How does TransDigm Group (TDG) make money?

TransDigm Group (TDG) generates revenue primarily from Power And Control, which accounted for 52.8% of total revenue in TTM through Q1 2026. The company reported $9.5B in revenue and converted 21.3% of it into net profit, equivalent to roughly $2.02B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of TransDigm Group (TDG)?

TransDigm Group (TDG) reported a gross profit margin of 59% in TTM through Q1 2026, equivalent to $5.61B in gross profit on $9.5B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of TransDigm Group (TDG)?

TransDigm Group (TDG) reported an operating profit margin of 46.5% in TTM through Q1 2026, equivalent to $4.42B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of TransDigm Group (TDG)?

TransDigm Group (TDG) reported a net profit margin of 21.3% in TTM through Q1 2026, equivalent to $2.02B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is TransDigm Group (TDG) profitable?

Yes. TransDigm Group (TDG) reported $2.02B in net income for TTM through Q1 2026, with a net profit margin of 21.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does TransDigm Group (TDG) spend on capital expenditures?

TransDigm Group (TDG) spent $255M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does TransDigm Group (TDG) generate?

TransDigm Group (TDG) generated $1.85B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 19.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of TransDigm Group (TDG)?

TransDigm Group (TDG) had an effective tax rate of 21.7% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of TransDigm Group (TDG)?

TransDigm Group (TDG) reports revenue across 3 reportable product segments, led by Power And Control at 52.8% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How TransDigm Group Makes Money: 2026 Visual Revenue Map

TransDigm Group (TDG) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 28, 2026 (reported May 5, 2026).

TransDigm Group discloses geographic revenue only in annual filings. to view the full breakdown.

TransDigm Group (TDG) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for TransDigm Group (TDG), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Power And Control	$5.01B	52.8%
Airframe	$4.32B	45.4%
Non-Aviation Related Business	$172M	1.8%
Total	$9.5B	100%

Power And Control$5.01B
Airframe$4.32B
Non-Aviation Related Business$172M
Total$9.5B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, TransDigm Group (TDG) reports revenue across 3 reportable product segments; the largest segment was Power And Control at 52.8%, followed by Airframe (45.4%) and Non-Aviation Related Business (1.8%).

Frequently asked questions

Data & methodology

TransDigm Group (TDG) Key Financials

Charts, filings, and peer comparison for every metric

Trains Company Knowledge

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

TDG Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation