TDG - TransDigm Group Incorporated (TDG) Q1 2024 Earnings Call Transcript
2024-02-08 13:11:04 ET
TransDigm Group Incorporated (TDG)
Q1 2024 Earnings Conference Call
February 8, 2024 11:00 AM ET
Company Participants
Jaimie Stemen - Director, Investor Relations
Kevin Stein - President & Chief Executive Officer
Joel Reiss - Co-Chief Operating Officer
Sarah Wynne - Chief Financial Officer
Mike Lisman - Co-Chief Operating Officer
Conference Call Participants
David Strauss - Barclays
Noah Poponak - Goldman Sachs
Robert Spingarn - Melius Research
Louis Raffetto - Wolfe Research
Robert Stallard - Vertical Research
Gautam Khanna - TD Cowen
Kristine Liwag - Morgan Stanley
Matt Akers - Wells Fargo
Sheila Kahyaoglu - Jefferies
Ken Herbert - RBC Capital Markets
Jason Gursky - Citi
Mariana Perez Mora - Bank of America
Peter Arment - Baird
Michael Ciarmoli - Truist Securities
Gavin Parsons - UBS
Seth Seifman - JPMorgan
Scott Deuschle - Deutsche Bank
Bert Subin - Stifel
Presentation
Operator
Good day and thank you for standing by. Welcome to the TransDigm Group Incorporated First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jaimie Stemen, Director of Investor Relations. Please go ahead.
Jaimie Stemen
Thank you and welcome to TransDigm's fiscal 2024 first quarter earnings conference call. Presenting on the call this morning are TransDigm's President and Chief Executive Officer, Kevin Stein; Co-Chief Operating Officer, Joel Reiss; and Chief Financial Officer, Sarah Wynne. Also present for the call today is our Co-Chief Operating Officer, Mike Lisman. Please visit our website at transdigm.com to obtain a supplemental slide deck and call replay information.
Before we begin, the company would like to remind you that statements made during this call, which are not historical in fact, are forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to the company's latest filings with the SEC available through the Investors section of our website or at sec.gov.
The company would also like to advise you that during the course of the call, we will be referring to EBITDA, specifically EBITDA as defined, adjusted net income and adjusted earnings per share, all of which are non-GAAP financial measures. Please see the tables and related footnotes in the earnings release for a presentation of the most directly comparable GAAP measures and applicable reconciliations.
I will now turn the call over to Kevin.
Kevin Stein
Good morning. Thanks for joining us on the call today. First, I'll start off with the usual quick overview of our strategy, a few comments about the quarter, and discuss our fiscal 2024 outlook. Then Joel and Sarah will give additional color on the quarter.
To reiterate, we believe we are unique in the industry in both the consistency of our strategy in good times and bad, as well as our steady focus on intrinsic shareholder value creation through all phases of the aerospace cycle.
To summarize, here are some of the reasons why we believe this. About 90% of our net sales are generated by unique proprietary products. Most of our EBITDA comes from aftermarket revenues, which generally have significantly higher margins, and over any extended period, have typically provided relative stability in the downturns.
We follow a consistent long-term strategy, specifically; first, we own and operate proprietary aerospace businesses with significant aftermarket content. Second, we utilize a simple, well-proven, value-based operating methodology....
TransDigm Group Incorporated (TDG) Q1 2024 Earnings Call Transcript