TransDigm Group

TDG · NYSE · Industrials · Financials, fiscal 2016 to 2025

TDG · Last close · October 26, 2026

$1,129.70

TransDigm Group's revenue rose 11.2% to $8.8 billion in fiscal 2025. Its operating margin was 47.2%, up from 44.5% a year earlier. Free cash flow was $1.8 billion, down 3.4%. It paid out $659 million in dividends and buybacks, 36% of free cash flow. The diluted share count rose 0.7%.

TransDigm Group Incorporated Latest fiscal year ended September 30, 2025 10-K filed November 12, 2025 · 0001260221-25-000081 Updated October 9, 2026

Revenue

$8.8B

11.2%

Operating margin

47.2%

2.7 pts

Net income

$2.1B

21.0%

Free cash flow

$1.8B

3.4%

Return on capital

22.5%

1.7 pts

Market cap

$64.8B

Oct 26 close

P/E

34.3x

On $32.98 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 13.3% a year and net income 15.1% a year, as new shares raised the share count by 4% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value TransDigm Group yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from TransDigm Group's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from TransDigm Group's fiscal 2025 free cash flow of $1.8B, net cash of −$26.8B at September 30, 2025 and 58 million diluted shares, from its filings. The scenarios are fitted to TransDigm Group: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 17.6% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Aerospace & Defense); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at September 30, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to TransDigm Group's own revenue growth, as above. Cautious: growth of 9% then 5.5% a year, 2% after year 10, a 10% discount rate. Base: growth of 17.5% then 10% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $1,129.70
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from TransDigm Group's earnings per share of $32.98 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 26.7×, the middle of TransDigm Group's own P/E today, its peers' median and its sector's median (the Industrials median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 27, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Howmet Aerospace, Parsons, Huntington Ingalls Industries.

Earnings growth in the years ahead (% a year) Starts at TransDigm Group's revenue growth over the last 3 years, 17.6% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $1,129.70
Value at this multiple, against the last close: —
TransDigm Group's P/E at the last close: 34.3×

Company	Last close	Earnings per share	P/E today
Howmet AerospaceHWM	$194.36	$4.64	41.9×
TransDigm GroupTDG	$1,129.70	$32.98	34.3×
ParsonsPSN	$49.99	$2.09	23.9×
Huntington Ingalls IndustriesHII	$281.05	$16.78	16.7×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	4,787	3,001	3,472	6,261	2,808
Debt incl. finance leases	19,749	19,591	19,594	24,656	29,575
Net debt (negative means net cash)	14,962	16,590	16,122	18,395	26,767
Net debt to EBITDA	7.7x	6.7x	5.0x	4.8x	5.9x
Debt to equity	—	—	—	—	—
Interest coverage	1.7x	2.1x	2.5x	3.0x	2.8x
Current ratio	4.2x	4.0x	4.3x	1.6x	3.2x
Quick ratio	3.5x	3.0x	3.2x	1.3x	2.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 2 insiders bought $3.8 million of TransDigm Group shares on the open market, and 5 insiders sold $467.3 million, $321.4 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 15, 2026	Joel ReissCo-Chief Operating Officer	Sold plan	4,100	$1,128.04	$4.6 million	Form 4
Sep 15, 2026	Joel ReissCo-Chief Operating Officer	Sold plan	3,900	$1,094.58	$4.3 million	Form 4
Aug 18, 2026	Howley W NicholasDirector	Sold plan	10,132	$1,236.27	$12.5 million	Form 4
Aug 17, 2026	Joel ReissCo-Chief Operating Officer	Sold plan	3,900	$1,238.76	$4.8 million	Form 4
Jul 20, 2026	Howley W NicholasDirector	Sold plan	10,132	$1,216.08	$12.3 million	Form 4
Jul 15, 2026	Joel ReissCo-Chief Operating Officer	Sold plan	3,486	$1,216.21	$4.2 million	Form 4
Jul 15, 2026	Joel ReissCo-Chief Operating Officer	Sold plan	414	$1,231.11	$509,678	Form 4
Jun 18, 2026	Howley W NicholasDirector	Sold	10,132	$1,319.55	$13.4 million	Form 4
Jun 15, 2026	Joel ReissCo-Chief Operating Officer	Sold	3,900	$1,276.78	$5.0 million	Form 4
May 18, 2026	Howley W NicholasDirector	Sold plan	10,132	$1,180.82	$12.0 million	Form 4
May 15, 2026	Joel ReissCo-Chief Operating Officer	Sold plan	3,900	$1,154.09	$4.5 million	Form 4
Apr 20, 2026	Howley W NicholasDirector	Sold plan	10,132	$1,265.06	$12.8 million	Form 4

