TransDigm Group Incorporated
- Open
- 1288.82
- Day high
- 1298.72
- Day low
- 1280.50
- Prev close
- 1295.71
- Volume
- 258K
- Mkt cap
- $72.2B
- P/E (TTM)
- 40.3
- EPS (TTM)
- $32.04
- P/B
- -7.7
- P/S
- 7.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$52.2M over the last 3 months (0 open-market buys, 114 sales)
- 🏛Institutions mixed (13F)
TransDigm Group Incorporated (TDG) is a Industrials company listed on NYSE. The stock is down 16% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 114 sales (SEC Form 4).
TransDigm Group Incorporated (TDG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TDG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $9.46 | $9.85 | +4.1% | $2.5B | +3.1% |
| Feb 3, 2026 | $8.10 | $8.23 | +1.6% | $2.3B | +1.2% |
| Nov 12, 2025 | $10.04 | $10.82 | +7.8% | $2.4B | +1.6% |
| Feb 4, 2025 | $7.83 | $7.83 | +0.0% | $2.0B | -1.3% |
| Nov 7, 2024 | $9.26 | $9.83 | +6.2% | $2.2B | +1.1% |
| Feb 8, 2024 | $6.41 | $7.16 | +11.7% | $1.8B | +6.7% |
| Nov 9, 2023 | $7.54 | $8.03 | +6.5% | $1.9B | +0.9% |
| Feb 7, 2023 | $4.31 | $4.58 | +6.3% | $1.4B | +1.6% |
| Nov 10, 2022 | $5.20 | $5.50 | +5.8% | $1.5B | +0.4% |
| Feb 8, 2022 | $3.14 | $3.00 | -4.5% | $1.2B | -3.2% |
| Nov 16, 2021 | $3.70 | $4.25 | +14.9% | $1.3B | +3.7% |
| Aug 10, 2021 | $2.99 | $3.33 | +11.4% | $1.2B | -0.4% |
TDG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 115 | $1308.92 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 78 | $1334.72 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 13 | $1331.73 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 1,376 | $1316.86 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 964 | $1314.60 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 97 | $1308.05 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 245 | $1328.46 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 677 | $1323.27 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 377 | $1324.30 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 745 | $1315.71 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 305 | $1321.91 |
| Jun 22, 2026 | Howley W Nicholasdirector | Option | 10,132 | $66.47 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 893 | $1317.75 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 112 | $1305.19 |
| Jun 22, 2026 | Howley W Nicholasdirector | Sell | 268 | $1321.13 |
Source: TDG SEC Form 4 filings, latest Jun 22, 2026. For informational purposes only — not investment advice.
See the full TDG insider & 13F page →TransDigm Group Incorporated company profile
Overview
TransDigm Group Incorporated (NYSE:TDG) is a specialized aerospace and defense components manufacturer founded in 1993 and based in Cleveland, Ohio. The company went public in 2006 and has since established itself as a leading supplier of highly engineered, proprietary aircraft components to commercial and military aviation markets worldwide. TransDigm operates through a decentralized structure, focusing on acquiring and operating businesses that produce mission-critical aerospace components with strong aftermarket revenue streams.
Business
TransDigm operates in the aerospace and defense industry, designing, producing, and supplying highly specialized aircraft components across three main business segments. The company's strategy centers on owning approximately 90% of its net sales from unique, proprietary products that are essential for aircraft operation and safety. The **Power & Control segment** manufactures critical aircraft systems including mechanical and electro-mechanical actuators that control flight surfaces, ignition systems that start and manage aircraft engines, specialized pumps and valves for hydraulic and fuel systems, power conditioning devices that regulate electrical systems, electric motors and generators, batteries and chargers, databus controls that manage aircraft communications, sensors, switches, and cargo handling systems. This segment primarily serves engine manufacturers, power system suppliers, airlines, maintenance providers, and military organizations. The **Airframe segment** produces components that are integral to the aircraft's structure and interior systems. This includes engineered latching and locking devices for doors and panels, connectors and sealing solutions that prevent leaks and maintain pressurization, cockpit security systems, displays and audio equipment, lavatory components, seat belts and safety restraints, interior surfaces, thermal protection materials, lighting systems, and parachutes. These products serve airframe manufacturers like Boeing and Airbus, cabin system suppliers, airlines, and military buyers. The **Non-aviation segment** represents a smaller portion of the business, applying TransDigm's engineering expertise to adjacent markets. This includes safety restraints for ground transportation, actuators for space applications, components for land-based gas turbines used in power generation, refueling systems for heavy mining and construction equipment, and turbine controls for energy markets. Based on recent financial data, the commercial aerospace market represents approximately 65% of total revenue, while defense applications account for about 35%. Within the commercial segment, the company generates revenue from both original equipment manufacturer (OEM) sales for new aircraft production and aftermarket sales for maintenance, repair, and overhaul activities.
