TransDigm Group's Strong Q3 2025 Results Reflect Strategic Growth Efforts

TransDigm Group's Third Quarter Financial Results Overview

CLEVELAND, August 5, 2025 — TransDigm Group Incorporated (NYSE: TDG), a dominant player in the design and manufacturing of highly engineered aircraft components, has released its financial results for the third quarter ended June 28, 2025.

Key Financial Metrics

The company reported a commendable net sales figure of $2,237 million, representing a 9% increase from the $2,046 million recorded in the same quarter the previous year. Additionally, net income reached $493 million, marking a 7% rise compared to the $461 million from last year. Noteworthy is the earnings per share, which grew to $8.47, a 6% increase year-over-year.

The company also reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $1,217 million, up 12% from $1,091 million a year prior, translating to an EBITDA margin of 54.4%.

Highlights of the Quarter

1. Overall Performance: The company’s organic sales growth was recorded at 6.3%, a promising indicator of sustained demand and operational success.

2. Aftermarket and Defense Markets: As noted by Kevin Stein, President and CEO, the commercial aftermarket and defense markets showed strong performance, although expected growth in the commercial OEM (Original Equipment Manufacturer) market was less than projected due to lower OEM build rates and inventory destocking.

3. Strategic Acquisitions: Recently, TransDigm completed the acquisition of Servotronics, Inc. and announced an agreement to acquire Simmonds Precision Products, Inc. for over $900 million combined. These acquisitions are seen as strategic alignments with the company's goals, with each expected to contribute significantly to equity value in line with long-term return objectives.

4. Financial Management: The company effectively managed its operating costs and streamlined its financial structure, enhancing profitability despite encountering challenges in specific market segments.

Financing Activity

During this quarter, TransDigm successfully initiated a private offering of $2,650 million worth of 6.375% Senior Subordinated Notes due May 31, 2033. The net proceeds were strategically utilized to redeem all outstanding 5.50% Senior Subordinated Notes due 2027, further refining their financial commitments and debt structure.

Share Repurchase Initiative

TransDigm's share repurchase strategy continued into Q3 2025, where 105,567 shares were bought back at an average price of $1,240.91, culminating in an approximate plant of $131 million. Over the nine-month period ending June 28, 2025, 401,036 shares were repurchased, totaling almost $500 million in stock buybacks.

Year-to-Date Performance

For the thirty-nine-week period ending June 28, 2025, net sales grew 11.1% totaling $6,394 million, with a net income increase of 17.4%, reaching $1,465 million. The growth in net income was largely fueled by sales increases and effective operational strategies.

Looking Ahead: Fiscal 2025 Outlook

As the company approaches the final quarter of fiscal 2025, it has made revisions to its outlook. While raising the mid-point guidance for EBITDA, they have adjusted sales forecasts downward by $60 million in response to commercial OEM market conditions. Expected net sales are projected between $8,760 million and $8,820 million for fiscal 2025, with earnings expected in the range of $1,932 million to $1,980 million.

“Our focus remains on continuing to deliver value to our shareholders, sustaining our operational strategies, and adapting to market dynamics,” Stein added.

TransDigm’s performance in the third quarter reflects resilience in navigating challenges and adeptly capitalizing on strategic opportunities, positioning themselves well to end the fiscal year on a strong note.

For further insights on future projections and detailed operations, stakeholders are encouraged to join the forthcoming conference call and access relevant materials on the TransDigm investor relations page.

Contact Information

For more detailed information regarding financial results, acquisition strategies, and future plans, investors and analysts can reach out to TransDigm’s Investor Relations.