Slide 1: FY 2024 Q4 Earnings Call
FY 2024 Q4 Earnings Call November 7, 2024
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: 2024 Q4 Financial Performance by Markets – Pro Forma
2024 Q4 Financial Performance by Markets – Pro Forma Highlights Q4 Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Q4 YTD 35% Biz Jet/Heli Commercial OEM: 65% Com Q4 ’24 Commercial Transport Revenue Up 8% Transport Commercial OEM: Up 13% Up 20% Q4 ’24 Business Jet/Helicopter Revenue Up 21%
Slide 6: Fourth Quarter 2024 Select Financial Results
Fourth Quarter 2024 Select Financial Results ($ in millions, except per share amounts) Q4 FY Q4 FY 2024 2023 Revenue $2,185 $1,852 18% Increase • Application of our value-driven operating strategy Gross Profit $1,258 $1,091 • Acquisition dilution 57.6% 58.9% -1.3% • Higher acquisition transaction an
Slide 7: Full Year 2024 Select Financial Results
Full Year 2024 Select Financial Results ($ in millions, except per share amounts) FY 2024 FY 2023 Revenue $7,940 $6,585 21% Increase • Application of our value-driven operating strategy Gross Profit $4,672 $3,842 • Fixed overhead spread over higher production volumes 58.8% 58.3% 0.5% SG&A $980 $780
Slide 8: Fiscal 2025 Outlook
Fiscal 2025 Outlook Market Growth Assumptions FY 2024 Pro Forma Revenue Mix (1) Market FY 2025 Expected Growth 28% Commercial OEM Mid Single-Digit % Range 32% Commercial Aftermarket High Single-Digit to Low Double-Digit % Range 40% Defense High Single-Digit % Range Guidance Summary ($ in millions, e
Slide 9: Fiscal 2025 Select Financial Assumptions
Fiscal 2025 Select Financial Assumptions Select Financial Assumptions for Fiscal 2025 Capital Expenditures $255 to $285 million Full Year Net Interest Expense ≈ $1.54 billion (includes $80 million of interest income) Full Year Effective Tax Rate ≈ 22% to 24% for GAAP EPS, Adjusted EPS and Cash Taxes
Slide 10: Reconciliation of Fiscal 2025 Outlook
Reconciliation of Fiscal 2025 Outlook ($ in millions, except per share amounts) Guidance Midpoint Net income $ 1,943 Adjustments: Depreciation and amortization expense 380 Includes approx. $30m of backlog amortization Interest expense - net 1,540 Income tax provision 616 EBITDA 4,479 Adjustments: Ac
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, 2024 September 30, 2023 September 30, 2024 September 30, 2023 September 30, 2025 GAAP earnings per share $ 5.80 $ 7.23 $ 25.62 $ 22.03 $ 32.43 Adjustments t
Slide 12: Capital Structure
Capital Structure Capital Structure ($ in millions) Actual 9/30/24 Rate Cash $6,261 $910mm revolver – S + 2.250% $650mm AR securitization facility 488 S + 1.450% First lien term loan I due 2028 1,871 S + 2.750% First lien term loan J due 2031 3,632 S + 2.500% First lien term loan K due 2030 1,699 S
Slide 13: 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 $ in millions Current FY 25 Assu
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 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Note 1: $910M Revolver matures in February 2029 Note 2: $650M AR Securitization r
Slide 15: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Fiscal Years Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net Income $ 468 $ 414 $ 1,715 $ 1,299 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, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net income $ 468 $ 414 $ 1,715 $ 1,299 Less: Net i
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, 2024 September 30, 2023 Net cash provided by operating activities $ 2,045 $ 1,375 Adjustments: Changes in assets and liabilities, net of effects from