TransDigm Group Incorporated TDG
NYSEAerospace and defenseFinancials to Sep 30, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| $B | Sep '25 | Sep '26 |
|---|---|---|
| Cash | 2.8 | 2.3 |
| Securities | 0.0 | – |
| Debt | 29.7 | 34.8 |
| Net cash | -26.9 | – |
| Equity | -9.7 | -10.0 |
- Debt / EBITDA
- 6.61×
- Debt / equity
- –
- Leases (9/30/25)
- $350M
- Diluted shares
- 58M
- Book value / share
- −$173.61
- Price / book
- –
- Net cash / share
- –
- Market cap
- $67.4B
- Enterprise value
- –
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 22.6% | +11.1 pts | |
| Operating margin | 45.6% | -2.0 pts | |
| FCF margin | – | – | |
| Capex / revenue | – | – | |
| Organic sales growth | +13% | +6 pts | |
| Proprietary product sales share · 9/30/25 | ~90.0% | 0.0 pts | |
| Total aftermarket sales share · 9/30/25 | ~55.0% | 0.0 pts | |
| Commercial aftermarket sales · 6/27/26 | $483M | – | |
| Commercial aftermarket sales · 6/27/26 | $425M | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About TDG
TransDigm owns specialized aerospace components businesses, often supplying proprietary parts tied to certified aircraft platforms and aftermarket service. Qualification, intellectual property and a long installed life support pricing; airline budgets, OEM bargaining, defense scrutiny and acquisition debt constrain it.
- Design In Qualification
Components are designed into aircraft platforms and face high switching friction: re-qualification/certification is time-consuming and costly; platforms and parts live for decades.
- Installed Base Consumables
Large installed base of in-service aircraft drives recurring aftermarket spares/repairs across long service lives; management reports a majority of sales from aftermarket with higher gross profit and stability vs OEM.
- Design In Qualification
Airframe components are qualified at the platform level; design-in plus certification/qualification friction reduces incentive to re-source during long platform life cycles.
- Installed Base Consumables
Recurring spares/repairs demand over multi-decade fleet lives; company reports majority of sales from aftermarket with higher gross profit and stability versus OEM.
- Nov 10, 2026
FY2026 sales rose 20% to $10.557 bn and Q4 organic growth was 14%. FY parent profit is $2.107 bn before $59 m participating-security dividend allocation; $2.048 bn common EPS numerator is not used. Q4 parent profit fell 4% despite EPS rising 33%, mainly because prior-year participating dividends distorted EPS. Prince & Izant closed for about $1.07 bn and $3 bn new notes refinanced $1.8 bn of 2028 notes. Full 10-K cash-flow and lease disclosures remain pending. Source: https://www.sec.gov/Archives/edgar/data/1260221/000126022126000073/exhibit991tdg2026q4earning.htm
- Sep 28, 2026
TransDigm completed the $1.066 billion Prince & Izant purchase, adding brazing alloys and specialty metals used in aerospace, defense and industrial products.
- Sep 28, 2026
TransDigm issued $3 billion of 6.75% secured notes due 2035, with proceeds intended for the $2.1 billion 2028-note tender and general corporate purposes; the longer maturity does not remove borrowing costs.
- Sep 21, 2026
Extant agreed to buy aerospace and defense product assets and a California facility for approximately $240 million. The purchase is pending and expected in FY2027, subject to approvals.
- Aug 4, 2026
TransDigm raised FY2026 sales guidance to $10.47 billion to $10.55 billion after reported Q3 organic sales growth of 12.6%.
