TransDigm (TDG)
Market Price (4/9/2026): $1211.98 | Market Cap: $70.5 BilSector: Industrials | Industry: Aerospace & Defense
TransDigm (TDG)
Market Price (4/9/2026): $1211.98Market Cap: $70.5 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 10%, Dividend Yield is 7.5%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.2% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 47% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 23%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 21%, CFO LTM is 2.1 Bil Low stock price volatilityVol 12M is 29% Megatrend and thematic driversMegatrends include Advanced Aviation & Space. Themes include Commercial Space Exploration, Advanced Air Mobility, and Drone Technology. | Weak multi-year price returns2Y Excs Rtn is -18% | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 34x Key risksTDG key risks include [1] its substantial debt levels from an aggressive financial leverage strategy, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 10%, Dividend Yield is 7.5%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 6.2% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 47% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 23%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 21%, CFO LTM is 2.1 Bil |
| Low stock price volatilityVol 12M is 29% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space. Themes include Commercial Space Exploration, Advanced Air Mobility, and Drone Technology. |
| Weak multi-year price returns2Y Excs Rtn is -18% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 34x |
| Key risksTDG key risks include [1] its substantial debt levels from an aggressive financial leverage strategy, Show more. |
Qualitative Assessment
AI Analysis | Feedback
TransDigm (TDG) stock has lost about 10% since 12/31/2025 because of the following key factors:
1. TransDigm Group priced $2 billion in new debt in February 2026 to fund several planned acquisitions, including Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation Holdings.
2. There was significant insider selling, with insiders selling over $162.75 million worth of shares in the 90 days leading up to March 14, 2026, and over $233 million over the last 90 days.
Show more
1. TransDigm Group priced $2 billion in new debt in February 2026 to fund several planned acquisitions, including Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation Holdings.
2. There was significant insider selling, with insiders selling over $162.75 million worth of shares in the 90 days leading up to March 14, 2026, and over $233 million over the last 90 days.
Show more
Stock Movement Drivers
Fundamental Drivers
The -8.3% change in TDG stock from 12/31/2025 to 4/8/2026 was primarily driven by a -6.1% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 4082026 | Change |
|---|---|---|---|
| Stock Price ($) | 1329.85 | 1219.88 | -8.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 8,830 | 9,109 | 3.2% |
| Net Income Margin (%) | 23.5% | 22.2% | -5.3% |
| P/E Multiple | 37.3 | 35.0 | -6.1% |
| Shares Outstanding (Mil) | 58 | 58 | 0.0% |
| Cumulative Contribution | -8.3% |
Market Drivers
12/31/2025 to 4/8/2026| Return | Correlation | |
|---|---|---|
| TDG | -8.3% | |
| Market (SPY) | -5.4% | 34.5% |
| Sector (XLI) | 9.9% | 41.9% |
Fundamental Drivers
The -7.4% change in TDG stock from 9/30/2025 to 4/8/2026 was primarily driven by a -11.6% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 4082026 | Change |
|---|---|---|---|
| Stock Price ($) | 1318.02 | 1219.88 | -7.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 8,579 | 9,109 | 6.2% |
| Net Income Margin (%) | 22.5% | 22.2% | -1.2% |
| P/E Multiple | 39.6 | 35.0 | -11.6% |
| Shares Outstanding (Mil) | 58 | 58 | -0.2% |
| Cumulative Contribution | -7.4% |
Market Drivers
9/30/2025 to 4/8/2026| Return | Correlation | |
|---|---|---|
| TDG | -7.4% | |
