olivLaw · US equity research
TDG TDG
Aircraft Parts & Auxiliary Equipment, NEC · SIC 3728 · Vertical: Aircraft Parts & Auxiliary Equipment, NEC (SIC 3728)
TransDigm Group (TDG) designs and produces highly engineered aircraft components with a significant aftermarket content. In fiscal 2025 it reported net sales of 8831 million USD and net income attributable to TD Group of 2074 million USD. In the third quarter of fiscal 2026 net sales rose 23%, and guidance was raised.
At the close of 04 Nov 2026, TDG (TDG) stock was 1,216.88 USD (+0.73% on the day), with market capitalisation 67.3 bn USD, P/E 34.1 on diluted EPS of 35.69 USD over the last 12 months, dividend yield 2.88%, beta 0.76, 52-week range 1,076.01–1,450.00 USD. Latest reported quarter (Q3 2026): revenue of 2.7 bn USD (+22.5% YoY), net income of 539.0 m USD (+9.6% YoY), diluted EPS 9.39 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 66.0
- strong (55–70)
- Bollinger (20, 2)
- 1,071.56 – 1,211.65
- above the upper band · %B 1.04 · band width 12.3%
- SMA 50 / 200
- 1,130.19 / 1,222.76
- mixed trend
- MACD (12, 26, 9)
- 19.39 / 8.54
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +11.4% | −1.1% | +12.5 pp | — |
| 3 months | −3.0% | −0.5% | −2.6 pp | — |
| 6 months | −1.3% | +4.4% | −5.7 pp | — |
| Year to date | −8.5% | +12.3% | −20.8 pp | — |
| 1 year | −5.8% | +13.5% | −19.4 pp | +14.7% |
| 3 years | +38.0% | +76.4% | −38.5 pp | +83.9% |
| 5 years | +83.0% | +63.7% | +19.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 27 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.2 bn | 2.0 bn | 2.2 bn | 2.2 bn | 2.4 bn | 2.3 bn | 2.5 bn | 2.7 bn |
| Cost of revenue | 927.0 m | 771.0 m | 876.0 m | 905.0 m | 967.0 m | 933.0 m | 1.0 bn | 1.1 bn |
| Gross profit | 1.3 bn | 1.2 bn | 1.3 bn | 1.3 bn | 1.5 bn | 1.4 bn | 1.5 bn | 1.6 bn |
| SG&A | 265.0 m | 211.0 m | 236.0 m | 242.0 m | 256.0 m | 254.0 m | 273.0 m | 332.0 m |
| Operating income | 943.0 m | 974.0 m | 991.0 m | 1.0 bn | 1.2 bn | 1.0 bn | 1.2 bn | 1.2 bn |
| Depreciation & amortisation | — | 90.0 m | 89.0 m | 91.0 m | 96.0 m | 100.0 m | 105.0 m | 118.0 m |
| Interest expense | — | 378.0 m | 378.0 m | 397.0 m | — | 475.0 m | 484.0 m | 514.0 m |
| Pre-tax income | 605.0 m | 619.0 m | 622.0 m | 635.0 m | 753.0 m | 572.0 m | 700.0 m | 713.0 m |
| Income tax | 138.0 m | 126.0 m | 143.0 m | 142.0 m | 144.0 m | 127.0 m | 164.0 m | 173.0 m |
| Net income | 468.0 m | 493.0 m | 479.0 m | 492.0 m | 610.0 m | 445.0 m | 535.0 m | 539.0 m |
| Diluted EPS | 8.10 ≈ | 7.62 | 8.24 | 8.47 | 10.48 ≈ | 6.62 | 9.20 | 9.39 |
| Operating cash flow | 572.0 m | 752.0 m | 148.0 m ≈ | 631.0 m ≈ | 507.0 m | 832.0 m | 135.0 m ≈ | 724.0 m ≈ |
| Capex | 41.0 m | 42.0 m | 56.0 m ≈ | 58.0 m ≈ | 66.0 m | 60.0 m | 71.0 m ≈ | 74.0 m ≈ |
| Dividends paid | 0 | 4.4 bn | 0 ≈ | 0 ≈ | 5.2 bn | 59.0 m | 0 ≈ | 0 ≈ |
| Share repurchases | 0 | 316.0 m | 53.0 m ≈ | 131.0 m ≈ | 0 | 106.0 m | 615.0 m ≈ | 1.1 bn ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 6 percentile of its own 16-quarter history (min 32.8, median 42.2, max 51.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.8 bn | 5.2 bn | 5.1 bn | 4.8 bn | 5.4 bn | 6.6 bn | 7.9 bn | 8.8 bn |
| Revenue YoY | +8.8% | +37.1% | −2.3% | −6.0% | +13.2% | +21.3% | +20.6% | +11.2% |
