Slides
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FY 2026 Q1 Earnings Call February 3, 2026
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Agenda TransDigm Overview, Highlights and Outlook Mike Lisman CEO Market Review Patrick Murphy Co-COO Operating Performance and Financial Results Sarah Wynne CFO Q&A 1
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FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , including information regarding our guidance for future periods. These forward-looking statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events, many of which are outside of our control. Consequently, such forward looking statements should be regarded solely as our current plans, estimates and beliefs. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward- looking statement. The Company does not undertake, and specifically declines, any obligation, to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers’ planes spend aloft and our customers’ profitability, both of which are affected by general economic conditions; supply chain constraints; increases in r aw material costs, taxes and labor costs that cannot be recovered in product pricing; failure to complete or successfully integrate acquisitions; our indebtedness; current and future geopolitica l or other worldwide events, including, without limitation, wars or conflicts and public health crises; cybersecurity threats; risks related to the transition or physical impacts of climate cha nge and other natural disasters or meeting regulatory requirements; our reliance on certain customers; the United States (“U.S.”) defense budget and risks associated with being a government supplier including government audits and investigations; failure to maintain government or industry approvals; risks related to changes in laws and regulations, including increases in compliance costs a nd potential changes in trade policies and tariffs; potential environmental liabilities; liabilities arising in connection with litigation; risks and costs associated with our international sales and operations; and other factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group’s most recent Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. You are cautioned not to place undue reliance on our forward-looking statements. TransDigm Group Incorporated assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. SPECIAL NOTICE REGARDING PRO FORMA AND NON-GAAP INFORMATION This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma information is based on certain assumptions and adjustments and does not purport to present TransDigm's actual results of operations or financial condition had the transactions reflected in such pro forma financial information occurred at the beginning of the relevant period, in the case of income statement information, or at the end of such period, in the case of balance sheet information, nor is it necessarily indicative of the results of operations that may be achieved in the future. This presentation also sets forth certain non-GAAP financial measures. A presentation of the most directly comparable GAAP measures and a reconciliation to such measures are set forth in the appendix. Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information 2
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Highly engineered aerospace components Proprietary products Distinguishing Characteristics Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Significant aftermarket content High free cash flow (1) Pro forma revenue is for the fiscal year ended 9/30/2025. Includes full year impact of the Simmonds Precision Products, Inc. acquisition completed October 2025 and Servotronics, Inc. acquisition completed July 2025. Please see the Special Notice Regarding Pro Forma and Non-GAAP Information. TransDigm Overview Non- Proprietary Proprietary OEM Aftermarket Comm OEM 25% Comm Afterma rket 32% Defen se 43% 3
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65% Com Transport Q1 Review – Pro Forma Revenues⁽¹⁾ Commercial OEM: Q1 ’26 Commercial Transport Revenue Up 18% Q1 ’26 Business Jet/Helicopter Revenue Up 15% Commercial Aftermarket: Q1 ’26 Commercial Transport Revenue Up 8% Q1 ’26 Business Jet/Helicopter Revenue Up 1% Defense: Q1 ’26 Defense OEM Growth Outpaced Defense Aftermarket Revenue Growth Well Distributed Across Businesses Highlights Q1 Commercial OEM: Up 17% Commercial Aftermarket: Up 7% Defense: Up 7% Actual vs. Prior Year 2026 Q1 Financial Performance by Markets – Pro Forma 35% Biz Jet/Heli (1) Pro forma revenue for all periods includes full year impact of the Simmonds Precision Products, Inc. acquisition completed October 2025 and Servotronics, Inc. acquisition completed July 2025. Please see the Special Notice Regarding Pro Forma and Non-GAAP Information. 20% Biz Jet/Heli 80% Com Transport 4
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($ in millions, except per share amounts) Q1 FY 2026 Q1 FY 2025 Revenue $2,285 $2,006 13.9% Increase Gross Profit $1,352 $1,235 59.2% 61.6% -2.4% SG&A $254 $211 % to Sales 11.1% 10.5% 0.6% Interest Expense - Net $475 $378 25.7% Increase EBITDA As Defined $1,197 $1,061 12.8% Increase Margin % 52.4% 52.9% Adjusted EPS $8.23 $7.83 5.1% Increase GAAP Tax Rate 22.2% 20.4% Adjusted Tax Rate 23.8% 23.9% First Quarter 2026 Select Financial Results • Application of our value-driven operating strategy • Acquisition dilution • Interest on the additional debt raised in Q4 fiscal 2025 • Acquisition dilution 5
