TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results
Exhibit 99.1 TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results Cleveland, Ohio, November 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.
Net sales of $2,988 million, up 23% from $2,437 million 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.
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.
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. 1
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.
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.
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. 2 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.
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."
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
◦ 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
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. 3
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. 4
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.
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. 5 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.
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.
Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related (1) 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. Represents costs expensed related to debt financing activities, (3) including new issuances, extinguishments, refinancings and amendments to existing agreements. Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and (4) 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.
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 (1) 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 - RECONCILIATI… OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2026 AND SEPTEMBER 30, 2025 (Amounts in millions) Fiscal Years September 30, September 30, (Unaudited) Ended 2026 2025 Table 4 ────────────────────────────────────────────────────────────────────────────── Net cash provided by $ 2,187 $ 2,038 operating activities Adjustments: Changes in assets and liabilities, net of effects 647 589 from acquisitions and sales of businesses Interest 1,961 1,534 expense-net(… Income tax 608 565 provision-cu… Refinancing -28 -11 costs(2) Gain on sale of — 10 businesses, net Non-cash stock and deferred -158 -157 compensation expense(3) EBITDA 5,217 4,568 Adjustments: Acquisition transaction and 101 42 integration-… expenses(4) Non-cash stock and deferred 158 157 compensation expense(3) Refinancing 28 11 costs(2) Other, net(5) 59 -18 EBITDA As $ 5,563 $ 4,760 Defined
(1) Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and premium and discount on debt. Represents costs expensed related to debt financing activities, (2) 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. Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition-related (4) 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. Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and (5) 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 (Amounts in millions) (Unaudited) September 30, 2026 September 30, 2025 Table 5 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 2,279 $ 2,808 equivalents Trade accounts 2,054 1,617 receivable—Net Inventories—Net 2,713 2,095 Current portion 147 124 of long-term debt Short-term borrowings—trade receivable 873 724 securitization facility Accounts payable 518 368 Accrued and other current 1,100 966 liabilities Long-term debt 33,743 29,167 Total TD Group stockholders’ -10,000 -9,686 deficit
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 (Amounts in millions, GUIDANCE MIDPOINT except per share amounts) Fiscal Year Ended September (Unaudited) 30, 2027 Table 6 ────────────────────────────────────────────────────────────────────────────── Net Income $ 2,466 Adjustments: Depreciation and 525 amortization expense Interest expense-net 2,255 Income tax provision 741 EBITDA 5,987 Adjustments: Acquisition transaction and integration-related 42 expenses(1) Non-cash stock and deferred compensation 225 expense(1) 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 0.95 payments Acquisition transaction and integration-related 0.83 expenses Non-cash stock and deferred compensation 3.05 expense Other, net 0.20 Adjusted earnings per share $ 47.51 Weighted-average shares 56.7 outstanding
Full text with the tables
Exhibit 99.1
TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results
Cleveland, Ohio, November 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.
