TransDigm Group Incorporated Website

TransDigm Group Incorporated

NYSE-TDG

Company Overview

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The company's Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. Its Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

  • Name

    TransDigm Group Incorporated

  • CEO

    Michael J. Lisman

  • Website

    www.transdigm.com

  • Sector

    Aerospace and Defense

  • Year Founded

    1993

Company Statistics

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Bulls Say

  • Roughly three quarters of TransDigm’s sales are sole-source, which gives it immense pricing power.

  • About 90% of TransDigm’s products are proprietary, which protects its sole-source incumbency.

  • TransDigm has historically been able to acquire companies at reasonable prices and meaningfully improve their operations and margins.

Bears Say

  • TransDigm may not be able to find appropriate acquisition targets at reasonable prices, which would limit the firm's addressable market or make the company pay higher multiples.

  • TransDigm’s pricing practices have been scrutinized by defense acquisition audits, which may augur additional regulation.

  • The company risks attracting competing manufacturers if it prices its products too aggressively.

Source: Morningstar Analysis - Nov 13, 2025

What's happening

Nov 6, 2025 - Dec 6, 2025

TransDigm Group Inc Surges Amid Strong Earnings and Analyst Upgrades

  • TransDigm Group Inc reported a net income of $609 million in its fourth-quarter earnings, significantly up from the previous year.
  • The company provided optimistic guidance for fiscal year 2026, projecting net sales between $9.750 billion and $9.950 billion.
  • Despite positive developments, insider selling raised concerns among investors regarding future outlooks.

Over the past month, TransDigm Group Inc (TDG) experienced an overall stock price increase of 6.4%, notably outperforming the S&P 500's return of 1.2%. This performance reflects strong investor sentiment driven by various favorable company developments during this period characterized by bullish events that positively impacted TDG’s valuation.

A significant highlight was the company's impressive fourth-quarter earnings report revealing a net income of $609 million, which marked a substantial increase from last year. The results exceeded revenue expectations with sales reaching $2.44 billion, reflecting an 11.5% year-on-year growth rate. Additionally, TDG announced adjusted earnings per share of $10.82—surpassing analyst forecasts of $9.88—and set optimistic guidance for fiscal year 2026 net sales between $9.750 billion and $9.950 billion.

Analysts' upgrades further enhanced confidence in TDG's prospects; BNP Paribas initiated coverage with an "Outperform" rating while several firms raised their price targets throughout November, indicating a generally favorable outlook among financial experts regarding its potential future performance.

However, bearish sentiments emerged due to insider selling activities that sparked concerns about future company outlooks and shareholder confidence levels; notable transactions included Director Stein selling shares valued at approximately $15 million on two separate occasions within days and Fortuna Trust filing to sell shares as well.

Overall market dynamics also influenced investor perceptions during this timeframe; macroeconomic factors affected trading behavior as analysts maintained cautious optimism amid broader economic conditions impacting industrial sectors alike—yet despite these challenges, TransDigm Group Inc outperformed the Industrials (XLI) sector by 5.5%.

NYSE:TDG