TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results

Fourth-quarter net income declined despite higher sales, reflecting higher interest and tax expenses.

Rhea-AI Summary

TransDigm Group (TDG) reported fourth-quarter net sales of $2,988 million, up 23% from the comparable quarter a year earlier. For the quarter ended September 30, 2026, earnings per share rose 33% to $10.33, while net income fell 4% to $586 million. Adjusted earnings per share rose 15% to $12.44.

Fiscal 2026 sales increased 20% to $10,557 million, and net income rose 2% to $2,108 million. EBITDA As Defined, a company-adjusted measure of earnings before interest, taxes, depreciation and amortization, rose 17% to $5,563 million; its margin fell to 52.7% from 53.9%. TransDigm completed the approximately $1.07 billion cash acquisition of Prince & Izant and repurchased $2.8 billion of shares during the year. For fiscal 2027, the company expects sales of $11,950 million–$12,150 million and earnings per share of $42.06–$42.91.

20 points · 0 major

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Positive

• Moderate pointFourth-quarter earnings per share rose 33% to $10.33 from $7.75 a year earlier.
• Moderate pointFiscal 2026 sales increased 20% to $10,557 million; organic growth was 11%, or 13% excluding non-aerospace sales.
• Moderate pointFiscal 2026 net income increased 2% year over year to $2,108 million.
• Moderate pointFiscal 2026 adjusted earnings increased 10% to $2,383 million, or $41.35 per share, versus $37.33.
• Moderate pointFiscal 2026 EBITDA increased 14% year over year to $5,217 million.
• Moderate pointFiscal 2026 EBITDA As Defined increased 17% year over year to $5,563 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 sales guidance anticipates $11,950 million–$12,150 million, up 14% at the midpoint versus fiscal 2026.
• Moderate pointFiscal 2026 acquisitions totaled approximately $4.4 billion, including twelve bolt-on acquisitions at the operating-unit level. 6.5% of market cap
• Moderate pointFiscal 2026 share repurchases returned $2.8 billion through 2.3 million shares at an average $1,187 per share. 4.2% of market cap
• Moderate pointNew notes raised $3.0 billion; proceeds repurchased approximately $1.8 billion of notes due 2028. 4.5% of market cap

10 minor points

• Minor pointFourth-quarter sales increased 23% year over year to $2,988 million, with organic sales growth of 14%.
• Minor pointFourth-quarter adjusted earnings increased 12% to $706 million; adjusted earnings per share rose 15% to $12.44.
• Minor pointFourth-quarter EBITDA increased 13% year over year to $1,436 million.
• Minor pointFourth-quarter EBITDA As Defined increased 20% year over year to $1,583 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 net income guidance anticipates $2,442 million–$2,490 million, up 17% at the midpoint versus fiscal 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 EPS guidance expects $42.06–$42.91 versus $35.51, up 20% at the midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 EBITDA As Defined guidance anticipates $6,195 million–$6,345 million, up 13% at the midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted EPS guidance expects $47.09–$47.94 versus $41.35, up 15% at the midpoint.
• Minor pointPrince & Izant acquisition closed September 28, 2026, for approximately $1.07 billion cash, including certain tax benefits.
• Minor pointFourth-quarter share repurchases returned $943 million through 820 thousand shares at an average $1,150 per share.

Negative

• Moderate pointNew debt obligation consists of $3.0 billion of 6.75% Senior Secured Notes maturing January 2035. 4.5% of market cap
• Minor pointFourth-quarter net income fell 4% to $586 million from $609 million, reflecting higher interest and tax expenses.
• Minor pointFourth-quarter EBITDA As Defined margin fell to 53.0% from 54.2%, including approximately two percentage points of acquisition dilution.
• Minor pointFiscal 2026 EBITDA As Defined margin fell to 52.7% from 53.9%, including approximately two percentage points of acquisition dilution.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 EBITDA As Defined margin guidance is approximately 52.0%, versus 52.7% in fiscal 2026.

2 minor points

• Minor pointHigher selling, administrative and interest expenses partly offset fiscal 2026 net income growth.
• Minor pointDividend equivalent payments reduced fiscal 2026 GAAP earnings per share by $1.03, versus $3.58 in fiscal 2025.

News Explained

TransDigm completed a $3.0 billion private offering of 6.75% senior secured notes due January 2035; it used proceeds to repurchase about $1.8 billion of its $2.1 billion outstanding 6.75% notes due 2028 and for general corporate purposes, replacing some nearer-maturing debt with new long-dated borrowing.

