Charlie Martin Paradise Divide Capital Charlie@Paradisedividecapital.com 27 November 2021 TransDigm Introduction: TransDigm Inc, TD Group, or TransDigm is a large, diversified designer, producer, and supplier of aircraft components. Their products are used in both commercial and military settings. TransDigm generates revenue two ways: with their original equipment manufacturing (OEM) segment and their aftermarket segment. They are able to do this because the average lifespan of an aircraft is 25-30 years, but the lifespan of their products is 50 years. As I will explore later, their aftermarket segment has significantly higher gross margins than the OEM segment, and subsequently generates the majority of their EBITDA.
I had never heard of TransDigm before. What other companies compete with them? It sounds like almost none! Great analysis. Thanks for the time and effort you put into this Substack.
I had never heard of TransDigm before. What other companies compete with them? It sounds like almost none! Great analysis. Thanks for the time and effort you put into this Substack.