TransDigm Reports 9.3% Revenue Growth to $2.24 Billion in Q3 Fiscal 2025

TransDigm Group Incorporated reported strong financial performance for the third quarter of fiscal 2025, with net sales reaching $2,237 million, a 9.3% increase from $2,046 million in the same period last year. The company’s net income attributable to TD Group was $492 million, up from $461 million, reflecting a 6.7% growth. Earnings per share for the quarter rose to $8.47, compared to $7.96 in the prior year. For the thirty-nine week period ended June 28, 2025, net sales totaled $6,394 million, an 11.1% increase from $5,754 million, while net income attributable to TD Group increased by 17.5% to $1,464 million.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Gross profit for the third quarter was $1,332 million, a 9.2% increase from $1,220 million, with a gross profit margin of 59.5%. Selling and administrative expenses decreased to $242 million, or 10.8% of net sales, down from 12.1% in the prior year. Interest expense-net increased by 25.6% to $397 million, primarily due to higher outstanding borrowings. The effective income tax rate for the quarter was 22.4%, slightly lower than the 23.4% reported in the previous year.

Strategically, TransDigm has been active in acquisitions, completing several significant transactions. The company acquired Servotronics, Inc. for approximately $133 million and entered into a definitive agreement to acquire Simmonds Precision Products, Inc. for about $765 million. These acquisitions are expected to enhance TransDigm's capabilities in the aerospace and defense sectors. The company also reported a series of acquisitions through its Extant Aerospace subsidiary, totaling $212 million, aimed at expanding its product offerings.

Operationally, TransDigm's customer base and market presence have shown resilience. The company reported strong demand in its commercial aftermarket segment, driven by increased flight hours and aircraft utilization as global air traffic continues to recover. The defense segment also saw growth, attributed to increased U.S. government defense spending. As of June 28, 2025, TransDigm had 56,350,285 shares outstanding and maintained a strong cash position of $2,792 million, down from $6,261 million at the end of the previous fiscal year.

Looking ahead, TransDigm remains optimistic about its growth trajectory, supported by a robust pipeline of acquisitions and a focus on operational efficiency. The company anticipates continued demand in both the commercial and defense sectors, although it acknowledges potential challenges related to supply chain constraints and geopolitical factors. Management expects to leverage its strong cash liquidity to meet future obligations and pursue strategic opportunities, including further acquisitions and stock repurchases.