Key Figures

Q4 net sales: $2,988 million (+23% YoY) Q4 earnings per share: $10.33 (+33% YoY) Q4 net income: $586 million (-4% YoY) +5 more

Q4 net sales

$2,988 million (+23% YoY)

Fiscal Q4 2026

Q4 earnings per share

$10.33 (+33% YoY)

Fiscal Q4 2026

Q4 net income

$586 million (-4% YoY)

Fiscal Q4 2026

Q4 EBITDA As Defined

$1,583 million (+20% YoY)

Fiscal Q4 2026

FY2027 net sales guidance

$11,950 million to $12,150 million

Fiscal 2027 outlook; 14% increase at the midpoint versus fiscal 2026

FY2027 net income guidance

$2,442 million to $2,490 million

Fiscal 2027 outlook; 17% increase at the midpoint versus fiscal 2026

FY2027 earnings per share guidance

$42.06 to $42.91 per share

Fiscal 2027 outlook; 20% increase at the midpoint versus fiscal 2026

FY2027 EBITDA As Defined guidance

$6,195 million to $6,345 million

Fiscal 2027 outlook; 13% increase at the midpoint versus fiscal 2026

Historical Context

1 past event · Latest: Aug 04

1 event

1. Aug 04

   earnings report

   24h Move

   -0.8%

   Q3 sales rose 23%, EBITDA As Defined rose 19%, and fiscal 2026 guidance was raised.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, non-gaap financial measures, tender offer, senior secured notes, +1 more

5 terms

ebitda financial

"defines EBITDA as earnings before interest, taxes, depreciation and amortization"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap financial measures financial

"these non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

tender offer financial

"pursuant to a concurrent tender offer"

A tender offer is a proposal made by a person or company to buy shares from existing shareholders at a set price, usually higher than the current market value, within a specific time frame. It matters to investors because it can lead to a change in ownership or control of a company, and shareholders must decide whether to sell their shares at the offered price.

View in glossary

senior secured notes financial

"new 6.75% Senior Secured Notes maturing"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

weighted average shares outstanding financial

"based upon weighted average shares outstanding"

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.

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CLEVELAND, Nov. 10, 2026 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the fourth quarter ended September 30, 2026.

Fourth quarter highlights include:

• Net sales of $2,988 million, up 23% from $2,437 million in the prior year's quarter;
• Earnings per share of $10.33, up 33% from $7.75 in the prior year's quarter;
• EBITDA As Defined of $1,583 million, up 20% from $1,320 million in the prior year's quarter; and
• Adjusted earnings per share of $12.44, up 15% from $10.82 in the prior year's quarter.

Quarter-to-Date Results

Net sales for the quarter increased 23%, or $551 million, to $2,988 million from $2,437 million in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 14%.

Net income for the quarter was $586 million, a decrease of $23 million, or 4%, compared to $609 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 and higher tax expense. The decrease was offset by the increase in net sales as described above and the application of our operating strategy.

Adjusted net income for the quarter increased 12% to $706 million, or $12.44 per share, from $629 million, or $10.82 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 13% to $1,436 million from $1,269 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 20% to $1,583 million compared with $1,320 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 53.0%, which included approximately two percentage points of dilution from recent acquisitions, compared with 54.2% in the comparable quarter a year ago.

Acquisition Activity

As previously announced on September 28, 2026, TransDigm completed the acquisition of Prince & Izant ("P&I") for approximately $1.07 billion in cash, including certain tax benefits. P&I is a global designer and manufacturer of highly engineered brazing alloys and specialty metal components used across a range of advanced performance and high cost-of-failure applications. P&I primarily supports the aerospace and defense, aeroderivative turbine, and transportation end markets. Additionally, but to a lesser degree, P&I serves the medical and general industrial end markets.

Financing Activity

During the quarter, on September 28, 2026, TransDigm successfully completed a private offering of $3.0 billion of new 6.75% Senior Secured Notes maturing January 2035. TransDigm used the net proceeds of the offering of the 2035 Senior Secured Notes to repurchase approximately $1.8 billion of its $2.1 billion outstanding 6.75% Senior Secured Notes due 2028 pursuant to a concurrent tender offer, and for general corporate purposes.

Share Repurchase Activity

During the fourth quarter of fiscal 2026, TransDigm returned $943 million to shareholders through share repurchases totaling 820 thousand shares of its common stock at an average price per share of $1,150. For the full 2026 fiscal year, TransDigm returned $2.8 billion to shareholders through share repurchases totaling 2.3 million shares of its common stock at an average price per share of $1,187.

