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• The Danaher of aerospace components.
• The Intel of critical aircraft parts.

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• Proprietary Aircraft Components: Highly engineered mechanical and electrical components essential for various aircraft systems, including engine, airframe, and interiors.
• Actuation & Motion Control Systems: Systems that facilitate controlled movement within aircraft, such as flight control actuators and landing gear systems.
• Power & Fluid Management Products: Critical components like pumps, valves, and power conversion units that manage fluid flow and electrical power throughout aircraft.

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• Boeing (Symbol: BA) - One of the world's largest aerospace companies, manufacturing commercial jetliners and defense, space, and security systems.
• Airbus (Symbol: EADSY - OTC; Primary listing on Euronext as AIR.PA) - A leading global manufacturer of commercial aircraft, helicopters, defense, and space solutions.
• RTX Corporation (Symbol: RTX) - Formerly Raytheon Technologies, a major aerospace and defense company with business units like Collins Aerospace and Pratt & Whitney, which are significant customers or partners.
• Lockheed Martin (Symbol: LMT) - A global security and aerospace company, primarily involved in research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services.
• Northrop Grumman (Symbol: NOC) - A global aerospace and defense technology company primarily involved in the design, development, production, and support of advanced systems in aeronautics, space, defense, and cyber security.
• General Dynamics (Symbol: GD) - A global aerospace and defense company that offers a broad portfolio of products and services in business aviation, combat vehicles, weapons systems and munitions, and shipbuilding.
• Tier 1 Aerospace Suppliers - Companies that integrate TransDigm's components into larger systems for OEMs. Examples include divisions of RTX (Collins Aerospace), General Electric (GE Aerospace), Safran, Parker Hannifin (PH), and Eaton (ETN).
• Aftermarket Customers - This broad category includes numerous independent distributors, maintenance, repair and overhaul (MRO) facilities, commercial airlines (served indirectly through MROs and distributors), and various branches of the U.S. and foreign governments (for military aircraft spare parts and upgrades).

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Michael Lisman, President and Chief Executive Officer

Mr. Lisman was appointed President and Chief Executive Officer in October 2025, succeeding Kevin Stein. Previously, he served as Co-Chief Operating Officer from May 2023 to September 2025 and as Chief Financial Officer from July 2018 to May 2023. His other roles at TransDigm included Vice President—Mergers and Acquisitions and Business Unit Manager for the Air & Fuel Valves business unit at Aero Fluid Products, a TransDigm operating unit. Prior to joining TransDigm in 2015, Mr. Lisman worked in the private equity industry at Warburg Pincus in both their New York and London offices. He holds a B.S. in aerospace engineering from Notre Dame and an MBA from Harvard Business School.

Sarah Wynne, Chief Financial Officer

Ms. Wynne was appointed Chief Financial Officer in May 2023. Before this, she served as TransDigm's Chief Accounting Officer from November 2018 to May 2023. A 20-year TransDigm employee, her prior roles include Group Controller, overseeing financial reporting for several operating units, and Controller of the Aero Fluid Products division.

Joel Reiss, Co-Chief Operating Officer

Mr. Reiss was appointed Co-Chief Operating Officer in May 2023. He previously held the position of Executive Vice President for eight years. His earlier roles include President of Hartwell Corporation and President of Skurka Aerospace, both TransDigm operating units, as well as Director of Operations at Adams Rite Aerospace.

Patrick Murphy, Co-Chief Operating Officer

Mr. Murphy was appointed Co-Chief Operating Officer in August 2025. He 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 various senior leadership roles in the industrial manufacturing and high-technology industries.

Kevin Stein, Former President and Chief Executive Officer

Dr. Stein served as President and Chief Executive Officer of TransDigm from April 2018 until his retirement on September 30, 2025. He joined TransDigm in 2014 as Chief Operating Officer of the Power and Controls Segment. Prior to TransDigm, Dr. Stein worked for Precision Castparts Corporation, where he was Executive Vice President and President of both the structurals and fasteners divisions. He also held division president roles at Cooper Industries and Tyco Electronics/Raychem Corporation. Dr. Stein will continue to serve as an advisor to TransDigm until March 31, 2026, and remains a member of the Board of Directors.

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The key risks to TransDigm's business operations include its substantial debt levels, the cyclical nature and current weakness in its commercial Original Equipment Manufacturer (OEM) segment, and ongoing regulatory scrutiny regarding its pricing practices.

1. High Debt Levels and Interest Rate Risk: TransDigm employs an aggressive financial leverage strategy, with high debt levels being a primary concern. The company's debt-to-EBITDA ratio is elevated, and rising interest rates have led to increased interest expenses that are growing faster than its revenues. This financial structure introduces significant interest rate and refinancing risks, which could impact margins, limit future acquisitions, and potentially constrain growth.
2. Commercial OEM Segment Weakness and Cyclicality: The commercial OEM segment, which involves selling parts directly to aircraft manufacturers like Boeing and Airbus, has experienced weakness. Slower aircraft production rates, exacerbated by supply chain disruptions and labor shortages, have negatively impacted TransDigm's revenue growth and profitability in this area. This segment is inherently cyclical and operates at lower margins compared to TransDigm's aftermarket business, making sustained weakness a notable risk.
3. Regulatory Scrutiny and Pricing Practices: TransDigm has faced controversy and investigations concerning its pricing of aerospace parts, particularly those supplied to the U.S. military. Past investigations have accused the company of earning "excessive profits," leading to refunds. While TransDigm's business model is legal, increased political pressure or new regulations aimed at limiting sole-source pricing could impact the company's profitability and its relationships with key customers, including government entities.

