Joe Santos's questions to TransDigm Group Inc (TDG) leadership • Q3 2025
Question
Joe Santos from UBS asked about the drivers of the strong margin performance, questioning if it was due to business mix or sustainable efficiencies. He also inquired about the margin outlook if the OE business were to ramp up faster.
Answer
CFO Sarah Wynne noted that while margins were strong, the Q4 guidance implies a slight decline, reflecting conservatism and an anticipated mix shift toward more OEM revenue. Co-COO Mike Lisman added that a faster ramp in the lower-margin OEM business would naturally weigh on the overall margin percentage compared to the aftermarket.