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Jun 28, 2025
Transdigm Q3 2025 Earnings Report
TransDigm reported strong results in Q3 FY25 with growth in revenue, net income, and EPS, despite headwinds in the commercial OEM market.
Key Takeaways
TransDigm posted a solid quarter with strong performance in its commercial aftermarket and defense segments, offsetting weaker OEM sales. EPS and EBITDA As Defined saw healthy gains.
Revenue grew to $2.237 billion, driven by commercial aftermarket and defense sales.
Net income rose to $493 million despite higher interest expenses.
EPS increased to $8.47 with adjusted EPS reaching $9.60.
Commercial OEM sales underperformed due to lower build rates and inventory destocking.
Forward Guidance
Guidance was revised to reflect strong EBITDA and EPS expectations despite lowered sales forecasts due to weaker OEM performance.
Positive Outlook
- Raised mid-point of EBITDA As Defined guidance for FY25.
- Increased adjusted EPS guidance by $0.27 per share.
- Maintained strong performance expectations for commercial aftermarket and defense.
- Positive contributions expected from recent acquisitions (Servotronics and Simmonds).
- Margin resilience expected despite end-market volatility.
Challenges Ahead
- Lowered FY25 sales guidance by $60 million due to OEM softness.
- Commercial OEM revenue growth expected to be flat to low single digits.
- Inventory destocking continues to impact OEM sales.
- OEM build rates underperforming expectations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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