| Net income | 957.0 m | 890.0 m | 699.0 m | 680.0 m | 866.0 m | 1.3 bn | 1.7 bn | 2.1 bn |
| Net income YoY | +60.3% | −7.0% | −21.5% | −2.7% | +27.4% | +49.9% | +32.0% | +21.0% |
| Diluted EPS | unavailable | unavailable | 8.96 | 10.41 | 13.40 | 22.03 | 25.62 | 32.08 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | +16.2% | +28.7% | +64.4% | +16.3% | +25.2% |
| net % | 25.1% | 17.0% | 13.7% | 14.2% | 16.0% | 19.7% | 21.6% | 23.5% |
| Free cash flow | 949.0 m | 913.0 m | 1.1 bn | 808.0 m | 829.0 m | 1.2 bn | 1.9 bn | 1.8 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 2.8 bn USD
- Financial debt
- 29.4 bn USD
- Net debt
- 26.6 bn USD
- Equity
- -9.7 bn USD
- Total assets
- 22.9 bn USD
- Debt / equity
- unavailable
- Current ratio
- 3.21x
- ROE
- unavailable
- ROA
- 8.6%
- FCF margin
- 20.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.1 bn | 4.8 bn | 5.4 bn | 6.6 bn | 7.9 bn | 8.8 bn | SEC (XBRL)· 12 Nov 2025verified |
| Cost of revenue | 2.5 bn | 2.3 bn | 2.3 bn | 2.7 bn | 3.3 bn | 3.5 bn | SEC (XBRL)· 12 Nov 2025verified |
| Gross profit | 2.6 bn | 2.5 bn | 3.1 bn | 3.8 bn | 4.7 bn | 5.3 bn | SEC (XBRL)· 12 Nov 2025verified |
| Research & development | 130.9 m | 106.0 m | 95.0 m | 105.0 m | 107.0 m | 118.0 m | SEC (XBRL)· 12 Nov 2025verified |
| SG&A | 727.0 m | 685.0 m | 748.0 m | 780.0 m | 980.0 m | 945.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Operating income | 1.8 bn | 1.7 bn | 2.2 bn | 2.9 bn | 3.5 bn | 4.2 bn | SEC (XBRL)· 12 Nov 2025verified |
| Depreciation & amortisation | 283.0 m | 253.0 m | 253.0 m | 268.0 m | 312.0 m | 367.0 m | SEC (XBRL)· 12 Nov 2025verified |
| EBITDA | 2.0 bn ≈ | 1.9 bn ≈ | 2.5 bn ≈ | 3.2 bn ≈ | 3.8 bn ≈ | 4.5 bn ≈ | SEC (XBRL)· 12 Nov 2025derived |
| Pre-tax income | 740.0 m | 715.0 m | 1.1 bn | 1.7 bn | 2.2 bn | 2.6 bn | SEC (XBRL)· 12 Nov 2025verified |
| Income tax | 87.0 m | 34.0 m | 261.0 m | 417.0 m | 500.0 m | 555.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Net income | 699.0 m | 680.0 m | 866.0 m | 1.3 bn | 1.7 bn | 2.1 bn | SEC (XBRL)· 12 Nov 2025verified |
| Diluted EPS | 8.96 | 10.41 | 13.40 | 22.03 | 25.62 | 32.08 | SEC (XBRL)· 12 Nov 2025verified |
| Weighted average diluted shares | 57.3 m | 58.4 m | 58.2 m | 57.2 m | 57.8 m | 58.2 m | SEC (XBRL)· 12 Nov 2025verified |
| Dividend per share | 32.50 | 0.00 | 18.50 | 0.00 | — | — | SEC (XBRL)· 09 Nov 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 4.7 bn | 4.8 bn | 3.0 bn | 3.5 bn | 6.3 bn | 2.8 bn | SEC (XBRL)· 12 Nov 2025verified |
| Receivables | 720.0 m | 791.0 m | 967.0 m | 1.2 bn | 1.4 bn | 1.6 bn | SEC (XBRL)· 12 Nov 2025verified |
| Inventories | 1.3 bn | 1.2 bn | 1.3 bn | 1.6 bn | 1.9 bn | 2.1 bn | SEC (XBRL)· 12 Nov 2025verified |
| Current assets | 7.0 bn | 7.0 bn | 5.6 bn | 6.7 bn | 10.0 bn | 7.0 bn | SEC (XBRL)· 12 Nov 2025verified |
| Property, plant & equipment, net | 752.0 m | 770.0 m | 807.0 m | 1.3 bn | 1.5 bn | 1.6 bn | SEC (XBRL)· 12 Nov 2025verified |
| Goodwill | 7.9 bn | 8.6 bn | 8.6 bn | 9.0 bn | 10.4 bn | 10.6 bn | SEC (XBRL)· 12 Nov 2025verified |
| Intangibles (excl. goodwill) | 2.6 bn | 2.8 bn | 2.8 bn | 2.7 bn | 3.4 bn | 3.5 bn | SEC (XBRL)· 12 Nov 2025verified |
| Total assets | 18.4 bn | 19.3 bn | 18.1 bn | 20.0 bn | 25.6 bn | 22.9 bn | SEC (XBRL)· 12 Nov 2025verified |
