TransDigm Group Reports Fiscal 2026 Second Quarter Results
Rhea-AI Summary
TransDigm Group (NYSE:TDG) reported fiscal Q2 results: net sales $2,544M (+18.3%), net income $536M (+11.9%), EPS $9.20 (+12%), and EBITDA As Defined $1,337M (+15.1%) with a 52.6% margin. The company closed $2.2B acquisitions of Jet Parts Engineering and Victor Sierra and raised fiscal 2026 guidance to $10.30–10.42B sales and $5.37–5.47B EBITDA As Defined.
Positive
- Net sales +18.3% QoQ to $2,544M
- Organic sales growth of 11.0% in the quarter
- EBITDA As Defined +15.1% to $1,337M
- Acquisitions closed: Jet Parts and Victor Sierra for $2.2B
- Raised fiscal 2026 guidance (sales midpoint +$420M)
- Share repurchases ~ $905M year-to-date
Negative
- Interest expense increased due to higher gross debt balance
- Net income guidance midpoint modestly below fiscal 2025 (‑0.4%)
- EBITDA As Defined margin down from prior year (52.6% vs 54.0%)
- Material new debt issuance to fund acquisitions increases leverage
Key Figures
Market Reality Check
Peers on Argus
TDG traded near its 52-week low with a small pre-news decline of -0.41%, while key peers showed mixed, mostly modest moves (e.g., GD +1.44%, HEI +0.60%, LHX -1.10%). Only one peer in the momentum scanner (TXT +3.07%), so action appears stock-specific rather than a broad Aerospace & Defense rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Sector news | Neutral | +1.5% | Peer hypersonic test platform announcement within broader aerospace ecosystem. |
| Apr 27 | Earnings call notice | Neutral | +0.9% | Scheduling of TDG’s fiscal 2026 Q2 earnings report and conference call. |
| Apr 07 | Acquisition close | Positive | -1.7% | Completion of $2.2B Jet Parts Engineering and Victor Sierra acquisition. |
| Feb 03 | Q1 earnings | Positive | -9.3% | Strong Q1 growth and guidance raise with sizable anticipated M&A spend. |
| Jan 26 | Earnings call notice | Neutral | +1.2% | Announcement of timing and access details for fiscal 2026 Q1 call. |
Recent strong fundamental updates (Q1 results, acquisitions) have twice been followed by negative 24h price reactions, suggesting a pattern of the stock selling off or underperforming on good news.
Over the past few months, TDG news has centered on earnings, acquisitions, and capital deployment. On Feb 3, fiscal 2026 Q1 results showed double‑digit growth and raised guidance, yet the stock fell 9.31%. The Apr 7 completion of the Jet Parts Engineering and Victor Sierra acquisition for $2.2B also saw a modest negative reaction. Conference‑call scheduling headlines on Jan 26 and Apr 27 coincided with small gains. This quarter’s strong Q2 and guidance raise continue that growth and M&A narrative.
Market Pulse Summary
This announcement highlights solid Q2 execution, with net sales of $2,544M, net income of $536M, EBITDA As Defined of $1,337M, and adjusted EPS of $9.85, all growing versus last year. Management also raised full‑year 2026 guidance and detailed major capital deployment: the $2.2B Jet Parts Engineering and Victor Sierra acquisition plus substantial share repurchases. Historically, prior strong updates, including Q1 2026 results, did not always translate into positive next‑day moves, so execution on guidance, debt levels, and integration progress remain key metrics to watch.
Key Terms
ebitda financial
ebitda as defined financial
gaap financial
senior subordinated notes financial
term loans financial
pma regulatory
net sales financial
AI-generated analysis. Not financial advice.
Second quarter highlights include:
- Net sales of
$2,544 million 18% from$2,150 million - Net income of
$536 million 12% from the prior year's quarter; - Earnings per share of
$9.20 12% from the prior year's quarter; - EBITDA As Defined of
$1,337 million 15% from$1,162 million - EBITDA As Defined margin of
52.6% ; - Adjusted earnings per share of
$9.85 8% from$9.11 - Upward revision to fiscal 2026 financial 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
"We are pleased with our team's performance and operating results for the second quarter," stated Mike Lisman, TransDigm Group's CEO. "Total revenue continued ahead of our expectations with double-digit growth across all three of our major market channels compared to the prior year's second quarter. Commercial aftermarket exhibited the highest growth across our three end markets, driven by our commercial transport segment growing
Shortly after the quarter ended, we completed the acquisitions of the previously announced Jet Parts Engineering and Victor Sierra businesses for
As we look ahead to the remainder of fiscal 2026, we have significant liquidity and financial flexibility to address any likely range of capital requirements and remain highly focused on our capital allocation.
