TransDigm Group

TDG

Market cap $74.2B

ATRO has an edge over TDG as rising aircraft demand, strong ROIC and upbeat 2026-27 estimates position it for long-term aerospace growth.

During the fourth quarter, we initiated a new position in the leading energy-focused specialty contracting company, Quanta Services. Within the existing portfolio, our biggest addition during the quarter was to MSCI, a leading provider of indexes and investment decision support tools. We also added to our position in Danaher Corporation.

Aircraft production is years behind schedule, extending the maintenance and repair cycle for both engines and parts. TransDigm's operating margin is double GE Aerospace's, yet GE trades at a higher valuation.

My concentrated portfolio emphasizes high-conviction holdings: LandBridge, Texas Pacific Land (TPL), QXO Inc., Old Dominion Freight Line (ODFL), and Carlisle Companies (CSL). I prioritize companies with durable business models, high ROIC, pricing power, optionality, strong management, and attractive reinvestment runways over simple valuation metrics. Energy, commercial remodeling, data centers, and AI-driven disruption in fragmented industries are my core secular growth themes.

TransDigm (TDG) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.

The headline numbers for TransDigm (TDG) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

TransDigm Group Incorporated (TDG) Q1 2026 Earnings Call Transcript

TDG beats Q1 earnings and sales estimates as revenues jump 14%. It also raises its fiscal 2026 sales and adjusted EPS guidance.

TransDigm Group (TDG) came out with quarterly earnings of $8.23 per share, beating the Zacks Consensus Estimate of $8.02 per share. This compares to earnings of $7.83 per share a year ago.

CLEVELAND, Feb. 3, 2026 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the first quarter ended December 27, 2025. First quarter highlights include: Net sales of $2,285 million, up 14% from $2,006 million in the prior year's quarter; Net income of $445 million; Earnings per share of $6.62; EBITDA As Defined of $1,197 million, up 13% from $1,061 million in the prior year's quarter; EBITDA As Defined margin of 52.4% Adjusted earnings per share of $8.23, up 5% from $7.83 in the prior year's quarter; and Upward revision to fiscal 2026 financial guidance.