TransDigm lowers annual revenue forecast on slowing OEM business

TransDigm Incorporated

05/08/2025 13:29

Aug 5 (Reuters) - Aircraft component maker TransDigm Group TDG.N on Tuesday lowered its full-year revenue forecast, as its commercial original equipment manufacturing business fell short of the company's expectations during the third quarter.

Shares of the company, which makes cockpit security systems and engine sensors for commercial and military jets, fell 8.6% before the bell.

"We are decreasing our sales guidance primarily due to lower than expected commercial OEM sales, driven mainly by lower than anticipated OEM build rates and inventory destocking," said CEO Kevin Stein.

While TransDigm has predominantly benefited from booming demand for repairs on older jets in recent quarters, it also sells OEM parts to Boeing BA.N and Airbus AIR.PA.

Both the plane-makers have been grappling with supply chain snags and labor shortages that have sent ripple effects throughout the aerospace industry.

The industry now faces the added challenge of trade policies that have muted growth prospects for companies globally as they adapt to changing policies and sentiment.

The Cleveland, Ohio-based company now sees annual net sales in the range of $8.76 billion to $8.82 billion, compared with its prior view of between $8.75 billion and $8.95 billion - implying a 60 million fall in the midpoint of the forecast range.

TransDigm's third-quarter revenue rose 9% to $2.24 billion from a year ago, but fell short of analysts' expectations of $2.29 billion, according to data compiled by LSEG.

Adjusted profit for the quarter ended June 28, rose to $9.60 per share, but missed estimates of $9.98 per share.

 (Reporting by Aatreyee Dasgupta and Anandita Mehrotra in Bengaluru; Editing by Shailesh Kuber)

 ((Aatreyee.Dasgupta@thomsonreuters.com;))