| Market (SPY) | -2.9% | 25.5% |
| Sector (XLI) | 10.9% | 40.1% |
Fundamental Drivers
The -5.7% change in TDG stock from 3/31/2025 to 4/8/2026 was primarily driven by a -15.2% change in the company's P/E Multiple.| (LTM values as of) | 3312025 | 4082026 | Change |
|---|---|---|---|
| Stock Price ($) | 1294.29 | 1219.88 | -5.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 8,157 | 9,109 | 11.7% |
| Net Income Margin (%) | 22.4% | 22.2% | -0.6% |
| P/E Multiple | 41.3 | 35.0 | -15.2% |
| Shares Outstanding (Mil) | 58 | 58 | 0.2% |
| Cumulative Contribution | -5.7% |
Market Drivers
3/31/2025 to 4/8/2026| Return | Correlation | |
|---|---|---|
| TDG | -5.7% | |
| Market (SPY) | 16.3% | 46.3% |
| Sector (XLI) | 31.4% | 53.0% |
Fundamental Drivers
The 93.6% change in TDG stock from 3/31/2023 to 4/8/2026 was primarily driven by a 61.7% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 3312023 | 4082026 | Change |
|---|---|---|---|
| Stock Price ($) | 630.02 | 1219.88 | 93.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,632 | 9,109 | 61.7% |
| Net Income Margin (%) | 16.5% | 22.2% | 34.5% |
| P/E Multiple | 38.6 | 35.0 | -9.3% |
| Shares Outstanding (Mil) | 57 | 58 | -1.9% |
| Cumulative Contribution | 93.6% |
Market Drivers
3/31/2023 to 4/8/2026| Return | Correlation | |
|---|---|---|
| TDG | 93.6% | |
| Market (SPY) | 63.3% | 47.2% |
| Sector (XLI) | 75.7% | 56.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| TDG Return | 3% | 2% | 67% | 32% | 12% | -12% | 127% |
| Peers Return | 8% | 3% | 21% | 29% | 43% | 7% | 167% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -3% | 76% |
Monthly Win Rates [3] | |||||||
| TDG Win Rate | 50% | 50% | 75% | 75% | 67% | 50% | |
| Peers Win Rate | 53% | 47% | 48% | 62% | 65% | 65% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| TDG Max Drawdown | -16% | -19% | -1% | -4% | -3% | -15% | |
| Peers Max Drawdown | -10% | -17% | -11% | -4% | -10% | -4% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: RTX, PH, HON, HEI, WWD. See TDG Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 4/8/2026 (YTD)
How Low Can It Go
| Event | TDG | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -25.0% | -25.4% |
| % Gain to Breakeven | 33.3% | 34.1% |
| Time to Breakeven | 221 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -62.6% | -33.9% |
| % Gain to Breakeven | 167.7% | 51.3% |
| Time to Breakeven | 440 days | 148 days |
| 2018 Correction | ||
| % Loss | -18.0% | -19.8% |
| % Gain to Breakeven | 21.9% | 24.7% |
| Time to Breakeven | 59 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -51.7% | -56.8% |
| % Gain to Breakeven | 107.1% | 131.3% |
| Time to Breakeven | 412 days | 1,480 days |
Compare to RTX, PH, HON, HEI, WWD
In The Past
TransDigm's stock fell -25.0% during the 2022 Inflation Shock from a high on 11/9/2021. A -25.0% loss requires a 33.3% gain to breakeven.
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About TransDigm (TDG)
TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The company's Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. Its Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.
AI Analysis | Feedback
Here are 1-2 brief analogies to describe TransDigm:
- Like the 'Intel Inside' for aircraft, supplying a vast array of critical, highly engineered components that make planes fly and function.
- A specialized Parker-Hannifin, focusing on essential motion, control, and other engineered components for aerospace and demanding industrial applications.
AI Analysis | Feedback
- Aircraft Actuation and Control Systems: Designs and supplies mechanical/electro-mechanical actuators and controls, databus and power controls for aviation, space, and land-based turbine applications.
- Aircraft Engine and Power Components: Manufactures ignition systems, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, and batteries/chargers for aircraft.
