Transdigm Group Financials
This page shows Transdigm Group (TDG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
High-margin cash generation is funding exceptionally large shareholder payouts, leaving the business operationally rich but equity-light.
From FY2024 to FY2025, operating cash flow stayed near$2.0B and free cash flow stayed above$1.8B , yet cash fell from$6.3B to$2.8B because dividends and buybacks exceeded$10.1B while long-term debt rose to$29.3B . That combination means the deeper negative equity reflects a capital-allocation choice more than an operating shortfall: the business is sending out more cash than it keeps.
The company has become more profitable at each layer: gross margin widened from
FY2025 revenue increased while SG&A fell to
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Transdigm Group's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Transdigm Group has an operating margin of 47.2%, meaning the company retains $47 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 44.5% the prior year.
Transdigm Group's revenue grew 11.2% year-over-year to $8.8B, a solid pace of expansion. This earns a growth score of 60/100.
Transdigm Group has a moderate D/E ratio of -3.02. This balance of debt and equity financing earns a leverage score of 42/100.
Transdigm Group's current ratio of 3.21 indicates adequate short-term liquidity, earning a score of 62/100. The company can meet its near-term obligations, though with limited headroom.
Transdigm Group converts 20.6% of revenue into free cash flow ($1.8B). This strong cash generation earns a score of 78/100.
Transdigm Group scores 1.80, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($65.9B) relative to total liabilities ($32.6B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Transdigm Group passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Transdigm Group generates $0.98 in operating cash flow ($2.0B OCF vs $2.1B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Transdigm Group earns $2.6 in operating income for every $1 of interest expense ($4.2B vs $1.6B). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Transdigm Group generated $8.8B in revenue in fiscal year 2025. This represents an increase of 11.2% from the prior year.
Transdigm Group's EBITDA was $4.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 17.9% from the prior year.
Transdigm Group reported $2.1B in net income in fiscal year 2025. This represents an increase of 21.0% from the prior year.
Transdigm Group earned $32.08 per diluted share (EPS) in fiscal year 2025. This represents an increase of 25.2% from the prior year.
Cash & Balance Sheet
Transdigm Group generated $1.8B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 3.4% from the prior year.
Transdigm Group held $2.8B in cash against $29.3B in long-term debt as of fiscal year 2025.
Transdigm Group had 56M shares outstanding in fiscal year 2025. This represents an increase of 0.2% from the prior year.
Margins & Returns
Transdigm Group's gross margin was 60.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.3 percentage points from the prior year.
Transdigm Group's operating margin was 47.2% in fiscal year 2025, reflecting core business profitability. This is up 2.7 percentage points from the prior year.
Transdigm Group's net profit margin was 23.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.9 percentage points from the prior year.
Capital Allocation
Transdigm Group invested $118.0M in research and development in fiscal year 2025. This represents an increase of 10.3% from the prior year.
Transdigm Group spent $500.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Transdigm Group invested $222.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 34.5% from the prior year.
TDG Income Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.5B+11.3% | $2.3B-6.3% | $2.4B+9.0% | $2.2B+4.0% | $2.1B+7.2% | $2.0B-8.2% | $2.2B+6.8% | $2.0B |
