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Transdigm Group Inc. (TDG)
NYSE:TDG
Earnings Data
Report Date
May 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
9.27Last Year’s EPS
9.11Same Quarter Last Year
Moderate Buy
Based on 16 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed predominantly positive operational and financial momentum: company results beat expectations in Q1, guidance for fiscal 2026 was raised for both sales and EBITDA, bookings and backlog were strong across channels, and cash generation and liquidity remain robust. Management reiterated disciplined capital allocation and an active M&A pipeline aligned with its high-aftermarket, proprietary-products strategy. Principal risks noted include near-term lumpiness in aftermarket due to distributor/airline inventory timing, a still-bumpy OEM production recovery, margin dilution from recent/pending acquisitions (~200 bps), and elevated leverage around ongoing M&A funding. Overall, the positives (guidance raises, strong cash flow, bookings, and strategic acquisitions) outweigh the headwinds, though execution and integration risk remain important watch items.Company Guidance
Raised Fiscal 2026 Revenue Guidance
Midpoint revenue guidance increased to $9.94 billion, representing approximately +13% year-over-year versus fiscal 2025; guidance raised $90 million at the midpoint versus prior guide.
Raised Fiscal 2026 EBITDA Guidance and Strong Margin
Midpoint EBITDA (defined) guidance raised to $5.21 billion, ~+9% year-over-year, with an expected EBITDA margin of ~52.4%; Q1 EBITDA margin was 52.4% (including ~200 bps dilution from recent acquisitions).
Solid Organic Growth and Market Performance
Company organic growth in Q1 was 7.4% with contributions from all market channels; commercial OEM revenue (pro forma) grew ~17% and commercial transport OEM grew ~18% year-over-year; commercial aftermarket revenue grew ~7% and defense revenue grew ~7%.
Strong Cash Generation and Liquidity
Operating cash flow in Q1 was over $830 million; free cash flow for Q1 (as defined) was just under $900 million; cash balance ended Q1 at over $2.5 billion; full-year free cash flow guidance remains ~$2.4 billion (excludes pending acquisitions).
Robust Bookings and Backlog
Bookings were strong across commercial OEM, commercial aftermarket and defense, with commercial transport OEM bookings up into the high teens and aftermarket bookings running ahead of sales (supporting full-year outlook).
Active and Strategic M&A Program
Announced pending acquisitions: Stellant Systems (~$960M cash, ~$300M 2025 revenue), Jet Parts Engineering and Victor Sierra (~$2.2B cash, combined ~$280M 2025 revenue); pro forma M&A firepower approaching ~$10 billion; acquisitions targeted to fit TransDigm’s proprietary, aftermarket-heavy model.
Defensive Balance Sheet Management
Net debt-to-EBITDA ended the quarter at 5.7x (improved from 5.8x); ~75% of $30B gross debt is fixed through FY2029; EBITDA-to-interest coverage was 3.1x, providing cushion relative to targets.
Shareholder Returns and Capital Allocation Discipline
Opportunistic share repurchases of a little over $100 million in Q1; capital priorities reiterated: reinvest in business, accretive M&A, return capital to shareholders, with debt paydown less likely at present.
TDG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TDG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 03, 2026 | $1435.52 | $1301.93 | -9.31% |
Nov 12, 2025 | $1294.00 | $1307.97 | +1.08% |
Aug 05, 2025 | $1505.46 | $1325.78 | -11.94% |
May 06, 2025 | $1377.88 | $1302.31 | -5.48% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Transdigm Group Inc. (TDG) report earnings?
Transdigm Group Inc. (TDG) is schdueled to report earning on May 12, 2026, Before Open (Confirmed).
What is Transdigm Group Inc. (TDG) earnings time?
Transdigm Group Inc. (TDG) earnings time is at May 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TDG EPS forecast?
TDG EPS forecast for the fiscal quarter 2026 (Q2) is 9.27.
