At a glance
Transdigm Group Incorporated is worth $67.08B, about 38 times its fiscal 2025 earnings. Revenue grew 11.2% to $8.83B in fiscal 2025, with 23.5% kept as profit; over 5 years it has grown 11.6% a year. It pays a dividend, and returned $4.81B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −7.3% over the past year with dividends reinvested and +18.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 61.7% in the 2020 crash (S&P 500: 33.7%) and 24.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months and 7 months after the lows.
The business in plain English
TransDigm Group, through its subsidiary TransDigm Inc., designs and makes highly engineered aircraft components. Its parts sit on nearly every commercial and military aircraft in service, from seat belts and cockpit security systems to actuators (devices that move parts), ignition systems, pumps, valves and parachutes. An estimated 90% of fiscal 2025 sales came from proprietary products, meaning parts of its own design.
The heart of the model is the aftermarket: spare parts and repairs sold after a plane is built. A part designed into an aircraft can keep selling for the 25 to 30 years that plane typically flies. About 55% of fiscal 2025 sales came from the aftermarket, which has historically been more profitable and steadier than sales to aircraft makers. Customers include airlines, distributors, aircraft makers, defense contractors and the armed forces of the U.S. and allied countries. TransDigm has also grown by buying 95 businesses since 1993.
Revenue was $8.83 billion in the fiscal year ended September 30, 2025. Power & Control, which makes parts that supply or control a plane's power, brought in 51.6%. Airframe, covering cabin and airframe parts such as latches, displays and seat belts, brought in 46.6%. Non-aviation products made up 1.8%. About 62.7% of sales were in the United States.
Price history
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TDG -7.3% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Power & Control | $4.56B | 51.6% |
| Airframe | $4.11B | 46.6% |
| Non-aviation | $160.0M | 1.8% |
By geography
| UNITED STATES | $5.54B | 62.7% |
| Non-US | $3.30B | 37.3% |
Latest results
- In Q3 FY2026 (ended Jun 27, 2026), revenue was $2.74B, up 22.5% from a year earlier, and net income was $539.0M (+9.6%).
- For fiscal 2025, revenue was $8.83B (+11.2% year over year; +11.6% a year from FY2020 to FY2025) with a 23.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +11.6% good |
|---|---|
| Operating margin | 47.2% good |
| Free cash flow margin | 20.6% good |
| Return on assets (FY2025) | 9.1% good |
| Net cash (cash minus debt) | $-29.99B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $5.10B | $699.0M | $1.11B |
| FY2021 | $4.80B | $680.0M | $808.0M |
| FY2022 | $5.43B | $866.0M | $829.0M |
| FY2023 | $6.58B | $1.30B | $1.24B |
| FY2024 | $7.94B | $1.71B | $1.88B |
| FY2025 | $8.83B | $2.07B | $1.82B |
Valuation snapshot
| Market value | $67.08B |
|---|---|
| P/E ratio | 37.8 |
| Dividend yield | 0% |
Rank among 1514 US companies
Market value at each year end
Transdigm Group Incorporated’s market value went from $13.28B at the end of 2016 to $67.08B on Nov 2, 2026, about 5.1 times as much; since the end of 2025 it is down 10%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $67.08B | -10.4% |
| 2025 | $74.90B | +5.1% |
| 2024 | $71.26B | +27.4% |
| 2023 | $55.96B | +63.4% |
| 2022 | $34.24B | -2.6% |
| 2021 | $35.15B | +4.4% |
| 2020 | $33.69B | +12.3% |
| 2019 | $29.99B | +67.2% |
| 2018 | $17.94B | +25.7% |
| 2017 | $14.27B | +7.4% |
| 2016 | $13.28B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TDG price data to Nov 2, 2026 | -8.7% | -7.3% | +17.7% | +18.3% | +20.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -8.7% |
| 2025 | +12.2% |
| 2024 | +32.2% |
| 2023 | +66.5% |
| 2022 | +1.8% |
| 2021 | +2.8% |
| 2020 | +10.5% |
| 2019 | +84.3% |
| 2018 | +23.8% |
| 2017 | +19.6% |
| 2016 | +19.0% |
| 2015 | +16.4% |
| 2014 | +40.1% |
| 2013 | +36.4% |
| 2012 | +56.5% |
| 2011 | +32.9% |
| 2010 | +51.6% |
| 2009 | +65.8% |
| 2008 | -25.7% |
| 2007 | +70.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 33.8% over that stretch · deepest drop along the way 51.7%, back to its old high 10.8 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 53% over that stretch · deepest drop along the way 61.7%, back to its old high 14.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.3% over that stretch · deepest drop along the way 24.9%, back to its old high 6.9 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 290 sales ($122.7M), 206 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 18, 2026 | W Nicholas Howley Director | sell (plan) | $4.9M |
| May 18, 2026 | W Nicholas Howley Director | sell (plan) | $4.5M |
| Apr 20, 2026 | W Nicholas Howley Director | sell (plan) | $3.9M |
| Jun 18, 2026 | W Nicholas Howley Director | sell | $2.5M |
| Jun 18, 2026 | W Nicholas Howley Director | sell | $2.5M |
Who owns it
Large shareholders (13G filings)
| Capital International Investors | 9.9% | Mar 31, 2026 |
| Capital World Investors | 8.3% | Mar 31, 2026 |
| Vanguard Capital Management | 7.48% | Mar 31, 2026 |
| Capital Research Global Investors | 5.6% | Mar 31, 2026 |
ETFs with the most weight in TDG
| SUPP TCW Transform Supply Chain ETF | 8.85% |
| MISL First Trust Indxx Aerospace & Defense ETF | 8.54% |
| BCHP Principal Focused Blue Chip ETF | 5.04% |
| WBIL WBI BullBear Quality 3000 ETF | 4.73% |
| ITA iShares U.S. Aerospace & Defense ETF | 4.53% |
| NATO Themes Transatlantic Defense ETF | 4.34% |
| BWTG Brendan Wood TopGun ETF | 4.12% |
| PPA Invesco Aerospace & Defense ETF | 4.05% |
What could go wrong
- A very large debt load. Total debt was about $32.8 billion against $2.8 billion of cash as of June 27, 2026. Servicing it takes significant cash, and loan terms limit how the company can respond to change.
