⬤ Loading…
TransDigm Group Incorporated
…
S&P 500
$63.2B
Market Cap
41.1
P/E
2.49
PEG
16.4%
ROCE
-26.0%
ROE
-3.09
D/E
47.2%
OPM
-23.6%
% from 52W High
31
α RS
🔍 TDG is showing a multi-screen setup because it matches 12 of 39 tracked screener presets, an ECS of 60.2 last quarter, and it's hugging the 21 EMA. Net: Broad signal stack, not a recommendation. ? Conviction ECS Technicals
Sources
Conviction 12/39 · ECS 60.2 · hugging 21 EMA
⚖️ Compare 🔒 Generate Report 🔒 Research Packet 📚 Guides
🌏 Global Investor Returns
Currency-adjusted total returns for TDG including FX impact
🌏
Click 🌏 Returns tab to load data
📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The 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, cargo loading and handling systems, delivery systems, and electronic components. Its Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, parachutes, specialized flight, wind tunnel and jet engine testing services and equipment, and testing and instrumentation solutions, as well as engineered audio, radio, and antenna systems. The Non-Aviation segment offers seat belts and safety restraints; mechanical/electromechanical actuators and controls; hydraulic/electromechanical actuators and fuel valves; refueling systems; and turbine controls. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots; airframe manufacturers, cabin system and subsystem suppliers, airlines, and third party maintenance suppliers; and off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers, as well as manufacturers of heavy equipment. The company was formerly known as TD Holding Corporation and changed its name to TransDigm Group Incorporated in 2006. The company was founded in 1993 and is headquartered in Cleveland, Ohio.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
Loading…
⭐ Superinvestors Holding TDG
View All Superinvestors →
Manager Shares Value % of Fund Period
Daniel Loeb Third Point LLC 25.0K $29.0B 1.39% Mar 2026
Steve Cohen Point72 Asset Management 42.3K $49.0M 0.06% Mar 2026
Jim Simons Renaissance Technologies LLC 19.8K $22.9M 0.04% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
🎙 Management Tone Confident Specific → Stable 5 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$2.741B
+23% YoY
EBITDA As Defined
$1.447B
+19% YoY
EBITDA As Defined Margin
52.8%
-1.6pp YoY
Net Income
$540M
+10% YoY
What Went Right
  • All three end markets grew double digits, with revenue up 23% to $2.741B.
  • Commercial transport aftermarket grew 18% and total commercial aftermarket grew 17%.
  • FY26 guidance raised: revenue midpoint up $150M to $10.51B and EBITDA midpoint up $100M to $5.52B.
What to Watch
  • Management sees no material impact yet from Middle East conflict/RPM decline but is monitoring it closely.
  • DOJ antitrust challenge forced withdrawal of Stellant Systems acquisition, a rare regulatory failure for TDG.
  • Recent acquisitions still dilute EBITDA margins by more than 2pp, and Q4 appears guided conservatively after Q3's 52.8% margin.
Management Guidance
  • Explicit Q4 revenue guidance not provided; full-year FY26 revenue midpoint raised to $10.51B, up ~19% YoY.
  • Full-year EBITDA As Defined midpoint raised to $5.52B, up ~16% YoY, with margin around 52.5%.
  • Full-year adjusted EPS midpoint raised to $41.04.
  • Full-year free cash flow guidance raised to ~$2.6B.
  • FY26 channel assumptions: commercial OEM mid-teens growth, commercial aftermarket low-double-digit growth, defense high-single to low-double-digit growth.
Investor Lens
The investment thesis is stronger after this call: TransDigm beat and raised again, with commercial aftermarket growing 17-18% despite macro and geopolitical noise and all three end markets growing double digits. Reported margins are being diluted by M&A by more than 2pp, but the base business is still expanding margins and management expects continued ~1-1.5pp organic margin improvement. Q3 free cash flow of $870M and cash of $2.8B leave plenty of capacity for buybacks and M&A, including the pending Prince & Izant deal. Key risks are Middle East-related demand disruption and regulatory friction, but neither meaningfully undermines the long-term value-creation model.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📈 STRONG Beats and raises: revenue +23% to $2.74B, FY26 targets up.
Revenue
Q3 net sales rose 23% YoY to $2.741B, with organic growth of 13%. Commercial aftermarket grew 17%, commercial OEM grew 17%, and defense grew 11%, with commercial transport OEM up 25%.
Profitability
Net income rose 10% to $540M and adjusted net income rose 12% to $624M. Adjusted EPS was $10.87, up 13% YoY, versus GAAP EPS of $9.39, up 11%.
Margins
EBITDA As Defined margin was 52.8%, down from 54.4% a year ago, including more than 2pp of acquisition dilution. Margins improved sequentially from Q2 despite roughly 0.5pp of headwind from Jet Parts Engineering and Victor Sierra.
Balance Sheet
Q3 operating cash flow was over $700M and free cash flow was about $870M, bringing YTD free cash flow to $2.1B. Cash ended the quarter at $2.8B and net debt to EBITDA was 5.8x.
Key Risks
Management flagged no material commercial aftermarket impact yet from the Middle East conflict or lower RPMs, but is monitoring. The DOJ challenge to Stellant Systems forced deal withdrawal, and recent acquisitions remain a margin dilution drag. Right to Repair defense legislation was also raised as an unresolved risk.
Outlook
FY26 revenue guidance midpoint is now $10.51B, up ~19%, with EBITDA As Defined of $5.52B and margin around 52.5%. Adjusted EPS guidance midpoint is $41.04 and free cash flow guidance is ~$2.6B.
Generated by AI · Q3 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
🔍
🔎 See cross-company document search → ?
📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-08-04
Q3 results exceeded expectations, driving raised full-year guidance for revenue, EBITDA, and EPS. Strong growth was seen across commercial OEM, aftermarket, and defense, with robust cash flow and disciplined capital allocation. Recent acquisitions and new business wins support continued momentum.
Q2 2026 Q2 2026 2026-05-05
Q2 results exceeded expectations, driving raised full-year guidance for revenue, EBITDA, and EPS. All market channels grew, with strong commercial aftermarket and defense performance, while recent acquisitions and robust capital allocation support future growth.
Q1 2026 Q1 2026 2026-02-03
Q1 2026 results surpassed expectations, leading to raised full-year guidance for sales and EBITDA. Strong growth was seen across all segments, with robust cash flow and three major acquisitions announced. Margin performance was solid, and the company maintains significant liquidity and M&A capacity.
Q4 2025 Q4 2025 2025-11-12
Fiscal 2025 ended with strong growth in commercial aftermarket and defense, exceeding revenue and EBITDA guidance. Fiscal 2026 outlook calls for 12% revenue and 8% EBITDA growth, with margin dilution from recent acquisitions but continued focus on disciplined capital allocation and operational excellence.
Q3 2025 Q3 2025 2025-08-05
Q3 delivered strong EBITDA margins and cash flow, with aftermarket and defense segments driving growth, while commercial OEM lagged due to production headwinds. Fiscal 2025 guidance was updated: sales outlook lowered, but EBITDA and EPS raised, reflecting resilient aftermarket and defense performance.
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Catalyst Timeline.

Every result, order win, insider trade, ECS update, earnings-call, and SEC announcement for this company — in one chronological lane.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.