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TransDigm to Report Q4 Results: What's in Store for the Stock?

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Key Takeaways

  • Commercial aftermarket strength likely lifted TDG's Power & Control segment revenues.
  • Rising air travel and defense demand are expected to boost the Airframe segment performance.
  • Consensus projects Q4 sales up 10.1% and EPS rising 4.3% from the year-ago quarter.

TransDigm Group Incorporated (TDG - Free Report) is slated to report fourth-quarter fiscal 2025 results on Nov. 12, before market open. The company delivered a negative earnings surprise of 1.84% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors Likely to Affect TDG’s Q4 Results

Strong sales from the commercial aftermarket, backed by steadily improving commercial air travel demand and the resulting higher flight hours and utilization of aircraft, are likely to have contributed favorably to revenues from the Power & Control segment. Steadily improving U.S. Government defense spending outlays, boosting defense sales, are also likely to have benefited this unit’s top-line growth.

Sales from the Airframe segment are likely to have been boosted by the strong air travel growth and rising demand for this unit’s defense products, backed by solid government funding.

A strong top line is likely to have boosted TDG’s overall margin performance, which, along with its cost reduction initiatives, is likely to have contributed favorably to its quarterly bottom line.

Estimates for TDG

Strong sales expectations from both its primary segments, which constitute approximately 98% of TDG’s total revenues, are likely to have bolstered its overall quarterly revenue performance.

The Zacks Consensus Estimate for TDG’s fiscal fourth-quarter sales is pegged at $2.41 billion, indicating an improvement of 10.1% from the prior-year number.

The consensus estimate for earnings is pegged at $10.25 per share, indicating an increase of 4.3% from the year-ago figure.

What the Zacks Model Unveils for TDG

Our proven model does not conclusively predict an earnings beat for TransDigm this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

TDG’s Earnings ESP: TDG has an Earnings ESP of -0.76%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

TDG’s Zacks Rank: TDG currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Defense Releases

Textron Inc. (TXT - Free Report) reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.

The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.

RTX Corporation’s (RTX - Free Report) third-quarter 2025 adjusted earnings per share of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.

RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.

Northrop Grumman Corporation (NOC - Free Report) reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7 registered in the prior-year quarter.

NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.

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