As always, we remain committed to our operating strategy and the TransDigm value drivers. We look forward to the opportunity to continue creating value for our shareholders through the second half of fiscal 2026."
Acquisition Activity
Subsequent to the quarter, on April 7, 2026, TransDigm completed the acquisition of Jet Parts Engineering and Victor Sierra for
As previously announced on December 31, 2025, TransDigm has entered into a definitive agreement to acquire Stellant Systems, Inc. from Arlington Capital Partners for approximately
Financing Activity
During the quarter, on February 13, 2026, TransDigm successfully completed a private offering of
Subsequent to the quarter, on April 17, 2026, TransDigm completed an incremental debt offering of
Share Repurchase Activity
During the second quarter of fiscal 2026, TransDigm repurchased 602,070 shares of its common stock at an average price per share of
Subsequent to the quarter-end, TransDigm repurchased an additional 66,537 shares at an average price per share of
Year-to-Date Results
Net sales for the twenty-six week period ended March 28, 2026 increased
Net income for the twenty-six week period ended March 28, 2026 increased
GAAP earnings per share were reduced for the twenty-six week periods ended March 28, 2026 and March 29, 2025 by
Adjusted net income for the twenty-six week period ended March 28, 2026 increased
EBITDA for the twenty-six week period ended March 28, 2026 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 2026 Outlook
Mr. Lisman stated, "We are pleased to once again raise our full year fiscal 2026 financial guidance to reflect our strong second quarter performance and incorporate the recently closed acquisition of Jet Parts Engineering and Victor Sierra. At the mid-point, we are increasing guidance for sales by
While increasing full-year guidance, we recognize there is uncertainty in the broader aerospace environment which, depending on the duration, may impact our markets, specifically commercial aftermarket. Based on the strong performance to date as well as our near-term outlook, we shifted our market channel guidance upward. This guidance excludes any contribution from the pending acquisition of Stellant.
The current environment is very dynamic and we will continue to monitor the markets closely as the year progresses."
TransDigm now expects fiscal 2026 financial guidance to be as follows:
- Net sales are anticipated to be in the range of
$10,300 million $10,420 million $8,831 million 17.3% at the midpoint (an increase of$420 million - Net income is anticipated to be in the range of
$2,026 million $2,106 million $2,074 million 0.4% at the midpoint primarily due to additional interest expense relating to the financing activities completed during the fourth quarter of fiscal 2025 and the second quarter of fiscal 2026 (an increase of$58 million - Earnings per share is expected to be in the range of
$33.91 $35.29 $32.08 7.9% at the midpoint (an increase of$1.17 - EBITDA As Defined is anticipated to be in the range of
$5,370 million $5,470 million $4,760 million 13.9% at the midpoint (an increase of$210 million 52.3% for fiscal 2026); - Adjusted earnings per share is expected to be in the range of
$38.83 $40.21 $37.33 5.9% at the midpoint compared to prior year (an increase of$1.14 - Fiscal 2026 outlook is based on the following market growth assumptions:
- Commercial OEM revenue growth in the low double-digit to mid-teens 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 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, 2026. Additionally, please see attached Table 7 for comparison of the current fiscal year 2026 guidance versus the previously issued fiscal year 2026 guidance.
