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Sep 30
Transdigm Q4 2025 Earnings Report
TransDigm reported strong Q4 results with growth in net income, revenue, and profitability margins.
Key Takeaways
TransDigm delivered a robust Q4 with strong organic sales growth and improved EBITDA margins. Commercial aftermarket and defense segments saw double-digit growth, supporting higher OEM build rates and driving significant earnings gains.
Revenue rose to $2.44B, driven by 10.8% organic growth.
Net income increased to $609M, up from $468M a year ago.
EBITDA As Defined margin expanded to 54.2%.
Adjusted EPS climbed to $10.82 from $9.83 in the prior year.
Transdigm
Transdigm
Forward Guidance
TransDigm expects solid growth in fiscal 2026, driven by strength across OEM, aftermarket, and defense markets, though interest expense will weigh on net income.
Positive Outlook
- Net sales expected to increase ~11.5% YoY to $9.75B–$9.95B.
- EBITDA As Defined expected to grow to $5.075B–$5.225B.
- Adjusted EPS guided between $36.49 and $38.53.
- Commercial OEM market expected to grow in high single-digit to mid-teens range.
- Defense and commercial aftermarket markets expected to show continued growth.
Challenges Ahead
- Net income expected to decline due to higher interest expense.
- EPS guidance midpoint implies only modest growth over FY25.
- EBITDA margin expected to decline slightly to ~52.3%.
- Continued macroeconomic headwinds could impact OEM production.
- Interest burden from recent $5B debt issuance to pressure bottom line.