Core Insights - TransDigm Group reported adjusted earnings per share (EPS) of $7.83, exceeding expectations of $7.67, marking a 9.4% increase year-over-year [2][3] - Revenue for the quarter was $2.006 billion, falling short of the forecast of $2.031 billion, but still representing a 12.1% year-over-year growth [2][3] - The company’s net income rose by 29.1% to $493 million, driven by strong demand in the commercial aftermarket and defense markets [3][6] Financial Performance - Adjusted EPS: $7.83 vs. estimated $7.67, up 9.4% from $7.16 in Q1 2024 [3] - Revenue: $2.006 billion vs. estimated $2.031 billion, up 12.1% from $1.789 billion in Q1 2024 [3] - Net Income: $493 million, up 29.1% from $382 million in Q1 2024 [3] - EBITDA: $1.061 billion, up 16.3% from $912 million in Q1 2024 [3] Business Overview - TransDigm specializes in highly engineered aerospace components for commercial and military use, with approximately 90% of its products being proprietary [4] - Proprietary products and services contribute to around 55% of net sales, ensuring sustained revenue through the lifecycle of aircraft components [4] - The company focuses on balanced growth through selective acquisitions to enhance aftermarket revenue potential [4] Market Position and Strategy - Key success factors include a diversified product base, effective cost controls, and a robust pricing strategy that ensures high margins [5] - The company serves both commercial airline and military markets, stabilizing its business against sector downturns [5] - Management remains committed to pursuing future acquisition opportunities that align with its proprietary business model [8] Quarterly Developments - Gross margin increased, with EBITDA climbing by 16.3% to $1.061 billion [6] - CEO Kevin Stein noted that revenue growth was driven by the commercial aftermarket and defense market [7] - Despite revenue growth, it fell short of Wall Street expectations by 1.2%, partly due to variability in OEM and aftermarket revenue streams [9] Future Outlook - For fiscal 2025, TransDigm expects net sales of $8.75 billion to $8.95 billion, reflecting an anticipated growth of 11.5% at the midpoint [10] - Projected adjusted EPS for fiscal 2025 is between $32.27 and $34.19 [10] - Management remains optimistic about its position in niche aerospace markets and aims to leverage proprietary advantages while navigating potential supply chain disruptions [10][11]

Core Viewpoint - TransDigm Group Incorporated (TDG) reported strong financial results for the first quarter of fiscal 2025, with adjusted earnings per share (EPS) exceeding expectations and showing significant year-over-year growth [1][2]. Financial Performance - Adjusted EPS for Q1 fiscal 2025 was $7.83, beating the Zacks Consensus Estimate of $7.48 by 4.7% and improving 9.4% from $7.16 in the prior-year quarter [1][2]. - GAAP EPS was reported at $7.62, compared to $4.87 in the same quarter last year, indicating substantial growth driven by increased net sales and operational strategies [2]. - Total sales reached $2.01 billion, a 12.1% increase from $1.79 billion in the prior-year period, also surpassing the Zacks Consensus Estimate of $1.99 billion by 0.6% [3]. Operating Results - Gross profit for the quarter was $1.24 billion, up 18.5% from $1.04 billion in the previous year [4]. - Net income increased by 29.1% year over year to $493 million, while interest expenses rose 26% to $378 million [4]. Financial Position - As of December 28, 2024, cash and cash equivalents were $2.46 billion, down from $6.26 billion as of September 30, 2024 [5]. - Long-term debt remained stable at $24.30 billion, consistent with the previous quarter [5]. - Cash from operating activities was $752 million, an increase from $636 million at the end of Q1 fiscal 2024 [5]. Guidance - The company revised its fiscal 2025 sales guidance to a range of $8.75-$8.95 billion, with the Zacks Consensus Estimate at $8.86 billion [6]. - Adjusted EPS guidance for fiscal 2025 was updated to a range of $35.51-$37.43, higher than the previous range of $35.36-$37.28, with the consensus estimate at $37.08 [7]. Zacks Rank - TransDigm currently holds a Zacks Rank 3 (Hold), indicating a neutral outlook [8].

FY 2025 Q1 Earnings Call February 4, 2025 1 Agenda TransDigm Overview, Highlights and Outlook Kevin Stein Market Review Joel Reiss 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 SPECIAL NOTICE REGARDING PRO FORMA AND NON-GAAP INFORMATION This presentation sets forth certain pro forma financial information. This pro forma financial information gives eff ...

