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TransDigm Group (TDG) FY2026 results: revenue $10.6 billion, up 19.5% on the year

TransDigm Group Inc. (TDG) reported revenue of $10.6 billion for fiscal 2026, the year ended 30 September 2026, up 19.5% on the year before. Net income was $2.1 billion, up 1.6%, and diluted earnings per share $35.51. The figures are the company's own, from the 10-K it filed with the SEC on 10 November 2026.

Revenue
$10.6 billion
+19.5% on the year
FY2019FY2026
Operating margin
45.6%
47.2% a year earlier
FY2019FY2026
Net income
$2.1 billion
+1.6% on the year
FY2019FY2026
Diluted EPS
$35.51
+10.7% on the year
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 9 new.

  • Net sales rose 23% in quarter: Net sales were $2,988 million, up 23% from $2,437 million a year earlier, with organic sales growth of 14% of net sales.
  • Net income fell 4% in quarter: Net income was $586 million, down $23 million, or 4%, from $609 million a year earlier.
  • Quarter EBITDA margin 53.0%: EBITDA As Defined margin was 53.0%, against 54.2% a year earlier.
  • About $4.4B spent on acquisitions: Management said fiscal 2026 acquisitions cost about $4.4 billion, including Simmonds, Jet Parts, Victor Sierra, Prince & Izant, and twelve bolt-on acquisitions.
  • Q4 buybacks reached $943 million: Fourth quarter repurchases totaled 820 thousand shares at an average price of $1,150, for $943 million returned to shareholders.
Read the Q4 FY2026 earnings call summary

From this 10-K

TD Group owns TransDigm Inc., which designs, produces and supplies aircraft components for commercial and military aircraft. The company describes itself as a leading global designer, producer and supplier of engineered aircraft components, and says its products are on nearly every commercial and military aircraft in service. It reports three segments: Power & Control, Airframe and Non-aviation. It had approximately 19,100 full-time, part-time and temporary employees as of 30 September 2026.

TransDigm Group Inc., the 10-K for 2026

TD Group owns TransDigm Inc., which designs, produces and supplies aircraft components for commercial and military aircraft. The company describes itself as a leading global designer, producer and supplier of engineered aircraft components, and says its products are on nearly every commercial and military aircraft in service. It reports three segments: Power & Control, Airframe and Non-aviation. It had approximately 19,100 full-time, part-time and temporary employees as of 30 September 2026.

How the business is organised

TransDigm runs through operating units that are grouped into the three reportable segments. The filing says the units have autonomy and that key decisions are made locally, closer to the customer, rather than at corporate level. Power & Control made up 54.7% of net sales in fiscal 2026, Airframe 43.6% and Non-aviation 1.7%.

The company says its strategy rests on three core value drivers: obtaining profitable new business, improving its cost structure, and providing engineered products that add value for customers. It also pursues acquisitions of proprietary commercial aerospace component businesses with aftermarket content. The filing names Simmonds, JPE, VSA and Prince & Izant among its recent acquisitions, and says bolt-on purchases are added to existing operating units. One of those units is Extant Aerospace.

What it sells

Power & Control makes parts that provide power to the aircraft or control it. Examples include actuators and controls, ignition systems, pumps and valves, electric motors and generators, batteries and chargers, sensors, switches and relay panels, hoists and winches, and cargo handling systems.

Airframe covers non-power airframe and cabin products. These include latching and locking devices, connectors and elastomer seals, cockpit security systems and displays, audio, radio and antenna systems, lavatory components, seat belts and safety restraints, interior surfaces, thermal protection and insulation, lighting, and parachutes. It also provides flight, wind tunnel and jet engine testing services and equipment.

Non-aviation makes seat belts for ground transportation, actuators for space applications, actuators and fuel valves for land-based gas turbines, refueling systems for heavy equipment, and turbine controls for the energy and oil and gas markets.

How it makes money

The company estimates that about 90% of its fiscal 2026 net sales came from proprietary products, and about 55% from the aftermarket. Once a part is designed into a new aircraft, it earns sales from aftermarket use over the life of that aircraft, generally estimated at 25 to 30 years. A typical platform is produced for 20 to 30 years, which the company says gives an estimated product life cycle typically in excess of 50 years. The filing states that aftermarket sales have historically carried higher gross margins and been more stable than sales to original equipment manufacturers.

