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TransDigm(TDG) - 2025 Q2 - Quarterly Results
TDGTransDigm(TDG)2025-05-06 11:18

Financial Performance - Net sales for Q2 2025 increased by 12.0%, or 231million,to231 million, to 2,150 million from 1,919millionintheprioryear[3].−NetincomeforQ22025roseby1,919 million in the prior year[3]. - Net income for Q2 2025 rose by 75 million, or 18.6%, to 479millioncomparedto479 million compared to 404 million in the same quarter last year[4]. - Adjusted net income for Q2 2025 increased by 14.5% to 529million,or529 million, or 9.11 per share, from 462million,or462 million, or 7.99 per share, in the prior year[5]. - EBITDA for Q2 2025 increased by 18.5% to 1,089millionfrom1,089 million from 919 million in the comparable quarter a year ago[6]. - EBITDA As Defined for Q2 2025 rose by 13.8% to 1,162million,withamarginof54.01,162 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 4,156millionfrom4,156 million from 3,708 million in the prior year[12]. - Net sales for the thirteen-week period ended March 29, 2025, were 2,150million,a12.02,150 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 2,509million,up14.42,509 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 2,176million,a22.42,176 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 8.24forthethirteen−weekperiod,upfrom8.24 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,comparedto16.94, compared to 15.15 in the prior year[34]. - The company experienced a net cash provided by operating activities of 900millionforthetwenty−six−weekperiod,anincreasefrom900 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 8,750millionand8,750 million and 8,950 million, reflecting an increase of 11.5% at the midpoint compared to 7,940millioninfiscal2024[19].−Fiscal2025netincomeguidanceisanticipatedtobeintherangeof7,940 million in fiscal 2024[19]. - Fiscal 2025 net income guidance is anticipated to be in the range of 1,925 million to 2,037million,anincreaseof15.52,037 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 1,981million[39].−EBITDAasdefinedisexpectedtoreach1,981 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,reflectingsignificantadjustmentsforstockcompensationandacquisitionexpenses[39].−Currentguidancefornetsalesremainsunchangedat36.47, reflecting significant adjustments for stock compensation and acquisition expenses[39]. - Current guidance for net sales remains unchanged at 8,750 to 8,950millioncomparedtopriorguidance[41].−GAAPnetincomeguidanceforFiscalYear2025isconsistentat8,950 million compared to prior guidance[41]. - GAAP net income guidance for Fiscal Year 2025 is consistent at 1,925 to 2,037million[41].−EBITDAasdefinedforFiscalYear2025isalsounchangedat2,037 million[41]. - EBITDA as defined for Fiscal Year 2025 is also unchanged at 4,615 to 4,755million[41].−Adjustedearningspershareguidanceremainsstableat4,755 million[41]. - Adjusted earnings per share guidance remains stable at 35.51 to 37.43[41].−Weighted−averagesharesoutstandingisprojectedat58.15million,consistentwithpriorguidance[41].StockandDebtManagement−Thecompanyrepurchasedapproximately37.43[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 131millionsubsequenttothequarter−end[9][11].−CashandcashequivalentsasofMarch29,2025,were131 million subsequent to the quarter-end[9][11]. - Cash and cash equivalents as of March 29, 2025, were 2,426 million, a decrease from 6,261millionasofSeptember30,2024[37].−Long−termdebtremainedstableat6,261 million as of September 30, 2024[37]. - Long-term debt remained stable at 24,306 million as of March 29, 2025, compared to 24,296millionasofSeptember30,2024[37].−ThecompanyanticipatesgrossadjustmentstoEBITDAof24,296 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].