Aerospace components Power & Control EBITDA As Defined margin measures TransDigm's Power & Control segment EBITDA As Defined as a percentage of Power & Control net sales:
Power & Control EBITDA As Defined margin = segment EBITDA As Defined / segment net sales
In the fiscal third quarter of 2026, Power & Control generated $808M of EBITDA As Defined on $1.509B of segment sales, or a 53.5% margin. A year earlier, the segment generated $646M on $1.139B of sales, or 56.7%.
Fast growth did not translate into a higher margin
Power & Control sales increased 32.5% year over year, while EBITDA As Defined increased 25.1%. The numerator therefore grew more slowly than the sales denominator, and the reported margin fell by about 320 basis points.
That distinction matters because a large increase in EBITDA dollars can coexist with weaker profit conversion. A reader looking only at the $162M increase in EBITDA As Defined could miss the fact that each dollar of reported segment sales generated less EBITDA As Defined than in the prior-year quarter.
Management also discussed acquisition dilution in company-level margins during fiscal 2026. That is one reason not to interpret a lower reported margin as a pure read on the underlying base business. Product and end-market mix, acquisition contribution, pricing, input costs, and operating leverage can all affect the relationship between segment sales and the issuer-defined profit measure.
Use the measure within TransDigm's own reconciliation
EBITDA As Defined is a TransDigm non-GAAP measure. It should not be assumed comparable with another aerospace supplier's adjusted EBITDA because exclusions and reconciliation methods can differ. For cross-company work, start with each issuer's reconciliation rather than comparing the percentage labels alone.
Within TransDigm, compare Power & Control across periods and against Airframe using the same methodology. Also distinguish the segment percentage from Total Company EBITDA As Defined margin, which subtracts unallocated corporate EBITDA As Defined from total segment EBITDA As Defined and divides by consolidated net sales.
Read this with Power & Control sales growth, Airframe EBITDA As Defined margin, and total EBITDA As Defined margin.
Primary source: TransDigm fiscal Q3 2026 Form 10-Q.
Part of the Aerospace Components Aftermarket & OEM Economics
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These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
- TDGOpen operating-model research →10 of 10 reviewed concepts in Aerospace Components Aftermarket & OEM EconomicsSegment growth and EBITDA conversion5 of 5 bridge concepts supportedContinue through this bridge:Airframe EBITDA MarginAirframe GrowthPower & Control GrowthTotal EBITDA As Defined Margin
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Compare Power & Control profit conversion under TransDigm's issuer-defined non-GAAP margin.
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