| Cost of Revenue | $1.0B+10.7% | $933.0M-3.6% | $968.0M+7.0% | $905.0M+3.3% | $876.0M+13.6% | $771.0M-16.9% | $928.0M+12.3% | $826.0M |
| Gross Profit | $1.5B+11.8% | $1.4B-8.0% | $1.5B+10.4% | $1.3B+4.6% | $1.3B+3.2% | $1.2B-1.8% | $1.3B+3.1% | $1.2B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $273.0M+7.5% | $254.0M-0.8% | $256.0M+5.8% | $242.0M+2.5% | $236.0M+11.8% | $211.0M-20.1% | $264.0M+6.5% | $248.0M |
| Operating Income | $1.2B+13.1% | $1.0B-10.2% | $1.2B+11.7% | $1.0B+4.8% | $991.0M+1.7% | $974.0M+3.3% | $943.0M+1.0% | $934.0M |
| Interest Expense | $484.0M+1.9% | $475.0M+117.4% | -$2.7B-786.4% | $397.0M+5.0% | $378.0M0.0% | $378.0M+117.0% | -$2.2B-805.1% | $316.0M |
| Income Tax | $164.0M+29.1% | $127.0M-11.8% | $144.0M+1.4% | $142.0M-0.7% | $143.0M+13.5% | $126.0M-8.7% | $138.0M-2.1% | $141.0M |
| Net Income | $535.0M+20.2% | $445.0M-27.0% | $610.0M+24.0% | $492.0M+2.7% | $479.0M-2.8% | $493.0M+5.3% | $468.0M+1.5% | $461.0M |
| EPS (Diluted) | $9.20+39.0% | $6.62 | N/A | $8.47+2.8% | $8.24+8.1% | $7.62 | N/A | $7.96 |
TDG Balance Sheet
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $25.4B+7.1% | $23.8B+3.7% | $22.9B+0.9% | $22.7B+3.6% | $21.9B+1.8% | $21.5B-15.9% | $25.6B+17.2% | $21.8B |
| Current Assets | $8.6B+23.1% | $7.0B-0.6% | $7.0B+1.4% | $6.9B+7.9% | $6.4B+4.1% | $6.2B-38.6% | $10.0B+42.0% | $7.1B |
| Cash & Equivalents | $3.9B+53.6% | $2.5B-10.0% | $2.8B+0.6% | $2.8B+15.1% | $2.4B-1.3% | $2.5B-60.7% | $6.3B+86.3% | $3.4B |
| Inventory | $2.4B+1.1% | $2.4B+13.3% | $2.1B+0.6% | $2.1B+3.6% | $2.0B+4.1% | $1.9B+2.9% | $1.9B-0.1% | $1.9B |
| Accounts Receivable | $1.7B+10.0% | $1.6B-3.3% | $1.6B+6.5% | $1.5B+5.3% | $1.4B+12.2% | $1.3B-7.0% | $1.4B+6.2% | $1.3B |
| Goodwill | $11.0B-0.3% | $11.1B+4.4% | $10.6B+0.6% | $10.5B+1.9% | $10.4B+0.5% | $10.3B-1.1% | $10.4B+4.0% | $10.0B |
| Total Liabilities | $34.8B+5.5% | $33.0B+1.3% | $32.6B+17.7% | $27.7B+0.5% | $27.6B-0.7% | $27.8B-12.9% | $31.9B+30.9% | $24.3B |
| Current Liabilities | $2.4B-3.7% | $2.5B+16.2% | $2.2B-1.3% | $2.2B+6.6% | $2.1B-9.2% | $2.3B-64.0% | $6.3B+242.5% | $1.9B |
| Long-Term Debt | $31.3B+6.7% | $29.3B+0.1% | $29.3B+20.2% | $24.4B-0.2% | $24.4B0.0% | $24.4B0.0% | $24.4B+13.8% | $21.4B |
| Total Equity | -$9.4B-1.4% | -$9.3B+4.3% | -$9.7B-93.6% | -$5.0B+11.8% | -$5.7B+9.4% | -$6.3B+0.5% | -$6.3B-149.8% | -$2.5B |
| Retained Earnings | -$9.6B+5.2% | -$10.2B+4.1% | -$10.6B-79.0% | -$5.9B+7.5% | -$6.4B+6.8% | -$6.9B+6.6% | -$7.4B-115.5% | -$3.4B |
TDG Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $135.0M-83.8% | $832.0M+64.1% | $507.0M-19.7% | $631.0M+326.4% | $148.0M-80.3% | $752.0M+31.5% | $572.0M-5.9% | $608.0M |
| Capital Expenditures | $71.0M+18.3% | $60.0M-9.1% | $66.0M+13.8% | $58.0M+3.6% | $56.0M+33.3% | $42.0M+2.4% | $41.0M+2.5% | $40.0M |
| Free Cash Flow | $64.0M-91.7% | $772.0M+75.1% | $441.0M-23.0% | $573.0M+522.8% | $92.0M-87.0% | $710.0M+33.7% | $531.0M-6.5% | $568.0M |
| Investing Cash Flow | -$164.0M+83.1% | -$973.0M-295.5% | -$246.0M-55.7% | -$158.0M+5.4% | -$167.0M-595.8% | -$24.0M+96.6% | -$702.0M+55.2% | -$1.6B |
| Financing Cash Flow | $1.4B+1085.8% | -$141.0M+39.0% | -$231.0M-79.1% | -$129.0M-437.5% | -$24.0M+99.5% | -$4.5B-249.6% | $3.0B+685.1% | -$516.0M |
| Dividends Paid | $0-100.0% | $59.0M-98.9% | $5.2B | $0 | $0-100.0% | $4.4B | $0 | $0 |
| Share Buybacks | $615.0M+480.2% | $106.0M | $0-100.0% | $131.0M+147.2% | $53.0M-83.2% | $316.0M | $0 | $0 |
TDG Financial Ratios
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.4%+0.2pp | 59.2%-1.1pp | 60.3%+0.8pp | 59.5%+0.3pp | 59.3%-2.3pp | 61.6%+4.0pp | 57.6%-2.1pp | 59.6% |
| Operating Margin | 46.3%+0.7pp | 45.6%-2.0pp | 47.6%+1.2pp | 46.5%+0.4pp | 46.1%-2.5pp | 48.5%+5.4pp | 43.1%-2.5pp | 45.6% |
