TransDigm Group (TDG) Risk Factor Changes

In addition, global market and economic conditions have been challenging due to turbulence in the U.S.

Our commercial business is directly affected by, among other factors, changes in revenue passenger kilometers (“RPKs”), the size and age of the worldwide aircraft fleet, the percentage of the fleet that is out-of-warr…

Notwithstanding the most recent special cash dividend declared by the Company’s Board of Directors on August 20, 2025 of $90.00 per outstanding share of common stock, paid on September 12, 2025, we do not anticipate d…

Mergers and acquisitions have resulted in significant increases in identifiable intangible assets and goodwill.

We produce highly engineered aircraft components, and accordingly, the adverse impact of product quality issues, actual or perceived, can be significant.

Our business is subject to regulation under a variety of U.S.

Despite our use of reasonable and appropriate technical security controls and monitoring, security breaches, theft, misplaced, lost or corrupted data, programming, or employee errors and/or malfeasance have led and co…

The interpretation and application of data protection laws in the U.S.

Most of our U.S.

We continue to monitor the ongoing geopolitical conflicts, such as Russia and Ukraine, and the related export controls and financial and economic sanctions imposed on certain industry sectors, including the aviation s…

Issues with the global supply chain can also rise due to some of the aforementioned risks, as well as the availability and cost of raw materials to suppliers, merchandise quality or safety issues, shipping and transpo…

Our net sales to foreign customers were $3,296 million for the fiscal year ended September 30, 2025.

Our operations and the products we sell are currently subject to rules limiting emissions and to other climate-related regulations in certain jurisdictions where we operate.

Our sales to manufacturers of large commercial aircraft, such as Boeing, Airbus, and related OEM suppliers, as well as manufacturers of business jets have historically experienced periodic downturns.

A significant public health crisis could cause disruption to our operations.

Public health crises, and health pandemics, epidemics and outbreaks could adversely affect our business.

All of the term loans under our term loan facility and the trade receivable securitization facility (the “Securitization Facility”) bear interest at variable rates based on the Term Secured Overnight Financing Rate (“…

We have a significant amount of indebtedness and may be able to incur substantial additional indebtedness in the future.

We also have entered into multi-year, fixed-price contracts with some of our customers, pursuant to which we have agreed to perform the work at a fixed price and, accordingly, realize all the benefit or detriment resu…

We may rely heavily on certain customers for much of our sales.

As the nature, scope and complexity of ESG reporting, diligence and disclosure requirements expand, we may have to undertake additional costs to control, assess and report on ESG metrics.

Companies across all industries are facing increasing scrutiny from stakeholders related to environmental, social and governance (“ESG”) matters, including practices and disclosures related to environmental stewardshi…

Our ability to achieve our environmental, social and governance goals are subject to risks, many of which are outside of our control, and our reputation and brands could be harmed if we fail to meet such goals.

We could be adversely affected if one of our products causes an aircraft to crash.

We have a significant amount of indebtedness.

During a prolonged period of significant market disruption in the aerospace and defense industry, such as the adverse impact that the COVID-19 pandemic had on the commercial aerospace market, and other macroeconomic f…

We could be adversely affected by the impact of failure, misuse or quality issues of our products.

The risks in this area continue to grow, and we expect cyber events will continue to accelerate in frequency and impact as threat actors increasingly use AI and other techniques to circumvent security controls, evade…

A period of significant market disruption in the aerospace and defense industry, or other macroeconomic factors, may disproportionately disrupt our business compared to more diversified peer companies.