Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 29, 2025 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-32833 TransDigm Group Incorporated (Exact name of registrant as specified in its charter) Delaware (State or other jurisdict ...

TransDigm Group Incorporated (TDG) reported second-quarter fiscal 2025 adjusted earnings of $9.11 per share, which beat the Zacks Consensus Estimate of $8.85 by 2.9%. The bottom line also improved 14% from the prior-year quarter’s figure of $7.99 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The company reported GAAP earnings of $8.24 per share compared with $6.97 in the year-ago quarter.The year-over-year growth in the bottom line can be attributed to the increase in n ...

TransDigm Group (TDG) Q2 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Jaimie Stemen - Director of Investor RelationsKevin Stein - President and CEOMichael Lisman - Co-Chief Operating OfficerSarah Wynne - Chief Financial OfficerRobert Stallard - PartnerScott Mikus - Director – Aerospace, Defense & Space ResearchKristine Liwag - Executive DirectorJoshua Korn - AVP - Equity ResearchSheila Kahyaoglu - Managing DirectorKen Herbert - Managing DirectorMyles Walton - Managing DirectorSeth Seifma ...

Financial Data and Key Metrics Changes - The company reported a strong Q2 with an EBITDA margin of 54% driven by growth in the commercial aftermarket and defense markets [14][22] - The midpoint of fiscal '25 revenue guidance is $8,850 million, reflecting an approximate 11% increase [21] - The midpoint of fiscal '25 EBITDA guidance is $4,685 million, indicating a 12% increase with an expected margin of around 52.9% [22][23] - Free cash flow for Q2 was approximately $340 million, lower than usual due to timing of interest and tax payments, with full year guidance unchanged at $2,300 million [38][39] Business Line Data and Key Metrics Changes - Commercial OEM revenues were flat year-over-year but grew by about 17% sequentially [26] - Commercial aftermarket revenue increased by approximately 13% compared to the prior year, with all submarkets experiencing positive growth [28] - Defense market revenue grew by approximately 9% compared to the prior year, with growth evenly distributed across OEM and aftermarket components [35] Market Data and Key Metrics Changes - Global revenue passenger kilometers (RPKs) were up 3.3% year-over-year, with IATA expecting traffic to reach 113% of 2019 levels in 2025 [32] - Domestic air traffic was up about 1% compared to 2024 and 8% compared to 2019, while international travel was up 4.9% compared to 2024 [34] Company Strategy and Development Direction - The company focuses on proprietary aerospace businesses with significant aftermarket content, aiming for private equity-like returns with public market liquidity [11][12] - Capital allocation priorities include reinvesting in businesses, pursuing accretive M&A, and returning capital to shareholders through share repurchases or dividends [16][17] - The company remains disciplined in its M&A approach, actively seeking opportunities that fit its model while maintaining a strong pipeline [15][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for the remainder of fiscal '25, despite a dynamic macroeconomic environment [24][20] - The company does not anticipate significant headwinds from tariffs and is largely insulated due to its domestic manufacturing focus [20][43] - Management remains cautious about potential economic downturns but sees no current weakness in the commercial aftermarket order book [102] Other Important Information - The CEO announced retirement at the end of fiscal '25, with the Co-COO set to take over [4][6] - The company ended the quarter with a strong cash balance of over $2,400 million, providing significant liquidity for future opportunities [14][40] Q&A Session Summary Question: Comment on the acquisition interest in Jefferson from Boeing - The company was serious about the Jefferson business due to its high aftermarket content but maintained a disciplined approach to avoid overvaluation [48][49] Question: Will the company need to pass on tariff costs to customers? - The company does not expect significant impacts from tariffs and is focused on internal cost-saving measures [50] Question: Will share repurchases or special dividends become regular capital allocation? - The company views returning capital to shareholders as a priority and will consider special dividends or repurchases when appropriate [54] Question: Discuss the margin outlook for the second half of the year - Management acknowledged conservatism in guidance, with expectations for a potential margin step down due to mix shifts and other factors [59][72] Question: Are there any specific areas of strong bookings in defense? - The company noted uniform growth across all defense businesses, with no specific area dominating [67] Question: Any unusual pre-buy activity from airlines? - The company did not observe any significant pre-buy activity related to tariffs [80] Question: How is the M&A environment affected by market volatility? - The company remains active in evaluating targets but maintains a disciplined approach to acquisitions despite aggressive market multiples [100][115]

TransDigm Group (TDG) came out with quarterly earnings of $9.11 per share, beating the Zacks Consensus Estimate of $8.85 per share. This compares to earnings of $7.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.94%. A quarter ago, it was expected that this aircraft components maker would post earnings of $7.48 per share when it actually produced earnings of $7.83, delivering a surprise of 4.68%.Over the last four quarter ...

FY 2025 Q2 Earnings Call May 6, 2025 1 Agenda TransDigm Overview, Highlights and Outlook Kevin Stein Market Review Mike Lisman Operating Performance and Financial Results Sarah Wynne President and CEO Co-COO CFO Q&A Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for f ...

