$TDG (+1.39%)

Source

https://transdigmgroupinc.gcs-web.com/node/22286/pdf

$TDG (+1.39%)

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

$TDG (+1.39%)

Anyone who believes that only big names count in aviation is underestimating the power of small parts. The recipe for success of TransDigm.

Small parts, big importance

TransDigm is not a classic aviation supplier. The company does not sell large systems, engines or aircraft. It concentrates on small, highly specialized components - and this is precisely where its strength lies.

The business model is as simple as it is effective. TransDigm develops and produces highly critical components for aircraft that make up only a tiny proportion of the overall costs, but are essential for operation. These include valves, pumps, sensors, actuators, seat belts, cockpit systems and parachutes for military applications.

These parts usually fulfill a single, clearly defined function. If one component fails, the entire aircraft is grounded. This is precisely why quality, certification and reliability are crucial - and this is where TransDigm builds its moat.

The crucial point is specialization. Around 90 % of the products are proprietary, i.e. developed in-house and often only available from TransDigm.

The moat: Certification and monopolies

Once a component has been integrated into an aircraft design, it often remains there for decades. Replacing it with another supplier would be expensive, time-consuming and involve new certifications. This is not worth it for airlines.

This creates a second, even more important revenue stream: the spare parts business. Aircraft typically remain in service for over 20 years and some aircraft types for over 50 years.

The Boeing 747, for example, had its maiden flight in 1969. It was built until 2023 and will therefore continue to fly for decades to come.

During this time, components will need to be regularly serviced or replaced. TransDigm therefore not only earns money from initial sales to aircraft manufacturers such as Boeing or Airbusbut above all in the lucrative aftermarket. This model ensures stable, predictable income and high margins.

The product portfolio is broad, but consistently focused. In the cabin segment, TransDigm supplies seat belts, latches and interior systems, among other things. In the technical area, more complex components such as pumps, valves, sensors and control elements are added. In addition, there are avionic components such as antennas or cockpit hardware, which are necessary for communication and data transmission.

The company also has a strong presence in the defense sector. Here, TransDigm supplies components for military aircraft, helicopters and special applications. These programs often run for decades and offer correspondingly long-term sales.

A specialist for takeovers

Acquisitions are another key component of the Group's strategy. TransDigm must be seen as a specialist in acquisitions.

Over the years, the company has consistently acquired small to medium-sized suppliers of niche components.

The decisive factor is always the same pattern: proprietary products, high entry barriers and a significant share of the spare parts business. TransDigm only buys companies with monopolistic or oligopolistic structures. After the takeover, the companies continue to operate independently, but are strictly optimized for profitability and cash flow.

TransDigm plays a special role in the industry. While large suppliers such as Safran or Honeywell supply complete systems, TransDigm specifically occupies small, often overlooked niches - and dominates them.

A large part of its turnover comes from parts that only bring in a few million dollars a year. This enormous diversification contributes significantly to the company's resilience.

Diversification as a stability factor

This is why TransDigm is what it is today: a group made up of a large number of small monopolies and oligopolies.

The result is a company with exceptional pricing power. TransDigm does not sell interchangeable products, but certified key components with high relevance for safety and operation.

This strategy has enabled TransDigm to increase its turnover from USD 3.17 billion to USD 8.83 billion within ten years.

At the same time, the operating margin has improved from around 41% to around 47%. Earnings have multiplied from USD 11.49 to USD 37.33 per share.

The expansionary strategy was not financed by capital increases; the number of shares outstanding Aktien has only risen from 56 to 58 million shares during this period.

The positive development has continued in the current financial year, although growth rates are currently comparatively low.

In the first quarter, earnings of USD 8.23 per share exceeded expectations of USD 8.10. With sales of USD 2.29 billion, analysts' estimates of USD 2.26 billion were also exceeded.

For the year as a whole, this corresponds to a 14% increase in sales and a 5% rise in profit.

The next subsidiaries

TransDigm is suffering from the difficult conditions in the sector. Boeing and Airbus are experiencing enormous demand, but Boeing is still having internal problems and Airbus is not getting enough parts.

Meanwhile, TransDigm is carrying out one acquisition after another as usual. In October, the acquisition of Simmonds Precision Products, a former subsidiary of RTX Corp.

In addition, agreements were reached for the purchase of Stellant Systems, Jet Parts Engineering and Victor Sierra Aviation. In total, TransDigm is investing USD 3.2 billion in the three new subsidiaries, following the usual pattern.

Stellant is a leading global designer and manufacturer of high-performance electronic components and subsystems for the aerospace and defense sector.

Jet Parts Engineering is a leading independent designer and manufacturer of solutions for the aerospace aftermarket, particularly for repair and proprietary original equipment manufacturer ("OEM") parts.

Valuation: Not a bargain, but justified?

