WS Investor
10 Nov 2026, 15:33
TransDigm Rises 1.6% as Q4 Results Top Guidance and Fiscal 2027 Outlook Signals Continued Growth
TransDigm Group (NYSE: TDG) shares rose about 1.6% on Tuesday after the company reported strong fiscal fourth-quarter results, with revenue and EBITDA As Defined exceeding the high end of its most recent guidance.
Fourth-quarter net sales increased 23% year over year to $2.99 billion, including 14% organic growth. Adjusted EPS rose 15% to $12.44, while EBITDA As Defined increased 20% to $1.58 billion. Reported EPS climbed 33% to $10.33.
Net income declined 4% to $586 million, primarily due to higher interest expense from increased gross debt and higher tax expense. However, adjusted net income rose 12% to $706 million.
For fiscal 2026, revenue increased 20% to $10.56 billion, while EBITDA As Defined rose 17% to $5.56 billion. TransDigm also deployed more than $7 billion of capital during the year, including approximately $4.4 billion toward acquisitions and a record $2.8 billion of share repurchases.
Management issued fiscal 2027 revenue guidance of $11.95 billion-$12.15 billion, implying 14% growth at the midpoint. EBITDA As Defined is expected to reach $6.20 billion-$6.35 billion, while adjusted EPS is projected at $47.09-$47.94, representing approximately 15% growth at the midpoint.
TransDigm expects commercial OEM revenue to grow in the high-single-digit to low-double-digit range, with commercial aftermarket and defense revenue both growing at high-single-digit rates.
The 1.6% gain appears to reflect stronger-than-guided fourth-quarter performance, continued double-digit organic growth and a solid fiscal 2027 outlook, partly offset by higher interest expense and modest margin dilution from recent acquisitions.
TransDigm Group (NYSE: TDG) shares rose about 1.6% on Tuesday after the company reported strong fiscal fourth-quarter results, with revenue and EBITDA As Defined exceeding the high end of its most recent guidance.
Fourth-quarter net sales increased 23% year over year to $2.99 billion, including 14% organic growth. Adjusted EPS rose 15% to $12.44, while EBITDA As Defined increased 20% to $1.58 billion. Reported EPS climbed 33% to $10.33.
Net income declined 4% to $586 million, primarily due to higher interest expense from increased gross debt and higher tax expense. However, adjusted net income rose 12% to $706 million.
For fiscal 2026, revenue increased 20% to $10.56 billion, while EBITDA As Defined rose 17% to $5.56 billion. TransDigm also deployed more than $7 billion of capital during the year, including approximately $4.4 billion toward acquisitions and a record $2.8 billion of share repurchases.
Management issued fiscal 2027 revenue guidance of $11.95 billion-$12.15 billion, implying 14% growth at the midpoint. EBITDA As Defined is expected to reach $6.20 billion-$6.35 billion, while adjusted EPS is projected at $47.09-$47.94, representing approximately 15% growth at the midpoint.
TransDigm expects commercial OEM revenue to grow in the high-single-digit to low-double-digit range, with commercial aftermarket and defense revenue both growing at high-single-digit rates.
The 1.6% gain appears to reflect stronger-than-guided fourth-quarter performance, continued double-digit organic growth and a solid fiscal 2027 outlook, partly offset by higher interest expense and modest margin dilution from recent acquisitions.
