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TransDigm Group Incorporated (TDG) is a leading global designer, producer, and supplier of highly engineered proprietary aerospace components, which are critical to the operation of nearly all commercial and military aircraft worldwide . The company is organized into three reporting segments: Power & Control, Airframe, and Non-aviation . Approximately 90% of TDG's net sales are generated by proprietary products, with a significant portion of revenue coming from aftermarket sales, which account for about 55% of net sales . The company's business strategy includes a focus on obtaining profitable new business, improving cost structures, and pricing products to reflect their value .
- Power & Control - Focuses on systems and components that provide or control power in aircraft, including actuators, ignition systems, and power conditioning devices.
- Airframe - Develops components for non-power airframe applications, such as latching devices, cockpit security systems, and interior surfaces.
- Non-aviation - Caters to markets outside aviation, offering products like seat belts for ground transportation and actuators for space applications.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Kevin M. Stein ExecutiveBoard | President, Chief Executive Officer, Director | Board member of Axalta Coating Systems Ltd. | Kevin Stein has been with TDG since 2014, serving in various roles including COO. He became CEO in April 2018 and President in January 2017. He has extensive experience in manufacturing and aerospace. | View Report → |
Jessica L. Warren Executive | General Counsel, Chief Compliance Officer | None | Jessica Warren joined TDG in 2018 as Associate General Counsel and became General Counsel in February 2023. She oversees legal, compliance, and governance functions. | |
Joel B. Reiss Executive | Co-Chief Operating Officer | None | Joel Reiss has been with TDG since 2000, holding various leadership roles. He became Co-COO in May 2023, previously serving as Executive Vice President. | |
Michael Lisman Executive | Co-Chief Operating Officer | None | Michael Lisman joined TDG in 2015, focusing on mergers and acquisitions. He became Co-COO in May 2023, having previously served as CFO and Executive Vice President. | |
Sarah Wynne Executive | Chief Financial Officer | None | Sarah Wynne joined TDG in 2009 and has held various financial roles, becoming CFO in May 2023. She has played a key role in financial reporting and compliance. | |
David A. Barr Board | Director | Managing Director of Bessemer Investors; Trustee at Good Shepherd Services and Wesleyan University | Barr has been a director since 2017, bringing a private equity perspective to the board. He has extensive experience in executive compensation. | |
Gary E. McCullough Board | Director | Director at Commercial Metals Company; Chair at Rush Oak Park Hospital | McCullough joined TDG's board in 2017, bringing public company leadership and board experience. | |
Jane M. Cronin Board | Director | Senior Vice President at The Sherwin-Williams Company; Board Member at Cleveland-Cliffs Inc. | Cronin joined TDG's board in 2021, bringing expertise in accounting and financial matters. She is recognized as an audit committee financial expert. | |
Jorge L. Valladares III Board | Director | Board Member at Perimeter Solutions, SA | Valladares retired as COO in September 2023 but remains on TDG's board. He has been with TDG since 1997, contributing to its operational success. | |
Michael Graff Board | Director | Senior Advisor at Warburg Pincus LLC | Graff has been a director since 2003, contributing to TDG's strategic planning and financial management. | |
Michele L. Santana Board | Director | Chair of the Akron Zoo; member of International Women’s Forum and Women Corporate Directors | Santana joined TDG's board in 2024, with extensive experience in financial roles and private equity. | |
Robert J. Small Board | Lead Independent Director | Managing Director at Berkshire Partners LLC; involved with several educational and healthcare organizations | Small has been a director since 2010 and was appointed Lead Independent Director in 2023, enhancing board accountability and independence. | |
Sean P. Hennessy Board | Director | Director at Perimeter Solutions, SA; involved with several educational and healthcare organizations | Hennessy has been a director since 2006, offering significant financial and accounting expertise. | |
W. Nicholas Howley Board | Chairman of the Board | Director at Perimeter Solutions, SA; various roles in educational and healthcare organizations | Co-founder of TDG in 1993, Howley has been Chairman since 2003. He has played a key role in the company's strategic growth. |
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Given that you're paying higher multiples for acquisitions now than a few years ago, how do you reconcile this with your commitment to disciplined M&A and achieving a 20% IRR on every deal, especially as valuations have increased?
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With defense sales being lumpy and difficult to forecast, and the possibility of uneven growth over 2025, how are you adjusting your strategy to manage this volatility and ensure consistent performance?
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Considering that freight flights have only recently returned to growth and it's hard to predict when this will translate into revenue growth, what specific measures are you taking to mitigate uncertainty in the freight market and align your operations accordingly?
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You've mentioned ample capacity for M&A, including larger deals, to reach your target net leverage ratio; given that, can you provide more clarity on your priorities between pursuing large acquisitions versus returning capital to shareholders through buybacks or dividends?
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Your forecasting approach relies on a bottoms-up analysis without imposing top-down assumptions like RPM growth; in light of this, how do you ensure that your operating units' forecasts are aligned with broader market trends and that you're not missing critical macro indicators that could impact your business?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Raptor Scientific | 2024 | TransDigm completed the acquisition of Raptor Scientific on July 31, 2024, for a total purchase price of approximately $655 million (with a final cash payment of $647 million), financed entirely through existing cash on hand. The deal added a global manufacturer of complex test and measurement solutions—with high engineered, proprietary aerospace and defense components—to its portfolio, aligning with its long‑term value generation strategy. |
Electron Device Business of CPI | 2024 | TransDigm acquired the Electron Device Business of CPI on June 6, 2024, for about $1.385 billion in cash; the deal was financed through existing cash and proceeds from notes offerings. This acquisition enhances its portfolio in proprietary aerospace components with a strong aftermarket, backed by significant manufacturing capabilities across key global locations, and the business is integrated into the Power & Control segment. |
SEI Industries LTD | 2024 | TransDigm completed the acquisition of SEI Industries LTD on May 21, 2024, for approximately $171 million in cash (including a $1 million working capital settlement), financed with existing cash. The acquisition secured a leading provider of highly engineered aerial firefighting and liquid transportation solutions, notably the proprietary Bambi Bucket®, and was integrated into the Airframe segment to bolster aftermarket-focused operations. |
Calspan Corporation | 2023 | In 2023, TransDigm acquired Calspan Corporation for roughly $725 million in cash, leveraging existing cash on hand; the deal added a premier provider of advanced aerospace testing and technology development services—including a state‑of‑the‑art transonic wind tunnel—to its Airframe segment. The preliminary purchase price allocation included $367 million of goodwill and $243 million of other intangible assets, enhancing its aftermarket capabilities. |
DART Aerospace | 2022 | TransDigm’s acquisition of DART Aerospace was completed in May 2022 for approximately $360 million in cash, funded with existing cash on hand. This strategic deal, targeting a provider of highly engineered helicopter mission equipment solutions with a strong aftermarket focus, strengthened its presence in rotary-wing platforms, with adjustments in goodwill and intangible asset allocations integrated into the Airframe segment. |
Electromechanical Indicator Product Line from Astronautics | 2022 | Extant Aerospace, a wholly‑owned subsidiary of TransDigm, acquired the Electromechanical Indicator product line for about $27 million in cash on May 19, 2022. The deal secured key flight instruments—including ADI, HSI, and BDHI—with over 200 unique variants used in airborne defense platforms, aligning with its core business focus on sustaining complex electronic systems. |
No recent press releases or 8-K filings found for TDG.