TransDigm Group Incorporated stock research
FY2025 Q2
TransDigm Group (TDG) Gross Margin — Quarter Ended Mar 29, 2025
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year. Gross margin weakened from both the prior quarter and the year-ago period, even though gross profit improved, because cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the previous quarter and the same quarter last year. Gross margin weakened from both the prior quarter and the year-ago period, even though gross profit improved, because cost of revenue grew at a faster pace than revenue.
- Gross margin declined compared to the preceding quarter and the year-ago quarter, as cost of revenue increased more than proportionally relative to revenue. The margin contraction is the strongest observable shift, driven by the relative change in cost of revenue.
- Compared to the prior quarter, revenue and gross profit were higher but gross margin was lower. Versus the same quarter a year ago, revenue and gross profit were higher while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.3%
Gross profit
$1.3B
Revenue
$2.1B
Cost of revenue
$876.0M
Quarter-over-quarter change
-2.3 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2025 | $2.1B | $1.3B | $876.0M | 59.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 28, 2024
-2.3 pts
Year-over-year change
Mar 30, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined compared to the preceding quarter and the year-ago quarter, as cost of revenue increased more than proportionally relative to revenue. The margin contraction is the strongest observable shift, driven by the relative change in cost of revenue.
Compared to the prior quarter, revenue and gross profit were higher but gross margin was lower. Versus the same quarter a year ago, revenue and gross profit were higher while gross margin was lower.
Monitor the relationship between cost of revenue and revenue growth in upcoming quarters, as cost of revenue has outpaced revenue.