TransDigm Group (TDG) Company Report

TransDigm Group (NYSE: TDG) will purchase Stellant Systems, a designer and manufacturer of RF and microwave amplification products, from Arlington Capital Partners for $960 million.
Stellant operates across four U.S. facilities totaling over 700,000 sq ft of manufacturing space and employs approximately 950 people.
The transaction is expected to close in 2026, subject to customary regulatory approvals and closing conditions.

Dec 31, 2025, 1:45 PM

Press Release

TransDigm to acquire Stellant Systems for $960M

TDG

M&A

TransDigm will acquire Stellant Systems for $960 million in cash, including tax benefits, subject to closing conditions and U.S. regulatory approvals.
Stellant is projected to generate about $300 million in 2025 revenue, with nearly half from proprietary aftermarket products.
The deal supports TransDigm’s acquisitive strategy to expand high-margin defense, space and satellite components and is expected to create long-term equity value.
Independent metrics flag potential stress: TransDigm’s Altman Z-Score is 1.96, placing it in a ‘grey area’ for financial distress.
Investors valued TransDigm at roughly $74 billion following the announcement, noting its leverage and $691.76 million of insider selling over the past year.

Dec 31, 2025, 1:38 PM

Morningstar

TransDigm acquires Stellant Systems

TDG

M&A

TransDigm Group entered into a definitive agreement to acquire Stellant Systems, Inc. for approximately $960 million in cash, including certain tax benefits.
Stellant is a designer and manufacturer of high-power electronic components and subsystems for the aerospace and defense markets, expected to generate $300 million in revenue for the calendar year ending December 31, 2025, with 50% aftermarket content and nearly all revenue from proprietary products; the company employs about 950 people across four U.S. manufacturing sites.
The acquisition, designed to add high-margin, proprietary products to TransDigm’s portfolio and support its long-term private equity–style return objectives, is subject to U.S. regulatory approvals and customary closing conditions.

Dec 31, 2025, 1:33 PM

8-K

TransDigm acquires Stellant Systems

TDG

M&A

TransDigm entered into a definitive agreement to acquire Stellant Systems, Inc. for approximately $960 million in cash, including tax benefits.
Stellant is a leading designer and manufacturer of high-power electronic components and subsystems for aerospace and defense, with roughly 50% of revenue from the aftermarket and nearly all from proprietary products.
Stellant is projected to generate about $300 million in revenue for the calendar year ending December 31, 2025, operates four manufacturing sites, and employs around 950 people.
The deal is subject to customary U.S. regulatory approvals and aligns with TransDigm’s strategy of acquiring aftermarket-focused, proprietary businesses to drive long-term value.

Dec 31, 2025, 1:30 PM

Press Release

TransDigm reports Q4 2025 results and FY26 guidance

TDG

Earnings

Guidance Update

M&A

In Q4, TransDigm’s EBITDA margin was 54.2%, with commercial OEM revenue +7%, aftermarket +11%, defense +16%; generated >$500 M in operating cash flow and ended with >$2.8 B cash ($2 B pro forma Simmons)
Fiscal 2025 revenue and EBITDA as defined margins surpassed guidance; full-year channel growth: OEM –1%, aftermarket +10%, defense +13%
Fiscal 2026 guidance: revenue $9.85 B (+12%), EBITDA $5.15 B (+8%) at 52.3% margin, and adjusted EPS $37.51
FY25 capital allocation: ~$7 B deployed to M&A (Servotronics, Simmons Precision, ~$300 M tuck-ins) and shareholder returns (special dividend $90/share, $600 M share repurchases), leaving net debt/EBITDA at 5.8×
Recent acquisitions are expected to dilute margins by ~200 bps, but adjusting for M&A and mix headwinds, the core business delivered 0.5–1.5% annual margin expansion; M&A pipeline remains aerospace-focused and disciplined

Nov 12, 2025, 4:00 PM

Transcript

TransDigm reports Q4 FY2025 results

TDG

Earnings

Guidance Update

Q4 FY2025 revenue of $2,437 million, up from $2,185 million YoY; EBITDA As Defined of $1,320 million (54.2% margin) and adjusted EPS of $10.82.
Full-year FY2025 revenues of $8,831 million, up from $7,940 million; FY2025 adjusted EPS of $37.33, up from $33.99 in FY2024.
Q4 2025 pro forma revenue growth by market: Commercial OEM +7%, Commercial Aftermarket +11%, Defense +16%.
Fiscal 2026 guidance: revenues of $9.75 billion–$9.95 billion, adjusted EPS of $36.49–$38.53, with expected market growth in Commercial OEM (high single- to mid-teens), Commercial Aftermarket (high single-digit) and Defense (mid to high single-digit).

Nov 12, 2025, 4:00 PM

Presentation

TransDigm reports fiscal 2025 Q4 and year-end results

TDG

Earnings

Dividends

Debt Issuance

Q4 net sales of $2,437 million, up 12% year-over-year; fiscal 2025 net sales of $8,831 million, up 11%
Q4 net income of $609 million (30% increase) and EPS of $7.75 (34% increase); FY net income $2,074 million (21% increase) and EPS $32.08 (25% increase)
Q4 EBITDA As Defined of $1,320 million (15% increase) with a 54.2% margin; FY EBITDA As Defined of $4,760 million (14% increase) with a 53.9% margin
Declared a special cash dividend of $90.00 per share, with total payouts of approximately $5.2 billion funded by a $5.0 billion new debt issuance

Nov 12, 2025, 12:18 PM

8-K

TransDigm Group reports fiscal 2025 Q4 and year-end results

TDG

Earnings

Guidance Update

Dividends

Q4 net sales of $2,437 million (+12%) and EPS of $7.75 (+34%)
FY 2025 net sales of $8,831 million (+11%) and EPS of $32.08 (+25%), with EBITDA As Defined margin of 53.9%
Declared a special cash dividend of $90.00 per share (total ~$5.2 billion) and repurchased ~400 thousand shares for $0.5 billion in fiscal 2025
Fiscal 2026 guidance: net sales of $9,750–9,950 million (+11.5%), EPS of $31.55–33.59, and EBITDA As Defined of $5,075–5,225 million (≈52.3% margin)

Nov 12, 2025, 12:15 PM

Press Release

TransDigm completes acquisition of Simmonds Precision Products

TDG

M&A

Completed acquisition of Simmonds Precision Products business from RTX for $765 million in cash, including certain tax benefits, financed through cash on hand.
Simmonds, based in Vergennes, Vermont, is a leading global designer and manufacturer of fuel & proximity sensing and structural health monitoring solutions for aerospace and defense.
The acquired business employs approximately 900 people and is projected to generate $350 million in revenue for the calendar year ending December 31, 2025.

Oct 6, 2025, 11:54 AM

8-K

TransDigm Group completes acquisition of Simmonds Precision Products business

TDG

M&A

TransDigm Group (NYSE: TDG) completed its acquisition of the Simmonds Precision Products business from RTX Corporation for approximately $765 million in cash, including certain tax benefits, financed through cash on hand.
Simmonds, headquartered in Vergennes, Vermont, designs and manufactures fuel & proximity sensing and structural health monitoring solutions for aerospace and defense markets, with roughly 40% of its revenue from the aftermarket and nearly all revenue from proprietary products.
The acquired business is expected to generate about $350 million in revenue for the calendar year ending December 31, 2025, and employs approximately 900 people.

Oct 6, 2025, 11:49 AM

Press Release