TransDigm Group announced a definitive agreement to acquire Jet Parts Engineering of Seattle and Victor Sierra Aviation Holdings of Baldwin City for approximately $2.2 billion in cash, including certain tax benefits. The combined companies generated about $280 million in revenue for the year ended December 31 2025, with nearly all sales coming from the commercial aftermarket. The deal will add significant aftermarket revenue and engineering capacity to TransDigm’s portfolio of 95 acquired businesses, reinforcing its focus on highly engineered, proprietary aerospace parts that deliver long‑term recurring revenue.
The acquisition is a textbook example of TransDigm’s acquisitive strategy. By adding two aftermarket‑focused businesses that produce OEM‑alternative parts, the company expands its high‑margin, recurring‑revenue stream and deepens its engineering capabilities. The target companies’ products are largely sold to airlines, regional carriers, cargo operators, and general‑aviation customers, providing a diversified customer base that aligns with TransDigm’s goal of maintaining a robust aftermarket presence across the aerospace supply chain.
TransDigm’s recent financial performance underscores the rationale for the purchase. In the fourth quarter of fiscal 2025, the company reported earnings per share of $10.82, beating analyst expectations by $0.75, and revenue of $2.44 billion, up 11.5% year‑over‑year. EBITDA margin for the quarter was 54.2%, and full‑year EBITDA for fiscal 2025 reached $4.76 billion, a 14% increase from the prior year. The strong results were driven by disciplined cost control, a favorable mix of high‑margin aftermarket contracts, and continued demand for replacement parts as airlines extend the life of their fleets.
Management guidance for fiscal 2026 reflects confidence in continued growth. The company’s midpoint revenue guidance of $9.85 billion represents a 12% year‑over‑year increase, while adjusted earnings per share guidance of $37.51 is modestly higher than the prior year’s $37.33. The guidance signals that TransDigm expects to sustain its high‑margin business model, though analysts noted that the earnings guidance was viewed as slightly lower than some expectations, indicating a cautious approach to future profitability.
CEO Mike Lisman emphasized that the acquired companies generate nearly 100% commercial aftermarket revenue and will operate independently under TransDigm ownership. He highlighted the value proposition of providing OEM‑alternative parts to airlines, regional carriers, cargo operators, and general‑aviation customers, positioning the businesses as growth engines within TransDigm’s portfolio.
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