Transdigm Group Inc. · NYSE:TDG
Transdigm — Q4 2025 Earnings Presentation
17 slides from Transdigm's earnings presentation, Nov 12, 2025
Slide 1: FY 2025 Q4 Earnings Call
FY 2025 Q4 Earnings Call November 12, 2025
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Mike Lisman President and CEO Market Review Joel Reiss Co-COO Operating Performance and Financial Results Sarah Wynne CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non- Proprietary Comm OEM OEM 25% Defense 43% Comm
Slide 5: 2025 Q4 Financial Performance by Markets – Pro Forma
2025 Q4 Financial Performance by Markets – Pro Forma Highlights Q4 Review – Pro Forma Revenues⁽¹⁾ 35% Biz Jet/Heli Actual vs. Prior Year Q4 YTD Commercial OEM: 65% Com Transport Q4 ’25 Commercial Transport Revenue Up 9% Commercial OEM: Up 7% Down 1% Q4 ’25 Business Jet/Helicopter Revenue Up 3% 2
Slide 6: Fourth Quarter 2025 Select Financial Results
Fourth Quarter 2025 Select Financial Results ($ in millions, except per share amounts) Q4 FY 2025 Q4 FY 2024 Revenue $2,437 $2,185 11.5% Gross Profit $1,470 $1,258 • Application of our value-driven operating strategy • Fixed overhead spread over higher production volumes 60.3% 57.6% 2.7% SG&A $256 $
Slide 7: Full Year 2025 Select Financial Results
Full Year 2025 Select Financial Results ($ in millions, except per share amounts) FY 2025 FY 2024 Revenue $8,831 $7,940 11.2% Increase • Application of our value-driven operating strategy Gross Profit $5,311 $4,672 • Fixed overhead spread over higher production volumes 60.1% 58.8% 1.3% SG&A $945 $98
Slide 8: Fiscal 2026 Outlook
Fiscal 2026 Outlook Market Growth Assumptions FY 2025 Pro Forma Revenue Mix (1) Market FY 2026 Expected Growth 25% Commercial OEM High Single-Digit to Mid Teens % Range 32% Commercial Aftermarket High Single-Digit % Range 43% Defense Mid Single-Digit to High Single-Digit % Range Guidance Summary ($
Slide 9: Fiscal 2026 Select Financial Assumptions
Fiscal 2026 Select Financial Assumptions Select Financial Assumptions for Fiscal 2026 Capital Expenditures $280 to $310 million Full Year Net Interest Expense ≈ $1.90 billion (includes $60 million of interest income) Full Year Effective Tax Rate ≈ 22% to 24% for GAAP EPS, Adjusted EPS and Cash Taxes
Slide 10: Reconciliation of Fiscal 2026 Outlook
Reconciliation of Fiscal 2026 Outlook ($ in millions, except per share amounts) FY 2026 Guidance Midpoint Net income $ 1,966 Adjustments: Includes approx. $35m Depreciation and amortization expense 415 of backlog amortization Interest expense - net 1,900 Income tax provision 604 EBITDA 4,885 Adjustm
Slide 11: Reconciliation of GAAP EPS to Adjusted EPS - Guidance
Reconciliation of GAAP EPS to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Fiscal Years Ended Mid-Point September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 September 30, 2026 GAAP earnings per share $ 7.75 $ 5.80 $ 32.08 $ 25.62 $ 32.57 Adjustments t
Slide 12: Capital Structure
Capital Structure Capital Structure ($ in millions) Actual 9/30/25 Rate Cash $2,808 $910mm revolver – S + 2.250% $725mm AR securitization facility 725 S + 1.350% First lien term loan J due 2031 3,595 S + 2.500% First lien term loan K due 2030 3,544 S + 2.250% FY25 Weighted Average Interest Rate Firs
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $30Bn of gross Debt is ~ 75% hedged/fixed rate through fiscal year 2029 • Achieved via a combination of interest rate caps, swaps and collars • Significantly reduces near-term exposure to any variable rate increases (1) FY 26 Weighted Average Varia
Slide 14: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 Secured Term Loans $7,000 $6,000 Secured Notes $5,000 Sr Sub Notes $4,000 $3,000 $2,000 $1,000 $0 Calendar Year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Note 1: $910M Revolver matures in February 2029 Note 2: $725M AR Securitization r
Slide 15: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Fiscal Years Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net Income $ 609 $ 468 $ 2,074 $ 1,715 Adjustments: Depreciation and amortization expense
Slide 16: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Fiscal Years Ended Reported Earnings Per Share September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income $ 609 $ 468 $ 2,074 $ 1,715 Less: Net l
Slide 17: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) Fiscal Years Ended September 30, 2025 September 30, 2024 Net cash provided by operating activities $ 2,038 $ 2,045 Adjustments: Changes in assets and liabilities, net of effects from