TransDigm reports Q4 adjusted EPS $8.03, consensus $7.53

Reports Q4 revenue $1.85B, consensus $1.83B. “I am extremely pleased with our team’s performance and the overall operating results for the fourth quarter and full year fiscal 2023,” stated Kevin Stein, TransDigm Group’s President and Chief Executive Officer. “Our diligent focus on our value drivers and cost structure along with the continued recovery of the commercial aftermarket drove a fiscal 2023 EBITDA As Defined margin of 51.6%, which was up almost three margin points from fiscal 2022. The strong fourth quarter fiscal 2023 performance resulted in surpassing our most recently issued fiscal 2023 EBITDA As Defined Margin guidance and meeting the high end of that revenue guidance. Revenues also sequentially improved in the fourth quarter for all three of our major market channels – commercial OEM, commercial aftermarket and defense. Additionally, given the significant amount of cash currently available, our strong operating performance, outlook for steady cash generation and ongoing expectations, we believe that this is the appropriate time to declare and pay a special dividend, as we have done in the past. The payout of a special dividend of $35.00 per share will leave us with significant liquidity and financial flexibility to meet any likely range of capital requirements or other opportunities. As you know, we are continuously evaluating our capital allocation options and are pleased to return this amount of capital to our shareholders. We will have deployed over $2.7 billion of capital in under seven months including the Calspan acquisition that closed this past May and this dividend to be paid in late November. We look forward to the opportunity to continue creating value for our shareholders as we move into our fiscal 2024.”