TDG continues to demonstrate significant operating leverage, maintaining a 46.3% operating margin in 2026Q2 while achieving 18.3% year-over-year revenue growth.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 |
|---|
| Sales/Revenue | 9.5B | 8.83B | 7.94B | 6.58B | 5.43B | 4.8B | 5.1B | 5.22B | 3.81B | 3.5B | 3.17B | 2.71B | 2.37B | 1.92B | 1.71B | 1.21B | 827.65M | 761.55M | 713.71M | 592.8M | 435.16M | 374.25M | 300.7M | 293.27M | 248.8M |
| Revenue Growth % | 13.29% | 11.22% | 20.58% | 21.29% | 13.15% | -5.98% | -2.3% | 37.05% | 8.76% | 10.5% | 17.15% | 14.08% | 23.31% | 12.27% | 42.12% | 45.72% | 8.68% | 6.7% | 20.4% | 36.22% | 16.28% | 24.46% | 2.54% | 17.87% | - |
| Cost of Goods Sold | 3.89B | 3.52B | 3.27B | 2.74B | 2.33B | 2.29B | 2.46B | 2.54B | 1.69B | 1.6B | 1.51B | 1.31B | 1.15B | 909.58M | 798.72M | 585.17M | 369.67M | 346.13M | 339.78M | 296.07M | 220.07M | 196.24M | 156.05M | 0 | 0 |
| COGS % of Revenue | - | 39.86% | 41.16% | 41.66% | 42.92% | 47.62% | 48.13% | 48.64% | 44.41% | 45.8% | 47.69% | 48.22% | 48.55% | 47.27% | 46.6% | 48.52% | 44.66% | 45.45% | 47.61% | 49.94% | 50.57% | 52.43% | 51.9% | - | - |
| Gross Profit | 5.61B | 5.31B | 4.67B | 3.84B | 3.1B | 2.51B | 2.65B | 2.68B | 2.12B | 1.9B | 1.66B | 1.4B | 1.22B | 1.01B | 915.28M | 620.85M | 457.99M | 415.42M | 373.93M | 296.73M | 215.09M | 178.02M | 144.65M | 293.27M | 248.8M |
| Gross Margin % | 59.02% | 60.14% | 58.84% | 58.34% | 57.08% | 52.38% | 51.87% | 51.36% | 55.59% | 54.2% | 52.31% | 51.78% | 51.45% | 52.73% | 53.4% | 51.48% | 55.34% | 54.55% | 52.39% | 50.06% | 49.43% | 47.57% | 48.1% | 100% | 100% |
| Gross Profit Growth % | - | 13.68% | 21.6% | 23.98% | 23.32% | -5.06% | -1.33% | 26.63% | 11.53% | 14.5% | 18.35% | 14.82% | 20.29% | 10.88% | 47.43% | 35.56% | 10.25% | 11.1% | 26.02% | 37.95% | 20.83% | 23.07% | -50.68% | 17.87% | - |
| Operating Expenses | 1.19B | 1.15B | 1.14B | 919M | 884M | 822M | 896M | 668.97M | 442.5M | 409.07M | 356.86M | 302.92M | 271.85M | 246.37M | 201.71M | 133.71M | 94.92M | 80.02M | 74.65M | 62.89M | 48.31M | 38.94M | 31.2M | 25.37M | 23.96M |
| OpEx % of Revenue | - | 12.98% | 14.37% | 13.96% | 16.28% | 17.13% | 17.56% | 12.81% | 11.61% | 11.67% | 11.25% | 11.19% | 11.46% | 12.8% | 11.77% | 11.09% | 11.47% | 10.51% | 10.46% | 10.61% | 11.1% | 10.41% | 10.38% | 8.65% | 9.63% |
| Selling, General & Admin | 1.01B | 921M | 931M | 770M | 748M | 685M | 727M | 552.17M | 368.69M | 335.27M | 298.26M | 254.62M | 229.55M | 214.27M | 173.81M | 114.41M | 81.02M | 67.42M | 61.45M | 53.29M | 44.41M | 36.44M | 29M | 25.37M | 23.96M |
| SG&A % of Revenue | - | 10.43% | 11.73% | 11.69% | 13.78% | 14.28% | 14.25% | 10.57% | 9.67% | 9.57% | 9.4% | 9.41% | 9.67% | 11.13% | 10.14% | 9.49% | 9.79% | 8.85% | 8.61% | 8.99% | 10.21% | 9.74% | 9.64% | 8.65% | 9.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 116.8M | 73.8M | 73.8M | 58.6M | 48.3M | 42.3M | 32.1M | 27.9M | 19.3M | 13.9M | 12.6M | 13.2M | 9.6M | 3.9M | 2.5M | 2.2M | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | 2.24% | 1.94% | 2.11% | 1.85% | 1.78% | 1.78% | 1.67% | 1.63% | 1.6% | 1.68% | 1.65% | 1.85% | 1.62% | 0.9% | 0.67% | 0.73% | - | - |
