TransDigm reported strong fiscal fourth-quarter sales growth, with revenue up 23% from a year earlier, while net income fell 4%. Adjusted earnings and the company’s EBITDA measures rose, but its company-defined EBITDA margin narrowed, partly because of recent acquisitions.
The results cover the quarter ended September 30, 2026. TransDigm also noted the completion of its acquisition of Prince & Izant, a maker of engineered brazing alloys and specialty metal components.
Key details
- Sales rose to $2.988 billion, from $2.437 billion a year earlier. Organic sales growth was 14%, meaning the overall increase also reflected factors beyond organic growth, including acquisitions.
- Net income declined to $586 million, from $609 million. TransDigm attributed the decline primarily to higher interest expense, reflecting a higher year-over-year gross debt balance, and higher taxes. Increased sales and the company’s operating strategy partly offset those pressures.
- Reported earnings per share were $10.33, up 33% from $7.75 in the year-earlier quarter. The release also reported adjusted earnings per share of $12.44, up 15% from $10.82.
- Adjusted net income increased 12% to $706 million, from $629 million.
- EBITDA increased 13% to $1.436 billion. The company’s broader “EBITDA As Defined” measure, which includes its own adjustments, rose 20% to $1.583 billion, from $1.320 billion.
- EBITDA As Defined was 53.0% of sales, down from 54.2% a year earlier. TransDigm said recent acquisitions reduced the quarterly margin by about two percentage points.
- Prince & Izant was acquired for approximately $1.07 billion in cash, including certain tax benefits. The company completed the purchase on September 28. Prince & Izant makes brazing alloys and specialty metal components for aerospace and defense, aeroderivative turbine, and transportation markets.
Plain-English implications
The quarter showed substantial sales growth, but higher interest and tax costs weighed on net income. The gap between the reported and adjusted earnings figures reflects the company’s use of adjustments in its non-GAAP measures; the release’s headline growth in adjusted earnings does not mean reported net income also increased. The acquisition added to TransDigm’s business and debt burden, while the company said recent acquisitions also weighed on its EBITDA margin.