- Aircraft Airframe and Cabin Components: Provides engineered latching/locking devices, rods, connectors, elastomer sealing solutions, cockpit security and displays, audio/radio systems, lavatory components, and customized interior surfaces.
- Safety and Restraint Systems: Offers seat belts and safety restraints for both aviation and ground transportation applications, along with parachutes.
- Cargo Handling and Lifting Devices: Supplies hoists, winches, lifting devices, and complete cargo loading and handling systems for aircraft.
- Specialized Industrial Components: Develops refueling systems for heavy equipment and specific hydraulic/electromechanical actuators and fuel valves for land-based gas turbines.
AI Analysis | Feedback
TransDigm Group Incorporated (TDG) sells primarily to other companies and organizations across its aviation and non-aviation segments. Its major customers can be categorized as follows:
-
Aircraft Manufacturers and Major Aerospace Subsystem Suppliers: These companies integrate TransDigm's specialized components into complete airframes, engines, and various complex aircraft systems. Key examples of such publicly traded customers include:
- The Boeing Company (BA)
- Airbus SE (AIR.PA)
- Lockheed Martin Corporation (LMT)
- Raytheon Technologies Corporation (RTX)
- General Electric Company (GE) (for GE Aerospace)
- Safran S.A. (SAF.PA)
- Honeywell International Inc. (HON)
-
Major Commercial and Cargo Airlines: Airlines are direct or indirect customers, purchasing components for new aircraft through manufacturers and directly for maintenance, repair, and overhaul (MRO) activities of their existing fleets. Examples of publicly traded major airlines include:
- Delta Air Lines, Inc. (DAL)
- United Airlines Holdings, Inc. (UAL)
- American Airlines Group Inc. (AAL)
- Southwest Airlines Co. (LUV)
- Military Buying Agencies: Government defense departments and agencies, such as the U.S. Department of Defense, are significant customers, procuring components for various military aircraft and defense systems. These entities are not publicly traded companies.
- Maintenance, Repair, and Overhaul (MRO) Providers and Repair Depots: These entities specialize in servicing existing aircraft fleets and procure parts directly from TransDigm or its authorized distributors. Some are independent companies, while others are divisions of airlines or manufacturers.
-
Heavy Equipment, Off-Road Vehicle, and Land-Based Turbine Manufacturers: In its Non-aviation segment, TransDigm supplies components for industrial and land-based applications. Examples of publicly traded companies in this category include:
- Caterpillar Inc. (CAT)
- Deere & Company (DE)
- Komatsu Ltd. (6301.T)
-
Satellite and Space System Suppliers: For its non-aviation segment, TransDigm provides electro-mechanical actuators and other components for space applications. Examples of publicly traded companies in this domain include:
- Northrop Grumman Corporation (NOC)
- Lockheed Martin Corporation (LMT) (also a major aerospace customer)
- Child Restraint System Suppliers: These companies manufacture seat belts and safety restraints for ground transportation applications, including child safety seats.
AI Analysis | Feedback
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Mike Lisman
President and Chief Executive Officer
Mike Lisman was appointed President and Chief Executive Officer of TransDigm Group on October 1, 2025. He previously served as Co-Chief Operating Officer from May 2023 to September 2025, and as Chief Financial Officer and Executive Vice President from July 2018 to May 2023. Mr. Lisman also led the Company's Mergers and Acquisitions group and was a Business Unit Manager at Aero Fluid Products, a TransDigm subsidiary. Before joining TransDigm in 2015, he worked in private equity with Warburg Pincus in New York and London, and also held prior private equity and investment banking roles at The Carlyle Group and Morgan Stanley. Mr. Lisman holds a bachelor's degree in aerospace engineering from the University of Notre Dame and an MBA from Harvard Business School.