Group 1: Earnings Performance - TransDigm Group reported quarterly earnings of $7.83 per share, exceeding the Zacks Consensus Estimate of $7.48 per share, and up from $7.16 per share a year ago, representing an earnings surprise of 4.68% [1] - The company posted revenues of $2.01 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.60%, and an increase from $1.79 billion year-over-year [2] - Over the last four quarters, TransDigm has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - TransDigm shares have increased approximately 6.8% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $8.90 on revenues of $2.15 billion, and for the current fiscal year, it is $37.08 on revenues of $8.86 billion [7] Group 3: Industry Context - The Aerospace - Defense Equipment industry, to which TransDigm belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5] - The Zacks Rank for TransDigm is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]

Exhibit 99.1 TransDigm Group Reports Fiscal 2025 First Quarter Results Cleveland, Ohio, February 4, 2025/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 28, 2024. First quarter highlights include: Quarter-to-Date Results Net sales for the quarter increased 12.1%, or $217 million, to $2,006 million from $1,789 million in the comparable quarter a year ...

CLEVELAND, Feb. 4, 2025 /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 28, 2024.First quarter highlights include: Net sales of $2,006 million, up 12% from $1,789 million in the prior year's quarter; Net income of $493 million, up 29% from the prior year's quarter; Earnings per share of $7.62, up 56% from the prior year's quarter; EBITDA As Defined ...

Core Viewpoint - TransDigm Group (TDG) is expected to report quarterly earnings of $7.48 per share, reflecting a 4.5% increase year-over-year, with revenues projected at $1.99 billion, indicating an 11.5% growth compared to the previous year [1]. Earnings Estimates - There has been a slight downward revision of 0.1% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly correlated with short-term stock price performance [3]. Key Metrics Forecast - Analysts predict 'Net sales to external customers- Non-aviation' will reach $48.40 million, a year-over-year increase of 15.3% [5]. - 'Net sales to external customers- Airframe' is estimated at $935.12 million, reflecting an 8.5% increase from the prior year [5]. - 'Net sales to external customers- Power & Control' is forecasted to be $977.02 million, indicating a 10.4% year-over-year change [6]. - 'Net sales to external customers- Airframe- Commercial and non-aerospace OEM' is expected to be $276.49 million, with a 1.7% increase from the previous year [6]. - 'Net sales to external customers- Airframe- Defense' is projected at $304.38 million, showing a 14.4% increase year-over-year [7]. - 'Net sales to external customers- Power & Control- Defense' is estimated to reach $443.58 million, reflecting a 7.7% increase [7]. - 'Net sales to external customers- Power & Control- Commercial and non-aerospace aftermarket' is expected to be $333.97 million, indicating a 12.8% year-over-year change [8]. - 'Net sales to external customers- Power & Control- Commercial and non-aerospace OEM' is forecasted at $182.49 million, with a 3.1% increase [8]. - 'Net sales to external customers- Airframe- Commercial and non-aerospace aftermarket' is projected to be $352.32 million, reflecting an 8.7% increase [9]. EBITDA Estimates - 'EBITDA- Power & Control' is expected to reach $535.76 million, compared to $509 million in the same quarter last year [9]. - 'EBITDA- Non-aviation' is projected at $18.34 million, up from $17 million in the previous year [10]. - 'EBITDA- Airframe' is estimated to be $461.50 million, compared to $431 million in the same quarter last year [10]. Stock Performance - Over the past month, shares of TransDigm have returned +8.8%, outperforming the Zacks S&P 500 composite's +2.9% [11].

TransDigm Group Incorporated (TDG) is slated to report first-quarter fiscal 2025 results on Feb. 4, before market open.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.TransDigm delivered a trailing four-quarter average earnings surprise of 8.43%. 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 ...

TransDigm Group (TDG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 4, 2025, might help the stock move higher if these key numbers are better ...

Company Overview - TransDigm Group is a leading global designer, producer, and supplier of highly engineered aircraft components for both commercial and military aircraft [3] - The company offers a wide range of products including mechanical/electro-mechanical actuators, ignition systems, specialized pumps and valves, and advanced cockpit displays among others [3] Upcoming Earnings Report - TransDigm Group will report its fiscal 2025 first quarter earnings on February 4, 2025, before the market opens [1] - A conference call will be held at 11:00 a.m. Eastern Time on the same day, with options for telephonic participation and a live audio webcast available [2]