TransDigm Group Reports Fiscal 2026 Third Quarter Results
Rhea-AI Summary
TransDigm Group (NYSE: TDG) reported fiscal 2026 Q3 net sales of $2.741 billion, up 23% year over year, with organic growth of 13%. Net income rose 10% to $540 million, GAAP EPS was $9.39 and adjusted EPS $10.87, up 11% and 13%, respectively. EBITDA As Defined increased 19% to $1.447 billion, representing a 52.8% margin.
Year-to-date, net sales grew 18% to $7.569 billion and EBITDA As Defined 16% to $3.981 billion. TransDigm closed the $2.2 billion acquisition of Jet Parts Engineering and Victor Sierra and agreed to acquire Prince & Izant for about $1.07 billion. The company issued $1.5 billion in additional debt and repurchased $1.0 billion of stock in Q3, or $1.8 billion year-to-date. Fiscal 2026 guidance was raised, with mid-point expectations of $10.51 billion in sales, $5.52 billion EBITDA As Defined and adjusted EPS of about $41.04.
Positive
- Q3 2026 net sales +23% to $2.741 billion, with 13% organic growth
- Q3 adjusted EPS +13% to $10.87 versus $9.60 a year earlier
- Q3 EBITDA As Defined +19% to $1.447 billion, 52.8% of sales
- YTD EBITDA As Defined +16% to $3.981 billion on $7.569 billion sales
- FY 2026 guidance raised: sales midpoint +$150 million, EBITDA As Defined +$100 million, adjusted EPS +$1.52
- $2.2 billion acquisition of Jet Parts Engineering and Victor Sierra completed in cash
- $1.07 billion cash deal agreed for Prince & Izant, excluding from 2026 guidance
- $1.8 billion share repurchases YTD, including $1.0 billion in Q3 at ~$1,208 per share
Negative
- EBITDA As Defined margin declined to 52.8% in Q3 from 54.4% prior year
- YTD EBITDA As Defined margin fell to 52.6% from 53.8% a year earlier
- Higher selling, administrative and interest expense partially offset net income growth
- FY 2026 net income guidance midpoint implies only 3% growth versus fiscal 2025
- $1.5 billion incremental debt added via new 6.125% notes and additional term loans
- GAAP EPS reduced by $1.02 YTD from dividend equivalent payments under stock option plans
News Explained
TransDigm’s completed April debt financing creates borrowing obligations through 2034, while fiscal 2026 guidance excludes the pending Prince & Izant acquisition.
On
The company’s raised fiscal 2026 guidance excludes any contribution from the pending Prince & Izant acquisition, so that forecast does not yet incorporate the agreed transaction.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 27 | Acquisition announcement | Positive | +4.0% | Prince & Izant acquisition agreement announced for approximately $1.066 billion in cash |
| Jul 24 | Earnings scheduling | Neutral | +4.0% | Fiscal third-quarter earnings release and conference call scheduled for August 4 |
| May 05 | Quarterly earnings | Positive | +3.6% | Second-quarter sales, earnings, acquisitions, and fiscal guidance increased |
| Apr 27 | Earnings scheduling | Neutral | +0.9% | Second-quarter earnings release and conference call scheduled for May 5 |
| Apr 07 | Acquisition completion | Positive | -1.7% | Jet Parts Engineering and Victor Sierra acquisitions completed for approximately $2.2 billion |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
TDG's recent earnings and acquisition announcements generally drew positive reactions, although the acquisition completion in April produced a negative reaction.