Victor Sierra Aviation is a leading developer, manufacturer and distributor of proprietary PMA ("Parts Manufacturer Approval") parts and other aftermarket parts for the civil aviation market - primarily in the general aviation and business aircraft sectors.

The sales forecast for the current financial year has been raised from USD 9.85 billion to USD 9.94 billion and the earnings expectations from USD 36.49 - 38.53 to USD 37.42 - 39.34 per share.

As TransDigm raises its outlook in the majority of quarters, there is a good chance that it will end up with a little more.

TransDigm currently has a forward P/E of 30.6, which means that the share is not a classic bargain, but the valuation is justifiable. In the last five years, the P/E was 35

TransDigm share: Chart from 20.03.2026, price: USD 1,153 - abbreviation: TDG | Source: TWS

The current environment is putting pressure on the share price. If the share falls below USD 1,200 on a sustained basis, there is a risk of further price losses. The next relevant support levels are USD 1,130, USD 1,100 and USD 1,015.

However, if the share price manages to return above USD 1,200, the situation will ease again.

The direction in which the price will develop in the short term will depend primarily on political decisions. However, the underlying business trends are intact.

Source

https://www.lynxbroker.de/boerse/boerse-kurse/aktien/transdigm-group-aktie/transdigm-group-analyse/?a=3355991664&utm_medium=email&utm_source=newsletter&utm_campaign=newsletter-boersenblick&newsletter=true&mc-rss-cache-bypass=2026032507&goal=0_d93daae099-6fdef660a3-410756260#transdigm-ein-konig-der-nischen

This is an area that is clearly underweighted for me, but there are also very few stocks that I see as suitable under my dividend requirements. After some research, I opened a first tranche today in $TDG (+1.39%) today. Yes, I am aware that these are not regular dividend payers, but they are repeatedly doing so well that there will also be a nice payout this year. A few acquisitions have already been made, and unless a mega bargain comes along, they will pass the cash on to the shareholders. And if not, an acquisition will make strategic sense and have a positive impact on the share price performance. I am in good spirits.

$TDG (+1.39%)

My dears, you don't always have to understand the stock market.

CLEVELAND - TransDigm Group (NYSE:TDG) on Tuesday reported first-quarter results that beat analysts' expectations and raised its full-year guidance.

Shares of the aircraft components supplier fell 1.12% in premarket trading after the numbers were released.

The company reported adjusted earnings per share of $8.23, beating analysts' consensus of $8.09. Sales climbed 13.9% year over year to $2.28 billion, slightly above the estimate of $2.26 billion. Organic sales growth for the quarter ended December 27, 2025 was 7.4%.

"We are pleased with the performance of our te

ams and the operating results for the first quarter. This is a solid start to fiscal year 2026," said Mike Lisman, CEO of TransDigm Group. "Total sales were above our expectations. In addition, order intake was strong in all three of our main market channels."

The company's EBITDA As Defined increased by 12.8% to $1.2 billion, representing a margin of 52.4%, compared to 52.9% in the same period last year. TransDigm noted that recent acquisitions had a dilutive effect of approximately 2.0% on margins.

Looking ahead, TransDigm raised its guidance for fiscal 2026 and now expects revenue to be between $9.85 billion and $10.04 billion, up from a previous forecast of $9.75 billion to $9.95 billion. The company also raised its outlook for adjusted earnings per share to $37.42 to $39.34, compared to the previous range of $36.49 to $38.53.

The guidance adjustment reflects strong performance in all market segments. Commercial original equipment manufacturer (OEM) sales are expected to grow at the highest rate as the company supports increasing production rates by aircraft manufacturers. The commercial aftermarket and defense markets both grew in the high single-digit percentage range during the quarter.

TransDigm also highlighted its recent acquisition activity, including the completed purchase of Simmonds Precision Products and the pending acquisitions of Stellant Systems, Jet Parts Engineering and Victor Sierra Aviation Holdings, representing a combined capital investment of approximately $3.2 billion.

https://de.investing.com/news/earnings/transdigmaktie-gibt-trotz-ubertroffener-erwartungen-und-angehobener-prognose-nach-93CH-3326708

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

$TDG (+1.39%)

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 (+1.39%)