| Other Operating Expenses | 3M | 225M | 210M | 149M | 136M | 137M | 169M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 4.42B | 4.17B | 3.53B | 2.92B | 2.21B | 1.69B | 1.75B | 2.01B | 1.68B | 1.49B | 1.3B | 1.1B | 948.92M | 768.46M | 713.58M | 487.13M | 363.07M | 335.4M | 299.28M | 233.84M | 166.78M | 139.07M | 113.45M | -77.94M | 83.97M |
| Operating Margin % | 46.51% | 47.16% | 44.47% | 44.39% | 40.8% | 35.24% | 34.31% | 38.55% | 43.98% | 42.53% | 41.06% | 40.59% | 39.99% | 39.93% | 41.63% | 40.39% | 43.87% | 44.04% | 41.93% | 39.45% | 38.33% | 37.16% | 37.73% | -26.58% | 33.75% |
| Operating Income Growth % | - | 17.96% | 20.8% | 31.96% | 30.99% | -3.43% | -13.04% | 20.15% | 12.46% | 14.46% | 18.5% | 15.79% | 23.48% | 7.69% | 46.48% | 34.17% | 8.25% | 12.07% | 27.99% | 40.2% | 19.93% | 22.59% | 245.56% | -192.82% | - |
| EBITDA | 4.77B | 4.53B | 3.84B | 3.19B | 2.47B | 1.94B | 2.03B | 2.24B | 1.8B | 1.63B | 1.42B | 1.19B | 1.05B | 841.97M | 781.8M | 547.57M | 393.23M | 362.92M | 324.53M | 257.79M | 182.9M | 156.03M | 131.75M | -75.02M | 90.27M |
| EBITDA Margin % | 50.17% | 51.32% | 48.4% | 48.46% | 45.46% | 40.52% | 39.86% | 42.85% | 47.36% | 46.53% | 44.89% | 44.05% | 44.05% | 43.75% | 45.61% | 45.4% | 47.51% | 47.66% | 45.47% | 43.49% | 42.03% | 41.69% | 43.81% | -25.58% | 36.28% |
| EBITDA Growth % | 13.79% | 17.93% | 20.43% | 29.29% | 26.95% | -4.42% | -9.13% | 24.02% | 10.69% | 14.52% | 19.39% | 14.08% | 24.15% | 7.7% | 42.78% | 39.25% | 8.35% | 11.83% | 25.89% | 40.95% | 17.22% | 18.43% | 275.62% | -183.11% | - |
| D&A (Non-Cash Add-back) | 348M | 367M | 312M | 268M | 253M | 253M | 283M | 224.64M | 128.85M | 140.16M | 121.67M | 93.66M | 96.39M | 73.52M | 68.23M | 60.43M | 30.16M | 27.52M | 25.25M | 23.95M | 16.11M | 16.96M | 18.3M | 2.92M | 6.29M |
| EBIT | 4.44B | 4.2B | 3.5B | 2.88B | 2.2B | 1.77B | 1.77B | 1.93B | 1.65B | 1.48B | 1.27B | 1.06B | 796.2M | 719.17M | 699.77M | 482.24M | 363.07M | 335.4M | 299.28M | 233.84M | 166.68M | 137.58M | 94.98M | 267.9M | 224.84M |
| Net Interest Income | -1.78B | -1.57B | -1.34B | -1.22B | -1.08B | -1.1B | -1.06B | -865.83M | -669.4M | -639.3M | -498.24M | -426.98M | -347.69M | -270.69M | -211.91M | -252.81M | -112.23M | -84.4M | -92.68M | -91.77M | -125.25M | -80.27M | -74.67M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.78B | 1.57B | 1.34B | 1.22B | 1.08B | 1.1B | 1.06B | 865.83M | 669.4M | 639.3M | 498.24M | 426.98M | 347.69M | 270.69M | 211.91M | 252.81M | 112.23M | 84.4M | 92.68M | 91.77M | 125.25M | 80.27M | 74.67M | 0 | 0 |
| Other Income/Expense | -1.76B | -1.54B | -1.32B | -1.21B | -1.09B | -976M | -1.01B | -950.8M | -690.4M | -652.9M | -533.94M | -461.98M | -500.41M | -319.97M | -225.71M | -257.71M | -112.23M | -84.4M | -92.68M | -91.77M | -125.35M | -81.76M | -93.15M | -42.46M | -36.54M |
| Pretax Income | 2.66B | 2.63B | 2.21B | 1.72B | 1.13B | 715M | 740M | 1.06B | 985.56M | 837.43M | 768.12M | 636.82M | 448.51M | 448.49M | 487.87M | 229.43M | 250.84M | 251M | 206.6M | 142.07M | 41.44M | 57.31M | 20.3M | -120.4M | 47.43M |
| Pretax Margin % | 27.99% | 29.77% | 27.9% | 26.06% | 20.76% | 14.9% | 14.5% | 20.35% | 25.86% | 23.9% | 24.22% | 23.52% | 18.9% | 23.31% | 28.46% | 19.02% | 30.31% | 32.96% | 28.95% | 23.97% | 9.52% | 15.31% | 6.75% | -41.05% | 19.06% |
