TransDigm Q1 revenue beats on commercial OEM market strength

Overview

• Aircraft components maker's fiscal Q1 revenue rose 14%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company completed acquisition of Simmonds Precision Products from RTX Corporation

Outlook

• TransDigm raises fiscal 2026 net sales guidance to $9.845 bln - $10.035 bln

• Company expects fiscal 2026 EPS between $32.47 and $34.39

• TransDigm anticipates fiscal 2026 EBITDA As Defined of $5.140 bln - $5.280 bln

Result Drivers

• COMMERCIAL OEM GROWTH - Revenue from the commercial OEM market increased in double digits due to higher build rates at OEMs

• AFTERMARKET AND DEFENSE GROWTH - Both commercial aftermarket and defense markets grew in high single digits

• ACQUISITION IMPACT - EBITDA margin included a 2% dilution from recent acquisitions, but base business margins improved

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and 1 "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 $1,615.00, about 12.5% above its February 2 closing price of $1,435.52

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nPn5ncv9da

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