Detailed financial statements for TransDigm Group Incorporated (TDG): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
TransDigm Group Incorporated is a global aerospace enterprise specializing in the development, manufacturing, and distribution of a wide array of aircraft components. Operating across the United States and internationally, its business is structured around three distinct divisions.
Analysis Summary
TransDigm Group Incorporated reported revenue of $8.83B in the most recent fiscal year, growing at a 5-year CAGR of 11.6%. Net income reached $2.07B, with a 24.3% 5-year CAGR.
Trailing-twelve-month margins: gross margin 59.6%, operating margin 46.2%, net margin 21.3%. Free cash flow grew at 10.4% CAGR over 5 years.
At $1,146.81 (closing price, October 30, 2026), TDG trades at a P/E of 34.79 and an ROE of -22.31%. Market capitalisation stands at $63.4B, placing it among large-cap names.
Balance sheet quality for TDG: debt-to-equity ratio of -3.41, current ratio of 3.02 over the last 12 months, net debt of $27.22B at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $1.82B represents 88% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.17B | $3.50B | $3.81B | $5.22B | $5.10B | $4.80B | $5.43B | $6.58B | $7.94B | $8.83B |
| Cost of Revenue | $1.51B | $1.60B | $1.69B | $2.54B | $2.46B | $2.29B | $2.33B | $2.74B | $3.27B | $3.52B |
| Gross Profit | $1.66B | $1.90B | $2.12B | $2.68B | $2.65B | $2.51B | $3.10B | $3.84B | $4.67B | $5.31B |
| Research & Development | $58.6M | $73.8M | $73.8M | $116.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $298.3M | $335.3M | $368.7M | $552.2M | $727.0M | $685.0M | $748.0M | $770.0M | $931.0M | $921.0M |
| Operating Expenses | $356.9M | $409.1M | $442.5M | $669.0M | $896.0M | $822.0M | $884.0M | $919.0M | $1.14B | $1.15B |
| Operating Income | $1.30B | $1.49B | $1.68B | $2.01B | $1.75B | $1.69B | $2.21B | $2.92B | $3.53B | $4.17B |
| EBITDA | $1.39B | $1.62B | $1.78B | $2.15B | $2.05B | $2.03B | $2.46B | $3.15B | $3.81B | $4.57B |
| Interest Expense | $498.2M | $639.3M | $669.4M | $865.8M | $1.06B | $1.10B | $1.08B | $1.22B | $1.34B | $1.57B |
| Pre-tax Income | $768.1M | $837.4M | $985.6M | $1.06B | $740.0M | $715.0M | $1.13B | $1.72B | $2.21B | $2.63B |
| Income Tax | $181.7M | $208.9M | $24.0M | $222.0M | $87.0M | $34.0M | $261.0M | $417.0M | $500.0M | $555.0M |
| Net Income | $583.4M | $437.6M | $907.8M | $778.7M | $699.0M | $680.0M | $866.0M | $1.30B | $1.71B | $2.07B |
| EPS | $10.39 | $7.88 | $16.33 | $13.84 | $8.27 | $10.39 | $13.40 | $22.03 | $25.62 | $32.08 |
| EPS (Diluted) | $10.39 | $7.88 | $16.33 | $13.84 | $8.27 | $10.39 | $13.40 | $22.03 | $25.62 | $32.08 |