Earnings Conference Call
TransDigm Group will host a conference call for investors and security analysts on May 5, 2026, 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/BI680a67e1f8be4f1d8817836c561ed39f . 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 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 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 2026 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 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 TWENTY-SIX WEEK PERIODS ENDED | Table 1 | |||||||
MARCH 28, 2026 AND MARCH 29, 2025 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Twenty-Six Week Periods Ended | |||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||
NET SALES | $ 2,544 | $ 2,150 | $ 4,828 | $ 4,156 | ||||
COST OF SALES | 1,033 | 876 | 1,965 | 1,647 | ||||
GROSS PROFIT | 1,511 | 1,274 | 2,863 | 2,509 | ||||
SELLING AND ADMINISTRATIVE EXPENSES | 273 | 236 | 527 | 447 | ||||
AMORTIZATION OF INTANGIBLE ASSETS | 60 | 47 | 116 | 97 | ||||
INCOME FROM OPERATIONS | 1,178 | 991 | 2,220 | 1,965 | ||||
INTEREST EXPENSE—NET | 484 | 378 | 959 | 756 | ||||
OTHER INCOME | (6) | (9) | (11) | (32) | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 700 | 622 | 1,272 | 1,241 | ||||
INCOME TAX PROVISION | 164 | 143 | 291 | 269 | ||||
NET INCOME | 536 | 479 | 981 | 972 | ||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | — | (1) | — | ||||
NET INCOME ATTRIBUTABLE TO TD GROUP | $ 535 | $ 479 | $ 980 | $ 972 | ||||
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS | $ 535 | $ 479 | $ 921 | $ 923 | ||||
Earnings per share attributable to TD Group common stockholders: | ||||||||
Earnings per share—Basic and diluted | $ 9.20 | $ 8.24 | $ 15.82 | $ 15.86 | ||||
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 58.2 | 58.1 | 58.2 | 58.2 | ||||
TRANSDIGM GROUP INCORPORATED | ||||||||
SUPPLEMENTAL INFORMATION - RECONCILIATION OF | ||||||||
EBITDA, EBITDA AS DEFINED TO NET INCOME | ||||||||
FOR THE THIRTEEN AND TWENTY-SIX WEEK PERIODS ENDED | Table 2 | |||||||
MARCH 28, 2026 AND MARCH 29, 2025 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Twenty-Six Week Periods Ended | |||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||
Net Income | $ 536 | $ 479 | $ 981 | $ 972 | ||||
Adjustments: | ||||||||
Depreciation and amortization expense | 105 | 89 | 205 | 179 | ||||
Interest expense-net | 484 | 378 | 959 | 756 | ||||
Income tax provision | 164 | 143 | 291 | 269 | ||||
EBITDA | 1,289 | $ 1,089 | 2,436 | 2,176 | ||||
Adjustments: | ||||||||
Acquisition transaction and integration-related expenses (1) | 19 | 9 | 31 | 22 | ||||
Non-cash stock and deferred compensation expense (2) | 26 | 48 | 53 | 73 | ||||
Other, net (3) | 3 | 16 | 14 | (47) | ||||
Gross Adjustments to EBITDA | 48 | 73 | 98 | 48 | ||||
EBITDA As Defined | $ 1,337 | $ 1,162 | $ 2,534 | $ 2,224 | ||||
EBITDA As Defined Margin (4) | 52.6 % | 54.0 % | 52.5 % | 53.5 % | ||||
____________________
(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) | 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. | |
(4) | 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 TWENTY-SIX WEEK PERIODS ENDED | Table 3 | |||||||
MARCH 28, 2026 AND MARCH 29, 2025 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Twenty-Six Week Periods Ended | |||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||
Reported Earnings Per Share | ||||||||
Net income | $ 536 | $ 479 | $ 981 | $ 972 | ||||
Less: Net income attributable to noncontrolling interests | (1) | — | (1) | — | ||||
Net income attributable to TD Group | 535 | 479 | 980 | 972 | ||||
Less: Dividends paid on participating securities | — | — | (59) | (49) | ||||
Net income applicable to TD Group common stockholders—basic and diluted | $ 535 | $ 479 | $ 921 | $ 923 | ||||
Weighted-average shares outstanding under the two-class method | ||||||||
Weighted-average common shares outstanding | 56.4 | 56.1 | 56.4 | 56.2 | ||||
Vested options deemed participating securities | 1.8 | 2.0 | 1.8 | 2.0 | ||||
Total shares for basic and diluted earnings per share | 58.2 | 58.1 | 58.2 | 58.2 | ||||
Earnings per share—basic and diluted | $ 9.20 | $ 8.24 | $ 15.82 | $ 15.86 | ||||
Adjusted Earnings Per Share | ||||||||
Net income | $ 536 | $ 479 | $ 981 | $ 972 | ||||
Gross Adjustments to EBITDA | 48 | 73 | 98 | 48 | ||||
Purchase Accounting Backlog Amortization | 8 | 2 | 16 | 8 | ||||
Tax adjustment (1) | (18) | (25) | (42) | (42) | ||||
Adjusted net income | $ 574 | $ 529 | $ 1,053 | $ 986 | ||||
