TDG · 10-Q · 2026Q2 · Full report

Operating Expense Trends

TransDigm Group INC · 2026-08-04 · Importance 59 · Surprise 48 · In source text

Selling and administrative expenses increased $170 million, or 24.7%, to $859 million for the first nine months of fiscal 2026, rising to 11.3% of sales from 10.8%. Third-quarter selling and administrative expenses increased $90 million to $332 million and rose to 12.1% of sales from 10.8%. The increase reflected acquisition dilution, costs supporting higher sales growth and increased general and administrative expenses. Amortization of intangible assets increased to 2.4% of first-nine-month sales from 2.3%, while EBITDA As Defined increased 15.7% to $3,981 million but declined to 52.6% of sales from 53.8%.

Key facts

• Thirteen week period ended June 27, 2026 selling and administrative expenses increased to $332 million (12.1% of net sales). source
• Thirty-nine week period selling and administrative expenses: $859 million (11.3% of net sales), an increase of $170 million versus prior year. source
• Income from operations for the thirty-nine week period ended June 27, 2026: $1,020 million source
• Depreciation and amortization expense and interest expense-net are included as adjustments in the reconciliation to EBITDA (interest expense-net shown as 1,472 and 1,152 in the top reconciliation section) source
• Unallocated corporate EBITDA As Defined consisted primarily of corporate expenses including compensation, benefits, professional services and other administrative costs incurred by corporate offices. source

Impact estimates