Year-to-Date Results

Fiscal 2026 net sales increased 20%, or $1,726 million, to $10,557 million from $8,831 million in the comparable period a year ago. Organic sales growth as a percentage of net sales for fiscal 2026 was 11%, and 13% excluding non-aerospace sales.

Fiscal 2026 net income increased $34 million, or 2%, to $2,108 million from $2,074 million in the comparable period a year ago. The increase in net income primarily reflects the increase in net sales described above and the application of our value-driven operating strategy. The increase was offset by higher selling and administrative expenses and higher interest expense.

GAAP earnings per share were reduced in fiscal 2026 and 2025 by $1.03 per share and $3.58 per share, respectively, as a result of dividend equivalent payments made during each year. 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.

Fiscal 2026 adjusted net income increased 10% to $2,383 million, or $41.35 per share, from $2,171 million, or $37.33 per share, in fiscal 2025.

Fiscal 2026 EBITDA increased 14% to $5,217 million from $4,568 million in fiscal 2025. EBITDA As Defined for fiscal 2026 increased 17% to $5,563 million compared with $4,760 million in fiscal 2025. EBITDA As Defined as a percentage of net sales for fiscal 2026 was 52.7% compared with 53.9% in fiscal 2025.

"We are pleased with our team's performance and the overall operating results for both the fourth quarter and the full fiscal year," stated Mike Lisman, TransDigm Group's Chief Executive Officer. "Our fourth quarter results exceeded the high end of our most recent guidance for both revenue and EBITDA As Defined. Our EBITDA As Defined margin for the year ended at 52.7% which includes approximately two percentage points of dilution related to recent acquisitions.

Fiscal 2026 was a very successful year for TransDigm with over $7 billion in capital deployed through a combination of M&A and share repurchases. We invested approximately $4.4 billion in acquisitions including Simmonds Precision Products, Jet Parts Engineering, Victor Sierra Aviation, Prince & Izant, and twelve bolt-on acquisitions at the Operating Unit level. Fiscal 2026 was also a record year for share repurchases totaling approximately $2.8 billion.

We enter fiscal 2027 with significant liquidity and the financial flexibility to pursue additional M&A and other capital deployment opportunities."

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 2027 Outlook

Mr. Lisman stated, "We are issuing full year fiscal 2027 guidance today, which reflects our current expectations for the year. We are well-positioned for continued growth as we head into our fiscal 2027 across all three of our primary end markets."

TransDigm is issuing fiscal 2027 financial guidance to be as follows:

• Net sales are anticipated to be in the range of $11,950 million to $12,150 million compared with $10,557 million in fiscal 2026, an increase of 14% at the midpoint;
• Net income is anticipated to be in the range of $2,442 million to $2,490 million compared with $2,108 million in fiscal 2026, an increase of 17% at the midpoint;
• Earnings per share is expected to be in the range of $42.06 to $42.91 per share based upon weighted average shares outstanding of 56.7 million shares, compared with $35.51 per share in fiscal 2026, which is an increase of 20% at the midpoint;
• EBITDA As Defined is anticipated to be in the range of $6,195 million to $6,345 million compared with $5,563 million in fiscal 2026, an increase of 13% at the midpoint (corresponding to an EBITDA As Defined margin guide of approximately 52.0% for fiscal 2027);
• Adjusted earnings per share is expected to be in the range of $47.09 to $47.94 per share compared with $41.35 per share in fiscal 2026, an increase of 15% at the midpoint compared to prior year; and
• Fiscal 2027 outlook is based on the following market growth assumptions:
  • Commercial OEM revenue growth in the high single-digit to low double-digit percentage range;
  • Commercial aftermarket revenue growth in the high single-digit percentage range; and
  • Defense revenue growth in the 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, 2027.

Earnings Conference Call

TransDigm Group will host a conference call for investors and security analysts on November 10, 2026, beginning at 10:00 a.m., Eastern Time. To join the call telephonically, please register for the call at https://register-conf.media-server.com/register/BIa5c407f28e03447185336ae3d9866c08. 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, cargo loading, handling and delivery systems, brazing alloys and specialty metal components, 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 of 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 2027 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; repurchases of common stock; 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.

