TransDigm declares $90 per share special cash dividend

CLEVELAND - TransDigm Group Incorporated (NYSE:TDG), the $78.65 billion aerospace components manufacturer, announced Wednesday that its Board of Directors has authorized a special cash dividend of $90.00 per share of common stock, with a record date of September 2, 2025, and payment date of September 12, 2025. While the company doesn’t maintain a regular dividend policy, InvestingPro data shows it maintains impressive gross profit margins of nearly 60%.

The aerospace components manufacturer also confirmed that its wholly-owned subsidiary, TransDigm Inc., received funding on August 19 for a previously announced $5.0 billion debt package. The new debt consists of $500 million in Senior Secured Notes maturing in 2034 with a 6.25% interest rate, $2.0 billion in Senior Subordinated Notes due 2034 with a 6.75% interest rate, and $2.5 billion in term loans maturing in 2032 with an interest rate of Term SOFR plus 2.5%. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 3.13, indicating robust ability to meet short-term obligations.

"This special dividend is a key part of our ongoing efforts to actively manage our balance sheet," said Kevin Stein, TransDigm Group’s President and Chief Executive Officer, in the press release statement.

Stein added that after the dividend payout, the company will maintain "significant liquidity and financial flexibility" to address capital requirements or other opportunities.

TransDigm Group designs, produces and supplies engineered aircraft components for commercial and military aircraft. Its product offerings include mechanical actuators, ignition systems, specialized pumps, power conditioning devices, and various other aerospace components.

The company noted in its announcement that it aims to deliver returns to shareholders comparable to well-performing private equity funds while offering public market liquidity.

In other recent news, TransDigm Group Incorporated reported its earnings for the third quarter of fiscal year 2025, which fell short of analysts’ expectations. The company’s earnings per share (EPS) were $9.60, slightly below the forecasted $9.86, representing a 2.64% miss. Additionally, TransDigm’s revenue was reported at $2.24 billion, failing to meet the anticipated $2.29 billion, marking a 2.18% shortfall. Despite these results, UBS has raised its price target for TransDigm to $1,839 from the previous $1,815, while maintaining a Buy rating. This adjustment by UBS reflects a modest increase of approximately 1.3% in their price target. These developments highlight the mixed reactions from the financial community regarding TransDigm’s performance and future potential.

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