TransDigm Group Reports Fiscal 2025 Third Quarter Results
TransDigm Group (NYSE: TDG) reported strong fiscal Q3 2025 results with net sales of $2.237 billion, up 9.3% year-over-year, and net income of $493 million, a 6.9% increase. The company achieved an impressive EBITDA As Defined margin of 54.4%, up from 53.3% in the prior year.
Key financial metrics include earnings per share of $8.47 (up 6%) and adjusted EPS of $9.60 (up 7%). The company has revised its fiscal 2025 guidance upward for EBITDA As Defined and adjusted EPS, while slightly lowering sales guidance due to weaker commercial OEM performance.
TransDigm announced two strategic acquisitions: Simmonds Precision Products for $765 million and Servotronics Inc., deploying over $900 million in total capital. The company also completed a $2.65 billion refinancing and repurchased shares worth $131 million during Q3.
TransDigm Group (NYSE: TDG) ha riportato risultati solidi per il terzo trimestre fiscale 2025 con vendite nette di 2,237 miliardi di dollari, in aumento del 9,3% rispetto all'anno precedente, e un utile netto di 493 milioni di dollari, con un incremento del 6,9%. L'azienda ha raggiunto un notevole margine EBITDA As Defined del 54,4%, in crescita rispetto al 53,3% dell'anno precedente.
I principali indicatori finanziari includono un utile per azione di 8,47 dollari (in aumento del 6%) e un EPS rettificato di 9,60 dollari (in crescita del 7%). La società ha rivisto al rialzo le previsioni per l'esercizio fiscale 2025 riguardanti l'EBITDA As Defined e l'EPS rettificato, pur riducendo leggermente le stime di vendita a causa di una performance più debole del segmento OEM commerciale.
TransDigm ha annunciato due acquisizioni strategiche: Simmonds Precision Products per 765 milioni di dollari e Servotronics Inc., impiegando oltre 900 milioni di dollari di capitale complessivo. Inoltre, l'azienda ha completato un rifinanziamento da 2,65 miliardi di dollari e ha riacquistato azioni per un valore di 131 milioni di dollari durante il terzo trimestre.
TransDigm Group (NYSE: TDG) reportó sólidos resultados en el tercer trimestre fiscal 2025 con ventas netas de 2.237 millones de dólares, un aumento del 9,3% interanual, y un ingreso neto de 493 millones de dólares, un incremento del 6,9%. La compañía logró un impresionante margen EBITDA As Defined del 54,4%, superior al 53,3% del año anterior.
Las métricas financieras clave incluyen ganancias por acción de 8,47 dólares (un aumento del 6%) y EPS ajustado de 9,60 dólares (un aumento del 7%). La empresa revisó al alza su guía fiscal 2025 para EBITDA As Defined y EPS ajustado, aunque redujo ligeramente la previsión de ventas debido a un desempeño más débil en el segmento OEM comercial.
TransDigm anunció dos adquisiciones estratégicas: Simmonds Precision Products por 765 millones de dólares y Servotronics Inc., destinando más de 900 millones de dólares en capital total. Además, completó un refinanciamiento de 2.650 millones de dólares y recompró acciones por valor de 131 millones de dólares durante el tercer trimestre.
TransDigm Group (NYSE: TDG)는 2025 회계연도 3분기 강력한 실적을 보고했습니다. 순매출 22억 3,700만 달러로 전년 대비 9.3% 증가했으며, 순이익 4억 9,300만 달러로 6.9% 상승했습니다. 회사는 EBITDA As Defined 마진 54.4%를 기록해 전년 53.3%에서 상승했습니다.
주요 재무 지표로는 주당순이익(EPS) 8.47달러(6% 증가)와 조정 EPS 9.60달러(7% 증가)가 포함됩니다. 회사는 상업용 OEM 부문의 부진으로 매출 가이던스를 소폭 하향 조정했으나, 2025 회계연도 EBITDA As Defined 및 조정 EPS 가이던스는 상향 조정했습니다.
TransDigm는 전략적 인수 두 건을 발표했습니다: Simmonds Precision Products를 7억 6,500만 달러에, Servotronics Inc.를 포함해 총 9억 달러 이상을 투자했습니다. 또한, 26억 5천만 달러 규모의 재융자를 완료하고 3분기에 1억 3,100만 달러 상당의 자사주를 매입했습니다.
