TransDigm Expects Sales of Up to $12.15 Billion in Fiscal 2027
Key Facts
On November 10, 2026, TransDigm issued its fiscal 2027 outlook, estimating net sales of $11.95 billion to $12.15 billion, up 14% at the midpoint from the previous year. The company forecast net income of $2.442 billion to $2.490 billion, up 17% at the midpoint compared with fiscal 2026. It also set a range for adjusted earnings per share of $47.09 to $47.94, up 15% at the midpoint from $41.35. It estimated basic earnings per share of $42.06 to $42.91, up 20% at the midpoint from $35.51. According to the company's filing with the U.S. Securities and Exchange Commission, these figures reflect its current guidance for the coming fiscal year.
The sales outlook was above analysts' estimate of $11.75 billion, according to an Investing.com article that attributed the figure to Reuters. By contrast, Seeking Alpha said the earnings outlook came in below Wall Street estimates and that the stock fell 1.4% in premarket trading on Tuesday. The difference between the revenue and earnings outlooks reflects the varied picture the guidance painted for the coming year. TransDigm estimated adjusted earnings-per-share growth of 15% at the midpoint, compared with expected sales growth of 14%. The market revenue estimate cited was below the low end of the company's range.
As another operating measure, TransDigm expects EBITDA As Defined of $6.195 billion to $6.345 billion in fiscal 2027, with a margin of about 52.0%. That would represent a 13% increase at the midpoint compared with $5.563 billion in fiscal 2026. The company also expects net income of $2.442 billion to $2.490 billion, versus $2.108 billion in the prior year. These ranges put operating earnings, net income and earnings per share in the context of a single outlook for the coming year. The basic earnings-per-share estimate is based on a weighted average of 56.7 million shares outstanding, according to the filing.
The company recorded sales growth in fiscal 2026, with net sales rising 20% to $10.557 billion from $8.831 billion in fiscal 2025. Organic sales growth was 11% of net sales for the year. In the fourth quarter, sales increased 23% to $2.988 billion from $2.437 billion in the year-earlier period. Quarterly adjusted earnings per share rose 15% to $12.44 from $10.82. But quarterly net income fell 4% to $586 million from $609 million a year earlier.
The chief executive said in the company's statement that fourth-quarter results exceeded the high end of its latest guidance for both revenue and EBITDA As Defined. He added that the fiscal 2026 EBITDA As Defined margin was 52.7%, including about two percentage points of dilution related to recent acquisitions. The company said it deployed more than $7 billion of capital in fiscal 2026 through acquisitions and share repurchases. Acquisition spending was about $4.4 billion, while share repurchases totaled about $2.8 billion. The buyback was therefore at a record level, according to TransDigm's filing.
The company's assumptions for fiscal 2027 sales growth include high-single-digit to low-double-digit growth in commercial original equipment sales. It also expects high-single-digit growth in commercial aftermarket services and the same rate of growth in defense segment revenue. These assumptions cover three areas identified by the company in its outlook for the coming year. The filing did not specify a separate figure for each area in these assumptions. The sales, earnings and earnings-per-share ranges remain the company's financial estimates for fiscal 2027.