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Why Is TransDigm (TDG) Down 0.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for TransDigm Group (TDG - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is TransDigm due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Transdigm Group Incorporated before we dive into how investors and analysts have reacted as of late.
TransDigm Group Q4 Earnings Surpass Estimates, Sales Increase Y/Y
TransDigm Group Incorporated 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -9.01% due to these changes.
VGM Scores
Currently, TransDigm has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TransDigm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
TransDigm is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, Curtiss-Wright (CW - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended September 2025 more than a month ago.
Curtiss-Wright reported revenues of $869.17 million in the last reported quarter, representing a year-over-year change of +8.8%. EPS of $3.40 for the same period compares with $2.97 a year ago.
For the current quarter, Curtiss-Wright is expected to post earnings of $3.64 per share, indicating a change of +11.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Curtiss-Wright. Also, the stock has a VGM Score of D.
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Why Is TransDigm (TDG) Down 0.6% Since Last Earnings Report?
A month has gone by since the last earnings report for TransDigm Group (TDG - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is TransDigm due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Transdigm Group Incorporated before we dive into how investors and analysts have reacted as of late.
TransDigm Group Q4 Earnings Surpass Estimates, Sales Increase Y/Y
TransDigm Group Incorporated 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -9.01% due to these changes.
VGM Scores
Currently, TransDigm has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TransDigm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
TransDigm is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, Curtiss-Wright (CW - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended September 2025 more than a month ago.
Curtiss-Wright reported revenues of $869.17 million in the last reported quarter, representing a year-over-year change of +8.8%. EPS of $3.40 for the same period compares with $2.97 a year ago.
For the current quarter, Curtiss-Wright is expected to post earnings of $3.64 per share, indicating a change of +11.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Curtiss-Wright. Also, the stock has a VGM Score of D.