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Transdigm to Report Q1 Earnings: Here's What You Need to Know

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Key Takeaways

  • TDG is expected to post $2.25B in revenues and $8.02 EPS, reflecting solid year-over-year growth.
  • TDG's $765M Simmonds acquisition expands proprietary aerospace components and recurring aftermarket revenues.
  • TDG likely benefited from stronger commercial aftermarket demand and higher U.S. defense spending.

Transdigm Group (TDG - Free Report) is scheduled to release first-quarter fiscal 2026 results on Feb. 3, before market open. The company delivered an earnings surprise of 5.6% in the last reported quarter. 

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

Key Factors Likely to Influence TDG’s Q1 Results

In October 2025, TransDigm completed the acquisition of the Simmonds Precision Products, Inc. Business of Goodrich Corporation for nearly $765 million. TDG will benefit from it by strengthening its portfolio of highly engineered, proprietary aerospace components with strong aftermarket exposure. The deal expands TransDigm’s presence in both commercial aerospace and defense platforms, adds a significant stream of recurring aftermarket revenues, and improves earnings visibility and cash-flow stability throughout the aircraft lifecycle. Therefore, the company’s fiscal first-quarter revenues are expected to benefit from this deal.  

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 the top line in the to-be-reported quarter. Steadily improving U.S. government defense spending outlays, which are boosting defense sales, are also likely to have benefited the company’s top line.

Robust revenue growth likely supported TransDigm’s margin expansion, while ongoing efficiency and cost-control efforts are expected to have further strengthened profitability, positively impacting the company’s quarterly earnings.

TDG’s Q1 Expectations

The Zacks Consensus Estimate for earnings is pegged at $8.02 per share, indicating a year-over-year increase of 2.4%.

The Zacks Consensus Estimate for revenues is pinned at $2.25 billion, indicating a year-over-year improvement of 12.4%.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for TransDigm this time around. 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 the case here, as you will see below.
 

Earnings ESP: The company’s Earnings ESP is +4.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, the company carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same industry as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Woodward (WWD - Free Report) is likely to come up with an earnings beat when it announces fiscal first-quarter results on Feb. 2, after market close. It has an Earnings ESP of +3.28% and a Zacks Rank #2 at present.

The consensus estimate for WWD’s fiscal first-quarter sales suggests an improvement of 15.4% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 14.7% for the trailing four quarters.

Curtiss-Wright (CW - Free Report) is likely to come up with an earnings beat when it announces fourth-quarter results on Feb. 11, after market close. It has an Earnings ESP of +0.67% and a Zacks Rank #3 at present.

The consensus estimate for CW’s fourth-quarter sales suggests an improvement of 8% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 7.8% for the trailing four quarters.

Rocket Lab Corporation (RKLB - Free Report) is expected to come up with an earnings beat when it reports fourth-quarter results on Feb. 26, after market close. It has an Earnings ESP of +4.76% and a Zacks Rank #3 at present.

The consensus estimate for RKLB’s fourth-quarter sales implies an improvement of 34.4% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at a loss of 5 cents per share. 
 

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