Short answer
TransDigm Group (TDG) filed its fiscal 2025 10-K annual report with the SEC on Nov 12, 2025. It reported revenue of $8.8B (+11.2% year over year) and net income of $2.1B.
- Top risk flagged: U.S. Government contract risk: firm-fixed price contracts expose TransDigm to cost overruns and audit adjustments by DOD affecting profitability
FY2025 key financial metrics · XBRL
- Revenue
- $8.8B
- +11.2% YoY
- Net income
- $2.1B
- +21.0% YoY
- Operating margin
- 47.2%
- +2.7 pp YoY
- Gross margin
- 60.1%
- +1.3 pp YoY
- EPS (diluted)
- $32.08
- +25.2% YoY
- ROE
- -21.4%
- +5.8 pp YoY
- Operating cash flow
- $2.0B
- −0.3% YoY
Source: XBRL data from the TransDigm Group (TDG) FY2025 10-K on SEC EDGAR. USD.
TransDigm Group FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: designer, producer, supplier of highly engineered proprietary aircraft components with ~90% sales from proprietary products
- Strategic emphasis on selective acquisitions, adding to 95 businesses acquired since 1993 targeting aerospace components with strong aftermarket content
- Aftermarket revenue prominent: approx. 55% of fiscal 2025 net sales, offering higher gross profit and stability vs OEM sales
- Segment organization into Power & Control, Airframe, and Non-aviation, with diversified customer base (top 10 clients = 40% sales, none >10%)
- Notable product expansion includes specialized NASA space telescope equipment and parachutes for military personnel
Management Discussion & Analysis
- Net sales $6,994M in fiscal 2025; no YoY sales growth data provided for comparison
- Operating income $1,446M and net income $2,074M in fiscal 2025; EBITDA $4,568M vs $3,813M in fiscal 2024, EBITDA margin approx. 65.3% in 2025 (versus not reported)
- Segment performance details not separately disclosed for best/worst performers
- Operating cash flow $2,038M in 2025 vs $2,045M in 2024; capital expenditures $222M vs $165M, special dividends $5,073M paid in 2025, share repurchases $600M total in fiscal 2025
- Management expects capital expenditures ~2.5% to 3.25% of net sales in 2026, plans to fund acquisitions/dividends/stock repurchases from operating cash flow and debt; significant liquidity of $3,665M as of Sept. 30, 2025
Risk Factors
- U.S. Government contract risk: firm-fixed price contracts expose TransDigm to cost overruns and audit adjustments by DOD affecting profitability
- Geopolitical impact: Russia-Ukraine conflict risks increased energy costs and sanctions affecting raw material availability and aviation sector stability
- Supply chain vulnerability: reliance on certified suppliers complicates switching due to lengthy aviation authority approvals for raw materials and components
- Competitive pressure: major OEM customers (Boeing, Airbus) affected by aerospace downturns and labor disputes impacting production and sales volume
- Financial leverage risk: significant indebtedness with variable-rate loans tied to Term SOFR increasing interest expenses and restrictive covenants limiting operational flexibility
Generated from the filing text; verify against the original. How to read a 10-K
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