The latest 12 of 44 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Fail
Debt fell relative to assets	Pass	Fail	Fail
Current ratio rose	Pass	Fail	Pass
Share count didn't rise	Pass	Fail	Fail
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Pass	Pass	Fail
F-score	9 of 9	6 of 9	4 of 9
Accruals ratio	−0.4%	−1.4%	0.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put TransDigm Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
TransDigm Group	FY25	11.2%	47.2%	20.6%	22.5%	5.9x	4
Howmet Aerospace	FY25	11.1%	24.8%	17.3%	22.4%	1.0x	7	Compare
Elbit Systems	FY25	16.3%	8.5%	7.0%	18.0%	−0.6x	8	Compare
Parsons	FY25	−5.7%	6.6%	6.5%	9.8%	1.5x	7	Compare
Huntington Ingalls Industries	FY25	8.2%	5.3%	6.4%	7.3%	1.9x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	3,171	3,504	3,811	5,223	5,103	4,798	5,429	6,585	7,940	8,831
Revenue growth	17.1%	10.5%	8.8%	37.0%	−2.3%	−6.0%	13.2%	21.3%	20.6%	11.2%
Gross profit	1,728	1,985	2,177	2,809	2,647	2,513	3,099	3,842	4,672	5,311
Research and development	59	74	74	117	131	106	95	105	107	118
Operating income	1,268	1,483	1,655	1,926	1,751	1,691	2,215	2,923	3,531	4,165
Net income	586	597	957	890	699	680	866	1,298	1,714	2,074
Diluted EPS (US$)	10.39	7.88	16.20	13.84	8.96	10.41	13.40	22.03	25.62	32.08
Diluted shares (millions)	56	56	56	56	57	58	58	57	58	58
Cash flow
Cash from operations	683	789	1,022	1,015	1,213	913	948	1,375	2,045	2,038
Capital expenditure	44	71	73	102	105	105	119	139	165	222
Free cash flow	639	718	949	913	1,108	808	829	1,236	1,880	1,816
Dividends paid	3	2,582	56	1,712	1,928	73	1,091	38	2,038	159
Share buybacks	208	390	0	0	19	0	912	0	0	500
Acquisitions	1,399	216	668	3,976	0	963	437	762	2,347	419
Stock-based compensation	48	46	58	93	93	129	153	135	188	152
Balance sheet at fiscal year end
Cash and short-term investments	1,587	651	2,073	1,467	4,717	4,787	3,001	3,472	6,261	2,808
Debt incl. finance leases	9,996	11,463	12,578	16,549	19,717	19,749	19,591	19,594	24,656	29,575
Total assets	10,726	9,976	12,198	16,255	18,395	19,315	18,107	19,970	25,586	22,909
Total liabilities	11,378	12,927	14,006	19,139	22,363	22,225	21,873	21,948	31,869	32,588
Shareholders' equity	−652	−2,951	−1,808	−2,894	−3,972	−2,916	−3,773	−1,984	−6,290	−9,686
Margins and ratios
Gross margin	54.5%	56.6%	57.1%	53.8%	51.9%	52.4%	57.1%	58.3%	58.8%	60.1%
Operating margin	40.0%	42.3%	43.4%	36.9%	34.3%	35.2%	40.8%	44.4%	44.5%	47.2%
Net margin	18.5%	17.0%	25.1%	17.0%	13.7%	14.2%	15.9%	19.7%	21.6%	23.5%
Free cash flow margin	20.2%	20.5%	24.9%	17.5%	21.7%	16.8%	15.3%	18.8%	23.7%	20.6%
Return on capital	13.7%	14.2%	19.5%	14.6%	13.3%	13.9%	13.7%	16.4%	20.8%	22.5%
Return on equity	—	—	—	—	—	—	—	—	—	—
Return on assets	6.2%	5.8%	8.6%	6.3%	4.0%	3.6%	4.6%	6.8%	7.5%	8.6%
Net debt to EBITDA	6.0x	6.7x	5.9x	7.0x	7.4x	7.7x	6.7x	5.0x	4.8x	5.9x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: TransDigm Group's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with TransDigm Group.