| Income Tax | 577M | 555M | 500M | 417M | 261M | 34M | 87M | 221.99M | 24.02M | 208.89M | 181.7M | 189.61M | 141.6M | 145.7M | 162.9M | 77.2M | 87.39M | 88.1M | 73.48M | 53.43M | 16.32M | 22.63M | 6.68M | 301.17M | 157.67M |
| Effective Tax Rate % | 21.69% | 21.11% | 22.57% | 24.3% | 23.16% | 4.76% | 11.76% | 20.89% | 2.44% | 24.94% | 23.66% | 29.77% | 31.57% | 32.49% | 33.39% | 33.65% | 34.84% | 35.1% | 35.56% | 37.61% | 39.38% | 39.48% | 32.91% | -250.14% | 332.41% |
| Net Income | 2.02B | 2.07B | 1.71B | 1.3B | 866M | 680M | 699M | 778.75M | 907.76M | 437.63M | 583.41M | 443.85M | 180.28M | 131.55M | 321.67M | 147.29M | 133.13M | 162.9M | 133.13M | 88.64M | 25.12M | 34.69M | 13.62M | -75.73M | 30.63M |
| Net Margin % | 21.29% | 23.49% | 21.59% | 19.71% | 15.95% | 14.17% | 13.7% | 14.91% | 23.82% | 12.49% | 18.4% | 16.4% | 7.6% | 6.84% | 18.77% | 12.21% | 16.09% | 21.39% | 18.65% | 14.95% | 5.77% | 9.27% | 4.53% | -25.82% | 12.31% |
| Net Income Growth % | 6.42% | 21% | 32.05% | 49.88% | 27.35% | -2.72% | -10.24% | -14.21% | 107.43% | -24.99% | 31.44% | 146.19% | 37.05% | -59.11% | 118.39% | 10.64% | -18.27% | 22.37% | 50.18% | 252.93% | -27.59% | 154.64% | 117.99% | -347.24% | - |
| Net Income (Continuing) | 2.08B | 2.07B | 1.72B | 1.3B | 866M | 681M | 653M | 840.88M | 961.54M | 628.54M | 586.41M | 447.21M | 306.91M | 302.79M | 324.97M | 152.22M | 163.44M | 162.9M | 133.13M | 88.64M | 25.12M | 34.69M | 13.62M | -75.73M | 30.63M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 1M | 0 | 47M | 50.43M | 2.37M | -31.65M | 0 | 0 | 0 | 0 | 0 | -2.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 8M | 7M | 7M | 6M | 7M | 6M | 4M | 9.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 34.76 | 32.08 | 25.62 | 22.03 | 13.40 | 10.39 | 8.27 | 13.84 | 16.33 | 7.88 | 10.39 | 7.84 | 3.16 | 2.39 | 5.97 | 2.76 | 2.52 | 3.10 | 2.65 | 1.83 | 0.53 | 111.49 | 44.01 | -10.28 | 221.95 |
| EPS Growth % | 8.19% | 25.21% | 16.31% | 64.36% | 28.94% | 25.65% | -40.23% | -15.23% | 107.2% | -24.16% | 32.53% | 148.1% | 32.22% | -59.97% | 116.17% | 9.59% | -18.71% | 16.98% | 44.81% | 245.28% | -99.52% | 153.33% | 528.11% | -104.63% | - |
| EPS (Basic) | - | 32.08 | 25.62 | 22.03 | 13.40 | 10.39 | 8.27 | 13.84 | 16.33 | 7.88 | 10.39 | 7.84 | 3.16 | 2.39 | 5.97 | 2.76 | 2.52 | 3.10 | 2.78 | 1.94 | 0.57 | 117.40 | 46.11 | -10.28 | 255.67 |
| Diluted Shares Outstanding | 58.2M | 58.2M | 57.8M | 57.2M | 58.2M | 58.4M | 57.3M | 56.27M | 55.6M | 55.53M | 56.16M | 56.61M | 56.99M | 55.08M | 53.88M | 53.33M | 52.92M | 52.54M | 50.2M | 48.54M | 47.18M | 46.54M | 46.3M | 7.37M | 138K |
| Basic Shares Outstanding | 58.2M | 58.2M | 57.8M | 57.2M | 58.2M | 58.4M | 57.3M | 56.27M | 55.6M | 55.53M | 56.16M | 56.61M | 56.99M | 55.08M | 53.88M | 53.33M | 52.92M | 52.54M | 47.86M | 45.63M | 44.41M | 44.2M | 44.19M | 7.37M | 119.8K |
| Dividend Payout Ratio | - | 464.27% | 118.9% | 2.93% | 125.98% | 10.74% | 275.82% | 219.84% | 6.19% | 589.89% | 0.51% | 0.76% | 805.06% | 1513.81% | 1.03% | 1.91% | 304.11% | - | - | - | - | - | - | - | - |
Regulatory pricing scrutiny
According to the latest quarterly data, TDG achieved 18.3% year-over-year revenue growth in 2026Q2, signaling a robust recovery in commercial aerospace demand that continues to outpace broader industrial benchmarks while demonstrating the company's ability to successfully pass through inflationary costs to its global customer base.