Products are sold through original equipment and aftermarket channels. The company says it prices its products to reflect the value it provides and the resources required.

Who buys from it

The filing gives rough shares of annual net sales by market:

  • Commercial, regional, business jet and general aviation aftermarket: 30% to 35%.
  • Commercial aerospace original equipment manufacturers: 25% to 30%.
  • Defense, including defense manufacturers and aftermarket sales to the United States and friendly foreign governments: approximately 35% to 40%.

Customers include aerospace distributors, airlines, aircraft manufacturers, armed forces, defense manufacturers, system suppliers and industrial customers. The top ten customers accounted for approximately 45% of fiscal 2026 net sales, and none individually exceeded 10%. The company reports no significant seasonal variation. First-quarter sales have generally been lower because of fewer working days around holidays.

How it competes and what governs it

The niche markets it serves are fragmented. Competitors range from divisions of large public corporations to small private firms with one or two components. The company says it competes on engineering, manufacturing quality, reliability, timely delivery and customer service.

The company says certification costs and technical requirements may discourage new entrants. It also says customers have little reason to certify another supplier once a part meets their standards. Commercial aircraft components are regulated by the Federal Aviation Administration in the United States and the European Union Aviation Safety Agency in Europe, among other agencies. Military components follow military quality specifications. The company maintains several FAA-approved repair stations and is subject to export control and environmental laws.

Most raw materials and component parts are available from multiple suppliers.

Its people

About 17% of full-time and part-time employees are represented by labor unions, with collective bargaining agreements expiring at various dates up to September 2029. Development programs include TransDigm University, a Management Development Program for recent master's graduates, and a Junior Military Officer Program for United States military veterans. Some operating units also offer tuition reimbursement and local college training partnerships. Each operating unit reports environmental, health and safety matters to the executive team monthly.

From TransDigm's annual report on Form 10-K for the year ended 30 September 2026. The filing

Written from the 10-K filed 10 November 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue10,5578,8317,940+19.5%
Cost of revenue4,3033,5203,268+22.2%
Gross profit6,2545,3114,672+17.8%
Gross margin59.2%60.1%58.8%
Research and development151118107+28.0%
Selling, general and administrative1,191945980+26.0%
Operating income4,8114,1653,531+15.5%
Operating margin45.6%47.2%44.5%
Pre-tax income2,7642,6292,215+5.1%
Income tax656555500+18.2%
Effective tax rate23.7%21.1%22.6%
Net income2,1072,0741,714+1.6%
Net margin20.0%23.5%21.6%
Diluted EPS$35.51$32.08$25.62+10.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow2,1872,0382,045+7.3%
Capital expenditure274222165+23.4%
Free cash flow1,9131,8161,880+5.3%
Free cash flow margin18.1%20.6%23.7%
Cash from investing-4,662-595-2,441
Cash from financing1,954-4,9003,171
Depreciation and amortisation445367312+21.3%
Share-based compensation146152188-3.9%
Buybacks2,7505000.0+450.0%
Dividends paid59.01592,038-62.9%
Diluted shares, weighted58m58m58m-1.0%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity-10,000-9,686-6,290
Non-controlling interest8.07.07.0+14.3%
Redeemable equity85.00.0n/a
Debt34,76330,01524,880+15.8%
Operating lease liabilities74.051.043.0+45.1%
Finance lease liabilities332276256+20.3%
Other liabilities2,7522,2466,690+22.5%
Total liabilities and equity28,01422,90925,586+22.3%
Fixed assets1,8321,5791,488+16.0%
Goodwill12,94610,61210,419+22.0%
Intangible assets5,1523,4543,446+49.2%
Cash and equivalents2,2792,8086,261-18.8%
Receivables2,0541,6171,381+27.0%
Inventory2,7132,0951,876+29.5%
Other assets1,038744715+39.5%
Total assets28,01422,90925,586+22.3%

10-K for the year ended 30 September 2026, filed 10 November 2026: the filing.