TransDigm Group Inc.
TDGFinancial Snapshot
ticker: TDG step: 04 generated: 2026-05-12 source: quick-research
TransDigm Group Incorporated (TDG) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $5.43B | $6.59B | $7.94B | +20.6% |
| Gross Margin | ~54% | ~57% | 58.8% | |
| EBITDA As Defined | $2.65B | $3.40B | ~$4.18B | +23% |
| EBITDA Margin | ~48.7% | ~51.6% | ~52.6% | +100bps |
| EPS (diluted) | ~$16.50 | ~$22.02 | $25.62 | +16.3% |
TransDigm's fiscal year ends in late September. Consistent 20%+ revenue growth driven by organic price increases (~8-10% annually) + acquisitions. EBITDA margin expansion from 48.7% → 52.6% over 2 years reflects pricing power and operational leverage. FY2025 guidance: revenue $8.75–$8.95B (+11.5%) at midpoint.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| EBITDA As Defined | ~$4.18B |
| Net Debt | ~$21B |
| Net Debt / EBITDA | ~5.0x |
| Shareholders' Equity | Negative (by design — PE-style capital structure) |
| Special Dividend | $35/share (declared FY2023) |
| Operating Cash Flow | ~$2.5–2.8B |
TransDigm operates with intentionally high leverage (~5x net debt/EBITDA) in PE-style fashion, returning surplus capital via special dividends ($35/share in FY2023) and opportunistic buybacks. Negative book equity is not a red flag — it reflects the capital structure, not insolvency risk. FCF generation is exceptional given 50%+ EBITDA margins and modest maintenance capex.
Key Ratios (approximate)
- P/E (FY2024): ~50x | EV/EBITDA: ~22x | FCF Yield: ~3–4%
- EBITDA Margin: 52.6% | Operating Margin: 44.5%
- Organic Revenue Growth (price + volume): ~8–12% annually
- Net Debt/EBITDA: ~5.0x
Growth Profile
TransDigm's growth engine is: (1) annual price increases of 8–10% on sole-source parts (pricing power unmatched in industrials); (2) organic volume growth as commercial flight hours increase; (3) accretive acquisitions of similarly positioned sole-source businesses. The commercial aftermarket grew 13% in Q2 FY2025, with business jet/helicopter aftermarket +23%. FY2025 EBITDA growth is tracking at ~14% based on Q2 performance.
Forward Estimates
- FY2025 Revenue: $8.75–$8.95B (mgmt guidance, midpoint +11.5%)
- FY2025 EPS: ~$28–$30 (consensus)
- FY2026 EPS: ~$33–$36 (consensus; includes Jet Parts Engineering contribution)
- Long-term: 10–15% annual EPS growth via price + volume + M&A
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $TDG.