
Passengers are paying more to fly, but the carriers selling those tickets are not necessarily the ones collecting the profits. Facing rapidly aging fleets, operators are incurring higher maintenance bills.
TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.
| Revenue (TTM) | $9.50B |
| Gross Profit (TTM) | $5.67B |
| EBITDA | $4.85B |
| Operating Margin | 46.70% |
| Return on Equity | 0.00% |
| Return on Assets | 11.80% |
| Revenue/Share (TTM) | $163.28 |
| Book Value | $-164.37 |
| Price-to-Book | 9.55 |
| Price-to-Sales (TTM) | 7.83 |
| EV/Revenue | 10.88 |
| EV/EBITDA | 21.42 |
| Quarterly Earnings Growth (YoY) | 11.50% |
| Quarterly Revenue Growth (YoY) | 18.30% |
| Shares Outstanding | $55.93M |
| Float | $55.65M |
| % Insiders | 0.40% |
| % Institutions | 98.10% |
Volatility is currently contracting

Passengers are paying more to fly, but the carriers selling those tickets are not necessarily the ones collecting the profits. Facing rapidly aging fleets, operators are incurring higher maintenance bills.

TransDigm Group (TDG) is a core capital gains holding, leveraging a unique, acquisition-driven model in the aerospace components sector. TDG's proprietary, mission-critical products and high-margin aftermarket sales underpin robust earnings growth, with FY26 EPS guidance raised to $39.52. Despite a Net Debt/EBITDA of 5.4x and premium valuation, TDG's execution, pricing power, and acquisition strategy justify a Buy recommendation for long-term investors.

Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.

TransDigm Group is upgraded to Strong Buy, reflecting substantial upside potential and a 39% price target increase to $1,860.41. TDG's proprietary aerospace components drive high-margin recurring aftermarket revenue, supported by robust aviation demand and a growing installed fleet. Recent acquisitions have temporarily compressed margins, but EBITDA and free cash flow estimates have increased, with margins expected to recover as integrations mature.

TransDigm (TDG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

TransDigm (TDG) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.

TransDigm Group stands out as a tax-efficient, elite compounder with dominant aerospace component market share and a private equity-style acquisition strategy. TDG's capital allocation favors debt repayment, accretive acquisitions, and aggressive share buybacks over regular dividends, enhancing after-tax returns for taxable accounts. Despite a premium valuation, TDG trades below its five-year average P/E and offers superior margins versus peers, supported by strong pricing power and high free cash flow conversion.

Both companies make high-margin aftermarket aerospace parts. They have grown their businesses through bolt-on acquisitions.

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