Zacks Investment Research·15h ago
Why Investors Need to Take Advantage of These 2 Aerospace Stocks NowInvestors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.
TransDigm Group Incorporated(TDG)Earnings, Financials & Key Ratios
TDG•NYSE
$1309.18
40.8× P/E·Price updated Jul 7, 2026
AboutTransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The company's Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. Its Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.Show more
- Revenue$8.83B+11.2%
- EBITDA$4.53B+17.9%
- Net Income$2.07B+21.0%
- EPS (Diluted)32.08+25.2%
- Gross Margin60.14%+2.2%
- EBITDA Margin51.32%+6.0%
- Operating Margin47.16%+6.1%
- Net Margin23.49%+8.8%
TDG Price & Volume
TransDigm Group Incorporated (TDG) stock price & volume — 10-year historical chart
Loading chart...
Proprietary Component Moat Drives Sustained Margin Expansion
Investment Thesis • Updated 2026Q2
VerdictNeutral
Growth:Expanding
Profitability:Strong
Financial:Strained
Cash Flow:Mixed
Primary Risk:Aggressive debt-funded capital structure
Key Thesis Takeaways
- TransDigm leverages a unique portfolio of flight-critical, sole-source components to maintain industry-leading profitability, evidenced by a 59.4% gross margin in 2026Q2.
- While the company demonstrates robust revenue growth of 18.3% year-over-year, its aggressive debt-funded capital allocation strategy and negative equity position of $9.4 billion warrant caution.
- Investors should monitor the sustainability of this model as regulatory scrutiny regarding defense pricing and high leverage ratios, currently at 25.85x EBITDA, may limit future financial flexibility.
Verdict Logic
while the company maintains a dominant market position with 59.4% gross margins, the high debt-to-EBITDA ratio of 25.85x and aggressive capital return policies present significant long-term balance sheet risks.
TDG Growth Metrics
TransDigm Group Incorporated (TDG) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years12.55%
5 Years11.59%
3 Years17.61%
TTM13.29%
Profit CAGR
10 Years16.67%
5 Years24.3%
3 Years33.79%
TTM6.42%
EPS CAGR
10 Years15.13%
5 Years31.14%
3 Years33.77%
TTM8.19%
Return on Capital
10 Years15.23%
5 Years15.8%
3 Years18.76%
Last Year20.84%
TDG Recent Earnings
TransDigm Group Incorporated (TDG) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 10/12 qtrs (83%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
May 5, 2026Metric
Actual
Est
EPS
$9.85+4.1%
$9.46
Rev
$2.5B+3.1%
$2.5B
Q1 2026
Feb 3, 2026Metric
Actual
Est
EPS
$8.23+1.6%
$8.10
Rev
$2.3B+1.2%
$2.3B
Q4 2025
Nov 12, 2025Metric
Actual
Est
EPS
$10.82+7.8%
$10.04
Rev
$2.4B+1.6%
$2.4B
Q3 2025
Aug 5, 2025Metric
Actual
Est
EPS
$9.60-2.9%
$9.89
Rev
$2.2B-2.7%
$2.3B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 5, 2026 | $9.85vs $9.46+4.1% | $2.5Bvs $2.5B+3.1% |
| Q1 2026 | Feb 3, 2026 | $8.23vs $8.10+1.6% | $2.3Bvs $2.3B+1.2% |
| Q4 2025 | Nov 12, 2025 | $10.82vs $10.04+7.8% | $2.4Bvs $2.4B+1.6% |
| Q3 2025 | Aug 5, 2025 | $9.60vs $9.89-2.9% | $2.2Bvs $2.3B-2.7% |
Based on last 12 quarters of dataView full earnings history →
Latest TDG News
Recent stock market news and headlines for TransDigm Group Incorporated (TDG)
Seeking Alpha·1 day ago
TransDigm: A High Value Compounder Deserves A Strong Buy UpgradeTransDigm Group is upgraded to Strong Buy, reflecting substantial upside potential and a 39% price target increase to $1,860.41. TDG's proprietary aerospace components drive high-margin recurring aftermarket revenue, supported by robust aviation demand and a growing installed fleet. Recent acquisitions have temporarily compressed margins, but EBITDA and free cash flow estimates have increased, with margins expected to recover as integrations mature.
Zacks Investment Research·1 day ago
Will TransDigm (TDG) Beat Estimates Again in Its Next Earnings Report?TransDigm (TDG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Zacks Investment Research·1 day ago
TransDigm (TDG) Upgraded to Buy: Here's WhyTransDigm (TDG) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Zacks Investment Research·1 day ago
Why Investors Need to Take Advantage of These 2 Aerospace Stocks NowWhy investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
Peers Comparison
Key metrics vs top competitors for TransDigm Group Incorporated (TDG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $1309.18 | $73.23B | 40.81 | 11.22% | 23.49% | — | 12.64% | |
| $358.02 | $49.88B | 73.07 | 16.26% | 16.08% | 16.23% | — | |
| $404.84 | $24.13B | 56.31 | 7.3% | 12.85% | 20.25% | — | |
| $766.54 | $28.29B | 59.56 | 12.08% | 14.17% | 19.64% | — | |
| $50.34 | $9.44B | 387.23 | 18.52% | 2.08% | 1.26% | — | |
| $45.47 | $12.13B | 44.15 | 12.8% | 7.85% | 10.79% | — |
Compare TDG vs Peers
TransDigm Group Incorporated (TDG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
TDG SEC Filings & Documents
TransDigm Group Incorporated (TDG) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 5, 2026·SEC
Material company update
Apr 17, 2026·SEC
Material company update
Apr 15, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
5Get notified when TDG posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
TDG Frequently Asked Questions
TransDigm Group Incorporated (TDG) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is TransDigm Group Incorporated's revenue?
TransDigm Group Incorporated (TDG) reported $9.50B in revenue for fiscal year 2025. This represents a 3720% increase from $248.8M in 2002.
How fast is TransDigm Group Incorporated growing?
TransDigm Group Incorporated (TDG) grew revenue by 11.2% over the past year. This is steady growth.
Is TDG profitable?
Yes, TransDigm Group Incorporated (TDG) is profitable, generating $2.02B in net income for fiscal year 2025 (23.5% net margin).
Dividend & Returns
Does TDG pay dividends?
Yes, TransDigm Group Incorporated (TDG) pays a dividend with a yield of 12.64%. This makes it attractive for income-focused investors.
What is TransDigm Group Incorporated's free cash flow?
TransDigm Group Incorporated (TDG) generated $1.85B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.