2025, TransDigm repurchased approximately 85 thousand shares of its common stock at an average price per share of $1,250 for a total amount of approximately $0.1 billion.

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 raising our full year fiscal 2026 financial guidance primarily to reflect our first quarter performance and current expectations for the remainder of the fiscal year. As we look across the balance of fiscal 2026, overall trends remain favorable for our primary end markets - commercial OEM, commercial aftermarket and defense. We continue to expect the commercial OEM market to see the highest rate of growth in fiscal 2026 as we support increasing build rates at the OEMs." This guidance excludes any contribution from the pending acquisitions of Stellant and JPE and VSA.

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

• Net sales are anticipated to be in the range of $9,845 million to $10,035 million compared with $8,831 million in fiscal 2025, an increase of 12.6% at the midpoint (an increase of $90 million at the midpoint from prior guidance);
• Net income is anticipated to be in the range of $1,952 million to $2,064 million compared with $2,074 million in fiscal 2025, a decrease of 3.2% at the midpoint primarily due to additional interest expense relating to the financing activities completed during the fourth quarter of fiscal 2025 (an increase of $42 million at the midpoint from prior guidance);
• Earnings per share is expected to be in the range of $32.47 to $34.39 per share based upon weighted average shares outstanding of 58.3 million shares, compared with $32.08 per share in fiscal 2025, which is an increase of 4.2% at the midpoint (an increase of $0.86 per share at the midpoint from prior guidance);
• EBITDA As Defined is anticipated to be in the range of $5,140 million to $5,280 million compared with $4,760 million in fiscal 2025, an increase of 9.5% at the midpoint (an increase of $60 million at the midpoint from prior guidance and corresponding to an EBITDA As Defined margin guide of approximately 52.4% for fiscal 2026);
• Adjusted earnings per share is expected to be in the range of $37.42 to $39.34 per share compared with $37.33 per share in fiscal 2025, an increase of 2.8% at the midpoint compared to prior year (an increase of $0.87 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 high single-digit to mid-teens percentage range;
  • Commercial aftermarket revenue growth in the high single-digit percentage range; and
  • Defense revenue growth in the mid single-digit to 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 February 3, 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/BIfa66f67b57da497c8e296ec22021d598. 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.

 

 

 

 

 

 

 

 

 

 

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