TransDigm Group Incorporated (NYSE:TDG) Q1 2024 Earnings Call Transcript

Kevin Stein: Yes. We more than expect it. We’re planning on it. So I think it’s not officially announced, but sometime soon this summer, we will have another one. Stay tuned. It will be announced shortly.

Scott Mikus: All right. Great. We could finally meet in person. Sounds good.

Kevin Stein: That would be nice. You can always come to Cleveland though.

Operator: And our next question comes from the line of Bert Subin with Stifel. Your line is open

Bert Subin: Hey, good morning. Thank you for question. I guess good afternoon, I’m sorry.

Kevin Stein: Yes, it’s now afternoon, isn’t it?

Bert Subin: I know. Tracking it. So I guess my first question, airlines have been calling out maintenance-related expenses as headwinds are trying to get down this year, just broader unit costs inflating there. Are you seeing any impact from competition, be it USM or PMA as they seek to do that? Or is that not really shown up on your radar just given those markets are smaller?

Joel Reiss: I don’t think we’ve seen any material change year. USM is typically not a big factor for us. USM is typically for systems that are going for $25,000 and more, which really is a very, very small percentage of what our products are. And I don’t think we’ve — I’ve heard of any specific kind of changes in the PMA world from what we have seen in the past.

Bert Subin: Got it. Okay. And just as a follow-up, I know cargo is a small part of what you guys do, but it sounded like the increase in belly space has been a little bit of a drag. What’s your view towards cargo as you go through the balance of FY 2024? Are you expecting that to improve at all?

Joel Reiss: So, I’m not sure to give you specifics. I mean the passenger for us, I mean, belly cargo obviously, was a big thing that popped up during the year. Over all of the last year, the traffic within the cargo market was down a little bit from 2023. I think most folks anticipate that moving back up a little bit in 2024, and we think we’re going to follow the underlying market.

Joel Reiss: Great. Well, thanks so much for the color.

Operator: And I’m showing no further questions at this time. I would now like to turn the conference back to Jaimie Stemen for closing remarks.

Jaimie Stemen: Thank you all for joining us today. This concludes the call. We appreciate your time and have a good rest of your day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.