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

• Adams Rite Luft- und Raumfahrt
• AdelWiggins Gruppe
• AeroControlex Gruppe
• Aero-Fluidprodukte
• Aerosonisch
• Luftgestützte Systeme
• AmSafe Passagiersicherungen
• AmSafe Bridport
• Arkwin Industries
• Armtec Defense Technologies
• Auxitrol Weston
• Avionikinstrumente
• AvtechTyee Corporation
• Breeze-Eastern
• Calspan
• Canyon AeroConnect
• CDA InterCorp
• Champion Luft- und Raumfahrt
• Chelton Ltd.
• CMC Electronics
• CPI Elektronengeräte-Geschäft
• Darchem Engineering LTD.
• DART Aerospace
• Data Device Corporation
• Elektromech-Technologien
• Elektro-Metall-Export
• Bestehende Luft- und Raumfahrt
• HarcoSemco
• Hartwell Corporation
• Hytek-Finishes
• IrvinGQ
• Kirkhill Inc.
• Korry Electronics
• Leach International
• Leach International Europe
• MarathonNorco Luft- und Raumfahrt
• Mason Controls
• Mikrowellen-Energieprodukte
• Palomar
• Pexco Aerospace
• PneuDraulics
• Power Device Corporation
• Raptor Scientific
• Schneller
• Servotronik
• Schildsicherungssysteme
• Simmonds Precision Products
• Skurka Luft- und Raumfahrt
• TA Luft- und Raumfahrt
• Telair International
• US-Frachtsysteme
• Whippany-Aktuierungssysteme
• Young & Franklin / Tactair

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):

• 2023: USD 35 per share
• 2021: USD 18.50 per share
• 2019: USD 30 per share
• 2016: USD 24 per share

These distributions are often several percentage points in double digits in relation to the share price.

📌 3. why TransDigm uses this model

TransDigm is an extremely highly cash-flowing, high-margin company with:

• Pricing power
• Aftermarket dominance
• Recurring revenues

Management uses:

• Leverageto achieve excess returns
• Special dividendsto distribute excess capital
• Share buybacksif the valuation appears attractive

Regular dividends would limit flexibility.

📈 4 What does this mean for investors?

• No predictable dividends
• But potentially huge cash events
• Often taxable Return on capitalwhich lowers the acquisition cost basis
• Very attractive in the long term for investors who like special distributions

Microsoft PowerPoint - FY 2025 Q4 Earnings Call Slides - FINAL

TransDigm-2024-Stakeholder-Report.pdf

I look with great interest at

$CPRT (-0.19%)
$TTEK (+0.47%) and $TDG (+1.39%)

Hello my dears,

September is over.

That's why I'd like to give you a little overview of the month.

Tops: 📉

$INOD (+1.37%)
$APP (+0.32%)
$MU (+1.16%)
$GILT (+0.36%)
$PNG (+0.1%)
$AVAV (+0.14%)
$ASML (+1.53%)

Flops: 📈

$UFPT (+0.12%)
$CAMX (-0.25%)
$TDG (+1.39%)
$CMG (-0.28%)
$TTEK (+0.47%)
$CPRT (-0.19%)
$CSU (+0.39%)

It was noticeable in September that there were a lot of long runners and compounders among the flops. For this reason, I am relaxed for the time being and will stick to the values.

📉

My overall portfolio closed the month up 8.64 %.

$EQQQ (-0.11%) NASDAQ 100. +4.81 %

$IWDA (-0.07%) MSCI World. +2,62 %

Hello my dears, @Klein-Anleger1

after the great performance in the previous months

August was unfortunately not so successful.

But September is going well again so far. And so I am YTD with + 5.04 % better than the

NASDAQ 100 + 0.16% World+ 1.14 %.

Reasons for the underperformance in August are earnings at my large position GFT and negative news at Defi Technologie.

The tariffs weighed on Embraer, and the correction in defense weighed on Kitron and AeroVironment.

Vertex's earnings were also the fly in the ointment.

Negative position: (month of August)

Defi Technology - 25.61%. $DEFI (+1.76%)

Innodata - 23.64%. $INOD (+1.37%)

Tokyo Electron - 20.95%. $8035 (-0.64%)

Vertex. - 16,38% $VRTX (-0.36%)

Aixtron. -15,53%. $AIXA (+1.27%)

Transdigm. -15,13%. $TDG (+1.39%)

Vertiv. -14,72%. $VRT (+1.92%)

Coinbase. -13,01%. $COIN (+0.54%)

AeroVironment. -11,91%. $AVAV (+0.14%)

Kitron. -7,79%. $KIT (-0.24%)

Microsoft. -7,64%. $MSFT (-0.69%)

Embraer. -4,75%. $ERJ (+0.16%)

Nvidia. -4,33%. $NVDA (-0.23%)

GFT Technology -3.67%. $GFT (+0.9%)

With so many negative positions, I am glad that I got off lightly due to my positive positions.

Plus positions: (month of August)

Gilat Satellite. +22,14%. $GILT (+0.36%)

Applovin. +18,69%. $APP (+0.32%)

NU Holdings +17.88%. $NU (+0.52%)

SoFi. +12,24%. $SOFI (+0.29%)

Alphabet. +8,95%. $GOOGL (+0.4%)

Fortescue. +8,90%. $FSUGY (-0.52%)

$TDG (+1.39%)

even if the share has not moved much so far.

I remain convinced of the sector in the long term.

And the dividend is a real pleasure for such a growth stock.