TDG Filings — Transdigm Group Incorporated - FilingSpy
TDG
Transdigm Group Incorporated
A designer and supplier of proprietary aerospace components used in aircraft around the world. Its parts span three segments — Power & Control (engines and power systems), Airframe (cabin and non-power structures), and Non-aviation (ground transport, space, and energy). The company has grown by acquiring dozens of specialized aerospace parts businesses since 1993, and much of its revenue comes from replacement parts and repairs for aircraft already in service.
Q3 FY2026 revenue rose 22.5% to $2,741M while interest expense-net rose 29.5% to $514M
Interest costs climbed again even as sales grew across every channel. rose 22.5% to $2,741M and rose 10.9% to $9.39, with flat at 59.4% as acquisition offset operating gains. The company is growing on deals and volume while debt service keeps rising.
Key takeaways
-net rose 29.5% to $514M on higher borrowings at a 6.2% weighted-average cash rate, the fastest-growing cost in the quarter.
rose 22.5% to $2,741M with of 12.6% across commercial aftermarket, commercial OEM, and defense; the JPE/VSA acquisition closed for $2.2B and the Stellant deal was withdrawn.
was roughly flat at 59.4% as the impact of recent acquisitions offset underlying improvement from favorable mix and .
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 22.5% to $2,741M on broad commercial and defense growth, while margin dipped slightly on acquisition dilution.
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grew 12.6% in Q3, driven by increases across commercial aftermarket, commercial OEM, and defense, with aftermarket demand remaining strong despite Middle East conflict.
Selling and administrative expenses rose to 12.1% of sales from acquisition-related costs and higher support spending, reversing the prior-year declines from lower stock compensation.
reached $1,691M year-to-date and total cash liquidity stood at $3,637M ($2,773M cash plus $864M ); the company announced a $1.1B agreement to acquire Prince & Izant.
rose 10.9% to $9.39 and rose 18.1% to $1,227M, with up 9.6% to $539M.
What changed
Q3 FY2025 flagged commercial OEM to see if the 7.0% decline reversed: Q3 FY2026 shows across commercial OEM, ending the prior decline.
Q3 FY2025 flagged commercial aftermarket (5.7%) to see if it stabilized or faded: Q3 FY2026 grew 12.6% broadly, with aftermarket demand remaining strong despite Middle East conflict.
-net was flagged after rising to $397M in Q3 FY2025, $475M in Q1 FY2026, and $484M in Q2 FY2026: it rose again to $514M, up 29.5% .
Defense sales were flagged to confirm the 15.4% Q3 FY2025 rise was sustained: Q3 FY2026 shows organic defense growth as part of the 12.6% total, no reversal.
FY2025 flagged close and margin impact of Stellant and JPE/VSA: JPE/VSA closed for $2.2B, Stellant was withdrawn, and stayed flat at 59.4% on acquisition .
Selling and administrative expenses had fallen for several quarters on lower non-cash stock compensation; Q3 FY2026 shows them rising to 12.1% of sales on acquisition costs and support spending.
What to watch
-net next quarter after the 29.5% Q3 rise to $514M on higher borrowings at a 6.2% cash rate.
Close and margin impact of the $1.1B Prince & Izant acquisition announced this quarter.
Commercial aftermarket rate next quarter to see if the Q3 strength holds or fades.
trajectory after the $2.2B JPE/VSA close lifted the $32.8B base and variable-rate exposure.
was roughly flat at 59.4% as the of recent acquisitions offset underlying improvement from favorable mix and .
Selling and administrative expenses rose to 12.1% of sales, primarily due to acquisition-related costs and higher support spending to sustain growth.
-net jumped 29.5% to $514M on higher borrowings, with a weighted-average cash interest rate of 6.2%.
reached $1,691M year-to-date, and total cash liquidity stood at $3,637M, supported by $2,773M in cash and $864M in availability.
The company completed the JPE/VSA acquisition for $2.2B, withdrew from the Stellant deal, and announced a $1.1B agreement to acquire Prince & Izant.
Quantitative and Qualitative Disclosures About Market Risk
The information called for by this item is provided under the caption “Description of Senior Secured Term Loans and Indentures” in Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Market risks are described more fully within…
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The information called for by this item is provided under the caption “Description of Senior Secured Term Loans and Indentures” in Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Market risks are described more fully within Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A of our most recent Annual Report on Form 10-K (for the fiscal year ended September 30, 2025, filed on November 12, 2025). These market risks have not materially changed for the third quarter of fiscal year 2026.
The Company is involved in various claims and legal actions arising in the ordinary course of business. We believe that the outcome of these matters will not have a material adverse effect on our financial position, results of operations, or cash flows. From time to time, we are…
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The Company is involved in various claims and legal actions arising in the ordinary course of business. We believe that the outcome of these matters will not have a material adverse effect on our financial position, results of operations, or cash flows. From time to time, we are involved in matters that involve governmental authorities as a party under federal, state and local laws that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment. We will report such matters that exceed, or that we reasonably believe may exceed, $1 million or more in monetary sanctions.
Information with respect to our legal proceedings is contained in Note 13, “Commitments and Contingencies,” in Part IV, Item 15. Exhibits and Financial Statement Schedules, of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 12, 2025. There have been no material changes to this information.
In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 12, 2025. There have been no material chan…
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In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 12, 2025. There have been no material changes to the risk factors described in the Form 10-K.