TransDigm Group (TDG) investor relations material

Executive summary

• Q3 FY2026 net sales rose 22.5% to $2,741 million, with organic growth at 13% and net income attributable to common stockholders of $539 million; all major market channels delivered double-digit growth, driven by strong commercial aftermarket, OEM, and defense demand.

• Recent acquisitions, including Jet Parts Engineering, Victor Sierra Aviation Holdings, Simmonds Precision Products, and the announced Prince & Izant deal, contributed to growth and expanded the Power & Control segment.

• Guidance for FY2026 was raised, reflecting continued momentum, robust demand, and successful integration of acquisitions.

• The company withdrew from the Stellant Systems acquisition after DOJ opposition but remains active in M&A.

Financial highlights

• Q3 FY2026 EBITDA As Defined was $1,447 million (52.8% margin), up 19% year-over-year; gross profit margin was 59.4%.

• Adjusted EPS for Q3 was $10.87, up 13.2% from the prior year; net income attributable to common stockholders was $539 million.

• Operating cash flow exceeded $700 million in Q3, with a cash balance of nearly $2.8 billion at quarter-end.

• Free cash flow for Q3 was about $870 million, with year-to-date at $2.1 billion; full-year guidance raised to $2.6 billion.

• Net debt-to-EBITDA ratio ended the quarter at 5.8x; total debt was $33.7 billion.

Outlook and guidance

• FY2026 revenue guidance midpoint raised to $10,510 million, up 19% year-over-year; EBITDA As Defined guidance midpoint raised to $5,520 million (52.5% margin); adjusted EPS guidance midpoint now $41.04.

• Net income expected at $2,102–$2,150 million.

• Guidance excludes contribution from the pending Prince & Izant acquisition.

• Market growth assumptions: commercial OEM mid-teens %, aftermarket low double-digits %, defense high single- to low double-digits %.