TransDigm Group (TDG) Gross Margin — Quarter Ended Sep 30, 2023

In the current quarter, revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin remained stable sequentially and improved from the prior year.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q4

The year-over-year improvement in gross margin is the most notable change.
Sequentially, gross margin was stable, while compared to the same quarter last year, gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

59.0%

Gross profit

$1.1B

Revenue

$1.9B

Cost of revenue

$760.0M

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

Period	Revenue	Gross profit	Cost of revenue	Gross margin
Apr 1, 2023	$1.6B	$929.0M	$663.0M	58.4%
Jul 1, 2023	$1.7B	$1.0B	$715.0M	59.0%
Sep 30, 2023	$1.9B	$1.1B	$760.0M	59.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jul 1, 2023

-0.0 pts

Year-over-year change

Sep 30, 2022

+0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The year-over-year improvement in gross margin is the most notable change.

Sequentially, gross margin was stable, while compared to the same quarter last year, gross margin was higher.

Monitor the ongoing relationship between revenue and cost of revenue, particularly whether gross margin continues to improve or stabilize.