TransDigm Group (TDG) Q4 2026 earnings summary

Executive summary

• FY26 revenue rose 19.5% to $10.557B; EBITDA As Defined increased 16.9% to $5.563B and adjusted EPS rose 10.8% to $41.35.

• Q4 revenue and EBITDA As Defined exceeded the latest guidance, with 14% organic growth across the three major market channels.

• FY27 guidance midpoint: revenue $12.05B and EBITDA As Defined $6.27B, with adjusted EPS of $47.51.

Financial highlights

• Q4 revenue rose 22.6% to $2.988B; EBITDA As Defined increased 19.9% to $1.583B, with a 53.0% margin versus 54.2%.

• Q4 adjusted EPS increased 15.0% to $12.44; adjusted net income rose 12% to $706M, while reported net income fell 4% to $586M.

• FY26 net income was $2.108B; net interest expense rose 27.7% to $2.008B, and the GAAP tax rate was 23.7%.

• FY26 free cash flow was ~$2.8B, above ~$2.6B guidance; net working capital used ~$460M of cash.

• FY26 organic sales growth was 11%, or 13% excluding non-aerospace sales; full-year EBITDA As Defined margin was 52.7%.

Outlook and guidance

• FY27 revenue guidance is $11.950B–$12.150B, midpoint $12.050B, implying ~14% midpoint growth; guidance includes Prince & Izant and assumes no additional acquisitions or divestitures.

• FY27 midpoint guidance: EBITDA As Defined $6.270B at 52.0% of sales, adjusted EPS $47.51, net income $2.466B and GAAP EPS $42.48.

• FY27 market growth assumptions: Commercial OEM high-single-digit to low-double-digit; Commercial Aftermarket and Defense high-single-digit.

• FY27 operating free cash flow is estimated at ~$2.9B; net debt-to-EBITDA is expected below 5x at year-end, assuming no M&A, divestitures, repurchases or dividends.

• FY27 net interest expense is $2.255B at a 6.5% weighted-average rate; capex guidance is $365M–$395M. Q1 results are expected below later quarters with ~10% fewer working days.