TransDigm(US:TDG)2026-02-03 12:19Financial Performance - Net sales for Q1 2026 increased by 13.9% to $2,285 million from $2,006 million in Q1 2025, with organic sales growth at 7.4%[3] - Net income for the quarter was $445 million, a decrease of 9.7% compared to $493 million in the prior year, primarily due to higher interest expenses[4] - Adjusted net income rose by 5.0% to $479 million, or $8.23 per share, compared to $456 million, or $7.83 per share, in the same quarter last year[6] - EBITDA for the quarter increased by 5.5% to $1,147 million, while EBITDA As Defined rose by 12.8% to $1,197 million, with a margin of 52.4%[7] - Gross profit for the same period was $1,352 million, up from $1,235 million, reflecting a gross margin of 59.2%[30] - EBITDA for the thirteen-week period was $1,147 million, compared to $1,087 million in the prior year, with an EBITDA As Defined margin of 52.4%[33][39] - Net income attributable to TD Group for the period was $445 million, down from $493 million, resulting in earnings per share of $6.62, compared to $7.62 in the previous year[30][34] - Adjusted diluted earnings per share for the thirteen-week period were $8.23, compared to $7.83 in the same period last year[34] Future Guidance - Fiscal 2026 financial guidance was raised, anticipating net sales between $9,845 million and $10,035 million, a 12.6% increase at the midpoint compared to $8,831 million in fiscal 2025[18] - Expected net income for fiscal 2026 is projected to be between $1,952 million and $2,064 million, reflecting a decrease of 3.2% at the midpoint compared to fiscal 2025[18] - Earnings per share for fiscal 2026 are expected to range from $32.47 to $34.39, an increase of 4.2% at the midpoint compared to $32.08 in fiscal 2025[18] - EBITDA As Defined for fiscal 2026 is anticipated to be between $5,140 million and $5,280 million, a 9.5% increase at the midpoint compared to $4,760 million in fiscal 2025[18] - The company provided guidance for fiscal year 2026, projecting net sales between $9,845 million and $10,035 million, and adjusted earnings per share between $37.42 and $39.34[41] - The current fiscal year 2026 guidance reflects an increase in net income expectations by $42 million compared to prior guidance, with a midpoint of $1,952 million to $2,064 million[41] Acquisitions and Capital Allocation - The company announced two acquisitions expected to cost approximately $3.2 billion, targeting businesses with proprietary products that generate significant aftermarket revenue[10] - The company remains focused on capital allocation and has significant liquidity to address capital requirements for future growth[10] Cash and Debt Management - Cash and cash equivalents as of December 27, 2025, were $2,528 million, a decrease from $2,808 million at the end of September 2025[37] - Long-term debt stood at $29,197 million, slightly up from $29,167 million in the previous quarter[37] - The company reported net cash provided by operating activities of $832 million for the thirteen-week period, an increase from $752 million in the prior year[35]