TransDigm Group INC (TDG)

How they make money

TD Group, through its wholly-owned subsidiary, TransDigm Inc., is a leading global designer, producer and supplier of highly engineered aircraft components that are critical to the safe and effective operation of nearly all commercial and military aircraft worldwide. Our products are represented in nearly every commercial and military aircraft in service today. Our business is well diversified due to the broad range of products we offer to our customers. We estimate that approximately 90% of our net sales for fiscal year 2025 were generated by proprⓘ

Revenue mix

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Economics & cash

Revenue $7.94B. Gross margin 66.9%. Operating margin 52.5%. FCF (OCF−capex) $1.82B. 24, as filed with the Securities and Exchange Commission on November 7, 2024. Liquidity and Capital Resources We have historically maintained a capital structure comprising a mix of equity and debt financing. We vary our leverage both to optimize our equity return and to pursue acquisitions. We expect to meet our current debt obligations as they come due through internally generated funds from curⓘ

Balance sheet & capital allocation

Cash & equivalents $2.81B; long-term debt (XBRL concept) $29.29B; goodwill $10.61B; SBC $152.0M; diluted/basic shares signal 52.2M shares. e for a total amount of $100 million. Whether the Company undertakes additional share repurchases or other aforementioned activities will depend on prevailing market conditions, the Company's liquidity requirements, contractual restrictions and other factors. In November 2025, the Board of Directors authorized an additional $5,000 million in share repurchases of common stock peⓘ

Quality & fragility

pected to be generated by the businesses, which are driven in most cases by the recurring aftermarket consumption over the life of a particular aircraft, estimated to be approximately 25 to 30 years. 3. REVENUE RECOGNITION TransDigm's sales are concentrated in the aerospace and defense industry. The Company’s customers include: distributors of aerospace components, commercial airlines, large commercial transport and regional and business aircraft original equipment manufacturers (“OEMs”), various armed forces of the U.S. and friⓘ

What management is saying

venue from the aftermarket and supports a large installed base globally. P&I is expected to generate approximately $360 million in revenue for the calendar year ending December 31, 2026. The Company has manufacturing locations in Cleveland, Ohio; Tinley Park, Illinois; Franksville, Wisconsin; and Bay Shore, New York. The Company employs approximately 220 people. The acquisition is subject to regulatory approvals in the United States and customary closing conditions. Item 9.01.Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Press Release 104Coverⓘ

Risks that aren’t boilerplate

. Table of Contents TABLE OF CONTENTS Page PART I ITEM 1 BUSINESS 1 ITEM 1A RISK FACTORS 6 ITEM 1B UNRESOLVED STAFF COMMENTS 14 ITEM 1C CYBERSECURITY 14 ITEM 2 PROPERTIES 15 ITEM 3 LEGAL PROCEEDINGS 15 PART II ITEM 5 …ⓘ

SINESS 1 ITEM 1A RISK FACTORS 6 ITEM 1B UNRESOLVED STAFF COMMENTS 14 ITEM 1C CYBERSECURITY 14 ITEM 2 PROPERTIES 15 ITEM 3 LEGAL PROCEEDINGS 15 PART II ITEM 5 MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER …ⓘ

mers’ profitability, both of which are affected by general economic conditions; supply chain constraints; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to …ⓘ

on or physical impacts of climate change and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States (“U.S.”) defense budget and risks associated with being a g…ⓘ

nt parts are generally available from multiple suppliers at competitive prices. Intellectual Property We have various trade secrets, proprietary information, trademarks, trade names, patents, copyrights and other inte…ⓘ

Open questions

1. Which mix shift (segment / geo / product) actually drove the latest year — and is it durable?
2. How much of FCF is structural vs working-capital / one-time timing?
3. What does capital allocation imply for per-share value after SBC and M&A?
4. Which risk in the filing would change the thesis if it worsened for 2–3 years?