TransDigm Group Incorporated, listed on the NYSE under the symbol TDG, is a leading global designer and supplier of aircraft components. The company specializes in manufacturing parts for both commercial and military aircraft. It competes with other major players in the aerospace industry, focusing on delivering high-quality aftermarket parts that meet the rigorous demands of aviation.
On November 12, 2025, TDG reported impressive financial results, with earnings per share (EPS) of $10.82, surpassing the estimated $10.04. This achievement reflects the company's strong performance in the fourth quarter, driven by robust demand for its aftermarket parts. The company's revenue also exceeded expectations, reaching approximately $2.44 billion, above the estimated $2.40 billion.
The company's net sales for the fourth quarter ending September 30, 2025, increased by 12% to $2.44 billion compared to the previous year. This growth in sales contributed to a 30% rise in net income, amounting to $609 million. The increase in net income is attributed to a value-driven operating strategy and reduced non-cash stock and deferred compensation expenses, although it was partially offset by higher interest expenses.
TransDigm's financial metrics provide further insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 42.94, indicating how the market values its earnings. The price-to-sales ratio stands at about 8.50, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 11.09, suggesting how the market values the company's total value in relation to its sales.
The company's financial health is also highlighted by its current ratio of around 3.13, suggesting its ability to cover short-term liabilities with short-term assets. However, the debt-to-equity ratio is approximately -5.00, indicating a unique capital structure and financial leverage. Despite these figures, TransDigm's earnings yield of about 2.33% provides insight into the return on investment for shareholders.
