TDG · 10-Q · 2026Q2 · Full report
Interest Rate and Refinancing Exposure
TransDigm Group INC · 2026-08-04 · Importance 49 · Surprise 6 · From source text
The Company had total debt of $33,485 million as of June 27, 2026, and reported a weighted average cash interest rate of 6.2% for the quarter and year-to-date period. TransDigm targets a capital structure with at least 75% fixed-rate and 25% variable-rate debt to limit near-term interest-rate exposure; approximately 75% of gross debt was fixed rate at June 27, 2026. Variable-rate term loans are hedged with interest-rate swaps, caps and collars, while no term-loan or note maturities occur before August 2028.
Key facts
- In the reconciliation of net cash provided by operating activities to EBITDA, interest expense-net is $1,437 million for the thirty-nine week period ended June 27, 2026 and $1,124 million for the thirty-nine week period ended June 28, 2025 source
- Interest expense-net for the thirteen week period ended June 27, 2026: $514 million, up $117 million or 29.5% from prior year. source
- As of June 27, 2026 approximately 75% of gross debt was fixed rate. source
- Ratio of earnings to fixed charges was 2.3x for the thirty-nine week period ended June 27, 2026 (versus 2.6x prior year). source
- Weighted average interest rate for cash interest payments on total borrowings outstanding was 6.2% for the thirteen week periods ended June 27, 2026 and June 28, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -11.4% | In the reconciliation of net cash provided by operating activities to EBITDA, interest expense-net is $1,437 million for the thirty-nine… |
| net_income | negative | realized | -4.3% | Interest expense-net for the thirteen week period ended June 27, 2026: $514 million, up $117 million or 29.5% from prior year. |