Ownership
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On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | ||||||||||||
| Revenue | 63.11 | 68.55 | 92.83 | 89.06 | 82.16 | 93.28 | 115.12 | 137.37 | 151.74 | 183.28 | +12.6%/yr | |
| Cash flow | 14.20 | 18.38 | 18.04 | 21.17 | 15.63 | 16.29 | 24.04 | 35.38 | 35.02 | 37.97 | +11.5%/yr | |
| Earnings | 11.32 | 17.30 | 14.91 | 11.38 | 11.64 | 14.86 | 22.69 | 29.65 | 35.64 | 36.58 | +13.9%/yr | |
| Free cash flow | 12.92 | 17.07 | 16.23 | 19.34 | 13.84 | 14.24 | 21.61 | 32.53 | 31.20 | – | – | |
| Capex | 1.28 | 1.31 | 1.81 | 1.83 | 1.80 | 2.04 | 2.43 | 2.85 | 3.81 | – | – | |
| Dividends | 43.62 | 0.00 | 28.45 | 30.42 | 0.00 | 17.27 | 0.00 | 33.51 | 159.60 | – | – | |
| Book value | -53.14 | -32.53 | -51.44 | -69.32 | -49.93 | -64.83 | -34.69 | -108.82 | -166.43 | -173.61 | – | |
| Diluted shares (M) | 56 | 56 | 56 | 57 | 58 | 58 | 57 | 58 | 58 | 58 | +0.4%/yr | |
| Totals ($B) | ||||||||||||
| Revenue | 3.5 | 3.8 | 5.2 | 5.1 | 4.8 | 5.4 | 6.6 | 7.9 | 8.8 | 10.6 | +13.0%/yr | |
| Operating income | 1.5 | 1.7 | 1.9 | 1.8 | 1.7 | 2.2 | 2.9 | 3.5 | 4.2 | 4.8 | +14.0%/yr | |
| Net income | 0.6 | 1.0 | 0.8 | 0.7 | 0.7 | 0.9 | 1.3 | 1.7 | 2.1 | 2.1 | +14.4%/yr | |
| Free cash flow | 0.7 | 0.9 | 0.9 | 1.1 | 0.8 | 0.8 | 1.2 | 1.9 | 1.8 | – | – | |
| Buybacks | 0.4 | 0.0 | 0.0 | 0.0 | 0.0 | 0.9 | 0.0 | 0.0 | 0.5 | – | – | |
| Dividends | 2.4 | 0.0 | 1.6 | 1.7 | 0.0 | 1.0 | 0.0 | 1.9 | 9.3 | – | – | |
| Net cash | -11.1 | -10.8 | -15.4 | -15.2 | -15.1 | -16.6 | -16.1 | -18.4 | -26.9 | – | – | |
| Margins & returns (%) | ||||||||||||
| Gross margin | 56.6 | 57.1 | 53.8 | 51.9 | 52.4 | 57.1 | 58.3 | 58.8 | 60.1 | 59.2 | +2.6 pts | |
| Operating margin | 42.3 | 43.4 | 36.9 | 34.3 | 35.2 | 40.8 | 44.4 | 44.5 | 47.2 | 45.6 | +3.3 pts | |
| Net margin | 17.9 | 25.2 | 16.1 | 12.8 | 14.2 | 15.9 | 19.7 | 21.6 | 23.5 | 20.0 | +2.0 pts | |
| FCF margin | 20.5 | 24.9 | 17.5 | 21.7 | 16.8 | 15.3 | 18.8 | 23.7 | 20.6 | – | – | |
| ROIC | 14.1 | 14.3 | 12.0 | 12.1 | 10.7 | 13.3 | 16.1 | 22.7 | 18.7 | – | – | |
| R&D % of revenue | 2.1 | 1.9 | 2.2 | 2.6 | 2.2 | 1.7 | 1.6 | 1.3 | 1.3 | – | – | |
| Stock pay % of revenue | 1.3 | 1.5 | 1.8 | 1.8 | 2.7 | 2.8 | 2.4 | 2.7 | 1.8 | – | – | |
| Capex % of revenue | 2.0 | 1.9 | 2.0 | 2.1 | 2.2 | 2.2 | 2.1 | 2.1 | 2.5 | – | – | |
Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- durable
- Trajectory
- stable
- Pricing power
- strong
- Power & Control51.6%2 claims
- Airframe46.6%2 claims
- Non-aviation1.8%No moat
Moat claims
- Applies to
- Power & Control
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Components are designed into aircraft platforms and face high switching friction: re-qualification/certification is time-consuming and costly; platforms and parts live for decades.
Qualified designs and an approximately 90% proprietary sales mix still protect existing programs. HEICO approved alternatives and the abandoned Stellant deal show that rival suppliers and regulatory limits remain; higher organic sales alone do not prove stronger switching costs.
- Organic sales growth+13%
- Proprietary product sales share~90.0%0.0 pts
- Commercial aftermarket sales$483M
- Annual commercial aftermarket sales$1.4B+12%
- PMA/alternate parts qualification in some product categories
- OEM push for dual-sourcing on new programs
- Airline/MRO cost-down initiatives increasing substitution attempts
- FilingTransDigm Group Incorporated Form 10-K (FY ended Sep 30, 2025) - BusinessNov 12, 2025
- FilingTransDigm Group Incorporated Form 10-K (FY ended Sep 30, 2025) - CompetitionNov 12, 2025
- FilingHEICO 2025 annual report: FAA-approved replacement partsDec 22, 2025
- Applies to
- Power & Control
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Large installed base of in-service aircraft drives recurring aftermarket spares/repairs across long service lives; management reports a majority of sales from aftermarket with higher gross profit and stability vs OEM.