Key Terms
ebitda financial
pma regulatory
gaap financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third quarter highlights include:
- Net sales of
$2,741 million 23% from$2,237 million - Net income of
$540 million 10% from the prior year's quarter; - Earnings per share of
$9.39 11% from the prior year's quarter; - EBITDA As Defined of
$1,447 million 19% from$1,217 million - EBITDA As Defined margin of
52.8% ; - Adjusted earnings per share of
$10.87 13% from$9.60 - 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
"Our team executed another strong quarter, and we are very pleased with our results," stated Mike Lisman, TransDigm Group's CEO. "All three of our major market channels again delivered double-digit growth compared to the prior year's third quarter. Commercial aftermarket growth of
After the quarter ended, we announced the acquisition of Prince & Izant for approximately
Additionally, during the third quarter, we returned capital of approximately
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 as we finish our fiscal 2026."
Acquisition Activity
As previously announced on April 7, 2026, TransDigm completed the acquisition of Jet Parts Engineering and Victor Sierra for approximately
Subsequent to the quarter-end and as previously announced on July 27, 2026, TransDigm entered into a definitive agreement to acquire Prince & Izant ("P&I") from Industrial Growth Partners for approximately
Financing Activity
During the quarter, on April 17, 2026, TransDigm completed an incremental debt offering of
Share Repurchase Activity
During the third quarter of fiscal 2026, TransDigm repurchased 809,101 shares of its common stock at an average price per share of
Year-to-Date Results
Net sales for the thirty-nine week period ended June 27, 2026 increased
Net income for the thirty-nine week period ended June 27, 2026 increased
GAAP earnings per share were reduced for the thirty-nine week periods ended June 27, 2026 and June 28, 2025 by
Adjusted net income for the thirty-nine week period ended June 27, 2026 increased
EBITDA for the thirty-nine week period ended June 27, 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, "Our strong third quarter performance is enabling us to increase our guidance for the full year. Bookings have exceeded expectations, and we see the current momentum continuing. At the mid-point, we are increasing guidance for sales by
Additionally, we are shifting our market channel guidance upward to reflect our latest market growth expectations." The guidance excludes any contribution from the pending acquisition of P&I.
TransDigm now expects fiscal 2026 financial guidance to be as follows:
- Net sales are anticipated to be in the range of
$10,470 million $10,550 million $8,831 million 19% at the midpoint (an increase of$150 million - Net income is anticipated to be in the range of
$2,102 million $2,150 million $2,074 million 3% at the midpoint (an increase of$60 million - Earnings per share is expected to be in the range of
$35.38 $36.21 $32.08 12% at the midpoint (an increase of$1.20 - EBITDA As Defined is anticipated to be in the range of
$5,490 million $5,550 million $4,760 million 16% at the midpoint (an increase of$100 million 52.5% for fiscal 2026); - Adjusted earnings per share is expected to be in the range of
$40.62 $41.46 $37.33 10% at the midpoint compared to prior year (and an increase of$1.52 - Fiscal 2026 outlook is based on the following market growth assumptions:
- Commercial OEM revenue growth in the mid-teens percentage range;
- Commercial aftermarket revenue growth in the 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, 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 August 4, 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/BI7977bf81590d469998b139f1d3e8ff9a. 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 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 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; 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 AND THIRTY-NINE WEEK PERIODS ENDED | Table 1 | |||||||
