TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results
TransDigm Group INC (TDG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results Cleveland, Ohio, November 10, 2026/PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today report
How this was made
The 30-second read
Why it matters
The guidance upgrade signals continued growth and may attract momentum traders, while the sizable capital deployment underscores confidence in cash flow generation.
Market read
First‑report earnings and guidance for a mid‑cap industrial firm; provides fresh data for traders to position ahead of market open.
What to watch
Higher interest expense and tax burden could erode margin despite revenue growth
TransDigm reports fiscal Q4 2026 net sales up 23% to $2,988 million and fiscal 2026 net sales up 20% to $10,557 million; issues fiscal 2027 net sales guide of $11,950 million to $12,150 million
Net sales grew 23% in the quarter with 14% organic growth, EBITDA As Defined rose 20%, and the CEO states Q4 exceeded the high end of recent guidance for revenue and EBITDA As Defined. Offsetting this, GAAP net income fell 4% in the quarter, EBITDA As Defined margin declined to 53.0% from 54.2%, and the company attributes the net income decline mainly to higher interest expense and higher tax expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, Q4 FY2026 (thirteen weeks)GAAP | $2.99B | – | increased 23%, or $551 million |
| Organic sales growth as a percentage of net sales, Q4 FY2026other | 14% | – | – |
| Cost of sales, Q4 FY2026GAAP | $1.23B | – | – |
| Gross profit, Q4 FY2026GAAP | $1.76B | – | – |
| Selling and administrative expenses, Q4 FY2026GAAP | $332M | – | – |
| Amortization of intangible assets, Q4 FY2026GAAP | $67M | – | – |
| Income from operations, Q4 FY2026GAAP | $1.36B | – | – |
| Interest expense, net, Q4 FY2026GAAP | $536M | – | – |
| Refinancing costs, Q4 FY2026GAAP | $27M | – | – |
| Other expense (income), Q4 FY2026GAAP | $23M | – | – |
| Income tax provision, Q4 FY2026GAAP | $192M | – | – |
| Net income, Q4 FY2026GAAP | $586M | – | decrease of $23 million, or 4% |
| Earnings per share, basic and diluted, Q4 FY2026GAAP | $10.33 | – | up 33% |
| Adjusted net income, Q4 FY2026non-GAAP | $706M | – | increased 12% |
| Adjusted earnings per share, Q4 FY2026non-GAAP | $12.44 | – | up 15% |
| EBITDA, Q4 FY2026non-GAAP | $1.44B | – | increased 13% |
| EBITDA As Defined, Q4 FY2026non-GAAP | $1.58B | – | up 20% |
| EBITDA As Defined margin, Q4 FY2026non-GAAP | 53.0% | – | – |
| Net sales, fiscal 2026 (year to date)GAAP | $10.56B | – | increased 20%, or $1,726 million |
| Organic sales growth as a percentage of net sales, fiscal 2026other | 11% | – | – |
| Organic sales growth excluding non-aerospace sales, fiscal 2026other | 13% | – | – |
| Cost of sales, fiscal 2026 (year to date)GAAP | $4.30B | – | – |
| Gross profit, fiscal 2026 (year to date)GAAP | $6.25B | – | – |
| Selling and administrative expenses, fiscal 2026 (year to date)GAAP | $1.19B | – | – |
| Amortization of intangible assets, fiscal 2026 (year to date)GAAP | $252M | – | – |
| Income from operations, fiscal 2026 (year to date)GAAP | $4.81B | – | – |
| Interest expense, net, fiscal 2026 (year to date)GAAP | $2.01B | – | – |
| Refinancing costs, fiscal 2026 (year to date)GAAP | $28M | – | – |
| Income tax provision, fiscal 2026 (year to date)GAAP | $656M | – | – |
| Net income, fiscal 2026 (year to date)GAAP | $2.11B | – | increased $34 million, or 2% |
| Earnings per share, basic and diluted, fiscal 2026 (year to date)GAAP | $35.51 | – | – |
| Adjusted net income, fiscal 2026 (year to date)non-GAAP | $2.38B | – | increased 10% |
| Adjusted earnings per share, fiscal 2026 (year to date)non-GAAP | $41.35 | – | – |
| EBITDA, fiscal 2026 (year to date)non-GAAP | $5.22B | – | increased 14% |
| EBITDA As Defined, fiscal 2026 (year to date)non-GAAP | $5.56B | – | increased 17% |
| EBITDA As Defined margin, fiscal 2026 (year to date)non-GAAP | 52.7% | – | – |
