TransDigm Q4 FY2026 earnings review

Adjusted EPS of $12.44 beat the Zacks consensus, but the FY2027 midpoint sits below the Yahoo Finance average.

TransDigm · Q4 FY2026 · Published Nov 10, 2026 · By DeepCell AI · Sources

TransDigm Q4 FY2026 earnings review

Quarter and year ended September 30, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · TransDigm (TDG) Q4 FY2026 earnings review

Adjusted EPS of $12.44 beat the Zacks consensus, but the FY2027 midpoint sits below the Yahoo Finance average

  1. 1.Q4 sales of $2,988M rose 22.6% (organic 14.0%) and beat the $2,940M Zacks consensus
  2. 2.Adjusted diluted EPS of $12.44 beat the $12.15 Zacks consensus; GAAP diluted EPS was $10.33
  3. 3.FY2027 adjusted EPS midpoint is $47.51, below the $48.66 Yahoo Finance average
  4. 4.Management said Q4 sales and EBITDA As Defined exceeded the high end of its latest guidance
  5. 5.The regular-session share-price reaction is shown in the results table

Note: EBITDA As Defined is TransDigm's non-GAAP EBITDA plus the adjustments listed in Exhibit 99.1. Zacks Q4 figures: Nov 9 pre-release article. FY2027 Yahoo Finance average: 19 analysts, year ending Sep 30, 2027, retrieved Nov 10.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; Zacks via Yahoo Finance, Nov 9, 2026; Yahoo Finance analysis, Nov 10, 2026; CNBC, Nov 10, 2026 close

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2 · Executive summary

Q4 sales and adjusted EPS beat Zacks, while FY2027 guidance is 2.4% below the Yahoo Finance average

Q4 FY2026 results vs. Zacks Consensus Estimate (Yahoo Finance, Nov 9, 2026)

MetricActualConsensusVarianceResult
Q4 net sales$2,988M$2,940M+$48.0M / +1.6%Beat
Q4 adjusted diluted EPS$12.44$12.15+$0.29 / +2.4%Beat
FY2027 adjusted EPS midpoint$47.51$48.66-$1.15 / -2.4%Below

Share price, Nov 9 regular close to Nov 10 regular-session close

TransDigm (NYSE)Nov 9 closeNov 10 close, 4:10 PM ESTChange ($)Change (%)
TDG$1,218.85$1,225.54+$6.69+0.5%

Both prices are from the CNBC quote page. The Nov 10 figure is the regular-session close. CNBC does not state a reason for the move.

Note: Zacks Q4 estimates were published before the release. The FY2027 comparison uses the official Table 6 midpoint of $47.51 against the Yahoo Finance average of $48.66 (19 analysts, year ending Sep 30, 2027). Yahoo Finance current-quarter averages on the analysis page may have moved after the release and are not used here.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; Zacks via Yahoo Finance, Nov 9, 2026; Yahoo Finance analysis, Nov 10, 2026; CNBC, Nov 10, 2026 close

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3 · Q4 results vs. consensus

FY2027 adjusted EPS is guided at $47.09 to $47.94, midpoint $47.51

Fiscal 2027 guidance, issued Nov 10

MetricLowHighMidpoint
Net sales$11,950M$12,150M$12,050M
Net income$2,442M$2,490M$2,466M
GAAP diluted EPS$42.06$42.91$42.48
EBITDA As Defined$6,195M$6,345M$6,270M
Adjusted diluted EPS$47.09$47.94$47.51

Note: Ranges and midpoints are the official Exhibit 99.1 / Table 6 figures, shown in millions. EBITDA As Defined, defined on the executive-summary page, has a guided margin of approximately 52.0%. Guidance uses 56.7 million diluted shares.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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4 · FY2027 outlook

Q4 net sales rose 22.6% to $2,988M, and income from operations rose to $1,364M

  1. Organic growth was mid-teensOrganic sales growth was 14.0% in the quarter and 11.0% for the full year.
  2. EBITDA As Defined roseEBITDA As Defined rose 19.9% to $1.6B, with a margin of 53.0%.
  3. GAAP net income was slightly lowerQ4 net income was $586.0M, compared with $609.0M a year earlier.

