Transdigm Group Inc. · NYSE:TDG
Transdigm — Q1 2025 Earnings Presentation
16 slides from Transdigm's earnings presentation, Feb 4, 2025
Slide 1: FY 2025 Q1 Earnings Call
FY 2025 Q1 Earnings Call February 4, 2025
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein 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 28% Defense 40% Prop
Slide 5: 2025 Q1 Financial Performance by Markets – Pro Forma
2025 Q1 Financial Performance by Markets – Pro Forma Highlights Q1 Review – Pro Forma Revenues⁽¹⁾ Actual vs. 35% Biz Jet/Heli Prior Year Q1 Commercial OEM: 65% Com Transport Q1 ’25 Commercial Transport Revenue Down 1% Commercial OEM: Down 4% Q1 ’25 Business Jet/Helicopter Revenue Down 8% 20% Biz
Slide 6: First Quarter 2025 Select Financial Results
First Quarter 2025 Select Financial Results ($ in millions, except per share amounts) Q1 FY Q1 FY 2025 2024 Revenue $2,006 $1,789 12% Increase Gross Profit $1,235 $1,042 • Application of our value-driven operating strategy 61.6% 58.2% 3.4% • Fixed overhead spread over higher production volumes SG&A
Slide 7: Fiscal 2025 Outlook
Fiscal 2025 Outlook Market Growth Assumptions FY 2024 Pro Forma Revenue Mix (1) Market FY 2025 Expected Growth 28% Commercial OEM Mid Single-Digit % Range 32% Commercial Aftermarket High Single-Digit to Low Double-Digit % Range 40% Defense High Single-Digit % Range Guidance Summary ($ in millions, e
Slide 8: Fiscal 2025 Select Financial Assumptions
Fiscal 2025 Select Financial Assumptions Select Financial Assumptions for Fiscal 2025 Prior Assumptions (Issued November 2024) Updated Assumptions Capital Expenditures $255 to $285 million No change Full Year Net Interest Expense ≈ $1.54 billion (includes $80 million of No change interest income) Fu
Slide 9: Reconciliation of Fiscal 2025 Outlook
Reconciliation of Fiscal 2025 Outlook ($ in millions, except per share amounts) Guidance Midpoint Net income $ 1,981 Adjustments: Depreciation and amortization expense 380 Includes approx. $30m of backlog amortization Interest expense - net 1,540 Income tax provision 625 EBITDA 4,526 Adjustments: Ac
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 Mid-Point December 28, 2024 December 30, 2023 September 30, 2025 GAAP earnings per share $ 7.62 $ 4.87 $ 33.23 Adjustments to earnings per share: Dividend equivalent payments 0.83 1.75 0.83 Acquisiti
Slide 11: Capital Structure
Capital Structure Capital Structure ($ in millions) Actual 12/28/24 Rate Cash $2,459 $910mm revolver – S + 2.250% $650mm AR securitization facility 650 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 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 $ in millions Current FY 25 Assu
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 Calendar Year Secured Term Loans Secured Notes Sr Sub Notes Note 1: $910M Revolver matures in February 2029 Note 2: $650M AR Securitization renews annual
Slide 14: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended December 28, 2024 December 30, 2023 Net Income $ 493 $ 382 Adjustments: Depreciation and amortization expense 90 71 Interest expense - net 378 300 Income tax provision 126 106 EBITDA 1,
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 Reported Earnings Per Share December 28, 2024 December 30, 2023 Net income $ 493 $ 382 Less: Net income attributable to noncontrolling interests - - Net income attributable
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) Thirteen Week Periods Ended December 28, 2024 December 30, 2023 Net cash provided by operating activities $ 752 $ 636 Adjustments: Changes in assets and liabilities, net of effects f