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One clear emerging threat for TransDigm (TDG) is the increasing adoption and maturity of **additive manufacturing (3D printing)** within the aerospace and defense industry. As this technology advances and becomes more capable of producing certified flight-critical components, it poses a direct challenge to TransDigm's business model, which relies heavily on producing highly engineered, proprietary, sole-source components with significant aftermarket revenue. If major aerospace customers (such as OEMs, MRO providers, or military organizations) develop the capability to 3D print an increasing range of these specialized parts in-house or through new agile competitors, it could significantly erode TransDigm's pricing power, market share, and aftermarket dominance by bypassing traditional supply chains.

Another clear emerging threat is the accelerating industry shift towards **electric, hybrid-electric, and more sustainable aviation propulsion systems**. As aerospace manufacturers and airlines invest heavily in next-generation aircraft that rely on different power architectures (e.g., eVTOLs, hydrogen-powered aircraft, hybrid-electric jets), the demand for many of TransDigm's traditional mechanical, hydraulic, and pneumatic components designed for conventional jet engines and airframes could diminish over the long term. This technological paradigm shift necessitates substantial adaptation of TransDigm's product portfolio and R&D focus to remain relevant in a rapidly evolving aerospace landscape, potentially displacing some of its legacy product lines.

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TransDigm Group Incorporated (TDG) operates in the aerospace manufacturing industry, specializing in highly engineered aircraft components and aftermarket services for both commercial and military aircraft. While specific addressable market sizes for each individual product manufactured by TransDigm are not publicly available, market research provides estimates for the broader categories in which the company operates.

• Global Aircraft Component Market: The global aircraft component market, which encompasses the broad range of engineered aircraft components that TransDigm designs, produces, and supplies, was valued at approximately USD 956.5 billion in 2024. This market is projected to grow to about USD 1,599.5 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 5.28% during that period.
• Global Aerospace Aftermarket Market: A significant portion of TransDigm's business, particularly known for its high-margin proprietary products, is in the aerospace aftermarket. The global aerospace aftermarket market size was estimated at approximately USD 53.06 billion in 2024 and is projected to expand to roughly USD 97.24 billion by 2033, growing at a CAGR of 7.87%. Another estimate places the global aircraft aftermarket parts market size at USD 48.71 billion in 2024, with a projection to reach USD 93.52 billion by 2032 at a CAGR of 8.0%. For commercial aircraft specifically, the aftermarket parts market reached approximately USD 44.3 billion in 2024 and is expected to reach USD 72.3 billion by 2033, with a CAGR of 5.3%.

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1. Strong Commercial Aftermarket Demand: TransDigm anticipates continued robust growth in its commercial aftermarket business. This segment benefits from increasing global air traffic, higher flight hours, and greater utilization of aircraft, all contributing to increased demand for components and aftermarket parts. The commercial aftermarket revenues increased by approximately 8% in Q4 and 12% for the full fiscal year 2024, and guidance for fiscal 2025 expects high single-digit to low double-digit percentage range growth.
2. Growth in Defense Sales: The defense market is expected to be a significant contributor to revenue growth. TransDigm has observed steadily improving U.S. Government defense spending outlays and strong demand for its defense products. Defense market revenue grew approximately 16% in Q4 and 19% for the full fiscal year 2024, and the company projects high single-digit to low double-digit revenue growth for this segment in fiscal 2025.
3. Strategic Acquisitions: TransDigm consistently leverages accretive acquisitions to drive revenue growth. Recent acquisitions, such as SEI Industries, the CPI Electron Device Business, and Raptor Scientific, have already contributed to the company's performance and are factored into future guidance. The fiscal 2024 financial guidance was revised upward to reflect strong performance and recent acquisitions. The company's business model relies on opportunities to complete accretive acquisitions, which gives confidence in continued profitable performance.
4. Commercial OEM Recovery and Production Ramp-up: While commercial OEM growth has experienced some fluctuations, the long backlogs of aircraft manufacturers and efforts to increase aircraft production rates are expected to support future revenue. TransDigm anticipates continued growth across its commercial OEM end market in fiscal 2025, although at a more modest pace (flat to low single digits) compared to aftermarket and defense segments. Commercial OEM revenue increased approximately 13% in Q4 and 20% for the full fiscal year 2024.

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Share Repurchases

• TransDigm opportunistically deployed over $300 million to repurchase approximately 250,000 shares in Q1 fiscal year 2025.
• The company repurchased approximately $369 million of common stock for the twenty-six week period ended March 29, 2025, which included $53 million in Q2 fiscal 2025 and $131 million in April 2025.
• In fiscal year 2022, TransDigm conducted $912 million in share buybacks.

Share Issuance

• No significant share issuances by the company were identified over the last 3-5 years.

Inbound Investments

• No information regarding large inbound investments made in TransDigm by third-parties (e.g., strategic partners or private equity firms) was available.

Outbound Investments

• TransDigm completed the acquisition of Simmonds Precision Products from RTX Corporation for approximately $765 million in cash in October 2025.
• The company finalized the acquisition of Raptor Scientific for approximately $655 million in cash.
• TransDigm also completed the acquisition of Calspan for approximately $725 million.

Capital Expenditures

• TransDigm's fiscal year 2025 capital expenditure guidance implies CapEx closer to 3% of sales, an increase from historical levels around 2%.
• The primary focus of these capital expenditures is on investments in infrastructure and productivity projects, including cobots and robots, to improve cost structures and drive margin benefits.
• Projected capital expenditures are $188 million for fiscal year 2025 and $200 million for fiscal year 2026.