Adjusted diluted earnings per share under the two-class method | $ 9.85 | $ 9.11 | $ 18.09 | $ 16.94 | ||||
Diluted Earnings Per Share to Adjusted Earnings Per Share | ||||||||
Diluted earnings per share from net income attributable to TD Group | $ 9.20 | $ 8.24 | $ 15.82 | $ 15.86 | ||||
Adjustments to diluted earnings per share: | ||||||||
Inclusion of the dividend equivalent payments | — | — | 1.02 | 0.83 | ||||
Acquisition transaction and integration-related expenses | 0.36 | 0.14 | 0.62 | 0.40 | ||||
Non-cash stock and deferred compensation expense | 0.34 | 0.62 | 0.69 | 0.95 | ||||
Tax adjustment on income from continuing operations before taxes (1) | (0.08) | (0.11) | (0.23) | (0.48) | ||||
Other, net | 0.03 | 0.22 | 0.17 | (0.62) | ||||
Adjusted earnings per share | $ 9.85 | $ 9.11 | $ 18.09 | $ 16.94 | ||||
___________________
(1) | For the thirteen and twenty-six week periods ended March 28, 2026 and March 29, 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 TWENTY-SIX WEEK PERIODS ENDED | Table 4 | |||
MARCH 28, 2026 AND MARCH 29, 2025 | ||||
(Amounts in millions) | ||||
(Unaudited) | ||||
Twenty-Six Week Periods Ended | ||||
March 28, 2026 | March 29, 2025 | |||
Net cash provided by operating activities | $ 967 | $ 900 | ||
Adjustments: | ||||
Changes in assets and liabilities, net of effects from acquisitions and sales of businesses | 294 | 322 | ||
Interest expense-net (1) | 936 | 737 | ||
Income tax provision-current | 292 | 271 | ||
Gain on sale of businesses, net | — | 19 | ||
Non-cash stock and deferred compensation expense (2) | (53) | (73) | ||
EBITDA | 2,436 | 2,176 | ||
Adjustments: | ||||
Acquisition transaction and integration-related expenses (3) | 31 | 22 | ||
Non-cash stock and deferred compensation expense (2) | 53 | 73 | ||
Other, net (4) | 14 | (47) | ||
EBITDA As Defined | $ 2,534 | $ 2,224 | ||
______________________
(1) | Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and discount on debt. | |
(2) | Represents the compensation expense recognized under our stock option plans and deferred compensation plans. | |
(3) | 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. | |
(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. |
TRANSDIGM GROUP INCORPORATED | ||||
SUPPLEMENTAL INFORMATION - BALANCE SHEET DATA | Table 5 | |||
(Amounts in millions) | ||||
(Unaudited) | ||||
March 28, 2026 | September 30, 2025 | |||
Cash and cash equivalents | $ 3,884 | $ 2,808 | ||
Trade accounts receivable—Net | 1,720 | 1,617 | ||
Inventories—Net | 2,400 | 2,095 | ||
Current portion of long-term debt | 129 | 124 | ||
Short-term borrowings—trade receivable securitization facility | 724 | 724 | ||
Accounts payable | 425 | 368 | ||
Accrued and other current liabilities | 1,162 | 966 | ||
Long-term debt | 31,150 | 29,167 | ||
Total TD Group stockholders' deficit | (9,402) | (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, 2026 | Table 6 | |
(Amounts in millions, except per share amounts) | ||
(Unaudited) | ||
GUIDANCE MIDPOINT | ||
Fiscal Year Ended September 30, 2026 | ||
Net Income | $ 2,066 | |
Adjustments: | ||
Depreciation and amortization expense | 438 | |
Interest expense-net | 2,020 | |
Income tax provision | 635 | |
EBITDA | 5,159 | |
Adjustments: | ||
Acquisition transaction and integration-related expenses (1) | 70 | |
Non-cash stock and deferred compensation expense (1) | 170 | |
Other, net (1) | 21 | |
Gross Adjustments to EBITDA | 261 | |
EBITDA As Defined | $ 5,420 | |
EBITDA As Defined Margin (1) | 52.3 % | |
Earnings per share | $ 34.60 | |
Adjustments to earnings per share: | ||
Inclusion of the dividend equivalent payments | 1.02 | |
Acquisition transaction and integration-related expenses | 1.42 | |
Non-cash stock and deferred compensation expense | 2.23 | |
Other, net | 0.25 | |
Adjusted earnings per share | $ 39.52 | |
Weighted-average shares outstanding | 58.0 | |
___________________
(1) | Refer to Table 2 above for definitions of Non-GAAP measurement adjustments. |
TRANSDIGM GROUP INCORPORATED | ||||||
SUPPLEMENTAL INFORMATION | ||||||
CURRENT FISCAL YEAR 2026 GUIDANCE VERSUS | ||||||
PRIOR FISCAL YEAR 2026 GUIDANCE | Table 7 | |||||
(Amounts in millions, except per share amounts) | ||||||
(Unaudited) | ||||||
Current Fiscal Year 2026 | Prior Fiscal Year 2026 | Change at | ||||
Net Sales | ||||||
GAAP Net Income | ||||||
GAAP Earnings Per Share | ||||||
EBITDA As Defined | ||||||
Adjusted Earnings Per Share | ||||||
Weighted-Average Shares Outstanding | 58.0 | 58.3 | (0.3) | |||
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SOURCE TransDigm Group Inc.