| Accounts payable | 218.0 m | 227.0 m | 279.0 m | 305.0 m | 323.0 m | 368.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Short-term debt | 276.0 m | 277.0 m | 76.0 m | 71.0 m | 98.0 m | 124.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Long-term debt | 19.4 bn | 19.6 bn | 19.4 bn | 19.4 bn | 24.4 bn | 29.3 bn | SEC (XBRL)· 12 Nov 2025verified |
| Current liabilities | 1.6 bn | 1.7 bn | 1.4 bn | 1.6 bn | 6.3 bn | 2.2 bn | SEC (XBRL)· 12 Nov 2025verified |
| Total liabilities | 22.4 bn | 22.2 bn | 21.9 bn | 21.9 bn | 31.9 bn | 32.6 bn | SEC (XBRL)· 12 Nov 2025verified |
| Equity | -4.0 bn | -2.9 bn | -3.8 bn | -2.0 bn | -6.3 bn | -9.7 bn | SEC (XBRL)· 12 Nov 2025verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.2 bn | 913.0 m | 948.0 m | 1.4 bn | 2.0 bn | 2.0 bn | SEC (XBRL)· 12 Nov 2025verified |
| Capex | 105.0 m | 105.0 m | 119.0 m | 139.0 m | 165.0 m | 222.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Free cash flow | 1.1 bn ≈ | 808.0 m ≈ | 829.0 m ≈ | 1.2 bn ≈ | 1.9 bn ≈ | 1.8 bn ≈ | SEC (XBRL)· 12 Nov 2025derived |
| Investing cash flow | 799.0 m | -785.0 m | -553.0 m | -900.0 m | -2.4 bn | -595.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Financing cash flow | 1.2 bn | -70.0 m | -2.1 bn | -16.0 m | 3.2 bn | -4.9 bn | SEC (XBRL)· 12 Nov 2025verified |
| Dividends paid | 1.9 bn | 73.0 m | 1.1 bn | 38.0 m | 2.0 bn | 9.6 bn | SEC (XBRL)· 12 Nov 2025verified |
| Share repurchases | 19.0 m | 0 | 912.0 m | 0 | 0 | 500.0 m | SEC (XBRL)· 12 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 55 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 67.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet29
- Valuation26
- Quality93
- Growth100
- Returns60
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 195.20 – 2,507.79 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDA1,430.88 – 2,507.79 (Mid 2,093.11)3 companies used · median multiple 29.0x · quartiles 21.7x – 33.6xATRO, ESLT, KRMN
- Peers: P/E195.20 – 1,193.40 (Mid 846.78)6 companies used · median multiple 23.7x · quartiles 5.5x – 33.4xATRO, CVU, ESLT, LOAR, PKE, PRZO
- Dividend discount (DDM)unavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 55/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 21.3% | 100 (vs peers) | 8% |
| FCF conversion · Quality | 90.5% | 86 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 17.6% | 100 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | 33.8% | 100 (on a fixed band) | 10% |
| Net debt / EBITDA · Balance sheet | 6.0x | 0 (on a fixed band) | 13% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.0x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 34.1x | 43 (vs peers) | 13% |
| EV/EBITDA · Valuation | 19.4x | 0 (on a fixed band) | 13% |
| FCF yield · Valuation | 2.9% | 36 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 10.6% | 100 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 274.6% | 0 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet29/100 · 2/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality93/100 · 2/3 factors with a value
- Returns60/100 · 2/2 factors with a value
- Valuation26/100 · 3/3 factors with a value
Memo
TransDigm Group Incorporated (TDG). Latest full fiscal year: 2025; data up to 2026-06-27.