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25% Commercial OEM 32% Commercial Aftermarket 43% Defense Mid Single-Digit to High Single-Digit % Range Market FY 2025 Pro Forma Revenue Mix (1) High Single-Digit to Mid Teens % Range High Single-Digit % Range FY 2026 Expected Growth Market Growth Assumptions Fiscal 2026 Outlook Guidance Summary (1) Pro forma revenue is for the fiscal year ended 9/30/2025. Includes full year impact of the Simmonds Precision Products, Inc. acquisition completed October 2025 and Servotronics, Inc. acquisition completed July 2025. Please see the Special Notice Regarding Pro Forma and Non-GAAP Information. ($ in millions, except per share amounts) 6 Low High Revenues 9,845$ 10,035$ Net Income 1,952$ 2,064$ GAAP EPS 32.47$ 34.39$ EBITDA As Defined 5,140$ 5,280$ % of sales 52.2% 52.6% Adj. EPS 37.42$ 39.34$ FY 26 Guidance Current Prior ∆ Revenues 9,940$ 9,850$ 90$ EBITDA As Defined 5,210$ 5,150$ 60$ % of sales 52.4% 52.3% Adj. EPS 38.38$ 37.51$ 0.87$ FY 26 Guidance Midpoint Change
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Fiscal 2026 Select Financial Assumptions (1) Other EBITDA As Defined Add-Backs primarily include estimates for refinancing costs, foreign currency gains or losses, employer withholding taxes on stock option exercises, acquisition-related expenses and adjustments and other, net. Select Financial Assumptions for Fiscal 2026 Prior Assumptions (Issued November 2025) Updated Assumptions Capital Expenditures $280 to $310 million No change Full Year Net Interest Expense ≈ $1.90 billion (includes $60 million of interest income) No change Full Year Effective Tax Rate ≈ 22% to 24% for GAAP EPS, Adjusted EPS and Cash Taxes No change Depreciation & Amortization Expense (ex backlog) $375 to $385 million No change Backlog Amortization $35 to $40 million No change Non-Cash Stock Compensation and Deferred Compensation Expense $205 to $225 million $180 to $200 million Other EBITDA As Defined Add- Backs (1) $45 to $55 million $75 to $85 million Weighted Average Shares 58.5 million 58.3 million 7
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FY 2026 Guidance Midpoint Net income 2,008$ Adjustments: Depreciation and amortization expense 415 Interest expense - net 1,900 Income tax provision 619 EBITDA 4,942 Adjustments: Acquisition transaction and integration-related expenses (1) 54 Non-cash stock and deferred compensation expense (1) 190 Other, net (1) 24 Gross Adjustments to EBITDA 268 EBITDA As Defined $5,210 EBITDA As Defined Margin (1) 52.4% GAAP earnings per share $33.43 Adjustments to earnings per share: Inclusion of the dividend equivalent payments 1.02 Acquisition transaction and integration-related expenses 1.17 Non-cash stock and deferred compensation expense 2.50 Other, net 0.26 Adjusted earnings per share $38.38 Weighted-average shares outstanding 58.3 GAAP & Adj Tax Rate 22% - 24% Reconciliation of Fiscal 2026 Outlook (1) Refer to tables in Appendix for definitions of Non-GAAP measurement adjustments. ($ in millions, except per share amounts) 8 Includes approx. $35m of backlog amortization
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Full Year Guidance Mid-Point GAAP earnings per share 6.62$ 7.62$ 33.43$ Adjustments to earnings per share: Dividend equivalent payments 1.02 0.83 1.02 Acquisition transaction and integration- related expenses 0.25 0.26 1.17 Non-cash stock and deferred compensation expense 0.35 0.33 2.50 Tax adjustment on income from continuing operations before taxes (0.15) (0.37) - Other, net 0.14 (0.84) 0.26 Adjusted earnings per share 8.23$ 7.83$ 38.38$ Thirteen Week Periods Ended September 30, 2026December 28, 2024December 27, 2025 Reconciliation of GAAP EPS to Adjusted EPS - Guidance 9
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Capital Structure Capital Structure ($ in millions) 10 Actual 12/27/25 Rate Cash $2,528 $910mm revolver – S + 2.250% $725m m A R se curitization facility 725 S + 1.350% First lien term loan J due 2031 3,595 S + 2.500% First lien term loan K due 2030 3,544 S + 2.250% Fi rst l i en term l oan L due 2032 1,485 S + 2.500% First lien term loan M due 2032 2,500 S + 2.500% Senior secured notes due 2028 2,100 6.750% Senior secured notes due 2029 2,750 6.375% Senior secured notes due 2030 1,450 6.875% Senior secured notes due 2031 1,000 7.125% Senior secured notes due 2032 2,200 6.625% Senior secured notes due 2033 1,500 6.000% Senior secured notes due 2034 500 6.250% Total secured debt $23,349 4.8x Total net secured debt $20,821 4.3x Senior subordinated notes due 2029 1,200 4.625% Senior subordinated notes due 2029 750 4.875% Senior subordinated notes due 2033 2,650 6.375% Senior subordinated notes due 2034 2,000 6.750% Fi nance Lease Obl i gati ons 304 Total debt $30,253 6.2x Total net debt $27,725 5.7x FY26 Forecasted Weighted Average Interest Rate 6.3%
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Interest Rate Sensitivity • Interest rates on TDG’s $30Bn of gross Debt is ~ 75% hedged/fixed rate through fiscal year 2029 • Achieved via a combination of interest rate caps, swaps and collars • Significantly reduces near-term exposure to any variable rate increases 11 (1) FY 26 Weighted Average Variable rate is the average Term SOFR for TDG's 2026 fiscal year based on current consensus and management estimates. (2) Interest expense shown includes $55M amortization of debt issuance costs and fees and $60M of Interest income.