| Net Margin | 21.0%+1.6pp | 19.5%-5.5pp | 25.0%+3.0pp | 22.0%-0.3pp | 22.3%-2.3pp | 24.6%+3.2pp | 21.4%-1.1pp | 22.5% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 2.1%+0.2pp | 1.9%-0.8pp | 2.7%+0.5pp | 2.2%-0.0pp | 2.2%-0.1pp | 2.3%+0.5pp | 1.8%-0.3pp | 2.1% |
| Current Ratio | 3.52+0.8 | 2.75-0.5 | 3.21+0.1 | 3.13+0.0 | 3.09+0.4 | 2.70+1.1 | 1.58-2.2 | 3.81 |
| Debt-to-Equity | -3.33-0.2 | -3.16-0.1 | -3.02+1.8 | -4.87-0.6 | -4.30-0.4 | -3.90-0.0 | -3.88+4.6 | -8.52 |
| FCF Margin | 2.5%-31.3pp | 33.8%+15.7pp | 18.1%-7.5pp | 25.6%+21.3pp | 4.3%-31.1pp | 35.4%+11.1pp | 24.3%-3.5pp | 27.8% |
Note: Shareholder equity is negative (-$9.7B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Similar Companies
Frequently Asked Questions
What is Transdigm Group's annual revenue?
Transdigm Group (TDG) reported $8.8B in total revenue for fiscal year 2025. This represents a 11.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Transdigm Group's revenue growing?
Transdigm Group (TDG) revenue grew by 11.2% year-over-year, from $7.9B to $8.8B in fiscal year 2025.
Is Transdigm Group profitable?
Yes, Transdigm Group (TDG) reported a net income of $2.1B in fiscal year 2025, with a net profit margin of 23.5%.
What is Transdigm Group's EBITDA?
Transdigm Group (TDG) had EBITDA of $4.5B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Transdigm Group have?
As of fiscal year 2025, Transdigm Group (TDG) had $2.8B in cash and equivalents against $29.3B in long-term debt.
What is Transdigm Group's gross margin?
Transdigm Group (TDG) had a gross margin of 60.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Transdigm Group's operating margin?
Transdigm Group (TDG) had an operating margin of 47.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Transdigm Group's net profit margin?
Transdigm Group (TDG) had a net profit margin of 23.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Transdigm Group's free cash flow?
Transdigm Group (TDG) generated $1.8B in free cash flow during fiscal year 2025. This represents a -3.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Transdigm Group's operating cash flow?
Transdigm Group (TDG) generated $2.0B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Transdigm Group's total assets?
Transdigm Group (TDG) had $22.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Transdigm Group's capital expenditures?
Transdigm Group (TDG) invested $222.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Transdigm Group spend on research and development?
Transdigm Group (TDG) invested $118.0M in research and development during fiscal year 2025.
What is Transdigm Group's current ratio?
Transdigm Group (TDG) had a current ratio of 3.21 as of fiscal year 2025, which is generally considered healthy.
What is Transdigm Group's debt-to-equity ratio?
Transdigm Group (TDG) had a debt-to-equity ratio of -3.02 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Transdigm Group's return on assets (ROA)?
Transdigm Group (TDG) had a return on assets of 9.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Transdigm Group's debt-to-equity ratio negative or unusual?
Transdigm Group (TDG) has negative shareholder equity of -$9.7B as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Transdigm Group's Altman Z-Score?
Transdigm Group (TDG) has an Altman Z-Score of 1.80, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Transdigm Group's Piotroski F-Score?
Transdigm Group (TDG) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Transdigm Group's earnings high quality?
Transdigm Group (TDG) has an earnings quality ratio of 0.98x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Transdigm Group cover its interest payments?
Transdigm Group (TDG) has an interest coverage ratio of 2.6x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Transdigm Group?
Transdigm Group (TDG) scores 57 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.