| Net cash provided by operating activities, fiscal 2026 (year to date)GAAP | $2.19B | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2027 (year ending September 30, 2027) outlook
- RevenueNet sales $11,950 million to $12,150 million, compared with $10,557 million in fiscal 2026, an increase of 14% at the midpoint
- NoteNet income $2,442 million to $2,490 million, compared with $2,108 million in fiscal 2026, an increase of 17% at the midpoint
- NoteEarnings per share $42.06 to $42.91 per share based upon weighted average shares outstanding of 56.7 million shares, compared with $35.51 per share in fiscal 2026, an increase of 20% at the midpoint
- NoteEBITDA As Defined $6,195 million to $6,345 million, compared with $5,563 million in fiscal 2026, an increase of 13% at the midpoint, corresponding to an EBITDA As Defined margin guide of approximately 52.0%
- NoteAdjusted earnings per share $47.09 to $47.94 per share, compared with $41.35 per share in fiscal 2026, an increase of 15% at the midpoint
- NoteMarket growth assumptions: commercial OEM revenue growth in the high single-digit to low double-digit percentage range; commercial aftermarket revenue growth in the high single-digit percentage range; defense revenue growth in the high single-digit percentage range
- NoteTable 6 guidance midpoint (as printed): net income $2,466 million; EBITDA $5,987 million; EBITDA As Defined $6,270 million; earnings per share $42.48; adjusted earnings per share $47.51; weighted-average shares 56.7 million
Capital returns
- Q4 FY2026 share repurchases: $943 million returned through repurchases of 820 thousand shares at an average price per share of $1,150
- Fiscal 2026 share repurchases: $2.8 billion returned through repurchases of 2.3 million shares at an average price per share of $1,187; the CEO describes fiscal 2026 as a record year for share repurchases totaling approximately $2.8 billion
- Cash dividends declared per common share: Q4 FY2026 shown as a dash (no dividend); Q4 FY2025 $90.00; fiscal 2026 shown as a dash; fiscal 2025 $90.00
- Dividend equivalent payments reduced GAAP earnings per share by $1.03 per share in fiscal 2026 and $3.58 per share in fiscal 2025, as stated by the company
- Acquisitions: company states it invested approximately $4.4 billion in acquisitions in fiscal 2026, including Simmonds Precision Products, Jet Parts Engineering, Victor Sierra Aviation, Prince & Izant, and twelve bolt-on acquisitions at the Operating Unit level; CEO states over $7 billion capital deployed through M&A and share repurchases
What drove it
- Net sales growth of 23% in Q4 FY2026, with organic sales growth of 14% as a percentage of net sales as reported
- Company states the net income decrease in Q4 primarily reflects higher interest expense from the increase in year-over-year gross debt balance and higher tax expense, offset by higher net sales and the application of the operating strategy
- Company states Q4 EBITDA As Defined margin of 53.0% includes approximately two percentage points of dilution from recent acquisitions
- Company states fiscal 2026 net income increase primarily reflects higher net sales and the value-driven operating strategy, offset by higher selling and administrative expenses and higher interest expense
- Company states fiscal 2026 EBITDA As Defined margin of 52.7% includes approximately two percentage points of dilution related to recent acquisitions
- Fiscal 2026 organic sales growth 11%, and 13% excluding non-aerospace sales, as reported
Concerns
- Q4 net income declined 4% to $586 million from $609 million while net sales rose 23%
- Q4 interest expense, net rose to $536 million from $420 million; fiscal 2026 interest expense, net rose to $2,008 million from $1,572 million
- Q4 EBITDA As Defined margin fell to 53.0% from 54.2%; fiscal 2026 margin fell to 52.7% from 53.9%
- Long-term debt rose to $33,743 million from $29,167 million and total TD Group stockholders' deficit widened to $(10,000) million from $(9,686) million