Revenue model
TransDigm generates revenue through two primary channels: original equipment manufacturer (OEM) sales and aftermarket sales, with the latter being particularly profitable due to higher margins. The company sells directly to aircraft manufacturers like Boeing and Airbus for new aircraft production, while also supplying airlines, maintenance providers, and military organizations with replacement parts and components for existing aircraft. The business model is built around **proprietary, sole-source products** where TransDigm often holds the exclusive rights to manufacture specific components. This creates a recurring revenue stream, particularly in the aftermarket, where aircraft operators must purchase genuine replacement parts to maintain airworthiness certifications. Aftermarket sales typically command margins of 60-70% compared to 30-40% for OEM sales, making this the most profitable aspect of the business. **Commercial OEM revenue** fluctuates with aircraft production rates, which are influenced by airline demand, economic conditions, and manufacturer capacity. Recent earnings show this segment has been recovering from pandemic lows, with growth rates of 13-21% as Boeing and Airbus ramp up production. **Commercial aftermarket revenue** has shown strong growth of 8-13% as global air traffic recovers and airlines increase flight operations, driving demand for maintenance and replacement parts. **Defense revenue** provides stability with consistent government spending, growing 9-19% annually based on military modernization programs and ongoing maintenance of existing fleets. This segment is less cyclical than commercial aerospace but represents a smaller portion of total revenue. Factors that increase margins include higher aftermarket mix (which carries premium pricing), operational efficiency improvements through automation, successful price increases that exceed inflation, and the company's focus on high-value, engineered solutions. Margin pressures can arise from supply chain disruptions, raw material cost inflation, competitive pricing pressure on OEM contracts, and economic downturns that reduce flight activity and aftermarket demand.
Competitive moat
TransDigm possesses a **strong economic moat** built primarily around its portfolio of proprietary, sole-source aircraft components. The company's competitive advantages stem from several factors that create significant barriers to entry and customer switching costs. The most significant moat element is **regulatory and certification barriers**. Aircraft components must undergo extensive testing and certification by aviation authorities like the FAA, a process that can take years and cost millions of dollars. Once certified, airlines and maintenance providers are reluctant to switch suppliers due to the recertification requirements and operational risks involved. This creates substantial switching costs and customer loyalty. **Intellectual property and engineering expertise** represent another key moat factor. TransDigm's components are often highly specialized, mission-critical parts that require deep engineering knowledge and manufacturing expertise accumulated over decades. The company's decentralized structure allows each business unit to maintain close relationships with customers and deep technical knowledge of their specific applications. The **aftermarket replacement cycle** creates a recurring revenue moat, as aircraft operators must purchase genuine replacement parts throughout an aircraft's 20-30 year operational life. This generates predictable cash flows and allows for premium pricing due to the critical nature of the components and limited supplier alternatives. However, the moat faces potential challenges from **Parts Manufacturer Approval (PMA) competition**, where third-party manufacturers can develop alternative parts that meet the same specifications. While management reports no meaningful increase in PMA activity, this remains a long-term competitive threat. Additionally, **consolidation among aircraft manufacturers** could potentially give customers more negotiating power, though TransDigm's sole-source position on many components limits this risk. The company's **acquisition strategy** continuously strengthens the moat by adding complementary proprietary businesses, though this requires ongoing capital deployment and successful integration to maintain effectiveness.
Risks & safety
TransDigm presents a **moderate margin of safety** with strong operational cash generation offset by high leverage and premium valuation metrics. **Liquidity and Solvency:** 1. Strong cash position of $2.4 billion provides substantial liquidity buffer 2. Current ratio of 3.1x indicates solid short-term liquidity coverage 3. Free cash flow of $92 million in recent quarter, though down from $710 million in prior quarter 4. High debt levels with negative shareholders' equity of approximately $6 billion, indicating debt exceeds total assets 5. Debt-to-equity ratio of -4.4x reflects the leveraged capital structure typical of private equity-backed companies **Valuation Metrics:** 1. Price-to-earnings ratio of 41.8x represents premium valuation 2. EV/EBITDA of 23.6x is elevated compared to historical averages 3. Current stock price of $1,391 reflects high market expectations **Other Considerations:** 1. Consistent EBITDA margins around 50-54% demonstrate pricing power and operational efficiency 2. Predictable aftermarket revenue streams provide cash flow stability 3. Essential nature of products creates defensive characteristics during downturns 4. High leverage increases financial risk during economic stress periods
Recent development
Over the past few years, TransDigm has executed several key strategic initiatives while maintaining its core business model focus. The company completed significant acquisitions including **Calspan Corporation** for $725 million and **DART Aerospace**, expanding its portfolio of proprietary aerospace businesses. Most recently, the company announced the pending acquisition of **CPI's Electron Device Business**, continuing its disciplined M&A strategy focused on high-intellectual property aerospace and defense companies. A major **leadership transition** is underway, with longtime CEO Kevin Stein retiring at the end of fiscal 2025 and Mike Lisman being elected as the new CEO effective October 1, 2025. This represents a significant change for the company while maintaining strategic continuity. The company has accelerated **operational improvements** through increased investment in automation and productivity projects, particularly focusing on robotics and cobots as costs have decreased. These initiatives have contributed to margin expansion of 100-150 basis points annually, helping offset inflationary pressures. **Capital allocation strategy** has evolved to include more aggressive shareholder returns, with the company paying a $75 per share special dividend in fiscal 2024 and conducting opportunistic share buybacks of $300 million. The company maintains its target leverage range of 5-7x net debt-to-EBITDA while continuing to prioritize M&A opportunities. TransDigm has also focused on **commercial aftermarket recovery** as global air traffic has surpassed pre-pandemic levels, with particular strength in passenger markets while freight and business jet segments show more mixed performance. The company has successfully navigated supply chain challenges that plagued the industry in recent years, reporting fewer disruptions and improved supplier relationships.
TDG company profile · for informational purposes only — not investment advice.
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