Sarah Wynne
Chief Financial Officer
Ms. Wynne was appointed Chief Financial Officer in May 2023. Prior to that, she served as Chief Accounting Officer from November 2018 to May 2023, and as Group Controller from April 2015 to October 2018. She also served as Controller of the Aero Fluid Products division, a wholly-owned subsidiary of TransDigm Inc., from October 2009 to March 2015, and held other accounting roles within the Company. Ms. Wynne has been with TransDigm for 20 years.
Joel Reiss
Co-Chief Operating Officer
Mr. Reiss was appointed Co-Chief Operating Officer in May 2023. He previously served as Executive Vice President from 2015 to 2023, President of Hartwell Corporation from 2012 to 2015, President of Skurka Aerospace from 2010 to 2012, and Director of Operations at Adams Rite Aerospace. Mr. Reiss joined TransDigm in 2000.
Patrick Murphy
Co-Chief Operating Officer
Mr. Murphy was appointed Co-Chief Operating Officer in August 2025. He previously served as Executive Vice President from 2019 to 2025 and as President of HarcoSemco from 2015 to 2019. Before joining TransDigm, Mr. Murphy was Vice President and General Manager for two Danaher Corporation businesses and held several other senior leadership roles in the industrial manufacturing and high-technology industries.
Armani Vadiee
General Counsel, Chief Compliance Officer, and Secretary
Mr. Vadiee was appointed General Counsel, Chief Compliance Officer, and Secretary in July 2025. Prior to this role, he served as TransDigm's Vice President of Global Public Sector. Before joining TransDigm, Mr. Vadiee was a partner at a Washington D.C.-based law firm, where he served as outside counsel to TransDigm for over 10 years, developing a deep understanding of the Company's operations and regulatory environment.
AI Analysis | Feedback
The key risks to TransDigm Group Incorporated's (TDG) business include its high financial leverage, significant dependence on the cyclical aerospace and defense markets, and potential supply chain disruptions coupled with regulatory scrutiny on its pricing practices.
- High Financial Leverage: TransDigm operates with an aggressive financial leverage model, utilizing substantial debt to fund growth and special dividends. This strategy exposes the company to significant interest rate and refinancing risks. For example, TransDigm's debt-to-equity ratio was approximately -5.00 in mid-2025, which is a considerable outlier compared to the industry average of 0.38, reflecting a unique, debt-fueled financial engineering approach. While the company has taken steps to hedge a portion of its debt, this high leverage can impact its net income, as projected for fiscal year 2026.
- Dependence on Cyclical Aerospace and Defense Markets: TransDigm's business is heavily concentrated in the aerospace and defense sectors, making it susceptible to industry-specific risks and economic downturns. Fluctuations in defense spending, changes in government budget trends, and the cyclical nature of commercial aviation (e.g., demand for air travel, new aircraft production rates) can directly impact the company's sales, profitability, and cash flows. A period of significant market disruption in these industries could disproportionately affect TransDigm compared to more diversified companies.
- Supply Chain Disruptions and Regulatory Scrutiny on Pricing: The company faces ongoing challenges related to supply chain constraints, rising costs of production, and its reliance on a concentrated supplier base. Geopolitical tensions or policy shifts, such as the Pentagon's ban on Chinese-origin rare earth materials starting in 2027, can exacerbate these disruptions, leading to increased costs and potential inefficiencies. Furthermore, TransDigm's pricing practices, particularly for parts supplied to the U.S. government, have faced scrutiny. Regulatory changes or increased transparency requirements could limit the company's ability to maintain its historical profit margins and aggressive pricing strategy in both defense and commercial markets.
AI Analysis | Feedback
Additive manufacturing (3D printing) of aerospace components presents an emerging threat to TransDigm's traditional business model. As technology advances and regulatory bodies certify more 3D-printed parts for flight, original equipment manufacturers (OEMs), airlines, and third-party maintenance providers (MROs) are increasingly able to produce complex and critical components in-house or on-demand. This capability could reduce reliance on traditional suppliers like TransDigm for certain parts, particularly in the lucrative aftermarket, by enabling customers to print spares or incorporate additive manufacturing into their own production processes. Major aerospace companies are actively investing in and adopting additive manufacturing for both production and maintenance, indicating a clear shift in how aircraft components can be sourced and manufactured.
