TransDigm Group stock sets fiscal 2027 growth path after strong quarter

TransDigm Group reported strong fiscal fourth-quarter growth on November 10, while its fiscal 2027 outlook pointed to another year of expansion. The aerospace-components supplier posted higher sales and adjusted earnings, but reported net income declined as interest and tax expenses increased. The Financial Times Markets company announcement reproduced TransDigm's results release.

TransDigm generated quarterly sales of 2.988 billion US dollars for the period ended September 30, 2026, up 23 percent from 2.437 billion US dollars a year earlier. Organic sales growth was 14 percent. Reported earnings per share rose 33 percent to 10.33 US dollars, while adjusted earnings per share increased 15 percent to 12.44 US dollars.

Growth came with margin pressure

EBITDA As Defined increased 20 percent to 1.583 billion US dollars. Its margin was 53.0 percent, down from 54.2 percent in the prior-year quarter. TransDigm said the margin included about two percentage points of dilution from recent acquisitions, highlighting the execution challenge as the group integrates newly acquired businesses.

Net income fell 4 percent to 586 million US dollars from 609 million US dollars. The company attributed the decline primarily to higher interest expense related to greater gross debt and higher tax expense. Adjusted net income, which excludes specified acquisition, financing and other items, rose 12 percent to 706 million US dollars.

TransDigm completed the 1.07 billion US dollar cash acquisition of Prince & Izant during the quarter. The company also issued 3.0 billion US dollars of new senior secured notes and used part of the proceeds to repurchase about 1.8 billion US dollars of notes due in 2028. Share repurchases reached 943 million US dollars in the quarter and about 2.8 billion US dollars for fiscal 2026.

Management targets another expansion year

For fiscal 2027, TransDigm guides to sales of 11.950 billion to 12.150 billion US dollars, compared with 10.557 billion US dollars in fiscal 2026. The midpoint implies 14 percent growth. Net income is expected at 2.442 billion to 2.490 billion US dollars, while reported earnings per share are forecast at 42.06 to 42.91 US dollars.

Adjusted earnings per share guidance stands at 47.09 to 47.94 US dollars, with a midpoint of 47.51 US dollars. EBITDA As Defined is expected at 6.195 billion to 6.345 billion US dollars, implying a margin of about 52.0 percent. Management's assumptions call for high-single-digit to low-double-digit growth in commercial original-equipment sales and high-single-digit growth in commercial aftermarket and defense revenue.

TransDigm Group stock traded at 1,116.50 euros on Lang & Schwarz at 14:39 CET on Thursday, November 12, 2026.

US aerospace shares trade against a broader market backdrop tracked through the S&P 500.

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