- TransDigm’s forecast for 2026 adjusted EPS is between $36.49 and $38.53, which is below the estimated $40.32.
- Net sales for 2026 are expected to range from $9.75 billion to $9.95 billion, with a midpoint increase of 11.5% compared to 2025’s sales of $8.831 billion.
- 2026 EBITDA is guided to be between $5.08 billion and $5.23 billion, compared to the 2025 estimate of $5.23 billion, reflecting a midpoint increase of 8.2% over 2025’s $4.76 billion.
- Fourth quarter adjusted EPS reached $10.82, surpassing both the previous year’s $9.83 and estimates of $10.04.
- Net sales for the fourth quarter were recorded at $2.44 billion, marking a 12% increase compared to the same period last year, exceeding the estimate of $2.39 billion.
- Fourth quarter EBITDA was $1.27 billion, a 22% year-over-year increase, beating expectations of $1.21 billion.
- Operating income rose by 23% year-over-year for the fourth quarter, reaching $1.16 billion, above the $1.11 billion estimate.
- Pretax profit from continuing operations for the fourth quarter hit $752 million, exceeding the estimated $683.1 million.
- Net income for 2026 is forecasted to range from $1.906 billion to $2.026 billion, a decrease of 5.2% at the midpoint, attributed to increased interest expenses from financing activity in late 2025.
- TransDigm’s fourth quarter saw an EBITDA As Defined margin of 54.2%, an improvement of approximately 160 basis points from the prior year.
- The market shows confidence in TransDigm with 17 buy ratings, 7 hold ratings, and no sell ratings.
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Transdigm Group on Smartkarma
Analysts at Baptista Research on Smartkarma have provided valuable insights into Transdigm Group. In one report titled “TransDigm Group: The Servotronics Acquisition & Commercial Aftermarket Performance Are CRITICAL For Its Future!“, the analysts discussed the company’s third-quarter 2025 results, highlighting a mixed picture of stability and growth. While facing market-specific challenges like the Boeing strike and Airbus’s production issues leading to a 7% decline in commercial OEM revenues, TransDigm experienced healthy growth in commercial aftermarket and defense markets, resulting in an overall organic growth rate of 6.3% for the quarter.
Another report by Baptista Research titled “TransDigm Group: An Insight Into Its Recent Aftermarket Growth, Market Dynamics & Key Growth Levers!” delves into the company’s recent earnings discussion. The analysts pointed out the strengths and challenges faced by TransDigm, emphasizing significant contributions from its commercial aftermarket and defense market channels during the second quarter of fiscal 2025. While these divisions displayed robust growth, the commercial OEM revenues remained stagnant, indicating an area for potential improvement as production recovers from past disruptions.
A look at Transdigm Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
In assessing the long-term outlook for Transdigm Group, the Smartkarma Smart Scores provide a mixed picture. While the company scores high in Growth and Resilience, indicating strong potential for expansion and ability to withstand challenges, it lags in Value and Momentum. The low Value score may suggest that the stock is overvalued, while the Momentum score indicates a moderate pace of stock price movement. However, the high scores in Growth and Resilience point towards a promising future for Transdigm Group.
Transdigm Group, a manufacturer of aircraft components, stands out for its strong focus on growth and resilience in the face of market uncertainties. With a diversified portfolio of products including ignition systems, mechanical actuators, batteries, and electric motors, the company demonstrates a commitment to innovation and reliability. While there are some areas for improvement in terms of value and momentum, the strong scores in Growth and Resilience position Transdigm Group well for long-term success in the aerospace industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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