| Shares Outstanding (Diluted) | 56.2 M | 55.5 M | 55.6 M | 56.3 M | 57.3 M | 58.4 M | 58.2 M | 57.2 M | 57.8 M | 58.2 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $2.44B | $2.29B | $2.54B | $2.74B |
| Gross Profit | $1.47B | $1.35B | $1.51B | $1.63B |
| Operating Income | $1.16B | $1.05B | $1.19B | $1.23B |
| EBITDA | $1.27B | $1.15B | $1.29B | $1.35B |
| Net Income | $610.0M | $445.0M | $535.0M | $539.0M |
| EPS | $7.75 | $6.62 | $9.20 | $9.39 |
| EPS (Diluted) | $7.75 | $6.62 | $9.20 | $9.39 |
Balance Sheet (10y)
| Year | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $49.2M | $18.9M | $48.5M | $104.2M | $61.2M | $105.9M | $159.1M | $190.2M | $234.1M | $376.2M | $440.5M | $564.7M | $819.5M | $714.0M | $1.59B | $650.6M | $2.07B | $1.47B | $4.72B | $4.79B | $3.00B | $3.47B | $6.26B | $2.81B |
| Short-term Investments | 0 | 0 | $50.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | 0 | 0 | $44.5M | $63.6M | $74.9M | $104.6M | $96.2M | $106.4M | $134.5M | $189.3M | $235.8M | $290.4M | $351.3M | $444.1M | $576.3M | $636.1M | $704.3M | $1.07B | $720.0M | $791.0M | $967.0M | $1.23B | $1.38B | $1.62B |
| Inventory | 0 | 0 | $64.4M | $76.1M | $89.2M | $126.8M | $144.1M | $167.8M | $188.8M | $265.3M | $320.5M | $413.6M | $459.1M | $591.4M | $724.0M | $730.7M | $805.3M | $1.23B | $1.28B | $1.19B | $1.33B | $1.62B | $1.88B | $2.10B |
| Total Current Assets | $49.2M | $18.9M | $220.2M | $258.3M | $234.2M | $365.6M | $423.4M | $494.8M | $583.5M | $870.3M | $996.8M | $1.32B | $1.69B | $1.83B | $2.93B | $2.13B | $3.66B | $4.87B | $6.96B | $7.03B | $5.65B | $6.74B | $10.03B | $7.01B |
| Property, Plant & Equipment | 0 | 0 | $60.8M | $63.6M | $62.9M | $87.1M | $96.2M | $96.8M | $99.6M | $150.8M | $172.7M | $209.0M | $212.1M | $260.7M | $310.6M | $324.9M | $388.3M | $757.0M | $752.0M | $770.0M | $807.0M | $1.25B | $1.49B | $1.58B |
| Goodwill | 0 | 0 | 0 | 0 | $877.8M | $1.25B | $1.35B | $1.46B | $1.57B | $2.60B | $3.04B | $3.34B | $3.53B | $4.69B | $5.68B | $5.75B | $6.22B | $7.82B | $7.89B | $8.57B | $8.64B | $8.99B | $10.42B | $10.61B |
| Intangible Assets | 0 | 0 | $1.04B | $1.09B | $226.0M | $334.9M | $356.2M | $372.9M | $400.4M | $828.4M | $1.12B | $1.19B | $1.22B | $1.54B | $1.76B | $1.72B | $1.79B | $2.74B | $2.61B | $2.79B | $2.75B | $2.75B | $3.45B | $3.45B |
| Total Assets | $402.2M | $1.32B | $1.35B | $1.43B | $1.42B | $2.06B | $2.26B | $2.45B | $2.68B | $4.51B | $5.05B | $6.15B | $6.76B | $8.43B | $10.73B | $9.98B | $12.20B | $16.25B | $18.39B | $19.32B | $18.11B | $19.97B | $25.59B | $22.91B |
| Accounts Payable | 0 | 0 | $11.5M | $16.4M | $18.8M | $24.8M | $25.1M | $44.7M | $44.2M | $62.1M | $74.2M | $106.8M | $115.7M | $142.8M | $156.1M | $148.8M | $173.6M | $276.0M | $218.0M | $227.0M | $279.0M | $305.0M | $323.0M | $368.0M |
