TDG TransDigm Group INC

Overview and Growth

In fiscal 2025, TransDigm Group INC recorded $8.83B of revenue, net income of $2.07B, and an operating cash inflow of $2.04B. Revenue of $8.83B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $7.94B in fiscal 2024, revenue recorded a 11.2% year-over-year increase. On a per-share basis, diluted EPS was $32.08, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 25.2% increase from fiscal 2024 diluted EPS of $25.62. The revenue-to-assets relationship was 0.39x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $5.31B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 60.1%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $4.17B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 47.2%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $2.07B, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 23.5% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $2.63B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 29.8%, relating income before taxes directly to revenue. The company recognized $555.00M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 21.1%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

Total assets were $22.91B, supported by $32.59B of liabilities and -$9.68B of shareholder equity. Equity was negative at -$9.68B, meaning liabilities exceeded the residual book value available to shareholders and weakening balance-sheet resilience. At period end, current assets of $7.01B compared with current liabilities of $2.18B, defining the company’s short-term resource position. Current assets covered current liabilities by 3.21x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $2.81B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 128.7% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $29.41B, adding a fixed financing obligation alongside the company’s equity capital. Relative to total assets, debt measured 128.4%, showing how much of the asset base was matched by borrowing. Liabilities represented 142.2% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 12.3% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $2.04B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 0.98x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $222.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 10.9% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $1.82B, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 20.6%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 7.9%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Sep 30, 2025. Analysis generated Oct 21, 2026.