Question · Q1 2026
Eleanor asked about TransDigm's Q1 profitability, which exceeded expectations despite being a seasonally weaker quarter, and inquired about the factors driving this strength and the expected cadence of profitability throughout the year.
Answer
CEO Mike Lisman explained that the stronger-than-expected 52.4% EBITDA margin was due to a favorable commercial OEM mix, diligent cost reduction, and productivity projects by operating units. He also noted a degree of conservatism embedded in the full-year guidance.
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TDG's earnings beat/miss a week before the call