TransDigm Group (NYSE : TDG) a annoncé de solides résultats pour le troisième trimestre fiscal 2025 avec des ventes nettes de 2,237 milliards de dollars, en hausse de 9,3 % sur un an, et un revenu net de 493 millions de dollars, soit une augmentation de 6,9 %. La société a atteint une impressionnante marge EBITDA As Defined de 54,4 %, contre 53,3 % l'année précédente.
Les principaux indicateurs financiers comprennent un bénéfice par action de 8,47 dollars (en hausse de 6 %) et un BPA ajusté de 9,60 dollars (en hausse de 7 %). L'entreprise a révisé à la hausse ses prévisions pour l'exercice 2025 concernant l'EBITDA As Defined et le BPA ajusté, tout en abaissant légèrement ses prévisions de ventes en raison d'une performance plus faible du segment OEM commercial.
TransDigm a annoncé deux acquisitions stratégiques : Simmonds Precision Products pour 765 millions de dollars et Servotronics Inc., mobilisant plus de 900 millions de dollars de capital total. La société a également finalisé un refinancement de 2,65 milliards de dollars et racheté pour 131 millions de dollars d'actions au cours du troisième trimestre.
TransDigm Group (NYSE: TDG) meldete starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit Nettoverkäufen von 2,237 Milliarden US-Dollar, ein Anstieg von 9,3 % im Jahresvergleich, und einem Nettoeinkommen von 493 Millionen US-Dollar, ein Plus von 6,9 %. Das Unternehmen erzielte eine beeindruckende EBITDA As Defined-Marge von 54,4 %, gegenüber 53,3 % im Vorjahr.
Wichtige Finanzkennzahlen umfassen Gewinn je Aktie von 8,47 US-Dollar (plus 6 %) und bereinigtes EPS von 9,60 US-Dollar (plus 7 %). Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 hinsichtlich EBITDA As Defined und bereinigtem EPS nach oben korrigiert, während die Umsatzprognose aufgrund einer schwächeren Performance im kommerziellen OEM-Bereich leicht gesenkt wurde.
TransDigm kündigte zwei strategische Übernahmen an: Simmonds Precision Products für 765 Millionen US-Dollar und Servotronics Inc., wobei insgesamt über 900 Millionen US-Dollar an Kapital eingesetzt wurden. Zudem wurde eine 2,65-Milliarden-US-Dollar-Refinanzierung abgeschlossen und im dritten Quartal Aktien im Wert von 131 Millionen US-Dollar zurückgekauft.
- EBITDA As Defined margin improved to 54.4%, up 110 basis points year-over-year
- Net sales increased 9.3% to $2.237 billion with 6.3% organic growth
- Strategic acquisitions of Simmonds and Servotronics strengthen market position
- Commercial aftermarket and defense markets showed strong performance
- Share repurchases of $131 million in Q3, totaling $500 million year-to-date
- Guidance revised upward for EBITDA As Defined and adjusted EPS
- Commercial OEM sales fell below expectations due to lower build rates and inventory destocking
- Higher interest expense partially offset income growth
- Sales guidance decreased by $60 million at midpoint due to OEM market weakness
- Increased debt from new $2.65 billion notes offering at 6.375% interest rate
Insights
TransDigm delivered solid Q3 results with impressive 54.4% EBITDA margins despite commercial OEM challenges, leading to raised FY2025 guidance.
TransDigm's Q3 results showcase the company's resilient business model despite market headwinds. Net sales increased
The commercial aftermarket and defense segments performed well, while commercial OEM fell short of expectations due to lower build rates and inventory destocking. This prompted management to revise full-year sales guidance slightly downward by
Two strategic acquisitions - Servotronics and Simmonds Precision Products - represent approximately
The share repurchase activity of approximately
TransDigm's full-year outlook now projects
Third quarter highlights include:
- Net sales of
$2,237 million 9% from$2,046 million - Net income of
$493 million 7% from the prior year's quarter; - Earnings per share of
$8.47 6% from the prior year's quarter; - EBITDA As Defined of
$1,217 million 12% from$1,091 million - EBITDA As Defined margin of
54.4% ; - Adjusted earnings per share of
$9.60 7% from$9.00 - Upward revision to fiscal 2025 EBITDA As Defined and adjusted earnings per share mid-point guidance.
