TransDigm Group (TDG) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 17% year-over-year to $2,046 million, with organic growth at 14.6% and net income up 31% to $461 million.

• EBITDA As Defined for Q3 2024 was $1,091 million (53.3% margin), up 19% year-over-year; adjusted EPS increased 24% to $9.00.

• All major market channels—commercial OEM, aftermarket, and defense—saw sequential and year-over-year revenue growth.

• Three acquisitions (SEI Industries, CPI Electron Device Business, Raptor Scientific) closed, deploying over $2.2 billion in capital.

• Growth was driven by commercial aerospace recovery, increased defense spending, and M&A activity.

Financial highlights

• Q3 2024 gross profit was $1,220 million (59.6%–59.7% margin), up from $1,029 million in Q3 2023.

• Operating income for Q3 2024 was $934 million (45.7% margin), up from $783 million year-over-year.

• Q3 2024 adjusted EPS was $9.00, up from $7.25 in the prior year; GAAP EPS was $7.96.

• Year-to-date net sales reached $5,754 million, up 21.6%, with net income of $1,246 million, up 41.1%.

• Net cash from operations for the nine months was $1,473 million.

Outlook and guidance

• Full-year 2024 revenue guidance midpoint raised to $7,900 million, up ~20% year-over-year.

• EBITDA As Defined guidance midpoint increased to $4,130 million (52.3% margin), up ~22%.

• Adjusted EPS guidance raised to $33.02, up ~28% over prior year.

• Net income guidance raised to $1,632–$1,678 million, up 27.4% at midpoint.

• Market growth assumptions: commercial OEM ~20%, aftermarket mid-teens %, defense high-teens %.