TransDigm Group (NYSE: TDG) has long been one of the most reliable performers among aerospace stocks, but over the past year it has had to fly into a number of headwinds that risked slowing the momentum.
TransDigm is a rollup specialist that attempts to provide shareholders with private equity-like returns from a publicly traded entity, doing a lot of deals, taking on a lot of debt, and offering a range of products to a number of different defense and commercial customers.
The model, and the company's aggressive pricing policies, at times lead to questions about sustainability, and a high-profile commercial aircraft grounding threatened to eat into demand for new parts. But in its most recent earnings report, TransDigm did a good job reassuring holders they have nothing to worry about.