Quarter-to-Date Results
Net sales for the quarter increased
Net income for the quarter increased
Adjusted net income for the quarter increased
EBITDA for the quarter increased
"Our commercial aftermarket and defense markets performed well this quarter, and as expected, growth within the commercial aftermarket continued to moderate. However, sales in the commercial OEM market fell short of our expectations, primarily due to lower than anticipated OEM build rates and inventory destocking," stated Kevin Stein, TransDigm Group's President and Chief Executive Officer. "Our teams successfully navigated the challenges that came with the uneven demand in our commercial OEM market to deliver a healthy EBITDA As Defined margin of
Additionally, we are excited to have recently completed the acquisition of Servotronics, Inc., and to have announced our agreement to acquire the Simmonds Precision Products, Inc. Business ("Simmonds") of Goodrich Corporation from RTX Corporation. In the aggregate, over
As always, we remain focused on our operating strategy, value drivers and effectively managing our cost structure. We look forward to the final quarter of our fiscal 2025 and the opportunity to continue driving value for our shareholders."
Financing Activity
During the quarter, on May 20, 2025, TransDigm successfully completed a private offering of
Share Repurchase Activity
During the third quarter of fiscal 2025, TransDigm repurchased 105,567 shares of its common stock at an average price per share of
Acquisition Activity Subsequent to the Quarter
Subsequent to the quarter, and as previously announced on June 30, 2025, TransDigm has entered into a definitive agreement to acquire Simmonds from RTX Corporation for approximately
Additionally, on July 1, 2025, TransDigm completed the acquisition of Servotronics, Inc. for
Year-to-Date Results
Net sales for the thirty-nine week period ended June 28, 2025 increased
Net income for the thirty-nine week period ended June 28, 2025 increased
GAAP earnings per share were reduced for the thirty-nine week periods ended June 28, 2025 and June 29, 2024 by
Adjusted net income for the thirty-nine week period ended June 28, 2025 increased
EBITDA for the thirty-nine week period ended June 28, 2025 increased
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 2025 Outlook
Mr. Stein stated, "We are raising the mid-point of our fiscal 2025 EBITDA As Defined guidance to reflect our operating performance to date and expectations for the fourth quarter. However, we are decreasing our sales guidance primarily due to lower than expected commercial OEM sales, driven mainly by lower than anticipated OEM build rates and inventory destocking. At the mid-point we are decreasing sales guidance by
Additionally, we are maintaining the full year market channel growth assumption for the commercial aftermarket and defense market as underlying market fundamentals have not meaningfully changed. Our commercial OEM market growth assumption has been revised to reflect third quarter results and current expectations for the remainder of fiscal 2025."
TransDigm expects fiscal 2025 financial guidance to be as follows:
- Net sales are anticipated to be in the range of
$8,760 million $8,820 million $7,940 million 10.7% at the midpoint; - Net income is anticipated to be in the range of
$1,932 million $1,980 million $1,715 million 14.1% at the midpoint; - Earnings per share is expected to be in the range of
$32.39 $33.21 $25.62 28.0% at the midpoint; - EBITDA As Defined is anticipated to be in the range of
$4,695 million $4,755 million $4,173 million 13.2% at the midpoint (corresponding to an EBITDA As Defined margin guide of approximately53.8% for fiscal 2025); - Adjusted earnings per share is expected to be in the range of
$36.33 $37.15 $33.99 8.1% at the midpoint; and - Fiscal 2025 outlook is based on the following market growth assumptions:
- Commercial OEM revenue growth in the flat to low single-digit percentage range;
- Commercial aftermarket revenue growth in the high single-digit to low double-digit percentage range; and
- Defense revenue growth in the high single-digit to low double-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, 2025. Additionally, please see attached Table 7 for comparison of the current fiscal year 2025 guidance versus the previously issued fiscal year 2025 guidance.
