TransDigm dividend: cash flow and yield
TransDigm's fiscal 2025 free cash flow was $1,816 million, but dividends and buybacks could exceed a year's free cash flow. TransDigm has no regular dividend policy, and special payments depend on capital needs and board discretion.
How much does TransDigm pay per share?
The starting share count is 55.28 million, based on the latest reported figure. Future shares fall when repurchases exceed stock-based issuance. Dividends are treated separately because TransDigm has no regular dividend policy and says special payments depend on capital needs and board discretion.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 159.60 | 33.51 | 0.00 | 17.27 | 0.00 |
| = FCF not paid out, per share | 21.61 | 13.84 | |||
| = Paid out more than FCF, per share | 136.99 | 0.99 | 18.69 |
What this means. The company's own free cash flow per share is higher because it leaves out changes in money tied up in working capital, while our count includes them.
Does TransDigm's cash cover its dividend?
Operating cash flow was $2,038 million in fiscal 2025. After $222 million of capital spending, free cash flow was $1,816 million, below net income of $2,074 million. That difference does not make the profit unreal; it shows that accounting earnings and cash arrive at different times.
The pattern is straightforward: dividends and buybacks could exceed a year’s free cash flow, while new borrowing helped bridge the gap. The 2025 special dividend was funded partly with new debt. That is like a household paying out more than its income by borrowing the difference: it can deliver cash immediately, but it leaves an interest obligation behind.
What could change the TransDigm dividend?
Dividends are zero in the bear and base cases. The bull case adds $75 per share in the final period, matching a recent special-dividend precedent. No regular payment is assumed because acquisitions, refinancing, debt service and buybacks compete for cash.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,700 (2,190 / 3,000) | 3,050 (2,250 / 3,550) | 3,400 (2,350 / 4,150) |
| Shares (millions) | 54.86 (55.23 / 54.56) | 54.44 (55.18 / 53.84) | 54.02 (55.13 / 53.12) |
| Dividends per share | 0.00 (0.00 / 0.00) | 0.00 (0.00 / 0.00) | 0.00 (0.00 / 75.00) |
| Price to earnings | 30.00 (26.00 / 34.00) | 29.00 (23.00 / 35.00) | 28.00 (20.00 / 36.00) |
What this means. The numbers in brackets show the bear-case and bull-case estimates around the middle, base-case estimate.
What is TransDigm's dividend yield today?
A zero regular dividend yield does not mean TDG never returns cash. In September 2025, it paid about $5.07 billion in special dividends and $159 million in dividend-equivalent payments. It financed that distribution partly with $5 billion of new debt, so shareholders received cash while future financial obligations increased.
| Today (Oct 18, 2026) | |
|---|---|
| Share price | 1,139.34 |
| Free cash flow yield (calculated) | 2.9% |
| Dividend yield (calculated) | 0.0% |
What this means. Price to book is not meaningful because the company owes more than the value of what it owns.