TransDigm Group vs Textron
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KIRA’s take AI analyst
I put TransDigm Group and Textron side by side, using each one’s latest annual report. Here is what stands out:
- Textron is the larger business, with $14.8B of revenue in fiscal 2025 against $8.8B for TransDigm Group, about 1.7 times as much.
- TransDigm Group grew revenue faster (11.2%, against 8.0%).
- TransDigm Group turned more of its sales into free cash flow (20.6% FCF margin, against 6.3%).
- Investors pay more for each dollar of TransDigm Group’s earnings: a P/E of 34.3x against 14.7x for Textron.
Who comes out ahead
Of the 5 measures where higher (or lower) is clearly better, how many each company leads.
TransDigm Group
TDG
4/5
Revenue growth5-year growthNet marginFCF margin
Textron
TXT
1/5
Share count change
Side by side
Best in the row
| Latest fiscal year | TDG FY25 | TXT FY25 |
|---|---|---|
| Size | ||
| Market cap | $64.8B | $13.7B |
| Revenue | $8.8B | $14.8B |
| Free cash flow | $1.8B | $929M |
| Net income | $2.1B | $921M |
| Growth | ||
| Revenue growth | 11.2% | 8.0% |
| 5-year growth | 11.6% | 4.9% |
| Share count change | 0.7% | −5.3% |
| Profitability | ||
| Gross margin | 60.1% | — |
| Operating margin | 47.2% | — |
| Net margin | 23.5% | 6.2% |
| FCF margin | 20.6% | 6.3% |
| Return on capital | 22.5% | — |
| Return on equity | — | 12.2% |
| Balance sheet | ||
| Net debt | $26.8B | — |
| Net debt / EBITDA | 5.9x | — |
| Dividends and buybacks | $659M | $840M |
| Valuation & quality | ||
| P/E | 34.3x | 14.7x |
| Piotroski F-score | 4 | — |
Ten years
Revenue
FY16
TDG $3.2B
TXT $13.8B
FY17
TDG $3.5B
TXT $14.2B
FY18
TDG $3.8B
TXT $14.0B
FY19
TDG $5.2B
TXT $13.6B
FY20
TDG $5.1B
TXT $11.7B
FY21
TDG $4.8B
TXT $12.4B
FY22
TDG $5.4B
TXT $12.9B
FY23
TDG $6.6B
TXT $13.7B
FY24
TDG $7.9B
TXT $13.7B
FY25
TDG $8.8B
TXT $14.8B
TDG
TXT
Operating margin
FY16
TDG 40.0%
TXT —
FY17
TDG 42.3%
TXT —
FY18
TDG 43.4%
TXT —
FY19
TDG 36.9%
TXT —
FY20
TDG 34.3%
TXT —
FY21
TDG 35.2%
TXT —
FY22
TDG 40.8%
TXT —
FY23
TDG 44.4%
TXT —
FY24
TDG 44.5%
TXT —
FY25
TDG 47.2%
TXT —
TDG
TXT
Free cash flow
FY16
TDG $639M
TXT $479M
FY17
TDG $718M
TXT $513M
FY18
TDG $949M
TXT $738M
FY19
TDG $913M
TXT $675M
FY20
TDG $1.1B
TXT $451M
FY21
TDG $808M
TXT $1.2B
FY22
TDG $829M
TXT $1.1B
FY23
TDG $1.2B
TXT $864M
FY24
TDG $1.9B
TXT $650M
FY25
TDG $1.8B
TXT $929M
TDG
TXT
Return on capital
FY16
TDG 13.7%
TXT —
FY17
TDG 14.3%
TXT —
FY18
TDG 19.5%
TXT —
FY19
TDG 14.6%
TXT —
FY20
TDG 13.3%
TXT —
FY21
TDG 14.0%
TXT —
FY22
TDG 13.7%
TXT —
FY23
TDG 16.4%
TXT —
FY24
TDG 20.8%
TXT —
FY25
TDG 22.5%
TXT —
TDG
TXT
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.