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TransDigm Group Q4 Earnings Surpass Estimates, Sales Increase Y/Y

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Key Takeaways

  • TransDigm's Q4 adjusted EPS of $10.82 beat estimates and rose 10.1% year over year.
  • TDG's sales climbed 11.5% to $2.44 billion, led by 10.8% organic growth.
  • For 2026, TransDigm projects $9.75-$9.95 billion in sales and EPS of $36.49-$38.53.

TransDigm Group Incorporated (TDG - Free Report) reported fourth-quarter fiscal 2025 adjusted earnings of $10.82 per share, which topped the Zacks Consensus Estimate of $10.25 by 5.6%. The bottom line also improved 10.1% from the prior-year quarter’s figure of $9.83.

The company reported GAAP earnings of $7.75 per share compared with $5.80 in the year-ago quarter.

The year-over-year growth in the bottom line can be attributed to the increase in net sales and the application of TDG’s value-driven operating strategy and lower non-cash stock and deferred compensation expenses.

For fiscal 2025, the company reported adjusted earnings of $37.33 per share, which came in higher than the year-ago figure of $33.99.

TransDigm’s Q4 Sales Discussion

Sales amounted to $2.44 billion, up 11.5% from $2.19 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.41 billion by 1.3%.

Organic sales, as a percentage of net sales, grew 10.8%.

For fiscal 2025, the company reported net sales of $8.83 billion, which came in higher than the year-ago figure of $7.94 billion.

TDG’s Operating Results

The gross profit was $1.47 billion, up 16.9% from the year-ago quarter’s level of $1.26 billion.

TDG’s interest expenses increased 22.4% year over year to $420 million.

Net income rose 30.1% year over year to $609 million.

TransDigm’s Financial Position

Cash and cash equivalents as of Sept. 30, 2025 amounted to $2.81 billion, down from $6.26 billion recorded as of Sept. 30, 2024.

Long-term debt as of Sept. 30, 2025 totaled $29.17 billion, up from $24.30 billion as of Sept. 30, 2024.

Cash from operating activities amounted to $2.04 billion compared with $2.05 billion at the end of the fourth quarter of fiscal 2025.

TDG’s 2026 Guidance

TransDigm issued its guidance for fiscal 2026. The company expects sales in the range of $9.75-$9.95 billion. The Zacks Consensus Estimate for the same is pegged at $9.75 billion, which is at the lower end of the company’s guided range.

TDG expects fiscal 2026 adjusted earnings in the band of $36.49-$38.53 per share. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $40.20, higher than the company’s guided range.

TDG’s Zacks Rank

TransDigm currently has a Zacks Rank #5 (Strong Sell). 

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

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Total revenues were $347.6 million, which beat the Zacks Consensus Estimate of $324 million by 7.1%. The figure also rose 26% from $275.9 million recorded in the year-ago quarter.

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