- Growth relies on buying other companies. TransDigm has bought 95 businesses since 1993. Future growth partly depends on finding targets at sensible prices. Deals can add debt, underperform, or lead to write-downs of the value of past purchases.
- Fewer flights mean fewer replacement parts sold. Commercial aftermarket sales, generally 30% to 35% of the total, depend on how much planes fly, fleet size and age, and airline profits. Shares fell 61.7% in the 2020 COVID crash.
- Tied almost entirely to aerospace and defense. With nearly all sales in one industry, a slump in aviation or defense could hurt TransDigm more than companies spread across several industries. Non-aviation products were just 1.8% of fiscal 2025 revenue.
- Defense budgets and government contracting rules. Defense generally provides 35% to 40% of sales, so U.S. budget decisions matter. Government work brings unique rules and fixed-price deals where TransDigm absorbs any cost overruns.
- Big customers, but no guaranteed orders. The top ten customers made up about 40% of fiscal 2025 sales. Most aftermarket buyers have no long-term contracts, and many contracts with aircraft makers can end on short notice.
Recent events
- Major agreement signed; New debt or financial obligation
- Other company announcement
- Investor presentation or announcement
- Quarterly results released
- Other company announcement
- Executive or board change
- Other company announcement
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Investor presentation or announcement
For income and retirement investors
TransDigm does not pay a regular dividend; its 10-K says it does not regularly declare quarterly or annual payouts. Payments have come in irregular lumps instead: $32.50 per share in fiscal 2020, $0 in 2021, $18.50 in 2022, $0 in 2023, $35.26 in 2024 (including a special dividend) and $2.73 in 2025. Fiscal 2025 dividends equaled 7.7% of earnings and 8.8% of free cash flow (cash left after capital spending). Buybacks totaled $1.41 billion over fiscal 2021–2025, yet the share count barely moved. Investors needing steady income would have to sell shares instead.
The shares have fallen hard in downturns. They dropped 51.7% during the 2008 financial crisis and regained their prior peak about 11 months after the low. In the 2020 COVID crash they fell 61.7% in under a month and took about 14 months from the bottom to recover. The 2022 bear market brought a 24.9% drop. Single stocks carry more risk than diversified funds.
Questions investors ask
How does TransDigm make money?
TransDigm makes money by designing and selling specialized aircraft parts, then selling replacements for decades. About 90% of fiscal 2025 sales came from proprietary parts it designed, and about 55% came from the aftermarket, meaning spare parts and repairs for planes already flying. Aircraft typically stay in service 25 to 30 years, so one design win can keep generating sales. Revenue was $8.83 billion in the fiscal year ended September 30, 2025, and operating profit was 47.2% of sales.
Does TransDigm pay a dividend?
Not on a regular schedule. TransDigm's 10-K says it does not regularly declare quarterly or annual dividends. Instead, it has made occasional large payouts: $32.50 per share in fiscal 2020, $18.50 in 2022 and $35.26 in 2024, which included a special dividend. It paid $0 per share in 2021 and 2023, and about $2.73 in fiscal 2025. Investors who need predictable income from this stock would have to sell shares to create it.
How much debt does TransDigm have?
About $32.8 billion of total debt as of June 27, 2026, against roughly $2.8 billion of cash and investments. That is large next to fiscal 2025 revenue of $8.83 billion. Shareholders' equity was negative $9.8 billion, meaning liabilities exceeded assets on the balance sheet. The 10-K warns that servicing this debt requires significant cash and that loan terms limit some actions. Filings dated April 17 and September 29, 2026, reported new debt obligations.
How much of TransDigm's business comes from defense?
Generally about 35% to 40% of annual sales. TransDigm's defense group includes sales to defense manufacturers and aftermarket sales to the U.S. and allied governments. The commercial aftermarket usually makes up 30% to 35%, and parts for new airliners, regional jets and business jets 25% to 30%. So both U.S. defense budgets and air travel matter. Aerospace and defense funds such as the iShares U.S. Aerospace & Defense ETF (ITA) and the Invesco Aerospace & Defense ETF (PPA) hold the stock.
How has TransDigm stock performed over time?
It has produced strong long-term gains with deep drops along the way. As of October 28, 2026, the stock gained an average of about 19.8% a year over 10 years and 16.8% a year over five years, but fell 14.9% over the prior 12 months. Its worst decline in roughly 20 years of price history was 62.6%. At that date the shares traded at about 35 times fiscal 2025 earnings, meaning buyers paid about $35 for each $1 of annual profit.