TransDigm Reports 12% Revenue Growth to $2.15 Billion in Q2 Fiscal 2025

TransDigm Group Incorporated reported strong financial performance for the second quarter of fiscal 2025, with net sales reaching $2,150 million, a 12% increase from $1,919 million in the same period last year. The company’s net income attributable to TD Group was $479 million, up from $404 million, reflecting an 18.6% increase. Earnings per share for the quarter rose to $8.24, compared to $6.97 in the prior year. The company also reported EBITDA As Defined of $1,162 million, representing 54% of net sales, an increase from $1,021 million or 53.2% of net sales in the previous year.

In the first half of fiscal 2025, TransDigm's total revenue increased to $4,156 million, up 12.1% from $3,708 million in the same period last year. The growth was driven by a combination of organic sales growth of $251 million and acquisition sales of $229 million, primarily from recent acquisitions including Raptor Scientific and CPI's Electron Device Business. The company noted that commercial aftermarket sales increased significantly due to heightened demand for air travel, while defense sales also saw a boost from increased U.S. government spending.

Operationally, TransDigm's Power & Control segment reported net sales of $1,108 million, a 20.4% increase, while the Airframe segment saw a 4.5% increase to $1,002 million. The company’s total assets decreased to $21,905 million from $25,586 million, largely due to a reduction in cash and cash equivalents, which fell to $2,426 million from $6,261 million. The company’s total debt increased slightly to $25,049 million, reflecting ongoing investments and acquisitions.

TransDigm has been active in strategic acquisitions, completing several significant purchases in fiscal 2024, including Raptor Scientific for approximately $646 million and CPI's Electron Device Business for $1,386 million. These acquisitions are expected to enhance the company’s capabilities in the aerospace and defense sectors. The company also repurchased 295,469 shares of its common stock for $369 million during the first half of fiscal 2025, with an additional $919 million remaining under its stock repurchase program.

Looking ahead, TransDigm anticipates continued demand for its products, driven by strong air travel recovery and defense spending. However, the company remains cautious about potential supply chain disruptions and geopolitical uncertainties that could impact its operations. The management expressed confidence in its ability to generate sufficient cash flow to meet its obligations and pursue further growth opportunities through strategic acquisitions and investments.