TransDigm Group Inc.: Flying above the turbulence: Reiterate Buy and PO $1,615

Research evidence excerpt

TransDigm Group Inc.: Flying above the turbulence: Reiterate Buy and PO $1,615

Jet Part Engineering: PMA, MRO, and DER

Jet Parts Engineering (JPE), a portfolio company of Vance Street Capital, is an

independent designed and manufacturer of aftermarket solutions – primarily proprietary

OEM alternative parts and repairs. JPE offers PMA parts, MRO services, and DER repairs,

with virtually all revenue stemming from the commercial aftermarket. Recent

acquisitions include Northeast Air Compressor, Cima Aviation, and Percival Aviation. In

2025, JPE announced FAA approval of over 75 new PMA Parts and 15 DER repairs.

Victor Sierra Aviation: a roll up of key PMA brands

Victor Sierra Aviation (VSA), a portfolio company of Vance Street Capital, is a designer,

manufacturer, and distributor of proprietary PMA and other aftermarket parts. Key

brands under VSA include McFarlane Aviation, Tempest Aero Group, and Aviation

Products Systems, among others. VSA’s product suite includes “nose-to-tail” coverage

for aircraft. The company services 45,000+ unique customers and maintains a suite of

3,500+ proprietary PMA parts.

Increasing estimates acquisitions and strong demand

Given the strong quarter and both JPE and VSE closing we are increasing our Adj. EPS

estimates. For 2026E we now estimate Adj. EPS: $39.75 (prior $38.60), 2027E: $50.70

(prior $46.85), and 2028E: $57.60 (prior $53.40). We reiterate our Buy rating and our PO

of $1,615 which is based on a 1.5x EV/EBITDA (prior 1.6x) relative multiple to the S&P

500 on CY27E. The 1.5x is slightly above the average relative multiple. In our view, this

reflects TDG's strong aftermarket positioning, robust margin performance, and solid

cash generation with upside from recently announced acquisitions.

TransDigm Group Inc. | 12 May 2026 3

CR