> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # TransDigm Sales Climb 23%, But Higher Interest And Taxes Push Profit Down 4% - URL: https://www.bullished.co/transdigm-sales-climb-23-but-higher-interest-and-taxes-push-profit-down-4-89ad0a6c/ - Published: 2026-11-10T11:51:42.000Z - Updated: 2026-11-10T11:51:42.000Z - Description: The aircraft-parts maker expects 14% sales growth at the midpoint of its fiscal 2027 forecast. - Author: Matteo Parrino - Tags: SEC Filings, TDG, Industry: Industrials TransDigm, which makes components for commercial and military aircraft, posted a 4% drop in fourth-quarter profit to $586 million even as sales climbed 23%, according to its [earnings announcement](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000073/tdg-20261110.htm?ref=bullished.co) filed Tuesday. The company attributed the decline chiefly to higher interest costs from a larger debt balance and higher taxes. ## Borrowing Costs Absorb The Gains Quarterly net interest expense reached [$536 million](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000073/exhibit991tdg2026q4earning.htm?ref=bullished.co), compared with $420 million a year earlier, while income taxes rose to $192 million from $143 million. Net income had been $609 million in the prior-year quarter. Sales reached $3.0 billion, up from $2.4 billion, with growth excluding acquisitions of 14%. Adjusted net income increased 12% to $706 million from $629 million; adjusted earnings per share rose 15% to $12.44 from $10.82. The company's adjusted EBITDA—a measure excluding interest, taxes, depreciation, amortization and selected other costs—rose 20% to $1.6 billion. Its margin narrowed to 53.0% from 54.2%, with recent acquisitions reducing the latest margin by approximately two percentage points. “Our fourth quarter results exceeded the high end of our most recent guidance for both revenue and EBITDA As Defined,” TransDigm Chief Executive Officer Mike Lisman [said Tuesday](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000073/exhibit991tdg2026q4earning.htm?ref=bullished.co). ## Acquisitions And Buybacks Add Up TransDigm sells parts for new aircraft and replacements throughout their operating lives. Replacement-parts sales accounted for approximately 55% of fiscal 2025 net sales; its products include pumps, valves, cockpit displays and safety restraints. Fiscal 2026 sales rose 20% to $10.6 billion, while net income increased 2% to $2.1 billion. Adjusted earnings per share reached $41.35 from $37.33, and the annual adjusted EBITDA margin fell to 52.7% from 53.9%. Lisman said the company spent approximately $4.4 billion on acquisitions, including Simmonds Precision Products, Jet Parts Engineering, Victor Sierra Aviation, Prince & Izant and twelve smaller purchases by operating units. TransDigm completed its [Prince & Izant purchase](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000064/exhibit991pressreleaseprin.htm?ref=bullished.co) on September 28 for approximately $1.07 billion in cash, including tax benefits, using cash on hand. The business makes brazing alloys and specialty metal components. TransDigm had [priced $3.0 billion](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000059/tdg-20260914.htm?ref=bullished.co) of secured notes at 6.75%, increasing the offering from $2.5 billion. It completed that offering on September 28 and used proceeds to repurchase approximately $1.8 billion of notes due in 2028 and for general corporate purposes. Quarterly buybacks totaled $943 million for 820,000 shares at an average $1,150.00 each. For fiscal 2026, the company spent $2.8 billion buying back 2.3 million shares at an average $1,187.00, an annual repurchase total Lisman called a record. ## Another Year Of Double-Digit Growth TransDigm expects fiscal 2027 sales of [$11.95 billion to $12.15 billion](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000073/exhibit991tdg2026q4earning.htm?ref=bullished.co), a 14% increase at the midpoint. It forecasts adjusted earnings per share of $47.09 to $47.94, up 15% at the midpoint from fiscal 2026. Management expects net income of about $2.4 billion to $2.5 billion, representing 17% midpoint growth, and an adjusted EBITDA margin of approximately 52.0%. Its assumptions include commercial aircraft-manufacturer revenue growth ranging from under 10% to a little over 10%, with commercial aftermarket and defense growth each under 10%. Extant Aerospace, a TransDigm operating unit, has a pending [asset purchase](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000062/tdg-20260921.htm?ref=bullished.co) for approximately $240 million in cash covering commercial rotorcraft, land-system and business-jet products, plus a California facility. TransDigm expects it to close during fiscal 2027. Learn - [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations) From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples ### Sources - [8-K Filing — TransDigm Group INC (TDG)](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000073/tdg-20261110.htm?ref=bullished.co) — SEC EDGAR - [Exhibit exhibit991tdg2026q4earning.htm — TransDigm Group INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000073/exhibit991tdg2026q4earning.htm?ref=bullished.co) — SEC EDGAR - [TransDigm Group Reports Fiscal 2026 Fourth Quarter and Year-End Results](https://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2026-fourth-quarter-and-year-end-results-302934228.html?ref=bullished.co) — prnewswire.com - [8-K filed 2026-09-28 — TransDigm Group INC (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000064/exhibit991pressreleaseprin.htm?ref=bullished.co) — SEC EDGAR - [8-K filed 2026-09-21 — TransDigm Group INC (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000062/tdg-20260921.htm?ref=bullished.co) — SEC EDGAR - [8-K filed 2026-09-14 — TransDigm Group INC (earlier disclosure)](https://www.sec.gov/Archives/edgar/data/0001260221/000126022126000059/tdg-20260914.htm?ref=bullished.co) — SEC EDGAR