TransDigm Group Inc (NYSE:TDG) stock fell 2.84% (As on February 4, 11:33:09 AM UTC-4, Source: Google Finance) after the company’s net income declined 9.7% year over year to $445 million. The decrease in net income primarily reflects higher interest expense as a result of the increase in TransDigm’s year-over-year gross debt balance. 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. 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 in the first quarter of FY26 has reported the adjusted earnings per share of $8.23, beating the analysts’ estimates for the adjusted earnings per share of $8.02, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14 percent to $2.29 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $2.25 billion. Organic sales, as a percentage of net sales, grew 7.4%. EBITDA for the quarter increased 5.5% to $1,147 million from $1,087 million for the comparable quarter a year ago. EBITDA As Defined for the quarter increased 12.8% to $1,197 million compared with $1,061 million in the comparable quarter a year ago. EBITDA As Defined as a percentage of net sales for the quarter was 52.4% compared with 52.9% in the comparable quarter a year ago.
Additionally, subsequent to quarter end, the company announced two acquisitions, which when closed will bring three new operating units into TransDigm. The company is excited to have agreements to acquire Stellant, Jet Parts Engineering, and Victor Sierra. In the aggregate, approximately $3.2 billion of capital is expected to be deployed for these acquisitions.
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.