10-QPeriod: Q2 FY2026

TransDigm Group INC Quarterly Report for Q2 Ended Mar 28, 2026

Filed May 5, 2026For Securities:TDG

Summary

TransDigm Group Incorporated (TDG) reported strong financial results for the twenty-six weeks ended March 28, 2026, with net sales increasing by 16.2% to $4.83 billion and net income attributable to TD Group remaining robust at $980 million. This growth was driven by a combination of organic sales increases across defense, commercial aftermarket, and commercial OEM segments, alongside strategic acquisitions. The company demonstrated effective operational management, with EBITDA As Defined reaching $2.53 billion, representing 52.5% of net sales. Significant investments were made in growth, including substantial acquisition activity totaling $1.47 billion in the period, and a $829 million share repurchase program. Despite increased interest expenses due to higher borrowings, TransDigm maintained strong liquidity with $4.75 billion in cash and available credit facilities, positioning it well for continued strategic expansion and debt management.

Financial Highlights

52 data points
Beta

Revenue

$2.54B

59.4% Gross Margin

Net Income

$535.00M

21.0% Net Margin

EPS (Diluted)

$9.20

Total Assets

$25.44B

Cash & Equivalents

$3.88B

Free Cash Flow

$64.00M

Financial Statements
Beta
Revenue$2.54B
Cost of Revenue$1.03B
Gross Profit$1.51B
SG&A Expenses$273.00M
Operating Income$1.18B
Net Income$535.00M
EPS (Basic)$9.20
EPS (Diluted)$9.20
Shares Outstanding (Basic)58.20M
Shares Outstanding (Diluted)58.20M

Key Highlights

  • 1Net sales increased by 16.2% to $4.83 billion for the first half of fiscal 2026 compared to the prior year.
  • 2Net income attributable to TD Group was $980 million for the first half of fiscal 2026, with diluted EPS of $15.82.
  • 3EBITDA As Defined reached $2.53 billion, a 13.9% increase, reflecting strong operational performance and margin maintenance.
  • 4Significant acquisition activity totaling $1.47 billion in the first half of fiscal 2026, including the acquisitions of Simmonds, Jet Parts Engineering, and Victor Sierra Aviation Holdings.
  • 5Total debt increased to $32.0 billion due to new debt issuances to fund acquisitions, while cash and cash equivalents rose to $3.88 billion.
  • 6The company repurchased $829 million of its common stock during the first half of fiscal 2026.
  • 7Maintained strong liquidity with $4.75 billion in cash and available revolving credit facilities as of March 28, 2026.

Frequently Asked Questions

TransDigm's revenue growth was driven by increases in organic sales across its defense, commercial aftermarket, and commercial OEM segments. The company also benefited from sales generated by recent acquisitions, contributing to the overall 16.2% increase in net sales for the first half of fiscal 2026.

Total debt increased to $32.0 billion primarily due to new debt issuances totaling $2.0 billion in February 2026 and $1.5 billion in April 2026, which were used to fund significant acquisitions. TransDigm aims to maintain approximately 75% fixed-rate debt to limit exposure to interest rate fluctuations and is compliant with its debt covenants.

The company has completed several significant acquisitions, including Simmonds, Jet Parts Engineering, and Victor Sierra Aviation Holdings, for a total of approximately $1.47 billion in the first half of fiscal 2026. These acquisitions are expected to expand the company's market position and product offerings, contributing to future revenue and profitability, although they also contribute to increased debt levels and some initial integration costs.

TransDigm repurchased $829 million of its common stock during the first half of fiscal 2026, demonstrating a commitment to returning capital to shareholders. The company also authorized an additional $5.0 billion in share repurchases under its existing program, indicating a continued focus on share buybacks.