Transdigm Group Inc. · NYSE:TDG

Transdigm — Q1 2026 Earnings Presentation

16 slides from Transdigm's earnings presentation, Feb 3, 2026

  1. Slide 1: FY 2026 Q1 Earnings Call

    FY 2026 Q1 Earnings Call February 3, 2026

  2. Slide 2: Agenda

    Agenda  TransDigm Overview, Highlights and Outlook Mike Lisman CEO  Market Review Patrick Murphy Co-COO  Operating Performance and Financial Results Sarah Wynne CFO  Q&A 1

  3. 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

  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: 2026 Q1 Financial Performance by Markets – Pro Forma

    2026 Q1 Financial Performance by Markets – Pro Forma Highlights Q1 Review – Pro Forma Revenues⁽¹⁾ 35% Biz Jet/Heli Actual vs. Prior Year Commercial OEM: 65% Com Q1 Transport  Q1 ’26 Commercial Transport Revenue Up 18% Commercial OEM: Up 17%  Q1 ’26 Business Jet/Helicopter Revenue Up 15% 20% Biz Je

  6. Slide 6: First Quarter 2026 Select Financial Results

    First Quarter 2026 Select Financial Results ($ in millions, except per share amounts) Q1 FY 2026 Q1 FY 2025 Revenue $2,285 $2,006 13.9% Increase Gross Profit $1,352 $1,235 • Application of our value-driven operating strategy • Acquisition dilution 59.2% 61.6% -2.4% SG&A $254 $211 • Acquisition dilut

  7. Slide 7: 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 ($

  8. Slide 8: Fiscal 2026 Select Financial Assumptions

    Fiscal 2026 Select Financial Assumptions Select Financial Assumptions for Fiscal 2026 Prior Assumptions (Issued November 2025) Updated Assumptions Capital Expenditures $280 to $310 million No change Full Year Net Interest Expense ≈ $1.90 billion (includes $60 million of interest No change income) Fu

  9. Slide 9: Reconciliation of Fiscal 2026 Outlook

    Reconciliation of Fiscal 2026 Outlook ($ in millions, except per share amounts) FY 2026 Guidance Midpoint Net income $ 2,008 Adjustments: Includes approx. $35m Depreciation and amortization expense 415 of backlog amortization Interest expense - net 1,900 Income tax provision 619 EBITDA 4,942 Adjustm

  10. 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 27, 2025 December 28, 2024 September 30, 2026 GAAP earnings per share $ 6.62 $ 7.62 $ 33.43 Adjustments to earnings per share: Dividend equivalent payments 1.02 0.83 1.02 Acquisiti

  11. Slide 11: Capital Structure

    Capital Structure Capital Structure ($ in millions) Actual 12/27/25 Rate Cash $2,528 $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% First lien term loan L due 2032 1,485 S

  12. Slide 12: 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

  13. Slide 13: Debt Maturity Profile

    Debt Maturity Profile Debt Maturity Profile ($MM) 7000 Secured Term Loans 6000 5000 Secured Notes 4000 Sr Sub Notes 3000 2000 1000 0 Calendar Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 Note 1: $910M Revolver matures in February 2029 Note 2: $725M AR Securitization renews annually in July 12

  14. Slide 14: 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 27, 2025 December 28, 2024 Net Income $ 445 $ 493 Adjustments: Depreciation and amortization expense 100 90 Interest expense - net 475 378 Income tax provision 127 126 EBITDA 1

  15. Slide 15: 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 27, 2025 December 28, 2024 Net income $ 445 $ 493 Less: Net income attributable to noncontrolling interests - - Net income attributable

  16. Slide 16: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined

    Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended December 27, 2025 December 28, 2024 Net cash provided by operating activities $ 832 $ 752 Adjustments: Changes in assets and liabilities, net of effects f

TransDigm Group — Q1 2026 Earnings Presentation on 6ix