Earnings Conference Call
TransDigm Group will host a conference call for investors and security analysts on August 5, 2025, 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/BI659e5ded01734939975593d06a6635c9. 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 TD Group's 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
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
- 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 2025 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 sustainability-related voluntary goals or regulatory requirements; our reliance on certain customers;
Contact: | Investor Relations | |
216-706-2945 | ||
ir@transdigm.com |
TRANSDIGM GROUP INCORPORATED | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED | Table 1 | |||||||
JUNE 28, 2025 AND JUNE 29, 2024 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||
NET SALES | $ 2,237 | $ 2,046 | $ 6,394 | $ 5,754 | ||||
COST OF SALES | 905 | 826 | 2,553 | 2,341 | ||||
GROSS PROFIT | 1,332 | 1,220 | 3,841 | 3,413 | ||||
SELLING AND ADMINISTRATIVE EXPENSES | 242 | 248 | 689 | 715 | ||||
AMORTIZATION OF INTANGIBLE ASSETS | 51 | 38 | 148 | 110 | ||||
INCOME FROM OPERATIONS | 1,039 | 934 | 3,004 | 2,588 | ||||
INTEREST EXPENSE—NET | 397 | 316 | 1,152 | 943 | ||||
REFINANCING COSTS | 7 | 30 | 7 | 59 | ||||
OTHER INCOME | — | (14) | (31) | (24) | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 635 | 602 | 1,876 | 1,610 | ||||
INCOME TAX PROVISION | 142 | 141 | 411 | 362 | ||||
NET INCOME | 493 | 461 | 1,465 | 1,248 | ||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | — | (1) | (2) | ||||
NET INCOME ATTRIBUTABLE TO TD GROUP | $ 492 | $ 461 | $ 1,464 | $ 1,246 | ||||
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS | $ 492 | $ 461 | $ 1,415 | $ 1,145 | ||||
Earnings per share attributable to TD Group common stockholders: | ||||||||
Earnings per share—Basic and diluted | $ 8.47 | $ 7.96 | $ 24.31 | $ 19.81 | ||||
Cash dividends declared per common share | $ — | $ — | $ — | $ 35.00 | ||||
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 58.1 | 57.9 | 58.2 | 57.8 | ||||
TRANSDIGM GROUP INCORPORATED | ||||||||
SUPPLEMENTAL INFORMATION - RECONCILIATION OF | ||||||||
EBITDA, EBITDA AS DEFINED TO NET INCOME | ||||||||
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED | Table 2 | |||||||
JUNE 28, 2025 AND JUNE 29, 2024 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||
Net Income | $ 493 | $ 461 | $ 1,465 | $ 1,248 | ||||
Adjustments: | ||||||||
Depreciation and amortization expense | 91 | 77 | 271 | 219 | ||||
Interest expense-net | 397 | 316 | 1,152 | 943 | ||||
Income tax provision | 142 | 141 | 411 | 362 | ||||
EBITDA | 1,123 | 995 | 3,299 | 2,772 | ||||
Adjustments: | ||||||||
Acquisition transaction and integration-related expenses (1) | 9 | 27 | 32 | 43 | ||||
Non-cash stock and deferred compensation expense (2) | 51 | 47 | 124 | 158 | ||||
Refinancing costs (3) | 7 | 30 | 7 | 59 | ||||
Other, net (4) | 27 | (8) | (21) | (9) | ||||
Gross Adjustments to EBITDA | 94 | 96 | 142 | 251 | ||||
EBITDA As Defined | $ 1,217 | $ 1,091 | $ 3,441 | $ 3,023 | ||||
EBITDA As Defined Margin (5) | 54.4 % | 53.3 % | 53.8 % | 52.5 % | ||||
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(1) | Represents costs incurred to integrate acquired businesses into TD Group's 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. | |
(2) | Represents the compensation expense recognized by TD Group under our stock option plans and deferred compensation plans. | |
(3) | Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements. | |
(4) | Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business. | |
(5) | The EBITDA As Defined Margin represents the amount of EBITDA As Defined as a percentage of net sales. | |