Commercial aftermarket sales remained strong in Q3 FY2026, but the total aftermarket share was about 55% in both FY2024 and FY2025. Repeat spares demand persists; slower air-traffic growth and approved substitutes limit evidence that the advantage is widening.
- Organic sales growth+13%
- Total aftermarket sales share~55.0%0.0 pts
- Commercial aftermarket sales$483M
- Annual commercial aftermarket sales$1.4B+12%
- Used serviceable material (USM) substitution in some parts
- Airframe/OEM redesigns reducing replacement frequency
- Next-gen aircraft architectures changing component content
- FilingTransDigm Group Incorporated Form 10-K (FY ended Sep 30, 2025) - Aftermarket mixNov 12, 2025
- FilingTransDigm Group Incorporated Form 10-Q (quarter ended Jun 27, 2026)Aug 4, 2026
- SourceIATA July 2026 passenger demand releaseAug 31, 2026
- Applies to
- Airframe
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Airframe components are qualified at the platform level; design-in plus certification/qualification friction reduces incentive to re-source during long platform life cycles.
Qualified designs and an approximately 90% proprietary sales mix still protect existing programs. HEICO approved alternatives and the abandoned Stellant deal show that rival suppliers and regulatory limits remain; higher organic sales alone do not prove stronger switching costs.
- Organic sales growth+13%
- Proprietary product sales share~90.0%0.0 pts
- Commercial aftermarket sales$425M
- Annual commercial aftermarket sales$1.4B+12%
- Platform redesigns that change component specifications
- OEM dual-source strategies on new builds
- MRO adoption of alternates where permitted
- FilingTransDigm Group Incorporated Form 10-K (FY ended Sep 30, 2025) - Business / CompetitionNov 12, 2025
- FilingHEICO 2025 annual report: FAA-approved replacement partsDec 22, 2025
- Applies to
- Airframe
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Recurring spares/repairs demand over multi-decade fleet lives; company reports majority of sales from aftermarket with higher gross profit and stability versus OEM.
Commercial aftermarket sales remained strong in Q3 FY2026, but the total aftermarket share was about 55% in both FY2024 and FY2025. Repeat spares demand persists; slower air-traffic growth and approved substitutes limit evidence that the advantage is widening.
- Organic sales growth+13%
- Total aftermarket sales share~55.0%0.0 pts
- Commercial aftermarket sales$425M
- Annual commercial aftermarket sales$1.4B+12%
- USM and repair alternatives in some categories
- Extended maintenance intervals reducing replacement frequency
- Fleet retirement waves reducing installed base
- FilingTransDigm Group Incorporated Form 10-K (FY ended Sep 30, 2025) - Aftermarket mix and stabilityNov 12, 2025
- FilingTransDigm Group Incorporated Form 10-Q (quarter ended Jun 27, 2026)Aug 4, 2026
- SourceIATA July 2026 passenger demand releaseAug 31, 2026
Profile change log
- Nov 11, 2026 · business change
FY2026 sales rose 20% to $10.557 bn and Q4 organic growth was 14%. FY parent profit is $2.107 bn before $59 m participating-security dividend allocation; $2.048 bn common EPS numerator is not used. Q4 parent profit fell 4% despite EPS rising 33%, mainly because prior-year participating dividends distorted EPS. Prince & Izant closed for about $1.07 bn and $3 bn new notes refinanced $1.8 bn of 2028 notes. Full 10-K cash-flow and lease disclosures remain pending. Source: https://www.sec.gov/Archives/edgar/data/1260221/000126022126000073/exhibit991tdg2026q4earning.htm
- Oct 7, 2026 · business change
TransDigm issued $3 billion of 6.75% secured notes due 2035, with proceeds intended for the $2.1 billion 2028-note tender and general corporate purposes; the longer maturity does not remove borrowing costs.
- Oct 7, 2026 · business change
TransDigm completed the $1.066 billion Prince & Izant purchase, adding brazing alloys and specialty metals used in aerospace, defense and industrial products.
