TransDigm Group Q2 2025 Earnings Summary

TransDigm Group delivered strong second-quarter results for fiscal year 2025, with robust growth across commercial aftermarket and defense markets. The company reaffirmed full-year guidance while emphasizing disciplined capital returns and sustained margin strength.

• Net Sales: $2.15 billion, up 12% from $1.92 billion in Q2 2024
• Net Income: $479 million, up 19%
• GAAP EPS: $8.24, up 18% from $6.97
• Adjusted EPS: $9.11, up 14% from $7.99
• EBITDA: $1.09 billion, up 18.5%
• EBITDA As Defined: $1.16 billion, up 13.8% (margin of 54.0%)

YTD 2025 Highlights (26 Weeks):
• Net Sales: $4.16 billion, up 12.1%
• Net Income: $972 million, up 23.7%
• GAAP EPS: $15.86 vs. $11.83
• Adjusted EPS: $16.94 vs. $15.15
• EBITDA As Defined: $2.22 billion, margin of 53.5%

Share Repurchases:
• Repurchased 42,669 shares in Q2 for $53 million
• Bought an additional 105,567 shares in April for $131 million
• Total FY2025 repurchases to date: ~$500 million

Fiscal 2025 Guidance (Reaffirmed):
• Net Sales: $8.75B – $8.95B (11.5% growth midpoint)
• Net Income: $1.93B – $2.04B
• GAAP EPS: $32.27 – $34.19
• Adjusted EPS: $35.51 – $37.43
• EBITDA As Defined: $4.62B – $4.76B (margin ~52.9%)
• Market Growth Assumptions:
o Commercial OEM: Low to mid single digits
o Commercial Aftermarket: High single to low double digits
o Defense: High single to low double digits