TRANSDIGM GROUP INCORPORATED | ||||||||
SUPPLEMENTAL INFORMATION - RECONCILIATION OF REPORTED | ||||||||
EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE | ||||||||
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED | Table 3 | |||||||
JUNE 28, 2025 AND JUNE 29, 2024 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||
Reported Earnings Per Share | ||||||||
Net income | $ 493 | $ 461 | $ 1,465 | $ 1,248 | ||||
Less: Net income attributable to noncontrolling interests | (1) | — | (1) | (2) | ||||
Net income attributable to TD Group | 492 | 461 | 1,464 | 1,246 | ||||
Less: Dividends paid on participating securities | — | — | (49) | (101) | ||||
Net income applicable to TD Group common stockholders—basic and diluted | $ 492 | $ 461 | $ 1,415 | $ 1,145 | ||||
Weighted-average shares outstanding under the two-class method | ||||||||
Weighted-average common shares outstanding | 56.2 | 56.0 | 56.2 | 55.7 | ||||
Vested options deemed participating securities | 1.9 | 1.9 | 2.0 | 2.1 | ||||
Total shares for basic and diluted earnings per share | 58.1 | 57.9 | 58.2 | 57.8 | ||||
Earnings per share—basic and diluted | $ 8.47 | $ 7.96 | $ 24.31 | $ 19.81 | ||||
Adjusted Earnings Per Share | ||||||||
Net income | $ 493 | $ 461 | $ 1,465 | $ 1,248 | ||||
Gross Adjustments to EBITDA | 94 | 96 | 142 | 251 | ||||
Purchase Accounting Backlog Amortization | 6 | 2 | 14 | 5 | ||||
Tax adjustment (1) | (35) | (38) | (78) | (108) | ||||
Adjusted net income | $ 558 | $ 521 | $ 1,543 | $ 1,396 | ||||
Adjusted diluted earnings per share under the two-class method | $ 9.60 | $ 9.00 | $ 26.53 | $ 24.15 | ||||
Diluted Earnings Per Share to Adjusted Earnings Per Share | ||||||||
Diluted earnings per share from net income attributable to TD Group | $ 8.47 | $ 7.96 | $ 24.31 | $ 19.81 | ||||
Adjustments to diluted earnings per share: | ||||||||
Inclusion of the dividend equivalent payments | — | — | 0.83 | 1.75 | ||||
Acquisition transaction and integration-related expenses | 0.20 | 0.36 | 0.60 | 0.61 | ||||
Non-cash stock and deferred compensation expense | 0.67 | 0.61 | 1.62 | 2.05 | ||||
Refinancing costs | 0.10 | 0.39 | 0.10 | 0.76 | ||||
Tax adjustment on income from continuing operations before taxes (1) | (0.19) | (0.23) | (0.67) | (0.75) | ||||
Other, net | 0.35 | (0.09) | (0.26) | (0.08) | ||||
Adjusted earnings per share | $ 9.60 | $ 9.00 | $ 26.53 | $ 24.15 | ||||
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(1) | For the thirteen and thirty-nine week periods ended June 28, 2025 and June 29, 2024, the Tax adjustment represents the tax effect of the adjustments at the applicable effective tax rate, as well as the impact on the effective tax rate when excluding the excess tax benefits on stock option exercises. Stock compensation expense is excluded from adjusted net income and therefore we have excluded the impact that the excess tax benefits on stock option exercises have on the effective tax rate for determining adjusted net income. | |
TRANSDIGM GROUP INCORPORATED | ||||
SUPPLEMENTAL INFORMATION - RECONCILIATION OF NET CASH | ||||
PROVIDED BY OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED | ||||
FOR THE THIRTY-NINE WEEK PERIODS ENDED | Table 4 | |||
JUNE 28, 2025 AND JUNE 29, 2024 | ||||
(Amounts in millions) | ||||
(Unaudited) | ||||
Thirty-Nine Week Periods Ended | ||||
June 28, 2025 | June 29, 2024 | |||
Net cash provided by operating activities | $ 1,531 | $ 1,473 | ||
Adjustments: | ||||
Changes in assets and liabilities, net of effects from acquisitions and sales of businesses | 326 | 218 | ||
Interest expense-net (1) | 1,124 | 912 | ||
Income tax provision-current | 414 | 362 | ||
Amortization of inventory step-up | (9) | (8) | ||
Loss contract amortization | 38 | 24 | ||
Refinancing costs (2) | (7) | (59) | ||