JUNE 27, 2026 AND JUNE 28, 2025 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||
June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | |||||
NET SALES | $ 2,741 | $ 2,237 | $ 7,569 | $ 6,394 | ||||
COST OF SALES | 1,113 | 905 | 3,078 | 2,553 | ||||
GROSS PROFIT | 1,628 | 1,332 | 4,491 | 3,841 | ||||
SELLING AND ADMINISTRATIVE EXPENSES | 332 | 242 | 859 | 689 | ||||
AMORTIZATION OF INTANGIBLE ASSETS | 69 | 51 | 185 | 148 | ||||
INCOME FROM OPERATIONS | 1,227 | 1,039 | 3,447 | 3,004 | ||||
INTEREST EXPENSE—NET | 514 | 397 | 1,472 | 1,152 | ||||
OTHER EXPENSE (INCOME) | — | 7 | (10) | (24) | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 713 | 635 | 1,985 | 1,876 | ||||
INCOME TAX PROVISION | 173 | 142 | 464 | 411 | ||||
NET INCOME | 540 | 493 | 1,521 | 1,465 | ||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | (1) | (2) | (1) | ||||
NET INCOME ATTRIBUTABLE TO TD GROUP | $ 539 | $ 492 | $ 1,519 | $ 1,464 | ||||
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS | $ 539 | $ 492 | $ 1,460 | $ 1,415 | ||||
Earnings per share attributable to TD Group common stockholders: | ||||||||
Earnings per share—Basic and diluted | $ 9.39 | $ 8.47 | $ 25.20 | $ 24.31 | ||||
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 57.4 | 58.1 | 57.9 | 58.2 | ||||
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 27, 2026 AND JUNE 28, 2025 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||
June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | |||||
Net Income | $ 540 | $ 493 | $ 1,521 | $ 1,465 | ||||
Adjustments: | ||||||||
Depreciation and amortization expense | 118 | 91 | 324 | 271 | ||||
Interest expense-net | 514 | 397 | 1,472 | 1,152 | ||||
Income tax provision | 173 | 142 | 464 | 411 | ||||
EBITDA | 1,345 | $ 1,123 | 3,781 | 3,299 | ||||
Adjustments: | ||||||||
Acquisition transaction and integration-related expenses (1) | 35 | 9 | 66 | 32 | ||||
Non-cash stock and deferred compensation expense (2) | 65 | 51 | 118 | 124 | ||||
Other, net (3) | 2 | 34 | 16 | (14) | ||||
Gross Adjustments to EBITDA | 102 | 94 | 200 | 142 | ||||
EBITDA As Defined | $ 1,447 | $ 1,217 | $ 3,981 | $ 3,441 | ||||
EBITDA As Defined Margin (4) | 52.8 % | 54.4 % | 52.6 % | 53.8 % | ||||
(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, costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements, 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 THIRTY-NINE WEEK PERIODS ENDED | Table 3 | |||||||
JUNE 27, 2026 AND JUNE 28, 2025 | ||||||||
(Amounts in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Thirteen Week Periods Ended | Thirty-Nine Week Periods Ended | |||||||
June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | |||||
Reported Earnings Per Share | ||||||||
Net income | $ 540 | $ 493 | $ 1,521 | $ 1,465 | ||||
Less: Net income attributable to noncontrolling interests | (1) | (1) | (2) | (1) | ||||
Net income attributable to TD Group | 539 | 492 | 1,519 | 1,464 | ||||
Less: Dividends paid on participating securities | — | — | (59) | (49) | ||||
Net income applicable to TD Group common stockholders—basic and diluted | $ 539 | $ 492 | $ 1,460 | $ 1,415 | ||||
Weighted-average shares outstanding under the two-class method | ||||||||
Weighted-average common shares outstanding | 55.7 | 56.2 | 56.1 | 56.2 | ||||
Vested options deemed participating securities | 1.7 | 1.9 | 1.8 | 2.0 | ||||
Total shares for basic and diluted earnings per share | 57.4 | 58.1 | 57.9 | 58.2 | ||||
Earnings per share—basic and diluted | $ 9.39 | $ 8.47 | $ 25.20 | $ 24.31 | ||||
Adjusted Earnings Per Share | ||||||||
Net income | $ 540 | $ 493 | $ 1,521 | $ 1,465 | ||||
