TDG · 8-K · 20260804PR000052
Operating Margin Drivers
TransDigm Group INC · 2026-08-04 · Importance 48 · Surprise 40 · No source text
Third-quarter gross profit increased $296 million to $1,628 million from $1,332 million, while income from operations increased $188 million to $1,227 million from $1,039 million. Income from operations represented approximately 44.8% of sales, compared with approximately 46.4% a year earlier, reflecting acquisition dilution and higher operating costs. EBITDA As Defined increased 19% to $1,447 million, but its margin declined to 52.8% from 54.4%. Management said base-business EBITDA margins expanded year over year after adjusting for acquisition dilution.
Key facts
- EBITDA for the quarter increased 20% to $1,345 million from $1,123 million for the comparable quarter a year ago. source
- EBITDA As Defined as a percentage of net sales for the quarter was 52.8% compared with 54.4% in the comparable quarter a year ago. source
- EBITDA for the thirty-nine week period increased 15% to $3,781 million from $3,299 million for the comparable period a year ago. source
- EBITDA As Defined for the thirty-nine week period increased 16% to $3,981 million compared with $3,441 million in the comparable period a year ago. source
- EBITDA As Defined for the quarter: $1,447 million for the quarter ended June 27, 2026. source
- EBITDA As Defined margin for the quarter was 52.8%. source
- EBITDA As Defined margin for the thirty-nine week period was 52.6% compared with 53.8% in the comparable period a year ago. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +19.7% | EBITDA As Defined for the thirty-nine week period increased 16% to $3,981 million compared with $3,441 million in the comparable period a… |
| operating_income | positive | realized | +17.6% | EBITDA for the thirty-nine week period increased 15% to $3,781 million from $3,299 million for the comparable period a year ago. |
| operating_income | positive | realized | +8.1% | EBITDA for the quarter increased 20% to $1,345 million from $1,123 million for the comparable quarter a year ago. |
| margin | negative | realized | -1.6% | EBITDA As Defined as a percentage of net sales for the quarter was 52.8% compared with 54.4% in the comparable quarter a year ago. |
| margin | negative | realized | -1.2% | EBITDA As Defined margin for the thirty-nine week period was 52.6% compared with 53.8% in the comparable period a year ago. |
| operating_income | unclear | realized | — | EBITDA As Defined for the quarter: $1,447 million for the quarter ended June 27, 2026. |