Figures computed from the financial statements: revenue 8.8 bn USD in 2025; YoY growth 11.2%; net margin 21.3%; net debt/EBITDA 6.0x.
The estimated value range is 813.04–1,850.60 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 1,469.94 USD, the price of 1,216.88 USD leaves a potential of 20.8% (value / price − 1) and a margin of safety of 17.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 55/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 21.3%
- FCF conversion: 90.5%
- Revenue CAGR 3Y: 17.6%
- EPS CAGR 3Y: 33.8%
- Current ratio: 3.0x
- Shareholder yield (distributions): 10.6%
What contradicts it
- Net debt / EBITDA: 6.0x
- EV/EBITDA: 19.4x
- Payout ratio (FCF): 274.6%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Interest coverage.
Versus the vertical median
Aircraft Parts & Auxiliary Equipment, NEC (SIC 3728) · same industry (4-digit SIC) · compared with 10 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TDGTransDigm Group Incorporated | 67.3 bn | 34.1 | — | 21.3% | +11.2% | −6% / +38% |
| ESLTElbit Systems Ltd | 32.7 bn | 61.8 | 14.4% | 6.7% | +16.3% | +50% / +248% |
| LOARLoar Holdings Inc. | 6.5 bn | 0.5 | 5.8% | 11.6% | +23.2% | +2% / unavailable |
| KRMNKarman Holdings Inc. | 4.5 bn | 118.5 | 9.5% | 6.3% | +36.6% | −49% / unavailable |
| DCODucommun Incorporated | 2.4 bn | — | -3.0% | -2.4% | +4.9% | +70% / +210% |
| ATROAstronics Corporation | 1.9 bn | 30.4 | 33.7% | 8.4% | +8.4% | +32% / +385% |
| PKEPark Aerospace Corp. | 544.8 m | 34.4 | 11.1% | 18.4% | +18.2% | +28% / +64% |
| CVUCpi Aerostructures, Inc. | 64.0 m | 17.0 | 14.4% | 5.1% | −14.6% | +72% / +104% |
| AIRIAir Industries Group | 12.5 m | — | -10.6% | -3.8% | −13.0% | −14% / −11% |
| PRZOParaZero Technologies Ltd. | 9.8 m | 1.6 | -380.5% | -517.1% | +12.3% | −66% / −34% |
| EHEHang Holdings Limited | — | — | -27.8% | -66.0% | −4.4% | −71% / −77% |
1- and 3-year price returns: for TDG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 858.11 Total return -29% · Per year -29% | 1,510.15 Total return 24% · Per year 24% | 2,265.23 Total return 86% · Per year 86% |
| 3 years | 1,017.86 Total return -16% · Per year -6% | 1,997.18 Total return 64% · Per year 18% | 3,261.93 Total return 168% · Per year 39% |
| 5 years | 1,207.34 Total return -1% · Per year -0% | 2,641.26 Total return 117% · Per year 17% | 4,697.18 Total return 286% · Per year 31% |
- Exit P/E± 499.29
- Net margin± 349.51
- Annual revenue growth± 260.67
- Annual dilution± 29.37
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
TransDigm Group (TDG) designs and produces highly engineered aircraft components with a significant aftermarket content. In fiscal 2025 it reported net sales of 8831 million USD and net income attributable to TD Group of 2074 million USD 1. In the third quarter of fiscal 2026 net sales rose 23% 3, and guidance was raised.
SWOT
Strengths
- A portfolio of proprietary products with a large aftermarket share, which brings more stable revenue and high margins.
- Very high gross margins and an operating model built on three value drivers, supported by a long track record.
- A diversified customer base with no single customer dependence reduces exposure to any one program.
Weaknesses
- Significant indebtedness limits financial flexibility and exposes the company to rising interest rates.
- Near-exclusive focus on aerospace and defense makes the company vulnerable to sector-wide shocks.
Opportunities
- Rising aircraft production could expand OEM and aftermarket volume over the longer term.
- Acquisitions of aerospace aftermarket businesses, such as recent ones, can add products and extend the portfolio.
- Growing defense budgets could support demand for specialized products in coming years.
