TransDigm Group Incorporated TDG reported first-quarter fiscal 2025 adjusted earnings of $7.83 per share, which beat the Zacks Consensus Estimate of $7.48 by 4.7%. The bottom line also improved 9.4% from the prior-year quarter’s figure of $7.16 per share.

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Barring one-time items, the company recorded GAAP earnings of $7.62 per share compared with $4.87 in the year-ago quarter.

The year-over-year growth in the bottom line was primarily driven by the increase in net sales and the application of the company’s value-driven operating strategy as well as lower non-cash stock and deferred compensation expense.

TransDigm’s Q1 Sales Discussion

Sales amounted to $2.01 billion, up 12.1% from $1.79 billion registered in the prior-year period. The reported figure also beat the Zacks Consensus Estimate of $1.99 billion by 0.6%.

Organic sales, as a percentage of net sales, grew 6.6%.

Transdigm Group Incorporated Price, Consensus and EPS Surprise

Transdigm Group Incorporated price-consensus-eps-surprise-chart | Transdigm Group Incorporated Quote

TDG’s Operating Results

The gross profit was $1.24 billion, up 18.5% from the year-ago quarter’s level of $1.04 billion.

TDG’s interest expense increased 26% year over year to $378 million.

Net income increased 29.1% year over year to $493 million.

TransDigm’s Financial Position

Cash and cash equivalents as of Dec. 28, 2024, amounted to $2.46 billion, down from $6.26 billion recorded as of Sept. 30, 2024.

Long-term debt totaled $24.30 billion, almost in line with $24.30 billion as of Sept. 30, 2024.

Cash from operating activities amounted to $752 million compared with $636 million at the end of the first quarter of fiscal 2024.

TDG’s 2025 Guidance

TransDigm partially revised its guidance for fiscal 2025. It still expects sales to be in the range of $8.75-$8.95 billion. The Zacks Consensus Estimate for the same is pegged at $8.86 billion, just above the midpoint of the company’s guided range.

TDG now expects fiscal 2025 adjusted earnings to be in the band of $35.51-$37.43 per share, higher than the prior guided range of $35.36-$37.28. The Zacks Consensus Estimate for TDG’s fiscal 2025 earnings is pegged at $37.08 per share, higher than the midpoint of its guided range.

TDG’s Zacks Rank

TransDigm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the consensus estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.

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