Upgrade to SI Premium - Free Trial

TransDigm reports preliminary Q2 sales above consensus, plans $1.25B debt raise

April 14, 2026 8:26 AM

TransDigm Group Incorporated (NYSE: TDG) reported preliminary net sales of approximately $2.54 billion to $2.545 billion for the thirteen-week period ended March 28, 2026, exceeding the consensus estimate of $2.42 billion for the quarter.

The aerospace components manufacturer also reported preliminary EBITDA As Defined of approximately $1.33 billion to $1.335 billion for the same period. The results are unaudited estimates as the company finalizes its financial results.

TransDigm announced that its subsidiary TransDigm Inc. plans to offer $1.25 billion in new debt, subject to market conditions. The offering consists of $250 million in additional 6.125% senior subordinated notes due 2034 and $1 billion in new term loans.

The company intends to use proceeds from the debt offering, along with cash on hand, to fund the previously announced acquisition of Stellant Systems Inc. and approximately $800 million in additional common share repurchases completed in March 2026.

The new notes will be an additional issuance of $1.2 billion in 6.125% senior subordinated notes due 2034 that TransDigm issued on February 13, 2026. The notes are being offered through a private placement to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

Concurrently, TransDigm expects to enter into Amendment No. 21 and Incremental Term Loan Assumption Agreement to its existing credit agreement, adding up to $1 billion in additional tranche N term loans. The debt offering and credit agreement amendment are not conditioned on each other.

The company cautioned that actual results may differ from preliminary figures due to completion of financial closing procedures and final adjustments.

Categories

Corporate News Guidance