CLEVELAND, May 6, 2025 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG) ("TransDigm" or the "Company") announced today that Kevin Stein will retire as President and Chief Executive Officer of TransDigm, following his more than ten years of service in senior leadership positions at the Company, effective as of September 30, 2025. Mike Lisman, the current Co-Chief Operating Officer of TransDigm, will succeed Mr. Stein as President and Chief Executive Officer. Mr. Stein will continue to serve as an adv ...

Financial Performance - Net sales for Q2 2025 increased by 12.0%, or $231 million, to $2,150 million from $1,919 million in the prior year[3]. - Net income for Q2 2025 rose by $75 million, or 18.6%, to $479 million compared to $404 million in the same quarter last year[4]. - Adjusted net income for Q2 2025 increased by 14.5% to $529 million, or $9.11 per share, from $462 million, or $7.99 per share, in the prior year[5]. - EBITDA for Q2 2025 increased by 18.5% to $1,089 million from $919 million in the comparable quarter a year ago[6]. - EBITDA As Defined for Q2 2025 rose by 13.8% to $1,162 million, with a margin of 54.0% compared to 53.2% in the prior year[6]. - Year-to-date net sales for the 26-week period ended March 29, 2025, increased by 12.1%, or $448 million, to $4,156 million from $3,708 million in the prior year[12]. - Net sales for the thirteen-week period ended March 29, 2025, were $2,150 million, a 12.0% increase from $1,919 million for the same period in 2024[31]. - Gross profit for the twenty-six-week period ended March 29, 2025, was $2,509 million, up 14.4% from $2,193 million in the prior year[31]. - EBITDA for the twenty-six-week period ended March 29, 2025, was $2,176 million, a 22.4% increase from $1,777 million in the prior year[36]. - The EBITDA As Defined margin for the thirteen-week period was 54.0%, compared to 53.2% for the same period in 2024[33]. - The company reported earnings per share of $8.24 for the thirteen-week period, up from $6.97 in the same period last year[34]. - Adjusted diluted earnings per share for the twenty-six-week period were $16.94, compared to $15.15 in the prior year[34]. - The company experienced a net cash provided by operating activities of $900 million for the twenty-six-week period, an increase from $865 million in the previous year[36]. Guidance and Projections - Fiscal 2025 net sales guidance is projected to be between $8,750 million and $8,950 million, reflecting an increase of 11.5% at the midpoint compared to $7,940 million in fiscal 2024[19]. - Fiscal 2025 net income guidance is anticipated to be in the range of $1,925 million to $2,037 million, an increase of 15.5% at the midpoint compared to $1,715 million in fiscal 2024[19]. - The company maintains its fiscal 2025 financial guidance, with expectations for commercial aftermarket revenue growth in the high single-digit to low double-digit percentage range[18][22]. - Fiscal Year 2025 guidance for net income is projected at $1,981 million[39]. - EBITDA as defined is expected to reach $4,685 million, with a margin of 52.9%[39]. - Adjusted earnings per share is forecasted at $36.47, reflecting significant adjustments for stock compensation and acquisition expenses[39]. - Current guidance for net sales remains unchanged at $8,750 to $8,950 million compared to prior guidance[41]. - GAAP net income guidance for Fiscal Year 2025 is consistent at $1,925 to $2,037 million[41]. - EBITDA as defined for Fiscal Year 2025 is also unchanged at $4,615 to $4,755 million[41]. - Adjusted earnings per share guidance remains stable at $35.51 to $37.43[41]. - Weighted-average shares outstanding is projected at 58.15 million, consistent with prior guidance[41]. Stock and Debt Management - The company repurchased approximately $53 million of common stock during Q2 2025 and an additional $131 million subsequent to the quarter-end[9][11]. - Cash and cash equivalents as of March 29, 2025, were $2,426 million, a decrease from $6,261 million as of September 30, 2024[37]. - Long-term debt remained stable at $24,306 million as of March 29, 2025, compared to $24,296 million as of September 30, 2024[37]. - The company anticipates gross adjustments to EBITDA of $159 million, including acquisition-related expenses[39]. - Non-cash stock and deferred compensation expenses are expected to impact earnings per share by $2.35[39].

TransDigm Group Incorporated (TDG) is slated to report second-quarter fiscal 2025 results on May 6, before market open.TransDigm delivered a trailing four-quarter average earnings surprise of 6.50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The improving growth trends in commercial air travel and strong defense sales are likely to have bolstered the quarterly performance.TDG’s Power & Control Segment to Remain RobustStrong sales from the commercial aftermarket, backed by stead ...

Wall Street analysts expect TransDigm Group (TDG) to post quarterly earnings of $8.85 per share in its upcoming report, which indicates a year-over-year increase of 10.8%. Revenues are expected to be $2.17 billion, up 12.9% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timef ...