Key figures

$M unless notedQ4 FY2025Q4 FY2026YoY
Net sales$2,437M$2,988M22.6%
Income from operations$1,161M$1,364M17.5%
GAAP diluted EPS ($)$7.75$10.3333.3%
Adjusted diluted EPS ($)$10.82$12.4415.0%

Note: The CEO said fourth-quarter results exceeded the high end of the most recent guidance for both revenue and EBITDA As Defined. The prior guidance range is not restated in this release.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

5

5 · Q4 key financials

FY2026 net sales rose 19.5% to $10.6B, with organic growth of 11.0%

Full fiscal year

$M unless noted, years ended September 30

MetricFY2025FY2026
Net sales$8,831M$10,557M
Net income$2,074M$2,108M
GAAP diluted EPS ($)$32.08$35.51
Adjusted diluted EPS ($)$37.33$41.35
EBITDA As Defined$4,760M$5,563M
FY2026 EBITDA As Defined margin was 52.7%“Our fourth quarter results exceeded the high end of our most recent guidance for both revenue and EBITDA As Defined. Our EBITDA As Defined margin for the year ended at 52.7% which includes approximately two percentage points of dilution related to recent acquisitions.” Mike Lisman, CEO

Note: Dividend-equivalent payments reduced GAAP EPS by $1.03 in FY2026 and $3.58 in FY2025. Organic sales growth was 13% excluding non-aerospace sales for the year.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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6 · Full-year results

7 · Sales bridge

8 · EBITDA As Defined

Income from operations rose to $1.4B as gross profit growth outweighed higher costs

Income from operations bridge

$M, Q4 FY2025 to Q4 FY2026

$M · Q4 FY2025: $1,161.0M$M · Gross profit: $293.0M$M · Selling and administrative: -$76.0M$M · Amortization: -$14.0M$M · Q4 FY2026: $1,364.0MQ4 FY2025Gross profitSelling andadministrativeAmortizationQ4 FY2026$1,000M$1,200M$1,400M$1,600M$1,161.0M$293.0M-$76.0M-$14.0M$1,364.0M
Selling and administrative expense rose $76M (DeepCell calculation from official $332 million versus $256 million)

Note: Interest, refinancing costs and other expense sit below income from operations and are not in this bridge.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

9

9 · Operating income bridge

EBITDA As Defined margin was 53.0%, -119 basis points lower year on year

Margins

Q4 FY2025 vs Q4 FY2026

Gross margin · Q4 FY2025: 60.3%Gross margin · Q4 FY2026: 59.0%EBITDA As Defined margin · Q4 FY2025: 54.2%EBITDA As Defined margin · Q4 FY2026: 53.0%Q4 FY2025Q4 FY20260%20%40%70%60.3%59.0%54.2%53.0%
Gross margin was 59.0%

Note: The CEO attributed about two percentage points of full-year EBITDA As Defined margin dilution to recent acquisitions.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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10 · Margin analysis

FY2026 operating cash flow was $2.2B, and the company issued $3.0B of 2035 notes

  1. Full-year operating cash flow roseOperating cash flow was $2.2B in FY2026, compared with $2.0B in FY2025.
  2. New senior secured notesTransDigm issued $3.0B of 6.75% senior secured notes due January 2035 and used proceeds in part to repurchase approximately $1.8 billion of 2028 notes.
  3. Cash ended lowerCash and cash equivalents were $2.3B at Sep 30, 2026, compared with $2.8B a year earlier.

Cash flow

$MFY2025FY2026
Operating cash flow$2,038M$2,187M

Note: The $1.8 billion tender for 2028 notes is from the release narrative. A quarterly cash-flow statement is not presented in the exhibit.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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11 · Cash flow and financing

TransDigm repurchased $943M of stock in the fourth quarter, at an average $1,150 a share

  1. Quarterly buybacksThe company repurchased 820 thousand shares in Q4 at an average price of $1,150.
  2. Full-year returnsFor FY2026, TransDigm returned $2.8B through share repurchases totaling 2.3 million shares.
  3. Prince & Izant closedOn Sep 28, 2026, TransDigm completed the acquisition of Prince & Izant for approximately $1.07B in cash, including certain tax benefits.

Returns and acquisition

MetricAmount
Q4 share repurchases$943M
FY2026 share repurchases$2.8B
Prince & Izant purchase price$1.07B

Note: P&I is described as a designer of brazing alloys and specialty metal components, primarily for aerospace and defense and related end markets.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

12

12 · Capital returns and deals

Long-term debt rose to $33.7B at Sep 30, 2026, from $29.2B

  1. Cash declinedCash and cash equivalents were $2,279M, a DeepCell-calculated decline of $529M from $2,808M a year earlier.
  2. Receivables and inventoriesAccounts receivable were $2.1B and inventories were $2.7B at Sep 30, 2026.
  3. Stockholders deficitThe stockholders deficit was -$10.0B, compared with -$9.7B a year earlier.

