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Dec 27, 2025
Transdigm Q1 2026 Earnings Report
TransDigm Group reported its first quarter fiscal year 2026 results, with net sales increasing by 14% and EBITDA As Defined up by 13% compared to the prior year's quarter.
Key Takeaways
TransDigm Group delivered a strong first quarter for fiscal year 2026, with net sales reaching $2.285 billion, a 14% increase year-over-year, and EBITDA As Defined growing by 13% to $1.197 billion. Despite higher interest expenses leading to a 9.7% decrease in net income, adjusted earnings per share rose by 5% to $8.23, and the company raised its fiscal 2026 financial guidance.
Net sales for the quarter increased by 14% to $2,285 million from $2,006 million in the prior year's quarter.
EBITDA As Defined grew by 13% to $1,197 million, with a margin of 52.4%.
Net income decreased by 9.7% to $445 million, primarily due to higher interest expense.
Adjusted earnings per share increased by 5% to $8.23, and the company revised its fiscal 2026 financial guidance upwards.
Forward Guidance
TransDigm Group has raised its full-year fiscal 2026 financial guidance, anticipating net sales between $9.845 billion and $10.035 billion, and EBITDA As Defined between $5.140 billion and $5.280 billion. This guidance reflects strong first-quarter performance and favorable market trends, excluding contributions from pending acquisitions.
Positive Outlook
- Net sales are anticipated to increase by 12.6% at the midpoint from fiscal 2025, with an upward revision of $90 million from prior guidance.
- EBITDA As Defined is expected to increase by 9.5% at the midpoint from fiscal 2025, with an upward revision of $60 million from prior guidance.
- Adjusted earnings per share are projected to increase by 2.8% at the midpoint compared to prior year, with an upward revision of $0.87 per share from prior guidance.
- Commercial OEM revenue growth is expected in the high single-digit to mid-teens percentage range.
- Commercial aftermarket and defense revenue growth are anticipated in the high single-digit and mid to high single-digit percentage ranges, respectively.
Challenges Ahead
- Net income is anticipated to decrease by 3.2% at the midpoint compared to fiscal 2025, primarily due to additional interest expense.
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