| Short-term Debt | 0 | 0 | $4.4M | $2.9M | 0 | 0 | 0 | 0 | 0 | $15.5M | $20.5M | $31.0M | $239.3M | $243.2M | $252.4M | $369.0M | $375.3M | $430.0M | $625.0M | $626.0M | $426.0M | $420.0M | $584.0M | $848.0M |
| Total Current Liabilities | 0 | 0 | $40.8M | $139.8M | $43.4M | $67.2M | $88.5M | $99.8M | $113.0M | $206.9M | $233.9M | $322.5M | $585.9M | $658.2M | $752.6M | $871.0M | $900.4M | $1.54B | $1.62B | $1.66B | $1.43B | $1.58B | $6.34B | $2.18B |
| Long-term Debt | $409.0M | $895.0M | $889.8M | $886.9M | $925.0M | $1.36B | $1.36B | $1.36B | $1.77B | $3.12B | $3.60B | $5.70B | $7.23B | $8.11B | $9.94B | $11.39B | $12.50B | $16.47B | $19.38B | $19.37B | $19.37B | $19.33B | $24.30B | $29.17B |
| Total Liabilities | $409.0M | $1.03B | $1.05B | $1.09B | $1.05B | $1.57B | $1.60B | $1.64B | $2.08B | $3.70B | $3.83B | $6.49B | $8.31B | $9.47B | $11.38B | $12.93B | $14.01B | $19.14B | $22.36B | $22.23B | $21.87B | $21.95B | $31.87B | $32.59B |
| Retained Earnings | 0 | 0 | $7.9M | $42.5M | $67.7M | $156.3M | $287.7M | $450.6M | $192.1M | $364.3M | $689.2M | -$1.00B | -$2.15B | -$1.72B | -$1.15B | -$3.19B | -$2.25B | -$3.12B | -$4.36B | -$3.71B | -$3.91B | -$2.62B | -$7.36B | -$10.61B |
| Total Equity | -$77.2M | $283.6M | $297.4M | $333.1M | $363.0M | $487.6M | $653.9M | $819.2M | $593.0M | $810.9M | $1.22B | -$336.4M | -$1.56B | -$1.04B | -$651.5M | -$2.95B | -$1.81B | -$2.89B | -$3.97B | -$2.92B | -$3.77B | -$1.98B | -$6.29B | -$9.69B |
| Total Debt | $409.0M | $895.0M | $894.3M | $889.8M | $925.0M | $1.36B | $1.36B | $1.36B | $1.77B | $3.14B | $3.62B | $5.73B | $7.47B | $8.35B | $10.20B | $11.76B | $12.88B | $16.90B | $20.03B | $20.02B | $19.81B | $19.77B | $24.90B | $30.03B |
| Net Debt | $359.7M | $876.1M | $795.2M | $785.6M | $863.8M | $1.25B | $1.20B | $1.17B | $1.54B | $2.76B | $3.18B | $5.17B | $6.65B | $7.64B | $8.61B | $11.11B | $10.80B | $15.43B | $15.31B | $15.23B | $16.81B | $16.29B | $18.64B | $27.22B |
| Working Capital | $49.2M | $18.9M | $179.4M | $118.6M | $190.7M | $298.4M | $334.9M | $395.0M | $470.5M | $663.4M | $762.9M | $998.0M | $1.10B | $1.17B | $2.18B | $1.26B | $2.76B | $3.33B | $5.34B | $5.37B | $4.22B | $5.16B | $3.69B | $4.83B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $2.81B | $2.53B | $3.88B | $2.77B |
| Total Assets | $22.91B | $23.76B | $25.44B | $26.75B |
| Total Liabilities | $32.59B | $33.02B | $34.84B | $36.47B |
| Total Equity | -$9.69B | -$9.27B | -$9.40B | -$9.81B |
| Total Debt | $30.03B | $29.92B | $32.00B | $33.48B |
Cash Flow (10y)
| Year | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $30.6M | -$75.7M | $13.6M | $34.7M | $25.1M | $88.6M | $133.1M | $162.9M | $163.4M | -$19.9M | $325.0M | $302.8M | $306.9M | $447.2M | $586.4M | $596.9M | $957.1M | $891.3M | $700.0M | $681.0M | $867.0M | $1.30B | $1.72B | $2.07B |
