A Business at a Glance
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TransDigm Group INC
TDG
$80.0B
Mkt Cap
$1,236.71
+1.88%
TransDigm Group INC (TDG) has a current P/E ratio of 39.8, compared to its historical median P/E of 33.7. The stock is currently considered Fair based on its historical valuation range.
TransDigm Group INC (TDG) has a 5-year average return on invested capital (ROIC) of 17.7%. This indicates strong capital allocation and a potential competitive advantage.
TransDigm Group INC (TDG) has a market capitalization of $77.6B. It is classified as a large-cap stock.
Yes, TransDigm Group INC (TDG) pays a dividend with a trailing twelve-month yield of 5.38%. The company also returns capital through share buybacks, with a buyback yield of 1.10%.
Based on historical P/E analysis, TransDigm Group INC (TDG) appears fair. The current P/E of 39.8 is 18% above its historical median of 33.7. The estimated fair value CAGR (P/E method) is 17.5%.
TransDigm Group INC (TDG) operates in the Aircraft Parts & Auxiliary Equipment, Nec industry, within the Industrials sector.
TransDigm Group INC (TDG) reported annual revenue of $8.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
TransDigm is a leading global designer, producer and supplier of highly engineered aircraft components critical to the safe and effective operation of commercial and military aircraft worldwide, with approximately 90% of fiscal 2025 net sales generated by proprietary products. The company operates through three segments—Power & Control, Airframe, and Non-aviation—offering products ranging from mechanical and electromechanical actuators and controls to cockpit security systems, parachutes, seat belts, and specialized aerospace components. TransDigm's business model is characterized by significant aftermarket revenue generation, with approximately 55% of fiscal 2025 net sales derived from aftermarket consumption over the estimated 25-to-30-year life of aircraft platforms, producing higher gross profit and greater stability than original equipment manufacturer (OEM) sales. The company pursues a value-driven operating strategy centered on three core value drivers: obtaining profitable new business through technical expertise and market knowledge, improving cost structure through lean operations, and providing highly engineered value-added products that command premium pricing. TransDigm's competitive moat is built on proprietary product design, stringent regulatory certification requirements that create barriers to entry, long-term customer relationships, and a diversified customer base spanning commercial airlines, OEMs, defense agencies, and system suppliers across commercial, regional, business jet, and military aviation markets, with no single customer exceeding 10% of net sales.
【Strong backlog conversion ahead】 Management expects continued strength in commercial OEM demand as Boeing and Airbus production rates increase, supported by solid bookings growth that significantly outpaced sales in the first half of fiscal 2026. Commercial aftermarket is anticipated to grow in the high single-digit to low double-digit range, supported by strong bookings, solid book-to-bill ratios, and double-digit distribution point-of-sale growth, though management is monitoring the evolving Middle East situation and its potential impact on jet fuel availability and pricing. Defense revenue is expected to grow in the high single-digit range, with management encouraged by recent booking levels, current backlog, and the positive defense spending environment. The company expects EBITDA margins to improve sequentially throughout fiscal 2026 as base business margins expand, with recent acquisitions initially dilutive by approximately 200 basis points but expected to benefit from the application of TransDigm's proven operating strategy and value drivers over the medium term.
| Metric | Target | Period |
|---|---|---|
| Revenue | $10.36 billion | FY2026 (midpoint) |
| EBITDA as defined | $5.42 billion | FY2026 (midpoint) |
| Adjusted EPS | $39.52 | FY2026 (midpoint) |
| Free cash flow | $2.5 billion | FY2026 |
| Commercial OEM revenue growth | low double-digit to mid-teens percentage range | FY2026 |
| Defense revenue growth | high single-digit percentage range | FY2026 |
Revenue (FY2026 (midpoint)): “The midpoint of our fiscal 2026 revenue guidance is now $10.36 billion, or up approximately 17% over the prior year.”
EBITDA as defined (FY2026 (midpoint)): “The midpoint of fiscal 2026 EBITDA as defined guidance is now $5.42 billion or up approximately 14%, with an expected margin of around 52.3%.”
Adjusted EPS (FY2026 (midpoint)): “The midpoint of adjusted EPS is now expected to be $39.52.”
Free cash flow (FY2026): “For the full fiscal year, we now expect our free cash flow guidance to be closer to $2.5 billion, an increase from the prior guide of $2.4 billion.”
