TransDigm Group Incorporated stock research
FY2025 Q1
TransDigm Group (TDG) Gross Margin — Quarter Ended Dec 28, 2024
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while gross margin improved relative to both the preceding quarter and the year-ago period.
Gross margin takeaway
Quarter ended Dec 28, 2024 · FY2025 Q1
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit followed a similar pattern, while gross margin improved relative to both the preceding quarter and the year-ago period.
- The gross margin strengthened compared to both the prior quarter and the same quarter last year, driven by a proportionally larger decline in cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.6%
Gross profit
$1.2B
Revenue
$2.0B
Cost of revenue
$771.0M
Quarter-over-quarter change
+4.0 pts
Year-over-year change
+3.3 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 |
|---|---|---|---|---|
| Mar 30, 2024 | $1.9B | $1.2B | $767.0M | 60.0% |
| Jun 29, 2024 | $2.0B | $1.2B | $826.0M | 59.6% |
| Sep 30, 2024 | $2.2B | $1.3B | $927.0M | 57.6% |
| Dec 28, 2024 | $2.0B | $1.2B | $771.0M | 61.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+4.0 pts
Year-over-year change
Dec 30, 2023
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened compared to both the prior quarter and the same quarter last year, driven by a proportionally larger decline in cost of revenue relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Monitor the trend in cost of revenue relative to revenue, as its movement was the primary observable factor in the margin change.