| Depreciation & Amortization | $6.3M | $2.9M | $22.1M | $20.8M | $42.8M | $24.0M | $25.3M | $27.5M | $30.2M | $60.5M | $68.2M | $73.5M | $96.4M | $93.7M | $121.7M | $141.0M | $129.0M | $226.0M | $283.0M | $253.0M | $253.0M | $268.0M | $312.0M | $367.0M |
| Stock-based Compensation | 0 | 0 | 0 | 0 | -$27.8M | $3.5M | $4.0M | $5.8M | $6.7M | $12.6M | $22.2M | $48.9M | $26.3M | $31.5M | $48.3M | $45.5M | $58.5M | $93.4M | $93.0M | $129.0M | $153.0M | $157.0M | $217.0M | $157.0M |
| Change in Working Capital | 0 | 0 | $22.3M | -$12.6M | -$111.1M | -$13.0M | $35.5M | -$1.9M | $5.0M | -$32.5M | $11.7M | $71.6M | $28.0M | -$24.3M | -$110.9M | -$86.4M | -$4.6M | -$213.7M | $135.0M | -$124.0M | -$260.0M | -$431.0M | -$302.0M | -$558.0M |
| Operating Cash Flow | $56.5M | -$17.3M | $111.1M | $80.7M | $3.1M | $112.4M | $189.6M | $197.1M | $197.3M | $260.6M | $413.9M | $470.2M | $541.2M | $520.9M | $668.9M | $788.7M | $1.02B | $1.02B | $1.21B | $913.0M | $948.0M | $1.38B | $2.04B | $2.04B |
| Capital Expenditure | -$3.8M | -$5.2M | -$5.4M | -$8.0M | -$8.3M | -$10.3M | -$10.9M | -$13.2M | -$12.9M | -$18.0M | -$25.2M | -$35.5M | -$34.1M | -$54.9M | -$44.0M | -$71.0M | -$73.3M | -$101.6M | -$105.0M | -$105.0M | -$119.0M | -$139.0M | -$165.0M | -$222.0M |
| Acquisitions | 0 | 0 | -$21.5M | -$63.2M | -$27.0M | -$511.4M | -$154.2M | -$155.2M | -$166.6M | -$1.38B | -$851.0M | -$483.3M | -$311.9M | -$1.62B | -$1.40B | -$216.0M | -$667.6M | -$3.98B | $904.0M | -$704.0M | -$434.0M | -$762.0M | -$2.35B | -$419.0M |
| Stock Repurchased | 0 | 0 | -$239,000 | 0 | 0 | 0 | 0 | -$15.2M | 0 | 0 | -$846,000 | 0 | -$159.9M | 0 | -$207.8M | -$389.8M | 0 | 0 | -$19.0M | 0 | -$912.0M | 0 | 0 | -$500.0M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -$404.9M | -$2.8M | -$3.3M | -$1.99B | -$1.45B | -$3.4M | -$3.0M | -$2.58B | -$56.1M | -$1.71B | -$1.93B | -$73.0M | -$1.09B | -$38.0M | -$2.04B | -$9.63B |
| Free Cash Flow | $52.6M | -$22.5M | $105.7M | $72.7M | -$5.3M | $102.2M | $178.8M | $184.0M | $184.4M | $242.6M | $388.6M | $434.7M | $507.1M | $466.1M | $624.9M | $717.7M | $948.8M | $913.9M | $1.11B | $808.0M | $829.0M | $1.24B | $1.88B | $1.82B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $507.0M | $832.0M | $135.0M | $724.0M |
| Capital Expenditure | -$66.0M | -$60.0M | -$71.0M | -$74.0M |
| Free Cash Flow | $441.0M | $772.0M | $64.0M | $650.0M |
| Dividends Paid | -$5.23B | -$59.0M | 0 | 0 |
| Stock-based Compensation | $33.0M | $27.0M | $26.0M | $65.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +10.5% | +8.8% | +37.1% | -2.3% | -6.0% | +13.2% | +21.3% | +20.6% | +11.2% | |||||||||||||||
