Transdigm Group (NYSE:TDG – Get Free Report) issued its earnings results on Tuesday. The aerospace company reported $12.44 EPS for the quarter, topping analysts’ consensus estimates of $12.21 by $0.23, FiscalAI reports. The business had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $2.95 billion. Transdigm Group had a net margin of 19.69% and a negative return on equity of 23.65%. The company’s revenue for the quarter was up 22.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $10.82 EPS. Transdigm Group updated its FY 2027 guidance to 47.090-47.940 EPS.
Here are the key takeaways from Transdigm Group’s conference call:
- TransDigm reported broad-based strength in fiscal 2026: all three major end markets grew at double-digit rates in Q4 and for the full year, and revenue and EBITDA exceeded the company’s latest guidance. Q4 EBITDA margin reached 53%, its highest of the year.
- Fiscal 2027 guidance calls for revenue of about $12.05 billion, up approximately 14%, and EBITDA of about $6.27 billion, up approximately 13%. The company expects high-single-digit or better growth across commercial OEM, commercial aftermarket, and defense.
- Commercial OEM momentum is supported by higher Boeing and Airbus production, while defense enters the new year with a healthy backlog and bookings well above the prior year. Management also expects underlying margin improvement of 1%–1.5%, though recent acquisitions are expected to dilute fiscal 2027 reported margins by about two percentage points.
- Commercial aftermarket demand remained healthy despite elevated oil prices and weaker-than-forecast RPKs, with bookings exceeding sales for the year. However, fiscal 2027 aftermarket growth guidance of high single digits is below fiscal 2026’s 14% growth, and management cited continued uncertainty around travel demand.
- The company repurchased $2.75 billion of shares and deployed about $4.4 billion in acquisitions during fiscal 2026, while ending the year at 5.9 times net debt to EBITDA. Management expects leverage to fall below 5 times by fiscal 2027 year-end, assuming no additional acquisitions, buybacks, or dividends.
Transdigm Group Stock Performance
Transdigm Group stock traded up $5.57 during midday trading on Wednesday, hitting $1,231.11. 147,985 shares of the company’s stock were exchanged, compared to its average volume of 392,351. The company has a market cap of $68.86 billion, a PE ratio of 37.39, a P/E/G ratio of 1.74 and a beta of 0.98. The firm has a 50-day moving average of $1,131.80 and a two-hundred day moving average of $1,221.05. Transdigm Group has a 12 month low of $1,071.25 and a 12 month high of $1,463.03.
Insider Activity
In other news, COO Joel Reiss sold 4,100 shares of the company’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $1,128.04, for a total value of $4,624,964.00. Following the completion of the sale, the chief operating officer owned 3,600 shares of the company’s stock, valued at approximately $4,060,944. This represents a 53.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director W. Howley sold 10,132 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total transaction of $12,525,988.96. Following the completion of the sale, the director directly owned 21,548 shares of the company’s stock, valued at $26,639,361.44. The trade was a 31.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 22,032 shares of company stock valued at $26,250,979. Company insiders own 3.20% of the company’s stock.
Analyst Ratings Changes
A number of brokerages recently issued reports on TDG. Guggenheim started coverage on Transdigm Group in a report on Tuesday, September 15th. They issued a “neutral” rating for the company. Weiss Ratings reissued a “hold (c)” rating on shares of Transdigm Group in a research note on Friday, August 28th. JPMorgan Chase & Co. reduced their price objective on Transdigm Group from $1,450.00 to $1,415.00 and set a “neutral” rating on the stock in a report on Thursday, September 17th. Stifel Nicolaus lowered Transdigm Group from a “buy” rating to a “hold” rating and decreased their target price for the company from $1,525.00 to $1,405.00 in a research report on Wednesday, August 5th. Finally, Wells Fargo & Company decreased their target price on Transdigm Group from $1,450.00 to $1,210.00 and set an “equal weight” rating for the company in a research report on Wednesday, September 30th. Five investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $1,435.07.
Read Our Latest Stock Analysis on Transdigm Group
Key Headlines Impacting Transdigm Group
These are some of the TDG headlines that stood out recently:
- Positive Sentiment: Fiscal Q4 adjusted EPS of $12.44 topped estimates, while revenue rose 23% year over year to $2.99 billion and beat forecasts. Organic sales grew 14%, adding to evidence of solid operating demand. TransDigm fiscal 2026 results
- Positive Sentiment: RBC raised its price target to $1,300 from $1,200 while keeping a Sector Perform rating, signaling a higher valuation view but not an outright bullish recommendation. RBC raises TransDigm price target
- Negative Sentiment: Fiscal 2027 adjusted EPS guidance of $47.09–$47.94 has a midpoint below the $47.91 analyst consensus. That modest shortfall overshadowed the quarterly beat in reports of the stock’s post-earnings weakness. TransDigm profit outlook falls short
Transdigm Group Company Profile
TransDigm Group Incorporated designs, produces and supplies highly engineered components for the aerospace industry. Its products include mechanical and electromechanical systems, pumps, valves, ignition systems, batteries, power-conditioning devices and cockpit components. The company serves commercial, military and business aviation markets, supplying components for both original aircraft production and the aftermarket. Its products are used on aircraft operated around the world, and its aftermarket business provides replacement parts and related support.
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