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Debt Maturity Profile Debt Maturity Profile ($MM) 12 Note 1: $910M Revolver matures in February 2029 Note 2: $725M AR Securitization renews annually in July 0 1000 2000 3000 4000 5000 6000 7000 2026 2027 2028 2029 2030 2031 2032 2033 2034 Secured Term Loans Secured Notes Sr Sub Notes Calendar Year
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December 27, 2025 December 28, 2024 Net Income 445$ 493$ Adjustments: Depreciation and amortization expense 100 90 Interest expense - net 475 378 Income tax provision 127 126 EBITDA 1,147 1,087 Adjustments: Acquisition transaction and integration-related expenses (1) 12 13 Non-cash stock and deferred compensation expense (2) 27 25 Other, net (3) 11 (64) Gross Adjustments to EBITDA 50 (26) EBITDA As Defined 1,197$ 1,061$ EBITDA As Defined, Margin (4) 52.4% 52.9% (4) The EBITDA As Defined Margin represents the amount of EBITDA As Defined as a percentage of net sales. Thirteen Week Periods Ended (1) Represents costs incurred to integrate acquired businesses into our operations; facility relocation costs and other acquisition- r elated c osts; tr ansac tion and v aluation- r elated c osts for ac quisitions c ompr ising deal fees, legal, financ ial and tax due diligenc e expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses. (2) Represents the compensation expense recognized under our stock option plans and deferred compensation plans. (3) P r imar ily r epr esents for eign c ur r enc y tr ansac tion gains or losses, pay r oll withholding tax es r elated to div idend equiv alent payments and stock option exercises, non-service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business. Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) 13
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Reported Earnings Per Share December 27, 2025 December 28, 2024 Net i ncome 445$ 493$ Less: Net income attributable to noncontrolling interests - - Net income attributable to TD Group 445 493 Less: Dividends paid on participating securities (59) (49) Net income applicable to TD Group common stockholders - basic and diluted 386$ 444$ Weighted-average shares outstanding under the two-class method: Weighted-average common shares outstanding 56.4 56.2 Vested options deemed participating securities 1.8 2.1 Total shares for basic and diluted earnings per share 58.2 58.3 Earnings per share -- basic and diluted 6.62$ 7.62$ Adjusted Earnings Per Share Net i ncome 445$ 493$ Gross adjustments to EBITDA 50 (26) Purchase accounting backlog amortization 8 6 Tax adjustment (1) (24) (17) Adjusted net income 479$ 456$ Adjusted diluted earnings per share under the two-class method 8.23$ 7.83$ Thirteen Week Periods Ended (1) For the thirteen week periods ended December 27, 2025 and December 28, 2024, the Tax adjustment represents the tax effect of the adjustments at the applic able effec tiv e tax r ate, as well as the impac t on the effec tiv e tax r ate when ex c luding the ex c ess tax benefits on stock option exercises. Stock compensation expense is excluded from adjusted net income and therefore we have excluded the impact that the excess tax benefits on stock option exercises have on the effective tax rate for determining adjusted net income. Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) 14
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December 27, 2025 December 28, 2024 Net cash provided by operating activities 832$ 752$ Adjustments: Changes in assets and liabilities, net of effects from acquisitions and sales of businesses (250) (156) Interest expense - net (1) 464 369 Income tax provision - current 128 128 Gain on sale of businesses, net - 19 Non-cash stock and deferred compensation expense (2) (27) (25) EBITDA 1,147 1,087 Adjustments: Acquisition transaction and integration-related expenses (3) 12 13 Non-cash stock and deferred compensation expense (2) 27 25 Other, net (4) 11 (64) EBITDA As Defined 1,197$ 1,061$ (4) Primarily represents foreign currency transaction gains or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non- service related pension costs, deferred compensation payments and other miscellaneous income or expense, such as gain on sale of business. (3) Repr esents c osts inc ur r ed to integr ate ac quir ed businesses into our oper ations; fac ility r eloc ation c osts and other ac quisition-r elated c osts; tr ansac tion and v aluation- related costs for acquisitions comprising deal fees, legal, financial and tax due diligence expenses; and amortization expense of inventory step-up recorded in connection with the purchase accounting of acquired businesses. (1) Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and discount on debt. (2) Represents the compensation expense recognized under our stock option plans and deferred compensation plans. Thirteen Week Periods Ended Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) 15