- Q4 selling and administrative expenses rose to $332 million from $256 million and amortization of intangible assets rose to $67 million from $53 million
- Q4 other expense (income) was $23 million compared with $(14) million in the prior-year quarter
What to watch
- Delivery against fiscal 2027 net sales guidance of $11,950 million to $12,150 million and EBITDA As Defined guidance of $6,195 million to $6,345 million
- EBITDA As Defined margin against the approximately 52.0% fiscal 2027 guide, given the company's stated acquisition dilution
- Interest expense trajectory following the $3.0 billion 6.75% Senior Secured Notes due January 2035 issuance and the tender for 2028 notes
- Pace of further M&A and share repurchases, given the CEO's statement on liquidity and flexibility for fiscal 2027
- Organic growth versus the stated fiscal 2027 market growth assumptions for commercial OEM, commercial aftermarket and defense
- Stockholders' deficit and gross debt levels as the company continues to deploy capital
Balance sheet and cash flow
- Prince & Izant acquired for approximately $1.07 billion in cash, including certain tax benefits, as previously announced on September 28, 2026
- On September 28, 2026 the company completed a private offering of $3.0 billion of new 6.75% Senior Secured Notes maturing January 2035; net proceeds used to repurchase approximately $1.8 billion of its $2.1 billion outstanding 6.75% Senior Secured Notes due 2028 via a concurrent tender offer and for general corporate purposes
- Cash and cash equivalents: $2,279 million at September 30, 2026 versus $2,808 million at September 30, 2025
- Long-term debt: $33,743 million at September 30, 2026 versus $29,167 million at September 30, 2025
- Current portion of long-term debt: $147 million at September 30, 2026 versus $124 million at September 30, 2025
- Short-term borrowings under trade receivable securitization facility: $873 million at September 30, 2026 versus $724 million at September 30, 2025
- Inventories, net: $2,713 million at September 30, 2026 versus $2,095 million at September 30, 2025; trade accounts receivable, net: $2,054 million versus $1,617 million
- Total TD Group stockholders' deficit: $(10,000) million at September 30, 2026 versus $(9,686) million at September 30, 2025
- Net cash provided by operating activities fiscal 2026 $2,187 million versus $2,038 million in fiscal 2025; changes in assets and liabilities, net of effects from acquisitions and sales of businesses, shown as $647 million versus $589 million
Analysis
TransDigm reported a strong fourth quarter and full fiscal 2026 on the top line. Net sales rose 23% to $2,988 million in the quarter, with organic growth of 14% as a percentage of net sales, and rose 20% to $10,557 million for the year, with organic growth of 11% and 13% excluding non-aerospace sales. Quarterly EBITDA As Defined grew 20% to $1,583 million and adjusted earnings per share grew 15% to $12.44. The CEO states that Q4 results exceeded the high end of recent guidance for revenue and EBITDA As Defined. The filing does not provide a segment or product-line revenue breakdown, so the mix of growth cannot be read from the document beyond the company's end-market assumptions.
Profitability presents a more mixed picture. Q4 GAAP net income declined 4% to $586 million from $609 million, while GAAP earnings per share rose 33% to $10.33 from $7.75. The company attributes the net income decline primarily to higher interest expense from the increase in year-over-year gross debt and higher tax expense. Interest expense, net rose to $536 million from $420 million in the quarter. The EBITDA As Defined margin was 53.0% against 54.2% a year earlier, and the company states that about two percentage points of that margin reflects dilution from recent acquisitions. For the full year, EBITDA As Defined margin was 52.7% against 53.9%, with the same acquisition dilution cited.