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TransDigm Group Incorporated (TDG) operates in several distinct markets for its aircraft components and non-aviation products. The addressable market sizes for its main products and services are as follows:
Aviation Segments (Power & Control, Airframe)
- Aerospace Parts Manufacturing Market: The global aerospace parts manufacturing market was valued at approximately USD 1.02 trillion in 2025 and is projected to reach USD 1.39 trillion by 2030. North America held the largest revenue share in this market.
- Aircraft Actuators Market: The global aircraft actuators market size was estimated at USD 24.4 billion in 2025 and is projected to grow to USD 46.3 billion by 2034. In 2025, North America accounted for USD 10.2 billion of this market.
- Aircraft Cabin Interior Market: The global aircraft cabin interior market was valued at USD 41.10 billion in 2025 and is projected to reach USD 83.80 billion by 2034. North America represented USD 13.2 billion of this market in 2025.
- Aircraft Landing Gear Market: The global aircraft landing gear market size was valued at USD 14.98 billion in 2025 and is projected to reach USD 38.21 billion by 2034. North America held a significant share, valued at USD 5.9 billion in 2025.
- Aircraft Electrical Systems Market: The global aircraft electrical systems market is projected to grow from USD 94.06 billion in 2025 to USD 110.40 billion by 2030. North America commanded a 42.22% share in 2025, equating to approximately USD 39.7 billion.
- Aerospace Fasteners Market: The global aerospace fastener market is estimated at USD 9.85 billion in 2025 and is expected to reach USD 19.3 billion by 2035. North America accounted for approximately USD 4.07 billion of this market in 2025.
- Aerospace Electronics Market: The global aerospace electronics market size was USD 127.20 billion in 2025 and is predicted to increase to approximately USD 237.33 billion by 2035. North America is the largest market for aerospace electronics.
Non-Aviation Segment
- Space Sensors and Actuators Market: The global space sensors and actuators market size was valued at USD 5.03 billion in 2024 and is expected to reach USD 19.33 billion by 2032. North America dominated this market with a 50.36% revenue share in 2024, approximately USD 2.53 billion.
- Industrial Gas Turbine Market: The global industrial gas turbine market size was USD 9.55 billion in 2025 and is expected to grow to USD 12.16 billion by 2034. North America held a 30.84% market share in 2025, approximately USD 2.94 billion.
- Ground Transportation Safety (Road Safety) Market: The global road safety market was valued at USD 4.59 billion in 2024 and is projected to expand to nearly USD 11.71 billion by 2032. North America accounted for 34.49% of the market in 2025, estimated at approximately USD 1.58 billion in 2024.
- Refueling Systems for Heavy Equipment used in mining, construction, and other industries: null
AI Analysis | Feedback
TransDigm Group Incorporated (TDG) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market trends:
- Strategic Acquisitions: TransDigm consistently emphasizes an acquisition-driven growth strategy, focusing on businesses that offer proprietary aerospace components with significant aftermarket content. Recent acquisitions, such as Simmonds Precision Products, Servotronics, Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation, are anticipated to bolster the company's product portfolio and market presence, contributing to its revenue expansion.
- Robust Commercial Aftermarket Demand: A substantial portion of TransDigm's revenue, approximately 55% in fiscal year 2025, stems from its high-margin commercial aftermarket business. This segment benefits from the company's proprietary, essential components that generate recurring demand throughout the lifecycle of aircraft. Forecasts indicate high single-digit to low double-digit percentage growth in commercial aftermarket revenue for fiscal year 2026. This is supported by steadily improving commercial air travel, increased flight hours, and higher aircraft utilization.