Contact:		Investor Relations
		216-706-2945
		ir@transdigm.com

TRANSDIGM GROUP INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEK PERIODS AND FISCAL YEARS ENDED								Table 1
SEPTEMBER 30, 2026 AND SEPTEMBER 30, 2025
(Amounts in millions, except per share amounts)
(Unaudited)
		Thirteen Week Periods Ended				Fiscal Years Ended
		September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
NET SALES		$        2,988		$        2,437		$       10,557		$        8,831
COST OF SALES		1,225		967		4,303		3,520
GROSS PROFIT		1,763		1,470		6,254		5,311
SELLING AND ADMINISTRATIVE EXPENSES		332		256		1,191		945
AMORTIZATION OF INTANGIBLE ASSETS		67		53		252		201
INCOME FROM OPERATIONS		1,364		1,161		4,811		4,165
INTEREST EXPENSE—NET		536		420		2,008		1,572
REFINANCING COSTS		27		3		28		11
OTHER EXPENSE (INCOME)		23		(14)		11		(47)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		778		752		2,764		2,629
INCOME TAX PROVISION		192		143		656		555
NET INCOME		586		609		2,108		2,074
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		—		1		(1)		—
NET INCOME ATTRIBUTABLE TO TD GROUP		$          586		$          610		$        2,107		$        2,074
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS		$          586		$          451		$        2,048		$        1,866
Earnings per share attributable to TD Group common stockholders:
Earnings per share—Basic and diluted		$        10.33		$         7.75		$        35.51		$        32.08
Cash dividends declared per common share		$            —		$        90.00		$            —		$        90.00
Weighted-average shares outstanding:
Basic and diluted		56.7		58.1		57.6		58.2

TRANSDIGM GROUP INCORPORATED
SUPPLEMENTAL INFORMATION - RECONCILIATION OF
EBITDA, EBITDA AS DEFINED TO NET INCOME
FOR THE THIRTEEN WEEK PERIODS AND FISCAL YEARS ENDED								Table 2
SEPTEMBER 30, 2026 AND SEPTEMBER 30, 2025
(Amounts in millions, except per share amounts)
(Unaudited)
		Thirteen Week Periods Ended				Fiscal Years Ended
		September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Net Income		$        586		$        609		$      2,108		$      2,074
Adjustments:
Depreciation and amortization expense		122		97		445		367
Interest expense-net		536		420		2,008		1,572
Income tax provision		192		143		656		555
EBITDA		1,436		1,269		5,217		4,568
Adjustments:
Acquisition transaction and integration-related expenses (1)		36		10		101		42
Non-cash stock and deferred compensation expense (2)		40		33		158		157
Refinancing costs (3)		27		3		28		11
Other, net (4)		44		5		59		(18)
Gross Adjustments to EBITDA		147		51		346		192
EBITDA As Defined		$      1,583		$      1,320		$      5,563		$      4,760
EBITDA As Defined Margin (5)		53.0 %		54.2 %		52.7 %		53.9 %

(1)		Represents 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.
(2)		Represents the compensation expense recognized 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 WEEK PERIODS AND FISCAL YEARS ENDED								Table 3
SEPTEMBER 30, 2026 AND SEPTEMBER 30, 2025
(Amounts in millions, except per share amounts)
(Unaudited)
		Thirteen Week Periods Ended				Fiscal Years Ended
		September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Reported Earnings Per Share
Net income		$           586		$           609		$         2,108		$         2,074
Less: Net income attributable to noncontrolling interests		—		1		(1)		—
Net income attributable to TD Group		586		610		2,107		2,074
Less: Dividends declared or paid on participating securities		—		(159)		(59)		(208)
Net income applicable to TD Group common stockholders—basic and diluted		$           586		$           451		$         2,048		$         1,866
Weighted-average shares outstanding under the two-class method
Weighted-average common shares outstanding		55.1		56.3		55.9		56.3
Vested options deemed participating securities		1.6		1.8		1.7		1.9
Total shares for basic and diluted earnings per share		56.7		58.1		57.6		58.2
Earnings per share—basic and diluted		$         10.33		$          7.75		$         35.51		$         32.08
Adjusted Earnings Per Share
Net income		$           586		$           609		$         2,108		$         2,074
Gross Adjustments to EBITDA		147		51		346		192
Purchase Accounting Backlog Amortization		5		7		27		21
Tax adjustment (1)		(32)		(38)		(98)		(116)
Adjusted net income		$           706		$           629		$         2,383		$         2,171
Adjusted diluted earnings per share under the two-class method		$         12.44		$         10.82		$         41.35		$         37.33
Diluted Earnings Per Share to Adjusted Earnings Per Share
Diluted earnings per share from net income attributable to TD Group		$         10.33		$          7.75		$         35.51		$         32.08
Adjustments to diluted earnings per share:
Inclusion of the dividend equivalent payments		—		2.75		1.03		3.58
Acquisition transaction and integration-related expenses		0.55		0.24		1.70		0.83
Non-cash stock and deferred compensation expense		0.53		0.44		2.09		2.06
Refinancing costs		0.36		0.04		0.37		0.14
Tax adjustment on income from continuing operations before taxes (1)		0.09		(0.42)		(0.11)		(1.10)
Other, net		0.58		0.02		0.76		(0.26)
Adjusted earnings per share		$         12.44		$         10.82		$         41.35		$         37.33