- Oct 7, 2026 · business change
Extant agreed to buy aerospace and defense product assets and a California facility for approximately $240 million. The purchase is pending and expected in FY2027, subject to approvals.
- Oct 7, 2026 · business change
TransDigm raised FY2026 sales guidance to $10.47 billion to $10.55 billion after reported Q3 organic sales growth of 12.6%.
- Oct 7, 2026 · business change
TransDigm abandoned its proposed $960 million Stellant purchase after DOJ threatened an antitrust lawsuit, limiting consolidation of defense radar components.
- Oct 7, 2026 · business change
TransDigm bought Jet Parts Engineering and Victor Sierra Aviation for approximately $2.2 billion, adding approved replacement parts and aerospace distribution; management retained minority interests.
- Oct 7, 2026 · business change
TransDigm bought Simmonds Precision Products for approximately $765 million, adding aircraft sensors and health-monitoring systems.
- Oct 7, 2026 · business change
Michael Lisman became CEO after Kevin Stein retired, continuing the internal succession while founder Nick Howley remains executive chairman.
- Oct 7, 2026 · analyst revision
The four aerospace advantages remain stable. Approved replacement parts, the Stellant competition challenge, slower air traffic and higher interest expense are now explicit tests of the investment case.
- Oct 7, 2026 · analyst revision
Segment revenue weights now use the full FY2025 annual report instead of nine-month FY2026 sales. EBITDA shares have been removed from operating-profit shares because the filing does not report segment operating profit. The four aerospace moat ratings and the Non-aviation status are unchanged.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Specialty aerospace components and power instruments
Aircraft actuators, controls, cabin and safety equipment, engine sensors, thermal and power components, embedded electronics and independent repair services, plus specialist grid and industrial power measurement and conditioning equipment. Excludes whole aircraft and engines; the aircraft and power products form distinct competitive markets.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| TDG | 94 | 59.2% | 45.6% | |
| Industry median | 19 | 80 | 20.0% | 10.6% |
| Sector median | 88 | 76 | 37.3% | 18.0% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Aircraft production, flight hours and defense program funding strongly affect components and repair demand. Maintenance tied to installed fleets is more resilient than new-aircraft deliveries.
- Aircraft certification and design qualification create strong switching friction for individual installed components, but new platforms reopen competition.
- Grid modernization, renewable integration and data-center power reliability create strong demand for specialist power measurement and conditioning.
- Interest rates have a moderate indirect effect through airline financing and industrial investment; higher floating borrowing costs can materially reduce serial acquirers’ cash available for debt repayment.
- International fleet operations and manufacturing create material currency and trade exposure. Local service availability helps established suppliers retain work.
- Passenger traffic and flight utilization strongly affect commercial replacement demand. IATA reported only 0.2% global passenger traffic growth in July 2026; this is a macro demand indicator, not a direct measure of parts orders.
- Airframers and engine manufacturers can impose price reductions, dual-source components or insource production. Platform qualification does not guarantee sole sourcing.
- Certification failures, safety problems and delayed aircraft production can interrupt component and repair orders.
- Defense budgets and government program cancellations affect contract continuity; long program lives do not remove policy risk.
- Specialty metals, semiconductors, tariffs and export restrictions can constrain capacity and profitability.
- Acquisition-funded expansion can increase integration demands and interest costs before repair and service cash flows repay debt.
- FAA-approved replacement parts can compete with original suppliers. HEICO reports about 20,000 approved parts; certification creates friction without eliminating qualified substitutes.
- Antitrust can stop acquisitions in concentrated component niches: TransDigm abandoned Stellant after DOJ challenged reduced competition in defense radar products in July 2026.
Bulls & bears
Can qualified aftermarket parts keep generating enough organic cash growth to cover higher interest costs and defend pricing against approved alternatives?
Arguments
What to watch
- 1Reported organic sales growth and commercial aftermarket revenue by segment
- 2Proprietary and total aftermarket sales mix; approved replacement penetration
- 3Operating cash flow, acquisitions, common dividends and total borrowing
- 4Net interest expense, financing maturities and new acquisition approvals
- 5Fleet utilization, aircraft deliveries and defense program funding
Next check: FY 2026 Form 10-K and Q 1 FY 2027: reconcile all cash-flow and lease lines, acquisition accounting, common shares after buybacks and aftermarket/OEM growth.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 9, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 94/100 by <a href="https://www.findmymoat.com/stocks/XNYS:TDG">Find My Moat</a> (as of September 2026)Curation & Accuracy
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