- Growth in the Defense Market: The defense sector is a consistent and strong driver for TransDigm, with expectations of mid-single-digit to high single-digit percentage growth in defense revenue for fiscal year 2026. This growth is fueled by robust defense spending globally and new business wins.
- Recovery and Growth in Commercial OEM Production: While subject to fluctuations in production rates, the commercial OEM (Original Equipment Manufacturer) market is projected to see high single-digit to mid-teens percentage revenue growth. The recovery in commercial aviation and increased aircraft production rates are expected to drive demand for TransDigm's highly engineered components.
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Share Repurchases
- TransDigm authorized a $2,200 million stock repurchase program in January 2022, which superseded a smaller $650 million program and has no expiration date.
- The company executed $315 million in share repurchases in the first quarter of fiscal year 2025, acquiring 252,800 shares at an average price of $1,248.65 per share.
- In fiscal year 2025, TransDigm repurchased $500 million of its stock. Additionally, between October 1, 2025, and December 27, 2025, $106.49 million was spent to repurchase 85,212 shares, bringing the total under the May 2022 plan to $1,518.8 million.
Outbound Investments
- In January 2026, TransDigm announced an agreement to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings for approximately $2.2 billion in cash, focusing on proprietary aftermarket solutions.
- TransDigm entered into a definitive agreement in December 2025 to acquire Stellant Systems, Inc. for approximately $960 million in cash, aiming to expand its highly engineered, proprietary product offerings for aerospace and defense.
- In October 2025, the company completed the acquisition of Simmonds Precision Products from RTX Corporation for $765 million, adding fuel and proximity sensing and structural health monitoring solutions to its portfolio.
Capital Expenditures
- Expected capital expenditures for fiscal year 2024 were projected to be between $255 million and $285 million.
- For fiscal year 2026, TransDigm anticipates capital expenditures ranging from $280 million to $310 million.
- Reinvesting in its businesses, which includes capital expenditures, remains a primary capital allocation priority for TransDigm.
Latest Trefis Analyses
Trade Ideas
Select ideas related to TDG.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 03312026 | NSP | Insperity | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 03312026 | TNC | Tennant | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 03272026 | ADP | Automatic Data Processing | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 1.0% | 1.0% | 0.0% |
| 03272026 | HURN | Huron Consulting | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.0% | 4.0% | 0.0% |
| 03272026 | TRU | TransUnion | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 5.2% | 5.2% | 0.0% |
| 03272026 | TDG | TransDigm | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 1.7% | 1.7% | -0.6% |
| 05312022 | TDG | TransDigm | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 3.6% | 31.4% | -15.1% |