1
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.
2
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.
3
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.
4
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.
5
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.
6
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
7
TRA…
GRO…
INC…
CON…
STA…
OF
INC…
FOR
THE
THI…
WEEK
PER…
AND
FIS…
YEA…
END…
SEP…
30,
2026
AND
SEP…
30, Table
2025 1
──────────────────────────────────────────────────────────────────────────────
(Am…
in
mil…
exc…
per
sha…
amo…
(Un…
Thir… Fisc…
Week Years
Peri… Ended
Ended
Sept… Sept… Sept… Septe…
30, 30, 30, 30,
2026 2025 2026 2025
NET $ 2,988 $ 2,437 $ 10,5… $ 8,831
SAL…
COST
OF 1,225 967 4,303 3,520
SAL…
GRO… 1,763 1,470 6,254 5,311
PRO…
SEL…
AND 332 256 1,191 945
ADM…
EXP…
AMO…
OF 67 53 252 201
INT…
ASS…
INC…
FROM 1,364 1,161 4,811 4,165
OPE…
INT… 536 420 2,008 1,572
EXP…
REF… 27 3 28 11
COS…
OTH…
EXP… 23 -14 11 -47
(IN…
INC…
FROM
CON…
OPE… 778 752 2,764 2,629
BEF…
INC…
TAX…
INC…
TAX 192 143 656 555
PRO…
NET 586 609 2,108 2,074
INC…
LES…
NET
INC…
ATT… — 1 -1 —
TO
NON…
INT…
NET
INC…
ATT… $ 586 $ 610 $ 2,107 $ 2,074
TO
TD
GRO…
NET
INC…
APP…
TO $ 586 $ 451 $ 2,048 $ 1,866
TD
GRO…
COM…
STO…
Ear…
per
sha…
att…
to
TD
Gro…
com…
sto…
Ear…
per
sha… $ 10.33 $ 7.75 $ 35.51 $ 32.08
and
dil…
Cash
div…
dec… $ — $ 90.00 $ — $ 90.00
per
com…
sha…
Wei…
sha…
out…
Bas…
and 56.7 58.1 57.6 58.2
dil…
8
TRA…
GRO…
INC…
SUP…
INF…
-
REC…
OF
EBI…
EBI…
AS
DEF…
TO
NET
INC…
FOR
THE
THI…
WEEK
PER…
AND
FIS…
YEA…
END…
SEP…
30,
2026
AND
SEP…
30,
2025
(Am…
in
mil…
exc…
per Thir…
sha… Week Sept… Sept… Fisc… Sept… Sept…
amo… Peri… 30, 30, Years 30, 30, Table
(Un… Ended 2026 2025 Ended 2026 2025 2
──────────────────────────────────────────────────────────────────────────────
Net $ 586 $ 609 $ 2,108 $ 2,074
Inc…
Adj…
Dep…
and 122 97 445 367
amo…
exp…
Int… 536 420 2,008 1,572
exp…
Inc…
tax 192 143 656 555
pro…
EBI… 1,436 1,269 5,217 4,568
Adj…
Acq…
tra…
and 36 10 101 42
int…
exp…
Non…
sto…
and 40 33 158 157
def…
com…
exp…
Ref… 27 3 28 11
cos…
Oth… 44 5 59 -18
net…
Gro…
Adj… 147 51 346 192
to
EBI…
EBI…
As $ 1,583 $ 1,320 $ 5,563 $ 4,760
Def…
EBI…
As 53.0 % 54.2 % 52.7 % 53.9 %
Def…
Mar…
Represents costs incurred to integrate acquired businesses into our
operations; facility relocation costs and other acquisition-related
(1) 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.
Represents costs expensed related to debt financing activities,
(3) including new issuances, extinguishments, refinancings and amendments
to existing agreements.
Primarily represents foreign currency transaction gains or losses,
payroll withholding taxes related to dividend equivalent payments and
(4) 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.
9
TRA…
GRO…
INC…
SUP…
INF…
-
REC…
OF
REP…
EAR…
PER
SHA…
TO
ADJ…
EAR…
PER
SHA…
FOR
THE
THI…
WEEK
PER…
AND
FIS…
YEA…
END…
SEP…
30,
2026
AND
SEP…
30,
2025
(Am…
in
mil…
exc…
per
sha… Thir…
amo… Week Fisc…
(Un… Peri… Years
Rep… Ended Ended
Ear… Sept… Sept… Sept… Sept…
Per 30, 30, 30, 30, Table
Sha… 2026 2025 2026 2025 3
──────────────────────────────────────────────────────────────────────────────
Net $ 586 $ 609 $ 2,108 $ 2,074
inc…
Les…
Net
inc…
att… — 1 -1 —
to
non…
int…
Net
inc…
att… 586 610 2,107 2,074
to
TD
Gro…
Les…
Div…
dec…
or — -159 -59 -208
paid
on
par…
sec…
Net
inc…
app…
to
TD $ 586 $ 451 $ 2,048 $ 1,866
Gro…
com…
sto…
and
dil…
Wei…
sha…
out…
und…
the
two…
met…
Wei…
com… 55.1 56.3 55.9 56.3
sha…
out…
Ves…
opt…
dee… 1.6 1.8 1.7 1.9
par…
sec…
Tot…
sha…
for
bas…
and 56.7 58.1 57.6 58.2
dil…
ear…
per
sha…
Ear…
per
sha… $ 10.33 $ 7.75 $ 35.51 $ 32.08
and
dil…
Adj…
Ear…
Per
Sha…
Net $ 586 $ 609 $ 2,108 $ 2,074
inc…
Gro…
Adj… 147 51 346 192
to
EBI…
Pur…
Acc… 5 7 27 21
Bac…
Amo…
Tax -32 -38 -98 -116
adj…
Adj…
net $ 706 $ 629 $ 2,383 $ 2,171
inc…
Adj…
dil…
ear…
per
sha… $ 12.44 $ 10.82 $ 41.35 $ 37.33
und…
the
two…
met…
Dil…
Ear…
Per
Sha…
to
Adj…
Ear…
Per
Sha…
Dil…
ear…
per
sha…
from
net $ 10.33 $ 7.75 $ 35.51 $ 32.08
inc…
att…
to
TD
Gro…
Adj…
to
dil…
ear…
per
sha…
Inc…
of
the — 2.75 1.03 3.58
div…
equ…
pay…
Acq…
tra…
and 0.55 0.24 1.70 0.83
int…
exp…
Non…
sto…
and 0.53 0.44 2.09 2.06
def…
com…
exp…
Ref… 0.36 0.04 0.37 0.14
cos…
Tax
adj…
on
inc…
from 0.09 -0.42 -0.11 -1.10
con…
ope…
bef…
tax…
Oth… 0.58 0.02 0.76 -0.26
net
Adj…
ear… $ 12.44 $ 10.82 $ 41.35 $ 37.33
per
sha…
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
(1) 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.
