TransDigm Group Incorporated (TDG) reported third-quarter fiscal 2025 adjusted earnings of $9.60 per share, which missed the Zacks Consensus Estimate of $9.78 by 1.8%. However, the bottom line improved 6.7% from the prior-year quarter’s figure of $9.00 per share.
The company reported GAAP earnings of $8.47 per share compared with $7.96 in the year-ago quarter.
The year-over-year growth in the bottom line can be attributed to the increase in net sales and the application of TDG’s value-driven operating strategy, lower one-time refinancing costs and decreased acquisition transaction-related expenses.
TransDigm’s Q3 Sales Discussion
Sales amounted to $2.24 billion, up 9.3% from $2.05 billion registered in the prior-year period. The reported figure, however, missed the Zacks Consensus Estimate of $2.30 billion by 2.6%.
Organic sales, as a percentage of net sales, grew 6.3%.
Transdigm Group Incorporated Price, Consensus and EPS Surprise
Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote
TDG’s Operating Results
The gross profit was $1.33 billion, up 9.2% from the year-ago quarter’s level of $1.22 billion.
TDG’s interest expense increased 25.6% year over year to $397 million.
Net income increased 6.9% year over year to $493 million.
TransDigm’s Financial Position
Cash and cash equivalents as of June 28, 2025, amounted to $2.79 billion, down from $6.26 billion recorded as of Sept. 30, 2024.
Long-term debt totaled $24.27 billion, down from $24.30 billion as of Sept. 30, 2024.
Cash from operating activities amounted to $1.53 billion compared with $1.47 billion at the end of the third quarter of fiscal 2024.
TDG’s 2025 Guidance
TransDigm updated its guidance for fiscal 2025. It now expects sales to be in the range of $8.76-$8.82 billion, narrower than the earlier guidance range of $8.75-$8.95 billion. The Zacks Consensus Estimate for the same is pegged at $8.88 billion, higher than the company’s newly guided range.
TDG now expects fiscal 2025 adjusted earnings to be in the band of $36.33-$37.15 per share, narrower than the earlier guidance of $35.51-$37.43 per share. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $37.30 per share, higher than the company’s new guidance.
TDG’s Zacks Rank
TransDigm currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s (RTX) second-quarter 2025 adjusted earnings per share (EPS) of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
Lockheed Martin Corporation (LMT) reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.
Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC) reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.
NOC’s total sales of $10.35 billion in the second quarter beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.
Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Transdigm Group Incorporated (TDG): Free Stock Analysis Report
RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
/Microsoft%20Corporation%20logo%20on%20sign-by%20Jean-Luc%20Ichard%20via%20iStock.jpg)
/Advanced%20Micro%20Devices%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
/Qualcomm%2C%20Inc_%20logo%20on%20phone-by%20viewimage%20via%20Shutterstock.jpg)
/Chipset%20held%20over%20rush%20hour%20traffic%20by%20Jae%20Young%20Ju%20via%20iStock.jpg)