| Net Income Growth (YoY) | -25.0% | +107.4% | -14.2% | -10.2% | -2.7% | +27.4% | +49.9% | +32.0% | +21.0% | |||||||||||||||
| EPS Growth (YoY) | -24.2% | +107.2% | -15.2% | -40.2% | +25.6% | +28.9% | +64.4% | +16.3% | +25.2% | |||||||||||||||
| Shares Change (YoY) | -1.1% | +0.1% | +1.2% | +1.8% | +1.9% | -0.3% | -1.7% | +1.0% | +0.7% | |||||||||||||||
| FCF Growth (YoY) | -142.8% | +569.0% | -31.2% | -107.3% | +2,030.8% | +74.9% | +2.9% | +0.3% | +31.5% | +60.2% | +11.8% | +16.7% | -8.1% | +34.1% | +14.8% | +32.2% | -3.7% | +21.2% | -27.1% | +2.6% | +49.1% | +52.1% | -3.4% | |
| Gross Margin | 52.3% | 54.2% | 55.6% | 51.4% | 51.9% | 52.4% | 57.1% | 58.3% | 58.8% | 60.1% | ||||||||||||||
| Operating Margin | 41.1% | 42.5% | 44.0% | 38.6% | 34.3% | 35.2% | 40.8% | 44.4% | 44.5% | 47.2% | ||||||||||||||
| EBITDA Margin | 43.8% | 46.1% | 46.8% | 41.2% | 40.2% | 42.2% | 45.2% | 47.8% | 48.0% | 51.7% | ||||||||||||||
| Net Margin | 18.4% | 12.5% | 23.8% | 14.9% | 13.7% | 14.2% | 16.0% | 19.7% | 21.6% | 23.5% | ||||||||||||||
| FCF Margin | 19.7% | 20.5% | 24.9% | 17.5% | 21.7% | 16.8% | 15.3% | 18.8% | 23.7% | 20.6% | ||||||||||||||
| Effective Tax Rate | 23.7% | 24.9% | 2.4% | 20.9% | 11.8% | 4.8% | 23.2% | 24.3% | 22.6% | 21.1% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $11.13 | $12.92 | $17.07 | $16.24 | $19.34 | $13.84 | $14.24 | $21.61 | $32.53 | $31.20 |
| Dividends Per Share | $0.05 | $46.49 | $1.01 | $30.43 | $33.65 | $1.25 | $18.75 | $0.66 | $35.26 | $165.45 |
| Shares Outstanding (Basic) | 56.2 M | 55.5 M | 55.6 M | 56.3 M | 57.3 M | 58.4 M | 58.2 M | 57.2 M | 57.8 M | 58.2 M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | -22.31% |
| Return on Invested Capital | 14.36% |
| Return on Assets | 7.96% |
| Gross Margin | 59.57% |
| Operating Margin | 46.19% |
| Net Margin | 21.28% |
Financial Health
| Debt / Equity | -3.41 |
| Current Ratio | 3.02 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 2.00 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 27.83 | 32.44 | 22.67 | 37.62 | 57.44 | 60.09 | 39.16 | 38.28 | 55.70 | 41.09 |
| P/B | -24.92 | -4.81 | -11.38 | -10.12 | -6.85 | -12.51 | -8.10 | -24.31 | -13.11 | -7.92 |
| P/S | 5.12 | 4.05 | 5.40 | 5.61 | 5.33 | 7.60 | 5.63 | 7.32 | 10.39 | 8.69 |
| Gross Margin | 52.3% | 54.2% | 55.6% | 51.4% | 51.9% | 52.4% | 57.1% | 58.3% | 58.8% | 60.1% |
| Operating Margin | 41.1% | 42.5% | 44.0% | 38.6% | 34.3% | 35.2% | 40.8% | 44.4% | 44.5% | 47.2% |
| Net Margin | 18.4% | 12.5% | 23.8% | 14.9% | 13.7% | 14.2% | 16.0% | 19.7% | 21.6% | 23.5% |
Related companies: WWD · GE · HWM · HEI · CW · MOG-A · AIR
Explore sector: Industrials · Aerospace & Defense
More sections of TDG: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks