TransDigm's earnings call reflects a generally positive outlook, with strong EBITDA margins and operating cash flow, significant defense market growth, and a stable commercial aftermarket. However, challenges in the commercial OEM segment, including revenue decline and lowered sales guidance, present notable headwinds. The company's strategic acquisitions and M&A activity suggest a focus on long-term growth.

Company Guidance -

Q4 2025

During the Q3 2025 earnings call, TransDigm Group Inc. provided updated guidance reflecting recent performance and expectations for the remainder of the fiscal year. The company decreased its full fiscal year 2025 sales guidance by $60 million, while increasing its EBITDA as defined guidance by $40 million, attributing the sales reduction primarily to lower commercial OEM build rates and inventory destocking. The midpoint for fiscal 2025 revenue guidance is set at $8.79 billion, representing an 11% increase over the prior year. For the commercial OEM market, revenue growth is now expected to be flat to low single-digit percentage range, down from previous expectations, due to production challenges at Boeing and Airbus. However, the guidance for commercial aftermarket and defense revenue growth remains unchanged, with expectations of high single-digit to low double-digit percentage growth. The midpoint for fiscal 2025 EBITDA as defined guidance is $4.725 billion, with an anticipated margin of 53.8%, and adjusted EPS is projected at $36.74, up approximately 8% from the prior year. The company continues to focus on value creation and maintaining a robust capital allocation strategy.

Strong EBITDA Margin Performance

TransDigm reported a robust EBITDA margin of 54.4% for Q3, driven by growth in the commercial aftermarket and a focus on operational strategy, allowing margin expansion across all segments.

Solid Operating Cash Flow

The company generated over $630 million in operating cash flow during Q3, ending the quarter with a cash balance of almost $2.8 billion. Free cash flow guidance for the fiscal year remains at approximately $2.3 billion.

Defense Market Growth

Defense revenue grew by approximately 13% compared to the prior year, with OEM slightly ahead of aftermarket growth. Defense bookings were strong and support continued revenue growth.

Positive Commercial Aftermarket Performance

Commercial aftermarket revenue increased by approximately 6% year-over-year, with strong growth in freight and interiors submarkets.

Recent Acquisitions and M&A Strategy

TransDigm completed the acquisition of Servotronics and signed an agreement to acquire Simmonds Precision, fitting well with the existing business portfolio. The company continues to pursue disciplined M&A opportunities.

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)	10.49 / -	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.