(1)		For the thirteen week periods and fiscal years ended September 30, 2026 and September 30, 2025, 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 FISCAL YEARS ENDED				Table 4
SEPTEMBER 30, 2026 AND SEPTEMBER 30, 2025
(Amounts in millions)
(Unaudited)
		Fiscal Years Ended
		September 30, 2026		September 30, 2025
Net cash provided by operating activities		$          2,187		$          2,038
Adjustments:
Changes in assets and liabilities, net of effects from acquisitions and sales of businesses		647		589
Interest expense-net (1)		1,961		1,534
Income tax provision-current		608		565
Refinancing costs (2)		(28)		(11)
Gain on sale of businesses, net		—		10
Non-cash stock and deferred compensation expense (3)		(158)		(157)
EBITDA		5,217		4,568
Adjustments:
Acquisition transaction and integration-related expenses (4)		101		42
Non-cash stock and deferred compensation expense (3)		158		157
Refinancing costs (2)		28		11
Other, net (5)		59		(18)
EBITDA As Defined		$          5,563		$          4,760

(1)		Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and premium 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 under our stock option plans and deferred compensation plans.
(4)		Represents 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.
(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)
		September 30, 2026		September 30, 2025
Cash and cash equivalents		$           2,279		$           2,808
Trade accounts receivable—Net		2,054		1,617
Inventories—Net		2,713		2,095
Current portion of long-term debt		147		124
Short-term borrowings—trade receivable securitization facility		873		724
Accounts payable		518		368
Accrued and other current liabilities		1,100		966
Long-term debt		33,743		29,167
Total TD Group stockholders' deficit		(10,000)		(9,686)

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, 2027		Table 6
(Amounts in millions, except per share amounts)
(Unaudited)
		GUIDANCE MIDPOINT
		Fiscal Year Ended September 30, 2027
Net Income		$                       2,466
Adjustments:
Depreciation and amortization expense		525
Interest expense-net		2,255
Income tax provision		741
EBITDA		5,987
Adjustments:
Acquisition transaction and integration-related expenses (1)		42
Non-cash stock and deferred compensation expense (1)		225
Other, net (1)		16
Gross Adjustments to EBITDA		283
EBITDA As Defined		$                       6,270
EBITDA As Defined Margin (1)		52.0 %
Earnings per share		$                       42.48
Adjustments to earnings per share:
Inclusion of the dividend equivalent payments		0.95
Acquisition transaction and integration-related expenses		0.83
Non-cash stock and deferred compensation expense		3.05
Other, net		0.20
Adjusted earnings per share		$                       47.51
Weighted-average shares outstanding		56.7

(1)		Refer to Table 2 above for definitions of Non-GAAP measurement adjustments.

 

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SOURCE TransDigm Group Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were TransDigm's fourth-quarter fiscal 2026 earnings results?

TransDigm reported $2,988 million in sales and $10.33 in earnings per share for the quarter ended September 30, 2026, up 23% and 33%, respectively, from the prior-year quarter. Net income declined 4% to $586 million, while adjusted earnings per share increased 15% to $12.44.

What is TransDigm's fiscal 2027 earnings outlook?

TransDigm expects fiscal 2027 earnings per share of $42.06–$42.91 and sales of $11,950 million–$12,150 million. The earnings-per-share outlook uses weighted average shares outstanding of 56.7 million. Expected adjusted earnings per share are $47.09–$47.94, compared with $41.35 in fiscal 2026.

What market growth assumptions support TransDigm's fiscal 2027 guidance?

TransDigm bases its fiscal 2027 outlook on commercial original equipment manufacturer revenue growth in the high single-digit to low double-digit percentage range. Its assumptions also include commercial aftermarket revenue growth in the high single-digit percentage range and defense revenue growth in the high single-digit percentage range.