TransDigm stock posts 23% sales growth, sets fiscal 2027 outlook

TransDigm Group reported its fiscal fourth-quarter and full-year results on Tuesday, November 10, after the aerospace components supplier closed fiscal 2026. The company said fourth-quarter net sales reached 2,988 million dollars, while adjusted earnings per share rose to 12.44 dollars from 10.82 dollars a year earlier, according to PR Newswire.

TransDigm stock traded at 1,110.00 euros on Lang & Schwarz at 14:37 CET on Tuesday, November 10, 2026.

Quarterly sales and profit picture

Fourth-quarter sales increased 23% from 2,437 million dollars in the comparable period. Organic sales growth contributed 14 percentage points of net sales growth. EBITDA As Defined, the company's adjusted operating measure, rose 20% to 1,583 million dollars. Its margin was 53.0%, down from 54.2% a year earlier, with recent acquisitions diluting the margin by approximately two percentage points.

GAAP net income declined 4% to 586 million dollars, despite the stronger top line. TransDigm attributed the decrease primarily to higher interest expense from increased gross debt and higher tax expense. Adjusted net income increased 12% to 706 million dollars.

For the full fiscal year, sales rose 20% to 10,557 million dollars and net income increased 2% to 2,108 million dollars. Adjusted net income reached 2,383 million dollars, or 41.35 dollars per share, compared with 2,171 million dollars, or 37.33 dollars per share, in fiscal 2025. EBITDA As Defined rose 17% to 5,563 million dollars, while its full-year margin fell to 52.7% from 53.9%.

Fiscal 2027 outlook sets next test

Management forecast fiscal 2027 sales of 11,950 million to 12,150 million dollars, implying 14% growth at the midpoint from fiscal 2026. Net income is expected to range from 2,442 million to 2,490 million dollars, while reported earnings per share are projected at 42.06 to 42.91 dollars.

TransDigm expects EBITDA As Defined of 6,195 million to 6,345 million dollars and an associated margin of approximately 52.0%. Adjusted earnings per share is forecast at 47.09 to 47.94 dollars, a 15% increase at the midpoint from the previous fiscal year. The outlook assumes high-single-digit to low-double-digit growth in commercial OEM revenue and high-single-digit growth in both commercial aftermarket and defense revenue.

Chief Executive Officer Mike Lisman said the fourth-quarter results exceeded the high end of the company's latest revenue and EBITDA As Defined guidance. He also pointed to more than 7 billion dollars of fiscal 2026 capital deployment, including approximately 4.4 billion dollars of acquisitions and approximately 2.8 billion dollars of share repurchases.

The acquisition program remains important for investors because management said recent deals contributed to margin dilution, while the company entered fiscal 2027 with liquidity and financial flexibility for further capital deployment. TransDigm also completed the 1.07 billion dollar acquisition of Prince & Izant and issued 3.0 billion dollars of new senior secured notes during the quarter.

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