# TransDigm Group Inc. (TDG) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/TDG/thesis · /stocks/TDG/memo

## Financial 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/TDG/fundamental

## Navigation

- Overview: /stocks/TDG
- Financials (this page): /stocks/TDG/financials
- Thesis: /stocks/TDG/thesis
- Investment Memo: /stocks/TDG/memo
- Coverage universe: /stocks