TransDigm Lowers Sales Outlook Amid Q2 Miss

TransDigm Group reported a 9% year-over-year increase in Q2 2025 sales to $2.24 billion, though results missed analyst expectations. The company lowered its full-year revenue guidance to a midpoint of $8.79 billion, citing weaker commercial OEM sales due to reduced build rates and inventory destocking. Commercial aftermarket and defense segments showed strength, but commercial aftermarket growth moderated. Despite the sales outlook cut, TransDigm slightly raised its full-year adjusted EPS guidance to a midpoint of $36.74, which remains below analyst consensus. The company's operating margin held steady at 46.4%, with organic revenue up 6.3% year on year. These results reflect tempered near-term expectations amid softer OEM demand.