TransDigm Group

Balance sheet and liquidity. As of Q3 FY2025, TransDigm reported about 2.8 billion dollars of cash and roughly 25.0 billion dollars of gross debt, implying about 22 billion dollars of net debt and net leverage of ~4.9x EBITDA As Defined.

Subsequent to quarter‑end, the company raised 5.0 billion dollars of new debt and paid a 90 dollar per share special dividend in September 2025, which will lift pro‑forma leverage. Debt maturities are well‑termed with no tranche due until November 2027, and interest is partly fixed/hedged.

The structure is deliberate and historically sustainable, but it is a real risk factor in a stress scenario. Cash generation and coverage. Using standard cash flow, TTM CFO is about 2.10 billion dollars and capex about 0.20 billion dollars, for about 1.91 billion dollars of FCF supporting interest and opportunistic buybacks.

We also note management’s “free cash flow” definition differs from standard FCF and includes adjustments such as cash interest and taxes; our valuation relies on the standard measure from GAAP cash flow statements.