Balance sheet

$MSep 30, 2025Sep 30, 2026
Cash and cash equivalents$2,808M$2,279M
Long-term debt$29.2B$33.7B
Stockholders deficit-$9.7B-$10.0B

Note: Short-term borrowings under the securitization were $873 million, and the current portion of long-term debt was $147 million, at Sep 30, 2026. Comparable year-earlier amounts for receivables and inventories were not extracted for this page.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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13 · Balance sheet and debt

A FY2027 earnings midpoint below the Yahoo Finance average, acquisition dilution and a larger debt load are the main watch items

Indicator
What to watch
Implication
Latest reading
FY2027 adjusted EPS
Delivery versus the $47.09–$47.94 guide and the Street average
Midpoint starts below the 19-analyst average
Midpoint $47.51 vs $48.66 Yahoo Finance
Acquisition margin dilution
Integration of recent deals, including Prince & Izant
Margin may stay below recent peaks
FY2026 EBITDA As Defined margin 52.7%; about two points of acquisition dilution
Debt and cash use
Notes, buybacks and further acquisitions
Leverage stays high
Long-term debt $33.7B; cash $2.3B
End-market growth
Commercial OEM, aftermarket and defense assumptions in the FY2027 outlook
Sales can miss the $11.95–$12.15 billion range
Sales guide midpoint $12,050M

Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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14 · Key risks to outlook

15 · Appendix: Margin detail

16 · Appendix: Adjusted earnings

Appendix: other FY2027 guidance items

ClaimEvidenceCalculation
EBITDA As Defined marginApproximately 52%Official guidance wording
Diluted shares56.7 millionFY2027 guidance
GAAP diluted EPS midpoint$42.48Official Table 6
Net income midpoint$2,466MOfficial Table 6

Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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17 · Appendix: Guidance detail

Appendix: dividend-equivalent effect on GAAP EPS

ClaimEvidenceCalculation
FY2026 reduction in GAAP EPS$1.03Dividend-equivalent payments
FY2025 reduction in GAAP EPS$3.58Dividend-equivalent payments
FY2026 GAAP diluted EPS$35.51After that reduction
FY2026 adjusted diluted EPS$41.35Company definition

Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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18 · Appendix: Dividend equivalents

Appendix: income statement detail

Sales and costs

$M unless notedQ4 FY2025Q4 FY2026YoY
Net sales$2,437M$2,988M22.6%
Cost of sales$967M$1,225M26.7%
Selling and administrative$256M$332M29.7%
Amortization of intangibles$53M$67M26.4%

Earnings

$M unless notedQ4 FY2025Q4 FY2026YoY
Income from operations$1,161M$1,364M17.5%
Interest expense, net$420M$536Mn.m.
Net income$609M$586M(3.8%)
EBITDA As Defined$1,320M$1,583M19.9%

Note: n.m. is used where a year-on-year percentage is not shown. Refinancing costs were $27 million in Q4 FY2026, compared with $3 million a year earlier.Source: TransDigm Form 8-K Ex. 99.1, Nov 10, 2026; analysis of company data

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19 · Appendix: Income statement

Appendix: sources

  • Filing: TransDigm Form 8-K, Nov 10, 2026 — https://www.sec.gov/Archives/edgar/data/1260221/000126022126000073/0001260221-26-000073-index.html
  • Results release, Q4 and FY2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1260221/000126022126000073/exhibit991tdg2026q4earning.htm
  • PR Newswire release, Nov 10, 2026, 06:30 ET — https://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2026-fourth-quarter-and-year-end-results-302934228.html
  • Investor relations press-release page — https://transdigmgroupinc.gcs-web.com/press-releases-footer/
  • Q4 consensus: Zacks Consensus Estimate via Yahoo Finance, Nov 9, 2026 — https://finance.yahoo.com/news/transdigm-report-q4-results-whats-134300788.html
  • FY2027 consensus: Yahoo Finance TDG analysis, 19-analyst average EPS for the year ending Sep 30, 2027, retrieved Nov 10, 2026 — https://finance.yahoo.com/quote/TDG/analysis/
  • Share price: CNBC TDG quote, Nov 9, 2026 regular close and Nov 10, 2026 regular-session close at 4:10 PM EST — https://www.cnbc.com/quotes/TDG
  • Company figures are in U.S. dollars. Adjusted net income, adjusted EPS and EBITDA As Defined follow the company's reconciliation tables. Organic sales growth is the company's figure.
  • Chart and table values link to the model in the spreadsheet tabs of this file.

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from TransDigm Group's Form 8-K of November 10, 2026 (Exhibit 99.1). Consensus estimates (Zacks, via Yahoo Finance, and Yahoo Finance analyst averages) and share prices (CNBC) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Figures are GAAP unless labelled as adjusted or as EBITDA As Defined, in U.S. dollars, for the thirteen weeks and fiscal years ended September 30, 2026 and 2025.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by TransDigm Group Incorporated. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings.

Date of analysis. The share prices are the CNBC regular-session closes on November 9, 2026 and November 10, 2026.

Built with DeepCell / deepcell.net

21

21 · Disclosures

Sources

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