NYSE$TDG

Transdigm Group Incorporated · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Reported an 18% increase in net sales and a 13% increase in net income compared to the prior year's quarter.

TransDigm Group reported strong Q4 2024 results with an 18% increase in net sales to $2,185 million and a 13% increase in net income to $468 million. Adjusted earnings per share rose by 22% to $9.83. The company issued full year fiscal 2025 guidance, expecting continued growth across its commercial and defense markets.

  • Net sales increased by 18% to $2,185 million compared to the prior year's quarter.
  • Net income increased by 13% to $468 million from the prior year's quarter.
  • Adjusted earnings per share increased by 22% to $9.83.
  • EBITDA As Defined increased by 19% to $1,149 million with a margin of 52.6%.

Headline financials

Total Revenue

$2.19B

Previous: $1.85B+18.0%
EPS (adj)

$9.83

Previous: $8.03+22.4%
Capital Expenditures

-$41M

Previous: $37M-210.8%
Free Cash Flow

$531M

Previous: $425M+24.9%
Net Income

$468M

Previous: $414M+13.0%
Operating Income

$943M

Previous: $856M+10.2%
Gross Profit

$1.26B

Previous: $1.09B+15.3%
Stock-Based Comp

$30M

Previous: $4M+650.0%

Revenue & EPS history

Transdigm · Revenue · Quarterly

$2.19B

Q4 2024+18%vs Q4 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

TransDigm expects continued growth in commercial OEM, commercial aftermarket, and defense markets for fiscal year 2025.

Tailwinds

  • Net sales are anticipated to be in the range of $8,750 million to $8,950 million, an increase of 11.5% at the midpoint.
  • Net income is anticipated to be in the range of $1,887 million to $1,999 million, an increase of 13.3% at the midpoint.
  • Earnings per share is expected to be in the range of $31.47 to $33.39, an increase of 26.6% at the midpoint.
  • EBITDA As Defined is anticipated to be in the range of $4,615 million to $4,755 million, an increase of 12.3% at the midpoint.
  • Adjusted earnings per share is expected to be in the range of $35.36 to $37.28, an increase of 6.9% at the midpoint.

Headwinds

  • Commercial OEM revenue growth is expected in the mid single-digit percentage range.
  • Commercial aftermarket revenue growth is expected in the high single-digit to low double-digit percentage range.
  • Defense revenue growth is expected in the high single-digit percentage range.
  • Commercial OEM guidance contains risk around expected OEM production build rates.
  • The fiscal 2025 outlook is based on specific market growth assumptions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.5%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+16.5%

Q3 2019

Best reaction

-11.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+5.1%+5.6%+6.7%
Q1 2026-9.3%-10.4%-9.8%
Q4 2025+1.0%+3.2%+0.1%
Q3 2025-11.9%-13.6%-20.3%
Q2 2025-5.6%-6.7%-1.9%
Q1 2025-3.3%-1.9%-0.6%
Q4 2024-2.3%-2.0%-7.5%
Q3 2024-0.6%+3.0%+9.9%
Q2 2024+1.0%+0.7%+2.5%
Q1 2024-2.4%-2.2%+1.6%
Q4 2023+10.9%+11.3%+9.9%
Q3 2023-4.8%-4.5%-2.9%
Q2 2023+4.9%+3.0%+4.5%
Q1 2023+4.7%+1.4%+2.9%
Q4 2022+7.5%+6.0%+4.6%
Q3 2022+3.9%+5.5%-4.0%
Q2 2022+4.6%+3.3%+11.4%
Q1 2022+2.7%+0.8%+0.1%
Q4 2021+0.8%-3.3%-11.8%
Q3 2021-0.7%-3.6%-4.8%
Q2 2021-3.8%-0.7%+9.7%
Q1 2021-3.4%-3.9%-0.5%
Q4 2020+1.1%+3.1%+7.3%
Q3 2020+8.2%+9.0%+13.3%
Q2 2020-6.7%+3.0%+40.7%
Q1 2020-4.0%-2.7%-17.8%
Q4 2019+1.3%-0.9%+1.3%
Q3 2019+16.5%+18.1%+15.5%
Q2 2019+1.3%-0.3%-1.4%
Q1 2019+4.3%+5.7%+6.2%
Q4 2018+3.8%+3.0%+0.2%
Q3 2018-3.1%-3.2%-4.1%
Q2 2018-0.5%+0.7%+4.2%
Q1 2018-1.6%-4.8%-3.7%
Q4 2017-6.3%-5.9%-3.6%
Q3 2017-2.3%-3.5%-10.8%
Q2 2017-4.0%-4.6%+7.1%
Q1 2017+7.1%+9.6%+4.6%
Q4 2016-4.9%-8.2%-7.9%
Q3 2016+3.1%+1.5%+3.4%
Q2 2016+9.5%
Q1 2016-10.1%
Q4 2015+5.0%
Q3 2015+4.1%
Q2 2015-0.1%
Q1 2015-2.7%
Q4 2014+3.3%
Q3 2014+1.5%
Q2 2014-2.3%
Q1 2014+5.1%
Q4 2013-0.5%
Q3 2013-3.4%
Q2 2013-1.2%
Q1 2013+1.5%
Q4 2012+3.5%
Q3 2012+1.2%
Q2 2012-1.4%
Q1 2012+2.0%
Q4 2011-1.2%
Q3 2011+2.3%
Q2 2011+0.7%
Q1 2011+1.5%
Q4 2010+2.9%
Q3 2010-1.3%
Q2 2010+3.7%
Q1 2009-0.8%

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