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Jul 03, 2021

Transdigm Q3 2021 Earnings Report

Transdigm's Q3 2021 results were unfavorably impacted by the COVID-19 pandemic but showed signs of recovery in commercial aerospace with increased vaccination rates and air traffic.

Key Takeaways

TransDigm Group Incorporated reported a 19% increase in net sales to $1,218 million and income from continuing operations of $317 million for the third quarter ended July 3, 2021. Adjusted earnings per share increased by 116% to $3.33, and the company generated $252 million in operating cash flow. The company divested the Technical Airborne Components business and ScioTeq and TREALITY Simulation Visual Systems businesses during the quarter.

Net sales increased by 19% to $1,218 million compared to the prior year's quarter.

Income from continuing operations rose to $317 million from a loss of $(5) million in the prior year's quarter.

Adjusted earnings per share increased by 116% to $3.33 from $1.54 in the prior year's quarter.

EBITDA As Defined margin was 45.9%, showing sequential improvement.

Total Revenue
$1.22B
Previous year: $1.02B
+19.2%
EPS
$3.33
Previous year: $1.54
+116.2%
Organic Sales Growth
15.1%

Transdigm

Transdigm

Forward Guidance

Given the considerable uncertainty around the extent and duration of business disruptions related to the COVID-19 pandemic, and how that will continue to impact operations, the Company will not provide fiscal year 2021 guidance at this time.