Aircraft component maker TransDigm's Q3 revenue misses expectations

TransDigm Incorporated

05/08/2025 12:27

Overview

TransDigm fiscal Q3 revenue rises 9% but missed analyst expectations, per LSEG data

Adjusted EPS for fiscal Q3 up 7% but missed analyst expectations, per LSEG data

Co announces acquisitions of Servotronics and Simmonds, deploying over $900 mln in capital

Outlook

TransDigm lowers fiscal 2025 sales guidance by $60 mln

Company raises fiscal 2025 EBITDA guidance midpoint by $40 mln

TransDigm expects fiscal 2025 EPS between $32.39 and $33.21

Company anticipates fiscal 2025 sales between $8,760 mln and $8,820 mln

Result Drivers

COMMERCIAL AFTERMARKET - Growth moderated but still performed well, contributing to overall sales increase

OEM MARKET CHALLENGES - Sales fell short due to lower build rates and inventory destocking, impacting expectations

OPERATING STRATEGY - Value-driven strategy and lower refinancing costs boosted net income, despite higher interest expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$2.24 bln
$2.29 bln (17 Analysts)
Q3 Adjusted EPS
Miss
$9.6
$9.97 (20 Analysts)
Q3 EPS
$8.47
Q3 Adjusted Net Income
Miss
$558 mln
$568.50 mln (13 Analysts)
Q3 EBITDA
$1.22 bln
Q3 Organic Growth
6.3%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for TransDigm Group Inc is $1,700.00, about 5.4% above its August 4 closing price of $1,608.98

The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release: ID:nPn42sflma

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)