Gross Adjustments to EBITDA | 102 | 94 | 200 | 142 | ||||
Purchase Accounting Backlog Amortization | 7 | 6 | 23 | 14 | ||||
Tax adjustment (1) | (25) | (35) | (67) | (78) | ||||
Adjusted net income | $ 624 | $ 558 | $ 1,677 | $ 1,543 | ||||
Adjusted diluted earnings per share under the two-class method | $ 10.87 | $ 9.60 | $ 28.94 | $ 26.53 | ||||
Diluted Earnings Per Share to Adjusted Earnings Per Share | ||||||||
Diluted earnings per share from net income attributable to TD Group | $ 9.39 | $ 8.47 | $ 25.20 | $ 24.31 | ||||
Adjustments to diluted earnings per share: | ||||||||
Inclusion of the dividend equivalent payments | — | — | 1.02 | 0.83 | ||||
Acquisition transaction and integration-related expenses | 0.54 | 0.20 | 1.16 | 0.60 | ||||
Non-cash stock and deferred compensation expense | 0.87 | 0.67 | 1.55 | 1.62 | ||||
Tax adjustment on income from continuing operations before taxes (1) | 0.04 | (0.19) | (0.20) | (0.67) | ||||
Other, net | 0.03 | 0.45 | 0.21 | (0.16) | ||||
Adjusted earnings per share | $ 10.87 | $ 9.60 | $ 28.94 | $ 26.53 | ||||
(1) | For the thirteen and thirty-nine week periods ended June 27, 2026 and June 28, 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 THIRTY-NINE WEEK PERIODS ENDED | Table 4 | |||
JUNE 27, 2026 AND JUNE 28, 2025 | ||||
(Amounts in millions) | ||||
(Unaudited) | ||||
Thirty-Nine Week Periods Ended | ||||
June 27, 2026 | June 28, 2025 | |||
Net cash provided by operating activities | $ 1,691 | $ 1,531 | ||
Adjustments: | ||||
Changes in assets and liabilities, net of effects from acquisitions and sales of businesses | 305 | 337 | ||
Interest expense-net (1) | 1,437 | 1,124 | ||
Income tax provision-current | 466 | 414 | ||
Gain on sale of businesses, net | — | 17 | ||
Non-cash stock and deferred compensation expense (2) | (118) | (124) | ||
EBITDA | 3,781 | 3,299 | ||
Adjustments: | ||||
Acquisition transaction and integration-related expenses (3) | 66 | 32 | ||
Non-cash stock and deferred compensation expense (2) | 118 | 124 | ||
Other, net (4) | 16 | (14) | ||
EBITDA As Defined | $ 3,981 | $ 3,441 | ||
(1) | Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and premium 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, costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements, 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 27, 2026 | September 30, 2025 | |||
Cash and cash equivalents | $ 2,773 | $ 2,808 | ||
Trade accounts receivable—Net | 1,817 | 1,617 | ||
Inventories—Net | 2,586 | 2,095 | ||
Current portion of long-term debt | 139 | 124 | ||
Short-term borrowings—trade receivable securitization facility | 725 | 724 | ||
Accounts payable | 434 | 368 | ||
Accrued and other current liabilities | 1,276 | 966 | ||
Long-term debt | 32,621 | 29,167 | ||
Total TD Group stockholders' deficit | (9,809) | (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 | $ 2,126 | |
Adjustments: | ||
Depreciation and amortization expense | 438 | |
Interest expense-net | 2,020 | |
Income tax provision | 653 | |
EBITDA | 5,237 | |
Adjustments: | ||
Acquisition transaction and integration-related expenses (1) | 90 | |
Non-cash stock and deferred compensation expense (1) | 170 | |
Other, net (1) | 23 | |
Gross Adjustments to EBITDA | 283 | |
EBITDA As Defined | $ 5,520 | |
EBITDA As Defined Margin (1) | 52.5 % | |
Earnings per share | $ 35.80 | |
Adjustments to earnings per share: | ||
Inclusion of the dividend equivalent payments | 1.03 | |
Acquisition transaction and integration-related expenses | 1.65 | |
Non-cash stock and deferred compensation expense | 2.33 | |
Other, net | 0.23 | |
Adjusted earnings per share | $ 41.04 | |
Weighted-average shares outstanding | 57.7 | |
(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 | 57.7 | 58.0 | (0.3) | |||
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SOURCE TransDigm Group Inc.