TransDigm Group Incorporated (TDG)

TransDigm reported fiscal 2026 third-quarter net sales of $2,741 million on 4 August 2026, up 23% from $2,237 million a year earlier 1. Net income was $540 million 1. Chief executive Mike Lisman said all three major market channels grew at double-digit rates, with commercial aftermarket up 17% 1.

The company raised its fiscal 2026 net sales guidance by $150 million at the midpoint, to a range of $10,470 million to $10,550 million 1. That range leaves out the Prince & Izant purchase, which was then pending 1.

On 28 September 2026 TransDigm completed that purchase, a Cleveland maker of brazing alloys, for about $1.066 billion in cash from cash on hand 36. The same day a subsidiary issued $3,000 million of 6.75% senior secured notes due January 2035, to buy back $2,100 million of 6.75% notes due 2028 and for general purposes 5.

One more deal is open: the operating unit Extant Aerospace agreed on 21 September 2026 to buy rotorcraft, land systems and business jet products for about $240 million in cash 4. Closing is expected during fiscal year 2027 4.

TransDigm began in 1993 and, in the company's own count, has since acquired 95 businesses and product lines 2.

About 90% of fiscal 2025 net sales came from proprietary products, and about 55% came from the aftermarket, the replacement parts sold over an aircraft's life of roughly 25 to 30 years 2.

Net sales were $7,940 million in fiscal 2024 and $8,831 million in fiscal 2025, up 11.2% 2. Organic sales, from businesses already owned, added $615 million and acquisitions added $276 million 2.

The 10-K says the organic gain came mainly from defense and the commercial aftermarket, helped by strong air travel demand 2. Commercial OEM sales fell, and the 10-K points to aircraft production rates that stayed well below pre-pandemic levels amid supply chain and labor problems 2.

Gross profit, net sales minus the cost of making the products, rose to $5,311 million, or 60.1% of net sales, from 58.8% a year earlier 2. The 10-K credits the company's operating strategy and fixed overhead spread over higher production volume 2.

Net income attributable to the company was $2,074 million, against $1,714 million in fiscal 2024 2. Net interest expense rose to $1,572 million from $1,286 million 2.

Part of that debt paid special dividends 2. The company paid $75.00 per share in October 2024 and declared $90.00 per share in August 2025, funded in part by $3,000 million and $5,000 million of new debt 2.

Purchases continued: Raptor Scientific in July 2024 for about $646 million, Servotronics in July 2025 for about $133 million, and Simmonds Precision Products on 6 October 2025 for about $757 million 2.

Three segments

The Power & Control segment makes parts that provide or control power on an aircraft, such as actuators, ignition systems, pumps, valves and batteries 2. It had net sales of $4,559 million in fiscal 2025, 51.6% of the total, up 15.0% 2.

The Airframe segment makes non-power parts, such as latching and locking devices, cockpit security systems, displays, lavatory components, seat belts and parachutes 2. Its net sales were $4,112 million, 46.6% of the total, up 8.0% 2.

The Non-aviation segment sells seat belts for ground vehicles, space actuators, gas turbine parts and refueling systems for heavy equipment 2. Its net sales were $160 million, 1.8% of the total 2. Segment earnings on the company's own non-GAAP measure were 56.9% of sales for Power & Control and 53.7% for Airframe 2.

Customers and rivals

The aftermarket for commercial, regional, business jet and general aviation is generally 30% to 35% of annual net sales, commercial OEM 25% to 30%, and defense about 35% to 40% 2. The top ten customers made up about 40% of fiscal 2025 net sales, and none exceeded 10% 2.

The 10-K calls its niche markets fragmented, with competitors ranging from divisions of large public corporations to small private firms with one or two components 2.

Plants and people

The headquarters is in Cleveland, Ohio, and the company keeps about 120 manufacturing facilities in 25 states and 14 other countries 2. It had about 16,500 employees at 30 September 2025, with about 15% represented by unions 2.

Mike Lisman is the chief executive and Sarah Wynne the chief financial officer 16. On 22 July 2026 the board appointed Irina Krasik, a managing director at Stellex Capital Management, as a director 8.

Recent purchases

On 7 April 2026 the company completed the purchase of Jet Parts Engineering and Victor Sierra Aviation Holdings for about $2.2 billion in cash 7. Jet Parts Engineering makes aftermarket alternatives to original manufacturer parts, and Victor Sierra supplies such parts mainly to general and business aviation 1.

Prince & Izant, bought for about $1.066 billion, employs about 220 people at plants in Cleveland, Tinley Park, Franksville and Bay Shore 36. TransDigm said it expects about $360 million in calendar 2026 revenue from it 6.

Problems and risks

The 10-K says legal claims arise in the ordinary course and are not expected to have a material adverse effect 2. It also says tariffs did not significantly affect fiscal 2025 because the company is primarily a domestic manufacturer 2.

The umbrella, in words

TD Group owns TransDigm Inc., and the operating units beneath it design and sell the parts, with names such as Extant Aerospace 24. Its common stock is listed on the New York Stock Exchange under TDG 1.

The 10-K says none of its facilities is individually material to operations 2.

TransDigm's third-quarter release gives fiscal 2026 guidance for the year ending 30 September 2026, which the company expects to land at net sales of $10,470 million to $10,550 million 1. It expects net income of $2,102 million to $2,150 million and adjusted earnings per share of $40.62 to $41.46 1.

The company also expects EBITDA As Defined, its own non-GAAP earnings measure, of $5,490 million to $5,550 million 1. Its assumptions are commercial OEM revenue growth in the mid-teens percent, commercial aftermarket growth in the low double digits, and defense growth from high single digits to low double digits 1.

That guidance was issued before the Prince & Izant purchase closed and leaves its results out 1. The Extant Aerospace asset purchase for about $240 million is expected to close during fiscal year 2027, subject to standard regulatory approvals 4.

The new 6.75% notes pay interest on 31 January and 31 July of each year, starting 31 January 2027, and mature on 31 January 2035 5.