Transdigm Group Inc. · NYSE:TDG

Transdigm — Investor Presentation (September 2026)

27 slides from Transdigm's investor presentation, September 2026

  1. Slide 1: TransDigm Investor Presentation

    TransDigm Investor Presentation September 2026

  2. Slide 2: 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

  3. Slide 3: TransDigm Overview

    TransDigm Overview 3

  4. 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

  5. Slide 5: Consistent Strategy & Value Creation

    Consistent Strategy & Value Creation Proprietary Aerospace and Aftermarket Value Based Operating Strategy “Private Equity- Decentralized Organization / Aligned Like” Returns with with Shareholders Liquidity of a Public Market Disciplined Acquisition Strategy Efficient Capital Structure TransDigm pro

  6. Slide 6: Organizational Philosophy - Decentralized

    Organizational Philosophy - Decentralized CORPORATE Corporate Local Control Autonomy Value Generation Strategy OPERATING UNIT Economy Mgmt Central Local of Scale Resources Control Autonomy Employees Owners Structure Execution Motivation TransDigm proprietary information 6

  7. Slide 7: Proven Operating Strategy

    Proven Operating Strategy Proven Operating Strategy Profitable New Productivity and Cost Value Based Pricing Business Improvements 3 Value Drivers TransDigm proprietary information 7

  8. Slide 8: Onward and Upward: A Consistent Growth Story

    Onward and Upward: A Consistent Growth Story Revenue EBITDA As Defined Adjusted Earnings Per Share ($ in millions) ($ in millions) 52.5% $10,510 53.9% $5,520 $8,831 44.6% $41.04 $4,760 $37.33 45.6% $5,103 49.8% $2,278 $2,707 $14.47 $1,234 $9.01 $828 $412 $3.35 (1) (1) (1) 2010 2015 2020 2025 2026E 2

  9. Slide 9: 2026 Q3 Financial Performance by Markets – Pro Forma

    2026 Q3 Financial Performance by Markets – Pro Forma Q3 Highlights Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Commercial OEM: 35% Biz 65% Com Q3 YTD Jet/Heli Transport  Commercial Transport Revenue Up 25%  Business Jet/Helicopter Revenue Up 3% Commercial OEM: Up 17% Up 15% Commercial Aftermarket:

  10. Slide 10: End Market Conditions

    End Market Conditions Acronyms: LSD = Low Single-Digit Percent Growth MSD = Mid Single-Digit Percent Growth HSD = High Single-Digit Percent Growth LDD = Low Double-Digit Percent Growth 10

  11. Slide 11: Commercial OEM Build Rates Continue to Rise…

    Commercial OEM Build Rates Continue to Rise… Commercial Transport Commercial Transport – Total Deliveries (Boeing & Airbus) 50+ Year History 2,200 15 years 2,000 2,000 CAGR = +10% 1,800 1,800 1,600 1,600 7 years 1,400 1,400 1,200 7 years 1,200 1,000 5 years 800 4 years 1,000 600 800 400 600 200 400

  12. Slide 12: Commercial Aftermarket Drivers Continue to Grow…

    Commercial Aftermarket Drivers Continue to Grow… Worldwide Worldwide Installed Installed Base Base Growth 45,000 40,000 35,000 30,000 2025 – 2030E 25,000 CAGR +3% 20,000 15,000 10,000 Worldwide Worldwide ASK’s RPK Growth 16,000,000 14,000,000 12,000,000 10,000,000 2025 – 2030E 8,000,000 CAGR +4% 6,0

  13. Slide 13: Forecasting Commercial Aftermarket Growth

    Forecasting Commercial Aftermarket Growth Commercial Aftermarket % of Com. Metrics Monitored FY26 Growth Rate (%) Aftermarket Passenger/Engine 60-65% • Out of warranty fleet (# absolute aircraft) • Flight cycles (takeoffs, landings) • RPM’s (less important) • Engine MRO slot bookings Freight 10-15%

  14. Slide 14: TDG Generally Not Susceptible to PMA, USM

    TDG Generally Not Susceptible to PMA, USM PMA USM 3rd Party PMA Less than 2% Below 4% Surplus TDG Parts are not TDG Parts less typical surplus targets – susceptible to PMA Tend to be than broader market – consumables, below High OTD prevents $10K average sale price need for airlines to and away from

  15. Slide 15: Defense Demand Continues to Grow…

    Defense Demand Continues to Grow… U.S. Defense Base Budget ($Bn) International Defense Spending ($Bn) $1,200 TDG defense $3,500 revenue growth CAGR + MSD% to HSD% outpacing budget $1,100 authorizations $3,000 Likely Range $1,000 of Outcomes $2,500 $900 $2,000 $800 $1,500 $700 Approx. 25% to 33% of T

