The earnings call highlighted strong EBITDA margins, cash flow, and successful acquisitions, but faced challenges in commercial OEM revenue and sales guidance. Overall, the sentiment is balanced with positive financial performance and strategic growth efforts countered by specific market challenges.

Company Guidance

In the Q3 2025 earnings call, TransDigm Group Inc. provided updated guidance for the fiscal year, adjusting their sales and EBITDA expectations. The company revised its full fiscal year sales guidance down by $60 million, now anticipating a midpoint revenue of $8.79 billion, reflecting an 11% increase over the prior year. This adjustment was primarily due to lower-than-expected commercial OEM build rates and inventory destocking. Conversely, the EBITDA guidance was raised by $40 million to a midpoint of $4.725 billion, representing a 13% increase with an expected margin of 53.8%. The adjusted EPS is projected to be $36.74, an 8% rise. The company's strong performance in the commercial aftermarket and defense market channels contributed significantly to the robust EBITDA margin of 54.4% in the quarter. Additionally, TransDigm reported a significant operating cash flow of over $630 million and ended the quarter with a cash balance of nearly $2.8 billion.

Strong EBITDA Margin

EBITDA as defined margin was 54.4% in Q3, driven by growth in commercial aftermarket and operating strategy focus.

Robust Operating Cash Flow

Q3 operating cash flow exceeded $630 million with a cash balance of almost $2.8 billion.

Increase in EBITDA Guidance

Full fiscal year 2025 EBITDA guidance increased by $40 million to $4.725 billion, reflecting a margin of around 53.8%.

Successful M&A Activity

Completed acquisition of Servotronics for $138 million and agreed to acquire Simmonds Precision for $765 million, expected to generate significant revenue.

Defense Revenue Growth

Defense market revenue grew by approximately 13% compared to the prior year period, supported by strong bookings.

Transdigm Group (TDG) Earnings, Revenues Date & History

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TDG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 06, 2025	2025 (Q4)	10.41 / -	9.83	―	―	―
Aug 05, 2025	2025 (Q3)	9.89 / 9.60	9	6.67% (+0.60)
May 06, 2025	2025 (Q2)	8.96 / 9.11	7.99	14.02% (+1.12)
Feb 04, 2025	2025 (Q1)	7.67 / 7.83	7.16	9.36% (+0.67)
Nov 07, 2024	2024 (Q4)	9.27 / 9.83	8.03	22.42% (+1.80)
Aug 06, 2024	2024 (Q3)	8.54 / 9.00	7.25	24.14% (+1.75)
May 07, 2024	2024 (Q2)	7.42 / 7.99	5.98	33.61% (+2.01)
Feb 08, 2024	2024 (Q1)	6.41 / 7.16	4.58	56.33% (+2.58)
Nov 09, 2023	2023 (Q4)	7.55 / 8.03	5.5	46.00% (+2.53)
Aug 08, 2023	2023 (Q3)	6.38 / 7.25	4.85	49.48% (+2.40)

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
Aug 05, 2025	$1608.98	$1416.94	-11.94%
May 06, 2025	$1472.62	$1391.86	-5.48%
Feb 04, 2025	$1352.78	$1307.66	-3.34%
Nov 07, 2024	$1382.60	$1329.39	-3.85%

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.