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Maker of proprietary, sole-source aircraft components sold at high margins through an acquisition-driven business model.
Maker of proprietary, sole-source aircraft components sold at high margins through an acquisition-driven business model.
Sells proprietary aircraft parts, many with no approved alternative, and prices them on what they are worth to the customer rather than on cost. Spares for aircraft already flying earn the most; parts for new aircraft earn less. It grows by buying small makers of niche components, funded largely with debt.
Moat: wide (switching costs, IP / patents, installed base). Sole-source, FAA-certified proprietary parts are extremely costly and slow for customers to re-qualify elsewhere.
Headquarters: Cleveland, Ohio, US · Founded: 1993 · Employees: 16,500
Size TransDigm (TDG) is a United States Industrials company (Aerospace & Defense) with a market value of $66.2B, the 200th largest of 3,117 United States companies the cockpit tracks. Shares closed at $1,197 on 6 Nov 2026.
Performance Over six months the shares fell 1.5%, against -3.6% for the median peer and -1.1% for the United States market (cap-weighted) — 10th highest of 20 in its peer set.
Growth Revenue grew 16.6% over the last twelve months (peer median +10.1%); the operating margin is 46.7% (peer median 11.7%).
Valuation It trades at 25.5× forward earnings against a peer median of 28.5× (10th cheapest of 20).
Price implies For today's price to make sense, revenue must grow about 10% a year for seven years (Req g). Recent delivered growth is +12%, so the hurdle is -2 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 9.3 points above its cost of capital (8.2% WACC).
Credit TransDigm has 13 bonds outstanding ($22.4B), rated BB- by the agencies and trading like BB+ at a weighted spread of 169 bp.
Short interest Short interest is 1.9% of the free float (15 Oct 2026).
Next results Next results expected around 10 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $10.0B | $8.83B | $7.94B | $6.58B | $5.44B |
| Revenue growth | — | +11% | +21% | +21% | — |
| Gross profit | $5.75B | $5.12B | $4.56B | $3.75B | $2.94B |
| EBITDA | $5.09B | $4.56B | $3.94B | $3.25B | $2.45B |
| Net income | $1.91B | $1.87B | $1.48B | $1.26B | $780M |
| Free cash flow | $1.93B | $1.82B | $1.88B | $1.24B | $829M |
| Capital expenditure | $271M | $222M | $165M | $139M | $119M |
| Total debt | $33.5B | $30.1B | $24.9B | $19.8B | $19.9B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| TransDigm TDG | $66.2B | -1% | +17% | 47% | 25.5× | 9.7% |
| Howmet Aerospace HWM | $81.8B | -24% | +22% | 28% | 32.6× | 24.1% |
| Curtiss-Wright CW | $17.1B | -36% | +11% | 19% | 27.4× | 16.2% |
| HEICO HEI | $39.2B | +14% | +21% | 24% | 47.8× | 24.5% |
| Woodward WWD | $18.7B | -14% | +22% | 16% | 31.0× | 18.9% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | TDG | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +9.9% | +3.1% | 4th highest of 21 |
| 6-month return | -1.5% | -3.6% | 10th highest of 20 |
| Distance from 52-week high | -18.2% | -21.6% | 6th highest of 21 |
| Revenue growth (TTM) | +16.6% | +10.1% | 8th highest of 20 |
| Operating margin | 46.7% | 11.7% | highest of 21 |
| Forward P/E | 25.5× | 28.5× | 10th cheapest of 20 |
| Growth the price implies (Req g, 7 yrs) | 9.7% | 10.1% | 9th least demanding of 18 |
| Growth delivered (Del g) | +11.6% | +8.0% | 7th highest of 18 |
| Hurdle (Req g minus delivered) | -1.9 pp | +3.3 pp | 8th least demanding of 18 |
| ROIC minus cost of capital | +9.3 pp | +9.0 pp | 10th highest of 20 |
| EV / EBITDA | 19.0× | 19.0× | 10th cheapest of 19 |
| Net debt / EBITDA | 6.0× | 1.2× | 2nd most indebted of 20 |
| Bond spread | 169 bp | 72 bp | widest of 14 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| TransDigm TDG | United States | $66.2B | -1% | +17% | 47% | 25.5× | 9.7% | +11.6% |
| BAE Systems BA..L | United Kingdom | $72.6B | -4% | +7% | 9% | 22.0× | 2.8% | +8.0% |
| Northrop Grumman NOC | United States | $74.6B | -4% | +7% | 11% | 17.8× | 0.2% | +2.7% |
| Howmet Aerospace HWM | United States | $81.8B | -24% | +22% | 28% | 32.6× | 24.1% | +9.4% |
| Thales HO.PA | France | $51.1B | -1% | +7% | 11% | 20.6× | -2.8% | +7.6% |
| Honeywell Aerospace HONA | United States | $48.5B | n/a | n/a | 20% | 18.8× | n/a | n/a |
| L3Harris LHX | United States | $48.4B | -13% | +7% | 12% | 20.1× | 7.0% | +3.7% |
| General Dynamics GD | United States | $95.7B | +3% | +10% | 10% | 19.4× | -2.5% | +6.7% |
| Rheinmetall RHM.DE | Germany | $42.5B | -29% | -2% | 18% | 22.0× | 6.5% | +12.9% |
| HEICO HEI | United States | $39.2B | +14% | +21% | 24% | 47.8× | 24.5% | +20.2% |
| Hindustan Aeronautics HAL.NS | India | $35.2B | +4% | +7% | 23% | 33.6× | 42.7% | +7.2% |
| Lockheed Martin LMT | United States | $131B | +12% | +8% | 12% | 17.6× | -6.9% | +2.8% |
| Saab SAAB-B.ST | Sweden | $33.3B | +19% | +28% | 10% | 40.2× | 6.0% | +17.4% |
| Elbit Systems ESLT | United States | $32.0B | -13% | +12% | 9% | 46.5× | 10.1% | +11.5% |
| Boeing BA | United States | $137B | -27% | +18% | 0% | 179,875.5× | n/a | n/a |
| Kongsberg Gruppen KOG.OL | Norway | $31.8B | +13% | -28% | 17% | 46.3× | 21.7% | +4.3% |
| Rocket Lab RKLB | United States | $31.8B | -50% | +53% | -29% | n/a | n/a | n/a |
| Safran SAF.PA | France | $138B | +4% | +14% | 13% | 28.5× | 22.2% | +13.4% |
| Rolls-Royce RR..L | United Kingdom | $140B | +6% | +19% | 18% | 28.5× | 24.6% | +13.0% |
| Leonardo LDO.MI | Italy | $31.0B | -4% | +10% | 7% | 20.2× | 14.3% | +7.8% |
| Bharat Electronics BEL.NS | India | $30.6B | -10% | +20% | 26% | 41.5× | 38.2% | +14.3% |
TransDigm has 13 bonds outstanding with $22.4B face value. The agencies rate it BB-; its bonds trade like BB+. Weighted yield 6.33%, a spread of 169 bp over government bonds.