AI Earnings Predictions for Transdigm Group Incorporated (TDG)

EX-99.1

2 exhibit991tdg2026q2earning.htm

EX-99.1

Document

Exhibit 99.1

TransDigm Group Reports Fiscal 2026 Second Quarter Results

Cleveland, Ohio, May 5, 2026/PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the second quarter ended March 28, 2026.

Second quarter highlights include:

•Net sales of $2,544 million, up 18% from $2,150 million in the prior year's quarter;

•Net income of $536 million, up 12% from the prior year's quarter;

•Earnings per share of $9.20, up 12% from the prior year's quarter;

•EBITDA As Defined of $1,337 million, up 15% from $1,162 million in the prior year's quarter;

•EBITDA As Defined margin of 52.6%;

•Adjusted earnings per share of $9.85, up 8% from $9.11 in the prior year's quarter; and

•Upward revision to fiscal 2026 financial guidance.

Quarter-to-Date Results

Net sales for the quarter increased 18.3%, or $394 million, to $2,544 million from $2,150 million in the comparable quarter a year ago. Organic sales growth as a percentage of net sales was 11.0%.

Net income for the quarter increased $57 million, or 11.9%, from $479 million in the comparable quarter a year ago. The increase in net income primarily reflects the increase in net sales described above, the application of our value-driven operating strategy, and lower non-cash stock and deferred compensation expense. The increase was partially offset by higher interest expense as a result of the increase in TransDigm's year-over-year gross debt balance.

Adjusted net income for the quarter increased 8.5% to $574 million, or $9.85 per share, from $529 million, or $9.11 per share, in the comparable quarter a year ago.

EBITDA for the quarter increased 18.4% to $1,289 million from $1,089 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 15.1% to $1,337 million compared with $1,162 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 52.6% compared with 54.0% in the comparable quarter a year ago.

“We are pleased with our team's performance and operating results for the second quarter,” stated Mike Lisman, TransDigm Group's CEO. “Total revenue continued ahead of our expectations with double-digit growth across all three of our major market channels compared to the prior year's second quarter. Commercial aftermarket exhibited the highest growth across our three end markets, driven by our commercial transport segment growing 16% in the quarter. Commercial OEM market revenue increased in the double digits on a percentage basis as we continued supporting higher build rates at the OEMs. Our reported EBITDA As Defined margin for the quarter was 52.6%. Adjusting for acquisition dilution, the EBITDA margins of our base businesses improved nicely on a year over year basis and in line with our expectations. The team continues to execute our value drivers.

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Shortly after the quarter ended, we completed the acquisitions of the previously announced Jet Parts Engineering and Victor Sierra businesses for $2.2 billion. We are excited to have them as part of TransDigm. Additionally, during the second quarter and continuing into the first week of April, we returned $800 million of capital to our shareholders through share repurchases, bringing the total amount of share repurchases in the fiscal year to date to approximately $905 million.

As we look ahead to the remainder of fiscal 2026, we have significant liquidity and financial flexibility to address any likely range of capital requirements and remain highly focused on our capital allocation.

As always, we remain committed to our operating strategy and the TransDigm value drivers. We look forward to the opportunity to continue creating value for our shareholders through the second half of fiscal 2026.”

Acquisition Activity

Subsequent to the quarter, on April 7, 2026, TransDigm completed the acquisition of Jet Parts Engineering and Victor Sierra for $2.2 billion in cash. Jet Parts Engineering is a leading independent designer and manufacturer of aerospace aftermarket solutions, primarily proprietary OEM-alternative parts and repairs. Victor Sierra is a leading designer, manufacturer, and distributor of proprietary PMA and other aftermarket parts serving the commercial aerospace end market — primarily the general aviation and business aviation sectors.

As previously announced on December 31, 2025, TransDigm has entered into a definitive agreement to acquire Stellant Systems, Inc. from Arlington Capital Partners for approximately $960 million in cash. Stellant is a leading global designer and manufacturer of high-power electronic components and subsystems serving the aerospace and defense end market.