The consistent double-digit revenue growth suggests that the company's sole-source, proprietary product strategy remains highly effective in capturing value from the aging global aircraft fleet. Investors should monitor whether this growth trajectory can be maintained as the mix of newer, OEM-controlled aircraft platforms increases over the coming years.
As reported in financial statements, TDG maintains an industry-leading gross margin profile, with 2026Q2 figures reaching 59.4%, which underscores the company's unique ability to command premium pricing for flight-critical components that lack viable, FAA-certified alternatives in the current aftermarket landscape.
These margins appear to be structurally insulated from traditional manufacturing cost pressures, reflecting a value-based pricing model rather than cost-plus contracting. The stability of these margins suggests that the company's competitive moat remains intact despite periodic concerns regarding potential regulatory intervention in defense-related pricing.
Based on TDG's reported figures, operating margins have consistently hovered near 46%, demonstrating significant operating leverage where SG&A expenses remain tightly controlled relative to the rapid expansion of gross profit, even as the company continues to integrate various niche acquisitions into its decentralized business model.
The ability to maintain such high operating margins while scaling revenue suggests that the company's decentralized management structure is highly effective at minimizing corporate overhead. This efficiency is a critical component of the company's ability to generate the cash flow necessary to service its substantial debt load.
While the company displays strong operational performance, data from recent filings indicates that the reliance on aggressive leverage and the potential for increased US government scrutiny of defense spare parts pricing represent material risks that could compress margins or limit future capital allocation flexibility.
Short-term volatility in net income, as seen in the 2026Q1 dip, warrants further investigation into the impact of non-operating items and interest expenses on the bottom line. Investors should remain cautious regarding the sustainability of these margins if regulatory bodies successfully challenge the pricing of sole-source components.
Quick answers to the most common questions about buying TDG stock.
For fiscal year 2025, TransDigm Group Incorporated (TDG) reported total revenue of $8.83B. This represents a 3449.4% increase compared to $248.8M in 2002.
TransDigm Group Incorporated (TDG) is profitable, generating $2.07B in net income for the fiscal year ending 2025 with a net profit margin of 23.5%.
TransDigm Group Incorporated (TDG) reported an operating income of $4.17B, resulting in an operating profit margin of 47.2%. This margin reflects the operational efficiency of the business before interest and taxes.
TransDigm Group Incorporated (TDG) generated $5.31B in gross profit for the year, representing a gross profit margin of 60.1%. This demonstrates the company's core pricing power and production efficiency.