Commercial OEM revenue growth (FY2026): “We expect commercial OEM revenue growth in the low double-digit to mid-teens percentage range.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.5B | 8.8B | 7.9B | 6.6B | 5.4B | 4.8B |
| Net Income | 2.1B | 2.1B | 1.7B | 1.3B | 866M | 680M |
| EPS | $33.29 | $32.08 | $25.62 | $22.03 | $13.40 | $10.41 |
| Free Cash Flow | 1.9B | 1.8B | 1.9B | 1.2B | 829M | 808M |
| ROIC | 19.2% | 22.8% | 21.1% | 16.6% | 13.8% | 14.1% |
| Gross Margin | 59.6% | 60.1% | 58.8% | 58.3% | 57.1% | 52.4% |
| Debt/Equity | 0.00 | -3.04 | -3.89 | -9.81 | -5.17 | -6.83 |
| Dividends/Share | $66.58 | $2.46 | $30.46 | $0.64 | $18.50 | $1.12 |
| Operating Income | 4.4B | 4.2B | 3.5B | 2.9B | 2.2B | 1.7B |
| Operating Margin | 46.5% | 47.2% | 44.5% | 44.4% | 40.8% | 35.2% |
| ROE | 0.0% | -26.0% | -41.4% | -45.1% | -25.9% | -19.7% |
| Shares Outstanding | 63M | 65M | 67M | 59M | 65M | 65M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.4B | 2.7B | 3.2B | 3.5B | 3.8B | 5.2B | 5.1B | 4.8B | 5.4B | 6.6B | 7.9B | 8.8B | 9.5B |
| Gross Margin | 53.4% | 53.6% | 54.5% | 56.6% | 57.1% | 53.8% | 51.9% | 52.4% | 57.1% | 58.3% | 58.8% | 60.1% | 59.6% |
| R&D | 42M | 48M | 59M | 74M | 74M | 117M | 131M | 106M | 95M | 105M | 107M | 118M | 118M |
| SG&A | 276M | 322M | 383M | 413M | 450M | 748M | 727M | 685M | 748M | 780M | 980M | 945M | 1.0B |
| EBIT | 928M | 1.1B | 1.3B | 1.5B | 1.7B | 1.9B | 1.8B | 1.7B | 2.2B | 2.9B | 3.5B | 4.2B | 4.4B |
| Op. Margin | 39.1% | 39.7% | 40.0% | 42.3% | 43.4% | 36.9% | 34.3% | 35.2% | 40.8% | 44.4% | 44.5% | 47.2% | 46.5% |
| Net Income | 307M | 447M | 586M | 597M | 957M | 890M | 699M | 680M | 866M | 1.3B | 1.7B | 2.1B | 2.1B |
| Net Margin | 12.9% | 16.5% | 18.5% | 17.0% | 25.1% | 17.0% | 13.7% | 14.2% | 16.0% | 19.7% | 21.6% | 23.5% | 21.9% |
| Non-Recurring | 0 | 0 | 0 | 32M | 0 | 0 | 0 | 69M | 7.0M | 0 | 11M | 10M | 10M |
| Returns on Capital | |||||||||||||
| ROIC | 13.1% | 13.4% | 13.7% | 14.3% | 19.6% | 14.6% | 13.4% | 14.1% | 13.8% | 16.6% | 21.1% | 22.8% | 19.2% |
| ROE | -32.4% | -34.5% | -69.4% | -33.1% | -40.2% | -37.9% | -20.4% | -19.7% | -25.9% | -45.1% | -41.4% | -26.0% | 0.0% |
| ROA | 4.8% | 5.9% | 6.2% | 5.8% | 8.6% | 6.3% | 4.0% | 3.6% | 4.6% | 6.8% | 7.5% | 8.6% | 8.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 541M | 521M | 683M | 789M | 1.0B | 1.0B | 1.2B | 913M | 948M | 1.4B | 2.0B | 2.0B | 2.1B |
| Free Cash Flow | 507M | 466M | 639M | 718M | 949M | 913M | 1.1B | 808M | 829M | 1.2B | 1.9B | 1.8B | 1.9B |
| Owner Earnings | 419M | 396M | 513M | 602M | 835M | 696M | 837M | 531M | 542M | 972M | 1.5B | 1.5B | 1.5B |
| CapEx | 34M | 55M | 44M | 71M | 73M | 102M | 105M | 105M | 119M | 139M | 165M | 222M | 255M |
| Maint. CapEx | 96M | 94M | 122M | 141M | 129M | 226M | 283M | 253M | 253M | 268M | 312M | 367M | 491M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 96M | 94M | 122M | 141M | 129M | 226M | 283M | 253M | 253M | 268M | 312M | 367M | 491M |
| CapEx/OCF | 6.3% | 10.5% | 6.4% | 9.0% | 7.1% | 10.0% | 8.7% | 11.5% | 12.6% | 10.1% | 8.1% | 10.9% | 12.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 1.5B | 3.4M | 3.0M | 2.6B | 56M | 1.7B | 1.9B | 73M | 1.1B | 38M | 2.0B | 159M | 4.2B |
| Dividend Yield | 15.4% | 0.0% | 0.0% | 19.4% | 0.4% | 8.2% | 6.2% | 0.2% | 3.3% | 0.1% | 3.0% | 0.2% | 5.4% |
| Share Buybacks | 160M | 0 | 208M | 390M | 0 | 0 | 19M | 0 | 912M | 0 | 0 | 500M | 852M |
| Buyback Yield | 1.4% | N/A | 2.0% | 2.7% | N/A | N/A | 0.1% | N/A | 3.4% | N/A | N/A | 0.7% | 1.1% |
| Stock-Based Comp | 26M | 32M | 48M | 46M | 59M | 93M | 93M | 129M | 153M | 135M | 188M | 152M | 132M |
| Debt Repayment | 0 | 1.0B | 834M | 1.3B | 12.2B | 77M | 75M | 75M | 75M | 7.3B | 4.4B | 3.6B | 3.6B |
| Balance Sheet | |||||||||||||
| Net Debt | 6.5B | 7.4B | 8.4B | 10.8B | 10.5B | 15.1B | 14.9B | 15.1B | 16.5B | 16.0B | 18.2B | 26.6B | 27.4B |
| Cash & Equiv. | 820M | 714M | 1.6B | 651M | 2.1B | 1.5B | 4.7B | 4.8B | 3.0B | 3.5B | 6.3B | 2.8B | 3.9B |
| Long-Term Debt | 7.2B | 8.1B | 9.9B | 11.4B | 12.5B | 16.5B | 19.4B | 19.6B | 19.4B | 19.4B | 24.4B | 29.3B | 31.1B |
| Debt/Equity | -4.67 | -7.85 | -15.34 | -3.88 | -6.95 | -5.72 | -4.95 | -6.83 | -5.17 | -9.81 | -3.89 | -3.04 | 0.00 |
| Interest Coverage | 2.7 | 2.6 | 2.6 | 2.5 | 2.5 | 2.2 | 1.7 | 1.6 | 2.1 | 2.5 | 2.7 | 2.6 | 2.6 |
| Equity | -1.6B | -1.0B | -651M | -3.0B | -1.8B | -2.9B | -4.0B | -2.9B | -3.8B | -2.0B | -6.3B | -9.7B | -9.4B |
| Total Assets | 6.8B | 8.3B | 10.7B | 10.0B | 12.2B | 16.3B | 18.4B | 19.3B | 18.1B | 20.0B | 25.6B | 22.9B | 25.4B |
| Total Liabilities | 8.3B | 9.3B | 11.4B | 12.9B | 14.0B | 19.1B | 22.4B | 22.2B | 21.9B | 22.0B | 31.9B | 32.6B | 34.8B |
| Intangibles | 1.2B | 1.5B | 1.8B | 1.7B | 1.8B | 2.7B | 2.6B | 2.8B | 2.8B | 2.7B | 3.4B | 3.5B | 3.8B |
| Retained Earnings | -2.2B | -1.7B | -1.1B | -3.2B | -2.2B | -3.1B | -4.4B | -3.7B | -3.9B | -2.6B | -7.4B | -10.6B | -9.6B |
| Working Capital | 1.1B | 1.1B | 2.2B | 1.3B | 2.8B | 3.3B | 5.3B | 5.4B | 4.2B | 5.2B | 3.7B | 4.8B | 6.1B |
| Current Assets | 1.7B | 1.8B | 2.9B | 2.1B | 3.7B | 4.9B | 7.0B | 7.0B | 5.6B | 6.7B | 10.0B | 7.0B | 8.6B |
| Current Liabilities | 586M | 658M | 753M | 871M | 900M | 1.5B | 1.6B | 1.7B | 1.4B | 1.6B | 6.3B | 2.2B | 2.4B |
| Per Share Data | |||||||||||||
| EPS | 3.16 | 7.84 | 10.39 | 7.88 | 16.20 | 13.84 | 8.96 | 10.41 | 13.40 | 22.03 | 25.62 | 32.08 | 33.29 |
| Owner EPS | 4.31 | 6.94 | 9.09 | 7.95 | 14.13 | 10.82 | 10.73 | 8.13 | 8.39 | 16.50 | 23.09 | 23.50 | 23.62 |
| Book Value | -16.02 | -18.20 | -11.54 | -38.96 | -30.61 | -45.00 | -50.91 | -44.64 | -58.38 | -33.67 | -94.02 | -149.82 | -149.83 |
| Cash Flow/Share | 5.57 | 9.13 | 12.11 | 10.41 | 17.30 | 15.78 | 15.55 | 13.98 | 14.67 | 23.34 | 30.57 | 31.52 | 41.00 |
| Dividends/Share | 14.94 | 0.06 | 0.05 | 46.00 | 0.95 | 30.00 | 32.50 | 1.12 | 18.50 | 0.64 | 30.46 | 2.46 | 66.58 |
| Shares Out. | 97.1M | 57.0M | 56.4M | 75.7M | 59.1M | 64.3M | 78.0M | 65.3M | 64.6M | 58.9M | 66.9M | 64.7M | 62.7M |
| Valuation | |||||||||||||
| P/E Ratio | 36.6 | 17.4 | 17.5 | 23.9 | 17.1 | 29.4 | 46.3 | 51.0 | 34.5 | 32.9 | 48.5 | 40.4 | 37.2 |
| P/FCF | 22.1 | 16.7 | 16.1 | 19.9 | 17.2 | 28.7 | 29.2 | 42.9 | 36.0 | 34.6 | 44.2 | 46.1 | 41.9 |
| EV/EBIT | 19.1 | 14.3 | 14.7 | 16.9 | 16.2 | 21.4 | 27.0 | 24.4 | 19.6 | 19.7 | 25.5 | 24.5 | 23.8 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 4.0 | 2.8 | 2.7 | 3.8 | 3.6 | 4.0 | 6.1 | 6.0 | 5.5 | 5.5 | 7.4 | 8.5 | 8.2 |
