Transdigm Group Reports Strong OEM, Aftermarket And Defense Market Growth In Q4

Benzinga11-12

Transdigm Group Incorporated (NYSE:TDG) reported fourth-quarter FY25 results, which beat the consensus.

Details

Net sales rose 12% year over year (Y/Y) to $2.44 billion, beating the consensus of $2.40. Adjusted EPS of $10.82, up 10% Y/Y, came above the street view of $10.04.

EBITDA rose 15% Y/Y to $1.32 million, with a margin of 54.2% vs 52.6% a year ago quarter.

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In the fourth quarter, TransDigm issued $5.0 billion in new debt.

Mike Lisman, TransDigm Group’s president and CEO, said, “In the fourth quarter, our commercial aftermarket performed well and our defense market remained robust, with each of these markets growing in the double digits on a percentage basis. Additionally, our commercial OEM market revenue increased in the high single digits as we supported higher build rates at the OEMs.” 

Dividend

On August 20, 2025, TransDigm's board approved a special cash dividend of $90 per share and equivalent payments on eligible vested options.

The total payout of about $5.2 billion, funded through the new debt and existing cash, was completed on September 12, 2025.

Repurchase

In FY25, TransDigm repurchased roughly 400,000 shares of its common stock for about $0.5 billion.

Following the quarter's end, in October 2025, the company bought back an additional 80,000 shares for approximately $0.1 billion, at an average price of $1,250 per share.

Outlook

TransDigm projects FY26 adjusted EPS of $36.49–$38.53, slightly below the $36.71 estimate, and expects sales of $9.75 billion–$9.95 billion, vs. consensus of $8.797 billion.

“Across our end markets, we expect the commercial OEM market to see the highest rate of growth as we support increasing build rates at the OEMs,” Lisman added. “Additionally, we expect continued growth in our commercial aftermarket and defense end markets, where the overall trends remain quite positive.”

Price Action: TDG shares are down 1.08% at $1,280 premarket at the last check on Wednesday.

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