TransDigm Group (TDG) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 net sales rose 18.3% year-over-year to $2,544 million, with organic growth at 11% and EBITDA As Defined of $1,337 million (52.6% margin).

• Net income attributable to common stockholders was $535 million, up 12%, and adjusted EPS increased 8% to $9.85.

• All major market channels—commercial OEM, commercial aftermarket, and defense—delivered double-digit revenue growth, led by commercial transport and aftermarket segments.

• Recent acquisitions (Jet Parts Engineering, Victor Sierra, Simmonds) expanded the portfolio and contributed to sales; Stellant acquisition is pending.

• Two internal promotions to EVP roles highlight focus on talent development and succession planning.

Financial highlights

• Gross profit for Q2 FY2026 was $1,511 million (59.4% margin), up from $1,274 million year-over-year.

• EBITDA As Defined for Q2 was $1,337 million, up 15% year-over-year, with a margin of 52.6%.

• Free cash flow for Q2 was $350 million; full-year free cash flow guidance raised to $2.5 billion.

• Interest expense for Q2 was $484 million, up 28% year-over-year due to higher borrowings.

• Cash and cash equivalents at quarter-end were $3,884 million.

Outlook and guidance

• Full-year 2026 revenue guidance midpoint raised to $10,360 million, up 17% year-over-year.

• EBITDA As Defined guidance midpoint raised to $5,420 million (margin ~52.3%), up 14% year-over-year.

• Adjusted EPS guidance midpoint now $39.52; GAAP EPS guidance at $34.60.

• Commercial OEM revenue growth expected in low double-digit to mid-teens; aftermarket in high single to low double digits; defense in high single digits.

• Guidance incorporates recent acquisitions but excludes pending Stellant deal.