TransDigm share gains after exceeding expectations and raising forecast

Tenbagger-Capital · 2026-05-05T12:00:57.759488Z

$TDG TransDigm - Summary Strong Q2: Turnover USD 2.54 billion (+18 % YoY) and adjusted EPS 9.85 USD - both above expectations. Forecast raised: New EPS target 38.83-40.21 USD (above consensus). Sales guidance raised to USD 10.3-10.42 bn increased. Share reacts positively: +2.9% after publication. Segment strength: Double-digit growth in all three main markets. Profitability: EBITDA (As Defined) USD 1.34 billionmargin slightly lower (52.6% vs. 54%). Cash deployment: Acquisitions (Jet Parts Engineering & Victor Sierra) for USD 2.2 billion completed; USD 723 million Share buybacks. Outlook: Commercial Aftermarket is expected to grow in the high single-digit to low double-digit range. @Dividendenopi @Simpson

Because today is Sunday there is another "points king from my depot "

$TDG (+0.84%)

TransDigm is still in a 2-year sideways movement.

Looking at the 10-year chart, however, we can see that this consolidation could soon come to an end.

Despite the long consolidation, the share was still attractive due to the high special dividend.

I like the good but still rising EBIT margin.

Due to the high number of points 14/15 in the Traderfox Robustness Checkthe share is also good for BUY & HOLD investors.

In addition, it was able to bear market 2020 with an annual performance of +10,51 % as a hedge.

Ladies and gentlemen, the next bear market is sure to come. Do you think the share is a good hedge?

$TDG (+0.84%)

TransDigm Group Inc. is a leading global developer and manufacturer of advanced aircraft components for use in virtually all commercial and military aircraft. Specifically, these include mechanical/electromechanical drives and controls, ignition systems, engine technology, special pumps and valves, winches and hoists, power equipment, electric motors and generators, batteries and chargers, locking devices, technical connectors, cockpit safety components and systems, specialized cockpit displays, audio systems, seat belts and lighting. The Group, which has its headquarters in Cleveland, operates through numerous subsidiaries.

TransDigm Group Inc. specializes in the development, manufacture and marketing of aerospace systems and components. Net sales are distributed across the individual product families as follows:

- Engine components and control systems (49.6%): mechanical and electromechanical actuators and control systems, pumps and engine control systems, power controllers, ignition systems, thermal management systems, fluid management systems, batteries and power systems, motion sensors, data logging, analysis and processing systems, etc. The Group also offers winches, lifting systems and cargo handling systems;

- Cabin systems and equipment (48%): Cockpit safety components and systems, interlock systems and devices, connectors, audio control systems, specialized sanitary equipment, seat belts and safety devices, interior equipment (seats, display systems, in-flight entertainment systems, etc.), lighting systems, parachutes, cargo transportation systems, etc.;

- Other (2.4%): Non-aeronautical systems and equipment.

At the end of September 2025, the Group operated around 120 production sites worldwide.

The United States accounts for 62.7% of net sales.

Number of employees: 16,500

Analyst estimates

BUY 14

BUY 3

HOLD 5

REDUCE 0

SELL 0

Transdigm - Aviation boom offers suppliers excellent growth opportunities!

Business driver: TransDigm (TDG) has made a name for itself as an aerospace supplier that manufactures highly specialized aircraft components such as actuators, valves, sensors and cockpit safety systems, generating the majority of its income from the lucrative aftermarket business with spare parts and maintenance requirements. Thanks to the increasing demand for passenger aircraft and the high volume of flights, Transdigm's business is also picking up again. On November 12, the company surprised with a better than expected annual report.

Our operating units build, manufacture and maintain components that fly on almost every aircraft in the world

Although each of TransDigm's operating units is autonomous and focuses on its own company-specific product line and market strategy, they are all united in their commitment to delivering reliable, high-quality products consistently and on time.

Betriebseinheiten – TransDigm Group

Operating units

USD in millions

Estimates

Year Turnover Change

2024 7.940 20,58 %

2025 8.831 11,22 %

2026 9.923 12,37 %

2027 10.698 7,81 %

2028 11.432 6,87 %

Year EBIT Change

2024 3.531 20,8 %

2025 4.165 17,96 %

2026 4.587 10,13 %

2027 5.125 11,72 %

2028 5.645 10,15 %

Year Net result Change

2024 1.481 14,1 %

2025 1.866 26 %

2026 2.007 7,57 %

2027 2.490 24,06 %

2028 2.950 18,47 %

Year Net debt CAPEX

2024 18.619 165

2025 27.207 222

2026 26.175 293

2027 24.374 285

2028 23.374 285

Year Free cash flow Change

2024 165 18,71 %

2025 1.816 -3,4 %

2026 2.205 21,41 %

2027 2.685 21,77 %

2028 3.135 16,77 %

Year EBIT margin Earnings per share

2024 44,47 % 25,62

2025 47,16 % 32,08

2026 46,22 % 33,7

2027 47,9 % 41,59

2028 49,37 % 48,94

Number of shares (in thousands) 56,319

Date of publication 12.11.25

Year P/E ratio PEG

2024 55.7x 3.4x

2025 41.1x 1.6x

2026 41.3x 8.16x

2027 33.5x 1.4x

2028 28.4x 1.6x

Sector comparison P/E ratio

Transdigm Group 41.3x

Hownet Aerospace 58.03x

Heico Corp. 64.52x

Curtiss-Wright 47.22x

AECC Avitation 177.66x

🎯 1. special dividends instead of regular dividends

TransDigm pays irregular, very large special dividends ("special dividends").
These are typically paid every few yearsdepending on:
free cash flow
leverage targets
capital market conditions
Acquisition pipeline

Examples from the past (for classification):