  16. Slide 16: Defense Overview

    Defense Overview Comm AFM 32% Defense Defense 43% Direct to DOW 6.5% Of the 6.5% of sales direct to DOW, vast majority is spares/ consumables. Very little repair work. Other Defense 93.5% Comm OEM 25%  Vast majority is derived from commercial equivalents  Products are primarily consumables or spar

  17. Slide 17: M&A Approach

    M&A Approach 17

  18. Slide 18: M&A: Target Sourcing and Recent Acquisition Review

    M&A: Target Sourcing and Recent Acquisition Review  Experience is a significant edge: 150+ acquisitions of A&D component businesses and product lines  Size is a benefit – knowledge across A&D product areas, wide geographic coverage, capital access, management access, credibility  Competition in M

  19. Slide 19: M&A: 30+ Years of Progressive Expansion

    M&A: 30+ Years of Progressive Expansion IPO 2006 1993 – 2005 2005 – 2010 2010 – 2015 2015 – 2020 2020 – 2026 2027 & Beyond ? PMA PMA Primary Testing & instrumentation Testing & instrumentation Focus: Electronic Electronic Electronic Components Type Interior Interior Interior Interior Avionics Avioni

  20. Slide 20: M&A Review: FY23 to FY25 Acquisitions – Performance Review Thus Far

    M&A Review: FY23 to FY25 Acquisitions – Performance Review Thus Far 2026 Model EBITDA 2026 Actual EBITDA  EBITDA well ahead of Model  Aggregate IRR tracking to 30% ++  Continue to outperform 20% IRR target  Opportunity for further improvement as integrations progress IRR/Returns on Last 3 Years

  21. Slide 21: M&A: Will continue to broaden what we look for

    M&A: Will continue to broaden what we look for 2026 and Beyond WHAT WE REQUIRE: UNCHANGED Proprietary products 1993 Highly engineered components PMA Mechanical Testing & Instrumentation Our Value Drivers apply Electronic Profitable new business, productivity, Interior value-based pricing Avionics Si

  22. Slide 22: Non-Aerospace Acquisition Progress

    Non-Aerospace Acquisition Progress EBITDA Margins of TDG Non-Aerospace & Defense businesses, primarily acquired as part of larger transactions 80% At Acquisition Now 60% 60% 55% 40% 40% 35% 35% 25% 20% 20% 5% 0% Shield Young & Franklin Adel Mining BU Darchem Marine/Nuclear Non-A&D Non-A&D Non-A&D No

  23. Slide 23: Appendix

    Appendix 23

  24. Slide 24: Proven Record of Acquisition and Integration

    Proven Record of Acquisition and Integration Privately Held NYSE 1993 – 2006 2006 – 2010 2011 – 2014 2015 – 2018 2021 – 2026 Cobham Aero Connectivity 2019 – 2020  Sweeney  Talley Actuation  Telair International  Advanced Input  Chelton Ltd. Adel Telair   Electra-Motion  Schneller  AAR Cargo

  25. Slide 25: Investment Evaluation – TDG IRR Framework

    Investment Evaluation – TDG IRR Framework Purchase Price / Capital Structure EBITDA $ 16,500 Multiple 10.0 Purchase Price $165,000 Fees $1,750 Total Purchase Price $166,750 Leverage Multiple 5.5 Debt 5.5x Current Year EBITDA $90,750 Equity Required $76,000 Total $166,750 Debt & Equity Investment Yea

  26. Slide 26: Reconciliation of EBITDA and EBITDA as Defined to Income from Continuing Operations

    APPENDIX: Reconciliation of EBITDA and EBITDA as Defined to Income from Continuing Operations (1) Est 2010 2015 2020 2025 2026 Revenue $ 828 $ 2,707 $ 5,103 $ 8,831 $ 10,510 Income from continuing ops. $163 $447 $653 $2,074 $2,126 Depreciation and amortization 30 94 283 367 438 Interest expense, net

  27. Slide 27: Reconciliation of Adjusted Net Income to Net Income and Adjusted EPS

    APPENDIX: Reconciliation of Adjusted Net Income to Net Income and Adjusted EPS ($ a nd s ha res i n mi l l i ons ) 2010 2015 2020 2025 2026E Net i ncome from conti nui ng opera ti ons $ 163 $ 447 $ 653 $ 2,074 $ 2,126 Gros s a djus tments from EBITDA to EBITDA a s Defi ned 18 84 226 192 278 Purcha s

TransDigm Group — Investor Presentation (September 2026) on 6ix