Capital deployment was the defining feature of the year according to the filing. The company reports approximately $4.4 billion invested in acquisitions in fiscal 2026, including Prince & Izant for approximately $1.07 billion in cash, and share repurchases of $943 million in Q4 and $2.8 billion for the year. The company also issued $3.0 billion of 6.75% Senior Secured Notes due January 2035 and used about $1.8 billion of the proceeds to repurchase part of its $2.1 billion outstanding 2028 notes. Long-term debt increased to $33,743 million from $29,167 million and cash fell to $2,279 million from $2,808 million. Total TD Group stockholders' deficit widened to $(10,000) million from $(9,686) million. Net cash provided by operating activities was $2,187 million for fiscal 2026 against $2,038 million a year earlier.
The fiscal 2027 guidance projects net sales of $11,950 million to $12,150 million, net income of $2,442 million to $2,490 million, GAAP earnings per share of $42.06 to $42.91, EBITDA As Defined of $6,195 million to $6,345 million and adjusted earnings per share of $47.09 to $47.94. The guided EBITDA As Defined margin is approximately 52.0%, which is below the fiscal 2026 level of 52.7%. The company frames guidance on commercial OEM growth in the high single-digit to low double-digit range, commercial aftermarket in the high single-digit range and defense in the high single-digit range. No prior outlook was provided with this filing, so no comparison against earlier guidance is made.
The items to examine most closely are the margin trajectory, the rise in interest expense and debt, and the translation of the guided revenue growth into EBITDA As Defined. The GAAP earnings per share comparisons are affected by the company's dividend equivalent payments, which the filing states reduced fiscal 2026 GAAP earnings per share by $1.03 and fiscal 2025 by $3.58, and which are excluded from adjusted earnings per share.
Management, verbatim
Our fourth quarter results exceeded the high end of our most recent guidance for both revenue and EBITDA As Defined.
Mike Lisman, Chief Executive Officer, TransDigm Group
We enter fiscal 2027 with significant liquidity and the financial flexibility to pursue additional M&A and other capital deployment opportunities.
Mike Lisman, Chief Executive Officer, TransDigm Group
Not in the filing
stated, not guessed- No segment or product-line revenue breakdown is provided in the filing
- Gross margin percentage is not printed
- Percentage change not printed for cost of sales, gross profit, selling and administrative expenses, amortization, income from operations, income tax, EPS, and fiscal 2026 net cash from operating activities
- Percentage change not printed for fiscal 2026 GAAP EPS or fiscal 2026 adjusted EPS
- Percentage change in basis points not printed for EBITDA As Defined margin
- Prior-year and prior-quarter values not printed for the organic growth percentages
- Quarterly net cash provided by operating activities is not printed
- Cash and debt totals, free cash flow and net debt are not printed and were not computed
- Prior outlook not provided, so no guidance comparison is made
- Analyst consensus and share price reaction are not in the documents
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
TransDigm Group reported FY2026 Q4 results and full‑year numbers, highlighted a $1.07 B acquisition, a $3.0 B note offering and $2.8 B share repurchases, and provided FY2027 outlook.
Ticker impact
issued guidance for fiscal 2027 with net sales $11.95‑$12.15 B, net income $2.44‑$2.49 B and EPS $42.06‑$42.91, all above FY2026 levels
likely upward pressure as investors price in higher sales and earnings
Guidance issues outlook by double‑digit percentages, indicating strong demand and ample liquidity for further acquisitions
Market effects
Aerospace & defense suppliers may see renewed buying interest on the back of TransDigm's strong outlook
U.S. industrial sector could receive a modest lift in the near term
Limited to investors tracking U.S. aerospace component manufacturers
Counterpoint
If the guidance is overly optimistic, a miss on actual FY2027 results could trigger a sharp correction
Key entities
- CompanyTransDigm Group Inc.
U.S. aerospace component manufacturer (NYSE:TDG)
- Acquired CompanyPrince & Izant
Brazing alloys and specialty metal components supplier acquired for $1.07 B
