TransDigm's Q1 Earnings Surpass Estimates, Sales Increase Y/Y

TransDigm Group Incorporated TDG reported first-quarter fiscal 2026 adjusted earnings of $8.23 per share, which topped the Zacks Consensus Estimate of $8.02 by 2.6%. The bottom line also improved 5% from the prior-year quarter’s figure of $7.83.

The company reported GAAP earnings of $6.62 per share compared with $7.62 in the year-ago quarter.

TransDigm’s Q1 Sales Discussion

Sales amounted to $2.29 billion, up 14% from $2.01 billion registered in the prior-year period. The reported figure also topped the Zacks Consensus Estimate of $2.25 billion by 1.4%.

Organic sales, as a percentage of net sales, grew 7.4%.

TDG’s Operating Results

The gross profit was $1.35 billion, up 9.3% from the year-ago quarter’s level of $1.24 billion.

TDG’s interest expenses increased 25.7% year over year to $475 million.

Net income declined 9.7% year over year to $445 million.

During the 13-week period ended on Dec. 27, 2025, TransDigm repurchased nearly 85 thousand shares of its common stock at an average price per share of $1,250 for a total amount of nearly $0.1 billion.

TransDigm’s Financial Position

Cash and cash equivalents as of Dec. 27, 2025 amounted to $2.53 billion, down from $2.81 billion recorded as of Sept. 30, 2025.

Long-term debt as of Dec. 27, 2025, totaled $29.2 billion, up from $29.17 billion as of Sept. 30, 2025.

Cash from operating activities amounted to $832 billion compared with $752 billion in the year-ago period.

TDG’s 2026 Guidance

TransDigm now expects its net sales to be in the range of $9.845-$10.035 billion compared with the previous guidance of $9.75-$9.95 billion. The Zacks Consensus Estimate for the same is pegged at $9.96 billion, which is higher compared to the midpoint of the company’s new guided range.

TDG expects fiscal 2026 adjusted earnings to be in the band of $37.42-$39.34 per share compared with its previous guidance of $36.49-$38.53 per share. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $38.67 per share, higher than the midpoint of the company’s revised guided range.

TDG’s Zacks Rank

TransDigm currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Release 

Teledyne Technologies Inc. TDY reported fourth-quarter 2025 adjusted earnings of $6.30 per share, which surpassed the Zacks Consensus Estimate of $5.83 by 8.1%. The bottom line also improved 14.1% from $5.52 recorded in the year-ago quarter.

TDY’s total sales were $1.61 billion, which beat the Zacks Consensus Estimate of $1.57 billion by 2.7%. The top line also surged 7.3% from $1.50 billion reported in the year-ago quarter.

Lockheed Martin Corporation LMT reported fourth-quarter 2025 adjusted earnings of $5.80 per share, which missed the Zacks Consensus Estimate of $6.24 by 7.1%. The bottom line increased 161.3% from the year-ago quarter's reported figure of $2.22.

Net sales were $20.32 billion, which beat the Zacks Consensus Estimate of $19.83 billion by 2.5%. The top line also inched up 9.1% from $18.62 billion reported in the year-ago quarter.

Textron Inc. TXT reported fourth-quarter 2025 adjusted earnings of $1.73 per share, which missed the Zacks Consensus Estimate of $1.74 by 0.8%. However, the bottom line rose 29.1% from $1.34 in the year-ago quarter.

TXT reported total revenues of $4.18 billion, which beat the Zacks Consensus Estimate of $4.14 billion by 0.8%. The top line also increased 15.7% from the year-ago quarter’s level of $3.61 billion.

 

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This article originally published on Zacks Investment Research (zacks.com).

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