TransDigm Group Incorporated (NYSE:TDG) reported an EPS of $9.11, beating the estimated $8.96 and marking a 14% increase year-over-year.
The company generated $2.15 billion in revenue for the quarter, a 12% increase from the previous year, despite slightly missing the consensus estimate.
TransDigm’s EBITDA As Defined rose by 14% to $1.16 billion, with a margin of 54%, indicating robust demand for aftermarket parts and services.
TransDigm Group Incorporated (NYSE:TDG), a leading global designer, producer, and supplier of highly engineered aircraft components, operates in the Aerospace – Defense Equipment industry. The company competes with other aerospace suppliers like Honeywell and Raytheon Technologies.
On May 6, 2025, TransDigm reported earnings per share (EPS) of $9.11, surpassing the estimated $8.96. This performance reflects a 14% increase from the previous year’s $7.99 per share, as highlighted by Zacks. The earnings surprise for this quarter stands at 2.94%, continuing the company’s trend of outperforming consensus EPS estimates over the past four quarters.
TransDigm generated $2.15 billion in revenue for the quarter ending March 2025, slightly below the estimated $2.17 billion. Despite missing the Zacks Consensus Estimate by 0.72%, this revenue marks a 12% increase from the $1.92 billion reported in the same period last year. The company has exceeded consensus revenue estimates in three of the last four quarters.
The company’s strong performance is driven by robust demand for aftermarket parts and services. TransDigm’s net income increased by 19% to $479 million, and EBITDA As Defined rose by 14% to $1.16 billion, with a margin of 54%. The company has maintained its full-year earnings forecast, reflecting confidence in continued strong market demand.
TransDigm’s financial metrics indicate a high valuation, with a price-to-earnings (P/E) ratio of approximately 44.41 and a price-to-sales ratio of about 9.56. The enterprise value to sales ratio is around 12.33, and the enterprise value to operating cash flow ratio is approximately 46.53. The company’s debt-to-equity ratio is -4.00, highlighting significant debt compared to equity, while a current ratio of approximately 2.70 suggests a strong ability to cover short-term liabilities.