Financing Activity

During the quarter, on February 13, 2026, TransDigm successfully completed a private offering of $1.2 billion of 6.125% Senior Subordin

tdg-20260414

0001260221false00012602212026-04-142026-04-14

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 14, 2026

TransDigm Group Incorporated

(Exact name of registrant as specified in its charter)

Delaware001-3283341-2101738

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

1350 Euclid Avenue,Suite 1600,Cleveland,Ohio44115

(Address of principal executive offices)(Zip Code)

(216) 706-2960

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:Trading Symbol:Name of each exchange on which registered:

Common Stock, $0.01 par valueTDGNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Summary of Items Reported

TransDigm Group Incorporated (“TransDigm Group”) is providing selected preliminary results for the thirteen-week period ended March 28, 2026 (see Item 2.02 below). In addition, TransDigm Group announced that its wholly-owned subsidiary, TransDigm Inc., is planning, subject to market and other conditions, to offer an incremental $1,250 million of new debt (see Item 7.01 below). TransDigm Group intends to use the net proceeds of the incremental debt, together with cash on hand, to fund (i) the purchase price of the previously announced and expected acquisition of Stellant Systems, Inc. (the “Acquisition”) and (ii) approximately $800 million of additional common share repurchases completed in March 2026 (the “Share Repurchases”), and for related transaction fees and expenses.

Item 2.02.Results of Operations and Financial Condition.

TransDigm Group, which includes, for purposes of this Item 2.02, its direct and indirect subsidiaries, is hereby furnishing the following information regarding its business, which has not been previously reported, in connection with the offering of the New Notes (as defined below) and potential Credit Agreement Amendment (as defined below), as discussed in Item 7.01 below.

TransDigm Group is providing the below selected preliminary results for the thirteen-week period ended March 28, 2026. These results are unaudited estimates, while TransDigm Group finalizes its financial results for the same period.

•Net sales of approximately $2,540 million to $2,545 million; and

•EBITDA As Defined of approximately $1,330 million to $1,335 million.

These results are preliminary and unaudited and represent the most current information available to TransDigm Group’s management. TransDigm Group’s actual results may differ from these due to the completion of its financial closing procedures, final adjustments and other developments that may arise between the date of this Current Report on Form 8-K and the time that financial results for the thirteen-week period ended March 28, 2026 are finalized.(1)

Item 7.01.Regulation FD Disclosure.

On April 14, 2026, TransDigm Group announced that its wholly-owned subsidiary, TransDigm Inc., is planning, subject to market and other conditions, to offer an incremental $1,250 million of new debt. The offering is expected to be comprised of $250 million of new senior subordinated notes and $1,000 million of new term loans to be launched concurrently.

TransDigm Group intends to use the net proceeds of the incremental debt, together with cash on hand, to fund the purchase price of the Acquisition and the Share Repurchases and for related transaction fees and expenses.

$250 Million Senior Subordinated Notes Offering

TransDigm Inc. is planning, subject to market and other conditions, to offer $250 million aggregate principal amount of additional 6.125% senior subordinated notes due 2034 (the “New Notes”) pursuan

tdg-202602030001260221false00012602212026-02-032026-02-03

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 3, 2026

TransDigm Group Incorporated (Exact name of registrant as specified in its charter)

Delaware001-3283341-2101738 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

1350 Euclid AvenueSuite 1600,Cleveland,Ohio44115 (Address of principal executive offices)(Zip Code)

(216) 706-2960 (Registrant’s telephone number, including area code)

Not Applicable (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:Trading Symbol:Name of each exchange on which registered: Common Stock, $0.01 par valueTDGNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging Growth Company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.Results of Operations and Financial Condition.

On February 3, 2026, TransDigm Group Incorporated (“TransDigm Group” or the “Company”) issued a press release (the “Press Release”) announcing its financial results for its first quarter ended December 27, 2025 and certain other information. A copy of this press release is furnished with this Current Report as Exhibit 99.1 and is incorporated herein by reference. The information contained in this item and in the accompanying exhibit shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof. The information in this item, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. TransDigm Group will host a conference call for investors and security analysts on February 3, 2026, beginning at 11:00 a.m., Eastern Time. To join the call telephonically, please see the detailed instructions within the “Earnings Conference Call” section of the press release furnished with this Current Report as Exhibit 99.1. A live audio webcast of the call can also be accessed online at https://www.transdigm.com. A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website and click on “Presentations.” The call will be archived on the website and available for replay later that day.

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits The following exhibits are being furnished with this Current Report on Form 8-K:

Exhibit No.Description 99.1 Press Release

104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRANSDIGM GROUP INCORPORATED

By:/s/ Sarah Wynne

Name:Sarah Wynne Title:Chief Financial Officer (Principal Financial Officer)

Dated: February 3, 2026