TransDigm Group Incorporated reported fourth-quarter sales of $2.988 billion, up 23%, while net income fell 4% to $586 million as higher interest and tax expenses contributed to the decline.
The company’s earnings release, furnished as Exhibit 99.1 to a Form 8-K, covered the 13 weeks ended Sept. 30, 2026. Sales in the year-earlier quarter were $2.437 billion, and organic sales growth in the latest quarter was 14%.
Net interest expense climbed to $536 million from $420 million a year earlier, while the income-tax provision rose to $192 million from $143 million. TransDigm said higher interest expense was tied to a larger gross debt balance and, together with higher tax expense, primarily drove the decline in net income.
For fiscal 2026, sales increased 20% to $10.557 billion and net income rose 2% to $2.108 billion. EBITDA As Defined, the company’s non-GAAP measure, grew 17% to $5.563 billion. Its margin narrowed to 52.7% from 53.9%.
TransDigm forecast fiscal 2027 sales of $11.95 billion to $12.15 billion, equal to 14% growth at the midpoint. It projected adjusted earnings per share of $47.09 to $47.94. The outlook assumes high-single-digit to low-double-digit growth in commercial original equipment sales, alongside high-single-digit growth in commercial aftermarket and defense revenue.
The company said recent acquisitions reduced its fourth-quarter EBITDA As Defined margin by about two percentage points. During fiscal 2026, it repurchased 2.3 million shares for $2.8 billion and completed the $1.07 billion cash acquisition of Prince & Izant on Sept. 28.
Long-term debt stood at $33.743 billion at Sept. 30, compared with $29.167 billion a year earlier. TransDigm scheduled an investor call for 10 a.m. ET on Nov. 10, 2026.
