Question · Q1 2026
Eleanor Neild 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 fiscal year.
Answer
CEO Mike Lisman explained that Q1's 52.4% EBITDA margin was better than anticipated, partly due to a slightly lower-than-expected commercial OEM growth mix and strong cost management and productivity projects by operating units. He noted potential conservatism in the guidance for the rest of the year.
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