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Dec 31, 2022

Transdigm Q1 2023 Earnings Report

Transdigm's Q1 2023 results were marked by revenue growth, increased profitability, and revised financial guidance.

Key Takeaways

TransDigm Group reported a strong first quarter for fiscal year 2023, with net sales increasing by 17% to $1,397 million and adjusted earnings per share rising by 53% to $4.58. The company's EBITDA As Defined margin improved to 50.0%, and it raised its full-year financial guidance due to these strong results and favorable trends in the commercial aerospace market.

Net sales increased by 17% year-over-year, reaching $1,397 million.

Adjusted earnings per share grew by 53% compared to the previous year's quarter, amounting to $4.58.

EBITDA As Defined margin improved to 50.0%, a 270 basis point increase from the prior year.

Fiscal year 2023 financial guidance was revised upward, reflecting strong first-quarter performance and positive market trends.

Total Revenue
$1.4B
Previous year: $1.19B
+17.0%
EPS
$4.58
Previous year: $3
+52.7%
Organic Sales Growth
15.2%
Previous year: 8.7%
+74.7%
Gross Profit
$793M
Previous year: $661M
+20.0%
Cash and Equivalents
$3.29B
Previous year: $4.81B
-31.7%
Free Cash Flow
$346M
Previous year: $254M
+36.2%
Total Assets
$18.5B
Previous year: $19.2B
-3.9%

Transdigm

Transdigm

Forward Guidance

TransDigm raised its full year guidance primarily to reflect strong first quarter results and current expectations for the remainder of the fiscal year.

Positive Outlook

  • Net sales are anticipated to be in the range of $6,070 million to $6,240 million.
  • Net income from continuing operations is anticipated to be in the range of $1,080 million to $1,160 million.
  • Earnings per share from continuing operations is expected to be in the range of $18.24 to $19.64 per share based upon weighted average shares outstanding of 57.1 million shares.
  • EBITDA As Defined is anticipated to be in the range of $3,060 million to $3,160 million.
  • Adjusted earnings per share is expected to be in the range of $21.47 to $22.87 per share.