Gain on sale of businesses, net | 17 | 11 | ||
Non-cash stock and deferred compensation expense (3) | (124) | (158) | ||
Foreign currency exchange losses | (11) | (3) | ||
EBITDA | 3,299 | 2,772 | ||
Adjustments: | ||||
Acquisition transaction and integration-related expenses (4) | 32 | 43 | ||
Non-cash stock and deferred compensation expense (3) | 124 | 158 | ||
Refinancing costs (2) | 7 | 59 | ||
Other, net (5) | (21) | (9) | ||
EBITDA As Defined | $ 3,441 | $ 3,023 | ||
------------------------------------- | ||
(1) | Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and discount on debt. | |
(2) | Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements. | |
(3) | Represents the compensation expense recognized by TD Group under our stock option plans and deferred compensation plans. | |
(4) | Represents costs incurred to integrate acquired businesses into TD Group's 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. | |
(5) | Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business. | |
TRANSDIGM GROUP INCORPORATED | ||||
SUPPLEMENTAL INFORMATION - BALANCE SHEET DATA | Table 5 | |||
(Amounts in millions) | ||||
(Unaudited) | ||||
June 28, 2025 | September 30, 2024 | |||
Cash and cash equivalents | $ 2,792 | $ 6,261 | ||
Trade accounts receivable—Net | 1,518 | 1,381 | ||
Inventories—Net | 2,083 | 1,876 | ||
Current portion of long-term debt | 94 | 98 | ||
Short-term borrowings—trade receivable securitization facility | 650 | 486 | ||
Accounts payable | 328 | 323 | ||
Dividends payable | — | 4,216 | ||
Accrued and other current liabilities | 1,139 | 1,216 | ||
Long-term debt | 24,268 | 24,296 | ||
Total TD Group stockholders' deficit | (5,004) | (6,290) | ||
TRANSDIGM GROUP INCORPORATED | ||
SUPPLEMENTAL INFORMATION - RECONCILIATION OF EBITDA, | ||
EBITDA AS DEFINED TO NET INCOME AND REPORTED EARNINGS PER | ||
SHARE TO ADJUSTED EARNINGS PER SHARE GUIDANCE MIDPOINT | ||
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2025 | Table 6 | |
(Amounts in millions, except per share amounts) | ||
(Unaudited) | ||
GUIDANCE MIDPOINT | ||
Fiscal Year Ended September 30, 2025 | ||
Net Income | $ 1,956 | |
Adjustments: | ||
Depreciation and amortization expense | 380 | |
Interest expense-net | 1,560 | |
Income tax provision | 618 | |
EBITDA | 4,514 | |
Adjustments: | ||
Acquisition transaction and integration-related expenses (1) | 40 | |
Non-cash stock and deferred compensation expense (1) | 180 | |
Refinancing costs (1) | 7 | |
Other, net (1) | (16) | |
Gross Adjustments to EBITDA | 211 | |
EBITDA As Defined | $ 4,725 | |
EBITDA As Defined Margin (1) | 53.8 % | |
Earnings per share | $ 32.80 | |
Adjustments to earnings per share: | ||
Inclusion of the dividend equivalent payments | 0.83 | |
Acquisition transaction and integration-related expenses | 0.87 | |
Non-cash stock and deferred compensation expense | 2.35 | |
Refinancing costs | 0.10 | |
Other, net | (0.21) | |
Adjusted earnings per share | $ 36.74 | |
Weighted-average shares outstanding | 58.175 | |
------------------------------------- | ||
(1) | Refer to Table 2 above for definitions of Non-GAAP measurement adjustments. | |
TRANSDIGM GROUP INCORPORATED | ||||||
SUPPLEMENTAL INFORMATION | ||||||
CURRENT FISCAL YEAR 2025 GUIDANCE VERSUS | ||||||
PRIOR FISCAL YEAR 2025 GUIDANCE | Table 7 | |||||
(Amounts in millions, except per share amounts) | ||||||
(Unaudited) | ||||||
Current | Prior | Change at | ||||
Net Sales | ||||||
GAAP Net Income | ||||||
GAAP Earnings Per Share | ||||||
EBITDA As Defined | ||||||
Adjusted Earnings Per Share | ||||||
Weighted-Average Shares Outstanding | 58.175 | 58.150 | 0.025 | |||
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SOURCE TransDigm Group Inc.
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