| FCF Yield | 4.5% | 6.0% | 6.2% | 5.0% | 5.8% | 3.5% | 3.4% | 2.6% | 3.1% | 3.0% | 2.6% | 2.4% | 2.4% |
| Market Cap | 11.2B | 7.8B | 10.3B | 14.3B | 16.3B | 26.2B | 32.3B | 30.9B | 26.9B | 41.5B | 71.9B | 75.4B | 77.6B |
| Avg. Price | 97.28 | 133.14 | 151.46 | 175.64 | 233.01 | 324.26 | 397.25 | 496.84 | 511.92 | 635.00 | 1,022.99 | 1,289.47 | 1,236.71 |
| Year-End Price | 115.62 | 136.76 | 182.07 | 188.19 | 276.33 | 407.27 | 414.41 | 530.51 | 461.79 | 725.17 | 1,243.25 | 1,295.72 | 1,236.71 |
TransDigm Group INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
TransDigm Group INC trades at 39.8x trailing earnings, compared to its 15-year median P/E of 33.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 37.2x vs a median of 31.9x. The company's 5-year average ROIC is 17.7% with a gross margin of 57.4%. Total shareholder yield (dividends + buybacks) is 6.5%. At current prices, the estimated annualized return to fair value is +14.8%.
TransDigm Group INC (TDG) has a net profit margin of 23.5%. This is a strong margin indicating high profitability.
TransDigm Group INC (TDG) generated $1.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TransDigm Group INC (TDG) reported earnings per share (EPS) of $32.08 in its most recent fiscal year.
TransDigm Group INC (TDG) has a return on equity (ROE) of -26.0%. A negative ROE may indicate losses or negative equity.
TransDigm Group INC (TDG) has a 5-year average gross margin of 57.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for TransDigm Group INC (TDG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TransDigm Group INC (TDG) has a book value per share of $-149.82, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strength in commercial OEM demand as Boeing and Airbus production rates increase, supported by solid bookings growth that significantly outpaced sales in the first half of fiscal 2026. Commercial aftermarket is anticipated to grow in the high single-digit to low double-digit range, supported by strong bookings, solid book-to-bill ratios, and double-digit distribution point-of-sale growth, though management is monitoring the evolving Middle East situation and its potential impact on jet fuel availability and pricing. Defense revenue is expected to grow in the high single-digit range, with management encouraged by recent booking levels, current backlog, and the positive defense spending environment. The company expects EBITDA margins to improve sequentially throughout fiscal 2026 as base business margins expand, with recent acquisitions initially dilutive by approximately 200 basis points but expected to benefit from the application of TransDigm's proven operating strategy and value drivers over the medium term.
Based on recent SEC filings and earnings calls, TransDigm Group INC (TDG) has provided the following forward guidance: Revenue: $10.36 billion (FY2026 (midpoint)); EBITDA as defined: $5.42 billion (FY2026 (midpoint)); Adjusted EPS: $39.52 (FY2026 (midpoint)); Free cash flow: $2.5 billion (FY2026); Commercial OEM revenue growth: low double-digit to mid-teens percentage range (FY2026), plus 1 additional metric.
Defense revenue growth (FY2026): “Lastly, we expect defense revenue growth in the high single-digit percentage range.”