10
TRANSDIGM
GROUP
INCORPORATED
SUPPLEMENTAL
INFORMATION -
RECONCILIATI…
OF NET CASH
PROVIDED BY
OPERATING
ACTIVITIES TO
EBITDA,
EBITDA AS
DEFINED
FOR THE
FISCAL YEARS
ENDED
SEPTEMBER 30,
2026 AND
SEPTEMBER 30,
2025
(Amounts in
millions) Fiscal Years September 30, September 30,
(Unaudited) Ended 2026 2025 Table 4
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by $ 2,187 $ 2,038
operating
activities
Adjustments:
Changes in
assets and
liabilities,
net
of effects 647 589
from
acquisitions
and sales
of businesses
Interest 1,961 1,534
expense-net(…
Income tax 608 565
provision-cu…
Refinancing -28 -11
costs(2)
Gain on sale
of — 10
businesses,
net
Non-cash
stock and
deferred -158 -157
compensation
expense(3)
EBITDA 5,217 4,568
Adjustments:
Acquisition
transaction
and 101 42
integration-…
expenses(4)
Non-cash
stock and
deferred 158 157
compensation
expense(3)
Refinancing 28 11
costs(2)
Other, net(5) 59 -18
EBITDA As $ 5,563 $ 4,760
Defined
(1) Represents interest expense, net of interest income, excluding the
amortization of debt issuance costs and premium and discount on debt.
Represents costs expensed related to debt financing activities,
(2) 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.
Represents costs incurred to integrate acquired businesses into our
operations; facility relocation costs and other acquisition-related
(4) 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.
Primarily represents foreign currency transaction gains or losses,
payroll withholding taxes related to dividend equivalent payments and
(5) stock option exercises, non-service related pension costs, deferred
compensation payments and other miscellaneous income or expense, such
as gain on sale of business.
11
TRANSDIGM GROUP
INCORPORATED
SUPPLEMENTAL
INFORMATION -
BALANCE SHEET
DATA
(Amounts in
millions)
(Unaudited) September 30, 2026 September 30, 2025 Table 5
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 2,279 $ 2,808
equivalents
Trade accounts 2,054 1,617
receivable—Net
Inventories—Net 2,713 2,095
Current portion 147 124
of long-term debt
Short-term
borrowings—trade
receivable 873 724
securitization
facility
Accounts payable 518 368
Accrued and other
current 1,100 966
liabilities
Long-term debt 33,743 29,167
Total TD Group
stockholders’ -10,000 -9,686
deficit
12
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
(Amounts in millions, GUIDANCE MIDPOINT
except per share amounts) Fiscal Year Ended September
(Unaudited) 30, 2027 Table 6
──────────────────────────────────────────────────────────────────────────────
Net Income $ 2,466
Adjustments:
Depreciation and 525
amortization expense
Interest expense-net 2,255
Income tax provision 741
EBITDA 5,987
Adjustments:
Acquisition transaction and
integration-related 42
expenses(1)
Non-cash stock and deferred
compensation 225
expense(1)
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 0.95
payments
Acquisition transaction and
integration-related 0.83
expenses
Non-cash stock and deferred
compensation 3.05
expense
Other, net 0.20
Adjusted earnings per share $ 47.51
Weighted-average shares 56.7
outstanding
(1) Refer to Table 2 above for definitions of Non-GAAP measurement
adjustments.
13