TransDigm Surpasses Profit Forecasts on Aftermarket Demand
(Reuters) -Aerospace supplier TransDigm Group topped second-quarter profit expectations on Tuesday and maintained its full-year earnings forecast, betting on strong demand for aftermarket parts and services from planemakers and carriers.
Delayed delivery of new planes has pushed airlines to extend the use of older aircraft to cater to booming demand for air travel, which has boosted orders for profitable aftermarket parts at suppliers.
TransDigm said it does not anticipate a "material headwind" from U.S. President Donald Trump's sweeping tariffs and reaffirmed its annual profit forecast of $32.27 to $34.19 per share.
The company supplies aircraft components such as cockpit security systems and engine sensors for commercial and military jets, and counts planemakers Boeing and Airbus among its customers.
Separately, TransDigm said on Tuesday that co-Chief Operating Officer Mike Lisman would succeed Kevin Stein as CEO.
The Cleveland, Ohio-based firm posted an adjusted profit of $9.11 per share for the second quarter, while analysts had expected $8.95 per share, according to data compiled by LSEG.
Net sales for the quarter through March 29, jumped 12% to $2.15 billion, below analysts' average expectation of $2.17 billion.
(Reporting by Anandita Mehrotra and Anshuman Tripathy in Bengaluru; Editing by Shinjini Ganguli)