| 03312020 | TDG | TransDigm | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 52.7% | 83.6% | -15.6% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 344.15 |
| Mkt Cap | 96.5 |
| Rev LTM | 14,785 |
| Op Inc LTM | 4,275 |
| FCF LTM | 2,608 |
| FCF 3Y Avg | 2,475 |
| CFO LTM | 2,930 |
| CFO 3Y Avg | 2,770 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 10.7% |
| Rev Chg 3Y Avg | 12.8% |
| Rev Chg Q | 13.0% |
| QoQ Delta Rev Chg LTM | 3.1% |
| Op Mgn LTM | 19.3% |
| Op Mgn 3Y Avg | 19.0% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 17.7% |
| CFO/Rev 3Y Avg | 17.4% |
| FCF/Rev LTM | 15.4% |
| FCF/Rev 3Y Avg | 15.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 96.5 |
| P/S | 6.1 |
| P/EBIT | 26.3 |
| P/E | 37.8 |
| P/CFO | 33.1 |
| Total Yield | 3.7% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 3.1% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -2.2% |
| 3M Rtn | 8.2% |
| 6M Rtn | 20.2% |
| 12M Rtn | 54.7% |
| 3Y Rtn | 109.1% |
| 1M Excs Rtn | -2.0% |
| 3M Excs Rtn | 8.0% |
| 6M Excs Rtn | 19.7% |
| 12M Excs Rtn | 20.3% |
| 3Y Excs Rtn | 42.7% |
Comparison Analyses
Price Behavior
Price Behavior
| Market Price | $1,219.88 | |
| Market Cap ($ Bil) | 71.0 | |
| First Trading Date | 03/15/2006 | |
| Distance from 52W High | -19.6% | |
| 50 Days | 200 Days | |
| DMA Price | $1,267.34 | $1,328.99 |
| DMA Trend | down | down |
| Distance from DMA | -3.7% | -8.2% |
| 3M | 1YR | |
| Volatility | 29.8% | 29.2% |
| Downside Capture | 0.41 | 0.43 |
| Upside Capture | 21.44 | 58.73 |
| Correlation (SPY) | 32.3% | 39.4% |
TDG Betas & Captures as of 3/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.40 | 0.91 | 0.74 | 0.51 | 0.74 | 0.80 |
| Up Beta | -0.30 | 0.45 | 0.28 | 0.59 | 0.67 | 0.77 |
| Down Beta | 0.57 | 1.20 | 1.01 | 0.56 | 0.87 | 0.80 |
| Up Capture | -49% | 30% | 43% | 29% | 48% | 68% |
| Bmk +ve Days | 7 | 16 | 27 | 65 | 139 | 424 |
| Stock +ve Days | 5 | 17 | 30 | 64 | 139 | 422 |
| Down Capture | 94% | 133% | 93% | 64% | 90% | 92% |
| Bmk -ve Days | 12 | 23 | 33 | 58 | 110 | 323 |
| Stock -ve Days | 17 | 25 | 33 | 62 | 113 | 329 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TDG | |
|---|---|---|---|---|
| TDG | 5.3% | 29.1% | 0.18 | - |
| Sector ETF (XLI) | 46.3% | 17.9% | 1.97 | 47.6% |
| Equity (SPY) | 28.9% | 17.3% | 1.35 | 39.7% |
| Gold (GLD) | 56.6% | 27.9% | 1.61 | -9.0% |
| Commodities (DBC) | 24.9% | 16.8% | 1.29 | -2.5% |
| Real Estate (VNQ) | 13.8% | 15.6% | 0.63 | 30.6% |
| Bitcoin (BTCUSD) | -14.5% | 44.2% | -0.23 | 16.2% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TDG | |
|---|---|---|---|---|
| TDG | 20.1% | 27.9% | 0.67 | - |
| Sector ETF (XLI) | 13.3% | 17.3% | 0.60 | 65.5% |
| Equity (SPY) | 11.6% | 17.0% | 0.53 | 60.2% |
| Gold (GLD) | 22.3% | 17.8% | 1.03 | 4.1% |
| Commodities (DBC) | 11.8% | 18.8% | 0.52 | 14.6% |
| Real Estate (VNQ) | 3.9% | 18.8% | 0.11 | 46.9% |
| Bitcoin (BTCUSD) | 4.0% | 56.5% | 0.29 | 24.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TDG | |
|---|---|---|---|---|
| TDG | 24.3% | 33.9% | 0.73 | - |
| Sector ETF (XLI) | 13.8% | 19.9% | 0.61 | 67.0% |
| Equity (SPY) | 13.9% | 17.9% | 0.67 | 60.2% |
| Gold (GLD) | 14.1% | 15.9% | 0.74 | 0.9% |
