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Apr 01, 2023
Transdigm Q2 2023 Earnings Report
Transdigm Group reported strong second quarter results driven by revenue growth and margin improvement.
Key Takeaways
TransDigm Group reported a strong second quarter with net sales increasing by 20% to $1,592 million and adjusted earnings per share rising by 55% to $5.98. The company also raised its full-year guidance, reflecting the strong second-quarter results and the acquisition of Calspan Corporation.
Net sales increased by 20% year-over-year to $1,592 million.
Organic sales growth was 17.6%.
Adjusted earnings per share increased by 55% year-over-year to $5.98.
EBITDA As Defined margin improved to 51.3%.
Forward Guidance
TransDigm raised its full year guidance primarily to reflect strong second quarter results, the recent acquisition of Calspan, and current expectations for the remainder of the fiscal year.
Positive Outlook
- Net sales are anticipated to be in the range of $6,410 million to $6,500 million.
- Net income from continuing operations is anticipated to be in the range of $1,141 million to $1,191 million.
- Earnings per share from continuing operations is expected to be in the range of $19.30 to $20.18 per share based upon weighted average shares outstanding of 57.1 million shares.
- EBITDA As Defined is anticipated to be in the range of $3,230 million to $3,290 million.
- Adjusted earnings per share is expected to be in the range of $23.31 to $24.19 per share.
Challenges Ahead
- Commercial aftermarket revenue growth in the 25% to 30% range
- Commercial OEM revenue growth in the 20% to 25% range
- Defense revenue growth in the low to mid-single-digit percentage range.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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