# Higher interest expense absorbs most of TransDigm's annual operating profit gain Fiscal 2026 net income rose 2%. Sales grew 20%, while acquisition spending and share repurchases exceeded $7 billion. Published 2026-11-10 by TGOs. Canonical: https://tgos.io/news/2026/11/10/higher-interest-expense-absorbs-most-of-transdigms-annual-operating/ TransDigm's fiscal 2026 net interest expense increased $436 million, absorbing most of the year's $646 million operating income gain.[1] Net income increased 2% to $2,108 million.[1] The company attributed the limited net income growth partly to higher selling and administrative expenses and higher interest expense.[1] Fourth-quarter net income fell 4%, primarily because of interest on a larger gross debt balance and higher tax expense, according to TransDigm.[1] Organic sales growth for the year was 11%, or 13% excluding non-aerospace sales.[1] The full-year EBITDA As Defined margin, a non-GAAP measure, fell to 52.7% from 53.9%.[1] Chief Executive Officer Mike Lisman said the margin included approximately two percentage points of dilution from recent acquisitions.[1] For fiscal 2027, TransDigm forecasts sales growth of 14% at the midpoint.[1] It anticipates sales of $11,950 million to $12,150 million.[1] Lisman put the year's acquisition spending at approximately $4.4 billion and share repurchases at approximately $2.8 billion.[1] Acquisitions included Prince & Izant, which serves aerospace and defense among other markets, and twelve bolt-ons.[1] ## Why it matters TransDigm deployed more than $7 billion on acquisitions and repurchases while generating $2,187 million in operating cash flow.[1] Long-term debt rose $4,576 million over the fiscal year.[1] ## Sources 1. TransDigm fiscal 2026 fourth quarter and year-end results, Exhibit 99.1 to Form 8-K, Nov. 10, 2026