TransDigm Group (TDG) Q4 2025 Financial Results Summary

2025-11-12 · Stocks · QuoteReporter

TransDigm Group (TDG) Q4 2025 Financial Results Summary

Cleveland, Ohio, November 12, 2025 – TransDigm Group Incorporated (NYSE: TDG) reported its financial results for the fourth quarter ended September 30, 2025. The following summary highlights the company’s performance during the quarter and for the fiscal year.

Fourth Quarter Highlights

Net Sales: $2,437 million, an increase of 12% from $2,185 million in Q4 2024.
Net Income: $609 million, marking a growth of 30% from $468 million in the same quarter the previous year.
Earnings per Share (EPS): $7.75, up 34% from $5.80 in Q4 2024.
EBITDA As Defined: $1,320 million, growing 15% from $1,149 million in Q4 2024.
EBITDA As Defined Margin: 54.2%, up 1.6% compared to 52.6% in Q4 2024.
Adjusted Earnings per Share: $10.82, a 10% increase from $9.83 in the prior year’s quarter.

Fiscal Year Highlights

Total Net Sales: $8,831 million, an 11% increase from $7,940 million in Fiscal Year 2024.
Net Income: $2,074 million, which is a 21% rise from $1,715 million in Fiscal Year 2024.
Earnings per Share: $32.08, an increase of 25% from $25.62 in Fiscal Year 2024.
EBITDA: $4,760 million, an increase of 14% from $4,173 million last year.
EBITDA As Defined Margin: 53.9%, which is up 1.3% from 52.6% the previous year.
Adjusted Earnings per Share: $37.33, a 10% increase from $33.99 in Fiscal Year 2024.

Quarter-to-Date Results

Organic Sales Growth: Achieved 10.8% as a percentage of net sales.
Adjusted Net Income: Increased by 10.4% to $629 million from $570 million year-over-year.
EBITDA: Increased 21.9% to $1,269 million from $1,041 million in the same quarter last year.

Dividend and Share Repurchase Activity

Quarterly Dividend: TransDigm declared a special cash dividend of $90.00 per share on August 20, 2025, with a payment made on September 12, 2025. This represents an increase from the dividend of $75.00 declared in the prior year.
Share Repurchase: During Fiscal 2025, the company repurchased approximately 400,000 shares at an average price of $1,247 totaling approximately $0.5 billion. An additional 80,000 shares were repurchased in October 2025 at an average price of $1,250 for a total of approximately $0.1 billion.

Key Financial Activities

Debt Issuance: The company issued $5.0 billion in new debt on August 19, 2025, to support operations and pay the dividend. The new debt consists of:
$0.5 billion in 6.25% Senior Secured Notes maturing January 2034.
$2.0 billion in 6.75% Senior Subordinated Notes maturing January 2034.
$2.5 billion in Tranche M term loans maturing August 2032.
Loan Repricing: On September 17, 2025, TransDigm repriced approximately $1.7 billion in existing Tranche K term loans, reducing interest from SOFR +2.75% to SOFR +2.25%.

Acquisition Activity

On October 6, 2025, TransDigm completed the acquisition of Simmonds Precision Products from RTX Corporation, which enhances its portfolio in the aerospace and defense markets.

Fiscal 2026 Outlook

Projected Net Sales: Expected to range from $9,750 million to $9,950 million, reflecting an increase of 11.5% at the midpoint over fiscal 2025.
Estimated Net Income: Expected to be between $1,906 million and $2,026 million, indicating a potential decrease of 5.2% at the midpoint compared to the previous fiscal year.
Earnings per Share Projection: Anticipated to be between $31.55 and $33.59, a growth of 1.5% at the midpoint from the previous year’s figures.
EBITDA As Defined Guidance: Expected to range from $5,075 million to $5,225 million, showing an increase of 8.2% at the midpoint over fiscal 2025.
The outlook assumes robust growth across the commercial OEM, aftermarket, and defense markets.

TransDigm Group attributes its growth and operational success to its effective management strategies and commitment to enhancing shareholder value. The results demonstrate a solid financial year-end and strong positioning for future growth in fiscal 2026.

TRANSDIGM GROUP INCORPORATED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THIRTEEN WEEK PERIODS AND FISCAL YEARS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024

(Amounts in millions, except per share amounts)
(Unaudited)

Thirteen Week Periods Ended	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
NET SALES	$2,437	$2,185	$8,831	$7,940
COST OF SALES	967	927	3,520	3,268
GROSS PROFIT	1,470	1,258	5,311	4,672
SELLING AND ADMINISTRATIVE EXPENSES	256	264	945	980
AMORTIZATION OF INTANGIBLE ASSETS	53	51	201	161
INCOME FROM OPERATIONS	1,161	943	4,165	3,531
INTEREST EXPENSE—NET	420	343	1,572	1,286
REFINANCING COSTS	3	-1	11	58
OTHER INCOME	-14	-4	-47	-28
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	752	605	2,629	2,215
INCOME TAX PROVISION	143	137	555	500
NET INCOME	609	468	2,074	1,715
LESS: NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS	1	—	—	-1
NET INCOME ATTRIBUTABLE TO TD GROUP	$610	$468	$2,074	$1,714
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS	$451	$336	$1,866	$1,481
Earnings per share attributable to TD Group common stockholders: Earnings per share—Basic and diluted	$7.75	$5.80	$32.08	$25.62
Cash dividends declared per common share	$90.00	$75.00	$90.00	$110.00
Weighted-average shares outstanding: Basic and diluted	58.1	58.0	58.2	57.8

TRANSDIGM GROUP INCORPORATED SUPPLEMENTAL INFORMATION – BALANCE SHEET DATA

(Amounts in millions)

(Unaudited)

	September 30, 2025	September 30, 2024
Cash and cash equivalents	$2,808	$6,261
Trade accounts receivable—Net	1,617	1,381
Inventories—Net	2,095	1,876
Current portion of long-term debt	124	98
Short-term borrowings—trade receivable securitization facility	724	486
Accounts payable	368	323
Dividends payable	—	4,216
Accrued and other current liabilities	966	1,216
Long-term debt	29,167	24,296
Total TD Group stockholders’ deficit	-9,686	-6,290