Transdigm Group Inc. · NYSE:TDG
Transdigm — Q3 2025 Earnings Presentation
16 slides from Transdigm's earnings presentation, Aug 5, 2025
Slide 1: FY 2025 Q3 Earnings Call
FY 2025 Q3 Earnings Call August 5, 2025
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Mike Lisman 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 28% Defense 40% Prop
Slide 5: 2025 Q3 Financial Performance by Markets – Pro Forma
2025 Q3 Financial Performance by Markets – Pro Forma Highlights Q3 Review – Pro Forma Revenues⁽¹⁾ 35% Biz Jet/Heli Actual vs. Prior Year Q3 YTD Commercial OEM: 65% Com Transport Q3 ’25 Commercial Transport Revenue Down 8% Commercial OEM: Down 7% Down 4% Q3 ’25 Business Jet/Helicopter Revenue Dow
Slide 6: Third Quarter 2025 Select Financial Results
Third Quarter 2025 Select Financial Results ($ in millions, except per share amounts) Q3 FY Q3 FY 2025 2024 Revenue $2,237 $2,046 9.3% Increase Gross Profit $1,332 $1,220 • Application of our value-driven operating strategy • Fixed overhead spread over higher production volumes 59.5% 59.6% -0.1% SG&
Slide 7: Fiscal 2025 Outlook
Fiscal 2025 Outlook Market Growth Assumptions FY 2024 Pro Forma Revenue Mix (1) Market FY 2025 Expected Growth 28% Commercial OEM Flat to Low Single-Digit % Range 32% Commercial Aftermarket High Single-Digit to Low Double-Digit % Range 40% Defense High Single-Digit to Low Double-Digit % Range Guidan
Slide 8: Fiscal 2025 Select Financial Assumptions
Fiscal 2025 Select Financial Assumptions Select Financial Assumptions for Fiscal 2025 Prior Assumptions (Issued May 2025) Updated Assumptions Capital Expenditures $255 to $285 million No change Full Year Net Interest Expense ≈ $1.54 billion (includes $80 million of ≈ $1.56 billion (includes $80 mill
Slide 9: Reconciliation of Fiscal 2025 Outlook
Reconciliation of Fiscal 2025 Outlook ($ in millions, except per share amounts) FY 2025 Guidance Midpoint Net income $ 1,956 Adjustments: Includes approx. $30m Depreciation and amortization expense 380 of backlog amortization Interest expense - net 1,560 Income tax provision 618 EBITDA 4,514 Adjustm
Slide 10: Reconciliation of GAAP EPS to Adjusted EPS - Guidance
Reconciliation of GAAP EPS to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Thirty-Nine Week Periods Ended Mid-Point June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 September 30, 2025 GAAP earnings per share $ 8.47 $ 7.96 $ 24.31 $ 19.81 $ 32.80 Adjustments to earnin
Slide 11: Capital Structure
Capital Structure Capital Structure ($ in millions) Actual 6/28/25 Rate Cash $2,792 $910mm revolver – S + 2.250% (1) $650mm AR securitization facility 650 S + 1.450% First lien term loan I due 2028 1,862 S + 2.750% First lien term loan J due 2031 3,614 S + 2.500% First lien term loan K due 2030 1,69
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $25Bn of gross Debt is ~ 75% hedged/fixed rate through fiscal year 2027 • Achieved via a combination of interest rate caps, swaps and collars • Significantly reduces near-term exposure to any variable rate increases (1) FY 25 Weighted Average Varia
Slide 13: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Calendar Year Secured Term Loans Secured Notes Sr Sub Notes Note 1: $910M Revolver matures in February 2029 Note 2: $725M AR Securitization ren
Slide 14: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Thirty-Nine Week Periods Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net Income $ 493 $ 461 $ 1,465 $ 1,248 Adjustments: Depreciation and amortization expense 91 77 27
Slide 15: 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 Thirty-Nine Week Periods Ended Reported Earnings Per Share June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net income $ 493 $ 461 $ 1,465 $ 1,248 Less: Net income at
Slide 16: 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) Thirty-Nine Week Periods Ended June 28, 2025 June 29, 2024 Net cash provided by operating activities $ 1,531 $ 1,473 Adjustments: Changes in assets and liabilities, net of effects fr