| Commodities (DBC) | 8.4% | 17.6% | 0.40 | 23.5% |
| Real Estate (VNQ) | 5.1% | 20.7% | 0.21 | 53.5% |
| Bitcoin (BTCUSD) | 67.4% | 66.9% | 1.07 | 17.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/3/2026 | -9.3% | -9.4% | -8.4% |
| 11/12/2025 | 1.1% | 4.4% | 0.1% |
| 8/5/2025 | -11.9% | -12.4% | -15.1% |
| 5/6/2025 | -5.5% | -3.8% | -1.6% |
| 2/4/2025 | -3.3% | -1.3% | 1.6% |
| 11/7/2024 | -3.8% | -1.4% | -7.5% |
| 8/6/2024 | 2.3% | 2.0% | 11.7% |
| 5/7/2024 | 0.7% | -1.6% | 4.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 12 | 15 |
| # Negative | 13 | 12 | 9 |
| Median Positive | 2.9% | 4.5% | 6.1% |
| Median Negative | -2.8% | -3.7% | -6.9% |
| Max Positive | 9.8% | 11.1% | 37.2% |
| Max Negative | -11.9% | -12.4% | -15.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 02/03/2026 | 10-Q |
| 09/30/2025 | 11/12/2025 | 10-K |
| 06/30/2025 | 08/05/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 02/04/2025 | 10-Q |
| 09/30/2024 | 11/07/2024 | 10-K |
| 06/30/2024 | 08/06/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/08/2024 | 10-Q |
| 09/30/2023 | 11/09/2023 | 10-K |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-Q |
| 09/30/2022 | 11/10/2022 | 10-K |
| 06/30/2022 | 08/09/2022 | 10-Q |
| 03/31/2022 | 05/10/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 2/3/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Net Sales | 9.85 Bil | 9.94 Bil | 10.04 Bil | 0.9% | Raised | Guidance: 9.85 Bil for 2026 | |
| 2026 Net Income | 1.95 Bil | 2.01 Bil | 2.06 Bil | 2.1% | Raised | Guidance: 1.97 Bil for 2026 | |
| 2026 Earnings per share | 32.5 | 33.4 | 34.4 | 2.6% | Raised | Guidance: 32.6 for 2026 | |
| 2026 EBITDA As Defined | 5.14 Bil | 5.21 Bil | 5.28 Bil | 1.2% | Raised | Guidance: 5.15 Bil for 2026 | |
| 2026 Adjusted earnings per share | 37.4 | 38.4 | 39.3 | 2.3% | Raised | Guidance: 37.5 for 2026 | |
Prior: Q4 2025 Earnings Reported 11/12/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 9.75 Bil | 9.85 Bil | 9.95 Bil | 12.1% | Higher New | Guidance: 8.79 Bil for 2025 | |
| 2026 Net Income | 1.91 Bil | 1.97 Bil | 2.03 Bil | 0.5% | Higher New | Guidance: 1.96 Bil for 2025 | |
| 2026 EPS | 31.6 | 32.6 | 33.6 | -0.7% | Lower New | Guidance: 32.8 for 2025 | |
| 2026 EBITDA As Defined | 5.08 Bil | 5.15 Bil | 5.22 Bil | 9.0% | Higher New | Guidance: 4.72 Bil for 2025 | |
| 2026 Adjusted EPS | 36.5 | 37.5 | 38.5 | 2.1% | Higher New | Guidance: 36.7 for 2025 | |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Stein, Kevin M | Fortuna Trust dated June 1, 2018 | Sell | 1062026 | 1373.59 | 25,000 | 34,339,837 | 11,205,775 | Form | |
| 2 | Murphy, Patrick Joseph | Co-Chief Operating Officer | Direct | Sell | 1052026 | 1329.03 | 290 | 385,419 | 1,402,127 | Form |
| 3 | Reiss, Joel | Co-Chief Operating Officer | Direct | Sell | 12162025 | 1290.52 | 3,900 | 5,033,033 | 4,645,877 | Form |
| 4 | Small, Robert J | Direct | Sell | 12112025 | 1290.19 | 4,700 | 6,063,879 | 7,257,302 | Form | |
| 5 | Small, Robert J | Stockbridge Fund, L.P. | Sell | 12092025 | 1335.72 | 75,673 | 101,077,940 | 489,061,857 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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