TransDigm (TDG) Q2 2025 Earnings Call Transcript

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Tuesday, May 6, 2025 astatine 11:00 a.m. ET

• Chief Executive Officer — Kevin Stein

• Incoming Chief Executive Officer, Co-Chief Operating Officer — Mike Lisman

• Chief Financial Officer — Sarah Wynne

• Director of Investor Relations — Jaimie Stemen

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Kevin Stein: Good morning. Thanks for calling successful today. First, I'll commencement disconnected with a little overview of our caller organizational announcement, past a accustomed speedy overview of our strategy, a fewer comments astir the quarter, and sermon our fiscal '25 outlook. Then Mike and Sarah volition springiness further colour connected the quarter. As you whitethorn person seen, we announced this greeting that I volition discontinue astatine the extremity of TransDigm's 2025 fiscal year. Beyond that, I volition proceed to service arsenic an advisor to the institution done March 31, 2026 to assistance facilitate the enactment transition. Additionally, I volition proceed to service arsenic a subordinate of TransDigm's committee of directors.

It has been a privilege to pb TransDigm arsenic CEO these past 7 years. TransDigm is an exceptional company, and I immensely enjoyed the accidental to spot it turn and make worth for its shareholders. I look guardant to finishing retired my past fewer months arsenic CEO and continuing my engagement with TransDigm's committee member. I volition beryllium leaving TransDigm successful precise bully hands, arsenic Mike Lisman has been elected by the committee of directors to beryllium our caller CEO effectual October 1, 2025. At that time, Mike volition go liable for each operational and fiscal matters. All our operating executives, arsenic good arsenic the CFO, volition study to Mike.

This succession readying has been successful the works for immoderate time, and we were precise excited to beforehand an internally developed, long-tenured worker into the presumption of CEO. Mike has served arsenic TransDigm co-COO since May of 2023. Prior to that, helium held respective positions crossed the company, including that of CFO and Executive Vice President, with nonstop operational oversight for a fig of our operating units. Mike besides antecedently held relation arsenic the pb of TransDigm's M&A squad and arsenic a Business Unit Manager astatine our Aero Fluid Products operating unit. Mike understands our unsocial civilization and process and embraces our semipermanent value-generating strategy. He has contributed substantially to the worth that TransDigm has created implicit his tenure.

Mike is an fantabulous prime to pb TransDigm. I americium assured helium volition bash an outstanding occupation and proceed to make the benignant of worth that has been the semipermanent hallmark of TransDigm. Now moving connected to the concern of today. To reiterate, we judge we are unsocial successful the manufacture successful some the consistency of our strategy successful some bully times and bad, arsenic good arsenic our dependable absorption connected intrinsic shareholder worth instauration done each phases of the aerospace cycle. To summarize, present are immoderate of the reasons wherefore we judge this. About 90% of our nett income are generated by unsocial proprietary products.