Threats
- A slowdown in air traffic could reduce flight hours and demand for aftermarket parts.
- Supply chain and labor delays can slow OEM production and deliveries.
- Trade tensions and tariffs could change market conditions, although the company remains mainly a domestic manufacturer.
Risks
- Dependence on aerospace sectorhigh
The company operates almost exclusively in aerospace and defense, so disruption in these sectors can affect results more than at diversified peers.
- High indebtednesshigh
Substantial variable-rate debt could raise debt service costs if benchmark rates rise, which could limit investment.
- Concentrated customersmedium
The top ten customers represent a large share of sales, and reduced purchasing by some of them could have a material adverse effect.
- Fixed-price contractsmedium
Long-term fixed-price contracts shift the risk of rising costs to the company, a risk amplified in an inflationary environment.
- Acquisition strategymedium
Reliance on acquisitions for growth raises the risk of difficult integration, underperforming businesses and unforeseen expenses.
Investment thesis
What would need to be true (bull case)
- If demand for aftermarket parts and OEM production keeps rising, results could exceed current guidance, especially given the high-margin portfolio.
- A model built on proprietary, certified and hard-to-replace products could support recurring revenue over the many decades an aircraft stays in service.
- Recent acquisitions and the ability to integrate new businesses could add growth and synergies if integration is executed effectively.
What would break the thesis
- If air traffic slows or geopolitical conflicts disrupt supply chains, growth could be weaker than currently expected.
- High debt and variable rates could reduce free cash flow available for investment and for returns to shareholders.
- Dependence on defense budgets and the aerospace cycle makes the company sensitive to policy changes or industry downturns.
What to watch
- Fourth-quarter results and delivery against fiscal 2026 guidanceQ4 2026
- Completion of the Prince & Izant acquisition and its effect on margins2026
- Fiscal 2027 guidance and its assumptions on OEM and aftermarket markets2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
TransDigm Group operates through its wholly-owned subsidiary TransDigm Inc. and supplies components considered critical to the safe operation of nearly all commercial and military aircraft worldwide 1. About 90% of fiscal 2025 net sales came from proprietary products and about 55% from the aftermarket 1. The strategy rests on three value drivers: obtaining profitable new business, improving the cost structure and providing highly engineered value-added products, supplemented by a selective acquisition strategy under which 95 businesses have been acquired since 1993 1.
In fiscal 2026 the company completed the acquisition of Jet Parts Engineering and Victor Sierra for about 2.2 billion USD in cash 3, and after the quarter it agreed to acquire Prince & Izant for about 1.07 billion USD 3. The company had approximately 16500 employees as of September 30, 2025 1.
Segments
Market context
Demand for air travel remained strong and commercial aftermarket sales rose in fiscal 2025 1. Fiscal 2026 guidance assumes commercial OEM revenue growth in the mid-teens, commercial aftermarket growth in the low double digits and defense growth in the high single digits to low double digits 3.
Boeing and Airbus production rates remain below pre-pandemic levels but have kept rising in recent quarters 12. The company is monitoring the conflict in the Middle East and has not yet seen a significant change in commercial aftermarket orders 2.
Competitive position
The niche markets TransDigm serves are relatively fragmented, and competition comes from both U.S. and foreign companies, from divisions of large corporations to small private firms 1. The company differentiates itself through engineering, quality, timely delivery and customer support 1.
Strict certification requirements and the cost of certifying products are, in the company's view, a deterrent to new entrants for certain products 1. The sources describe the market structure but do not name specific competitors.
- Divisions of large public aerospace corporations
The filing refers to divisions of large public corporations without naming them.
- Foreign component manufacturers
Competition also comes from companies outside the United States, according to the company's description.
- Small privately held firms
Many small firms, sometimes with only one or two components, operate in the same niches.
- Aerospace component distributors
Distributors are also customers, but can compete in certain aftermarket channels.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report29 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report28 Sept 2026Other events · Financial statements and exhibits
- Current report21 Sept 2026Other events
- Current report14 Sept 2026Regulation FD disclosure
- Current report14 Sept 2026Regulation FD disclosure
- Current report14 Sept 2026Regulation FD disclosure
- Quarterly report04 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Current report27 Jul 2026Other events · Financial statements and exhibits
- Current report24 Jul 2026Departure or appointment of officers
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / TDG · 12 Nov 2025
- [2] Form 10-Q, quarter ended 2026-06-27 · SEC / TDG · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / TDG · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.