thanks Good for morning. today. in And calling
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operate aftermarket proven, and well aerospace content. value-based businesses utilize a own proprietary we operating We simple, with methodology. Specifically, significant
aligned shareholders. We decentralized system, a and organization have a closely unique with compensation structure
path this fit and that clear structure a businesses a acquire where we PE Next, we are our allocation of like finally, creation strategy methodology. to returns. value And part see capital our key
details liquidity of market. allocation Our our our like this, we the as To careful on focused a as longstanding shareholders stay equity do of of value is give private returns the with public both to creation well goal capital.
from saw good you market the As environment. earnings had quarter, release, we considering our a
in in the see among are by the aerospace air market encouraged commercial recovery factors. to continue and trends other We traffic
as to and of of pandemic the QX heavily impacted growth XXXX, in vaccines. we quarter the lapping was same in comparison to the which Our results first show fiscal XXXX the period widespread are positive prior fiscal availability by
be they travel improved, have unfavorably depressed. affected pre-pandemic as in Although continue comparison levels our to remains air the demand to results for
in of is COVID-XX air encouraging. in demand travel. illustrates domestic XXXX. travel has bodes momentum remained for despite the by traffic late-XXXX of To However, variant driven commercial leisure new emergence date, for well the and recovery aerospace primarily the the continued improvement in further global recovery It air a pent-up the
the ease, bookings Although sign. with optimistic which months business, starting QX. sequential our in Contributing despite XX% margin the than commercial challenging the another quarter. is improvement environment, international our Commercial softened aftermarket of in of better-than-expected up that travel to also EBITDA XX.X% world margin as fiscal the sequential revenues over pleased Omicron structure December travel encouraging to I as careful XXXX are commercial to restrictions commercial cost and variant due as even recovery strategy. defined restrictions. quarter. management on almost This have the QX our aftermarket achieved In came revenues emergence again Omicron over of this with our our despite and commercial OEM across the is continued Even of compared variant certain of the was the very governments many during more our recovery focus was an reimposed well up the to we saw improvement for markets, stronger of quarter total now as XX% XX% during QX. in operating bookings by we in governments am are the the travel
little to we in cash. operating had over QX. $X.X cash continued significant We strong million almost closed quarter of flow cash the Additionally, with billion and $XXX generation generate a of
cash significant the to remainder additional throughout XXXX. steadily expect We of generate
on capital update priorities. allocation and our an activities Next,
foreseeable activity still liquidity to and currently the with the any in allocation to on At give regard shareholders back our one acquisitions, potentially process each another. or financial still which available, point dividend dividends. in in with decision the substantial with future. balance, our leave of at XX the then cash table combination requirements any aim buyback cash time, the to anticipated form now the but will we we opportunities share share this M&A, deal $X flexibility with and Any or company or also significant we're amount All capital are When next to a individually, with other significant options and sizable buybacks capital have the three a now approaching is are evaluating Consistent regard some history. to in significant over our months. readily We billion. that options of
opportunities to continue possible to our always Both capital the difficult but these always look allocation. M&A M&A and attentive and especially We times. capital to predict, so markets at are are in
current still we are for opportunities actively looking the that M&A model. pipeline, M&A Regarding fit our
We activity, slower continue to see a pickup acquisition but still it's in opportunity pre-COVID. than
remain as or a have We fit possibilities there predict of that decent long that closings, a I is runway confident pipeline cannot for small midsize on the mostly range. usual, we comment possible acquisitions portfolio. our in
XXXX. Now moving for our to outlook
to markets. guidance commercial continued our end still financial in position primary are not of as the a in provide full We a disruption result
QX. be have the aftermarket in for by strong we recovery encouraged and to our continue the OEM received We commercial aftermarket in bookings seen commercial revenues both and
reinstitute We will a clearer we guidance picture the look have future. of to when
XXXX to continue results the fiscal to COVID-XX have demand adverse that levels commercial lower remainder remain to the air We depressed expect customer both to of travel. worldwide due compared will pre-pandemic our aftermarket OEM our on throughout assumption an financial under impact and
XX% our to trends recent teams earnings grow commercial favorably. Although call, in XX% traffic said to aftermarket To revenue the planning in still we positive air our range. reiterate for commercial on could are us what the QX impact
rate We less at expect as well, the our a commercial grow but than commercial OEM slightly to significantly aftermarket. revenue
assumptions purposes strongly. to As both have not you organizational To markets be to are conservative guidance. more planning these of we aim rebound these reiterate, for know, be would happy and end and
to will more year defense to As expect the provide EBITDA in revenue anticipated, fiscal still full see be for north of second the slow for expect year year-over-year to versus margins move and Jorge our defense we up may from market, was half XXXX commercial year. range the rate throughout fiscal less margin percent of slightly Please market. improvement margin color than the that we aftermarket and XXXX XX% year. low-single the defense note start now prior of growth margin stronger EBITDA fiscal the digit our end QX QX on the despite expect We due to recovery.
of includes of this for As believe of fiscal margin Cobham we guidance about are X.X%. remainder acquisition the the note, unfavorable positioned XXXX. headwind our final well a We
watch assumptions and updates. as react we'll develop will will on provide usual, they details capital aerospace and As accordingly. Mike other financial XXXX the closely markets and fiscal
moment like our was report, touch Now which in to DoD audit on a to I'd mid-December. shifting non-financial matters. for released IG gears
with communicated, legal wrongdoing and no as well a scope purely conclusions. of report the and methodology behalf asked voluntary TransDigm expected for on the implications we used at in audit were As many results as any refund million. found approximately The report of audits. the of similar the the or to We prior $XX contained The of report arrive report's of disagree to employees. our many
which analysis, of use and arbitrary areas also We misleading. inaccurate and with the the of disagree render report many standards
audit. results we Committee, Reform to and Oversight hearing House the January the in of request the on discuss XX the at Additionally, participated a of
At of to further DLA all forward, to evaluate any the request. update will we on of war directly do not have this and engaged with pay parties whether time, voluntary portion the we DLA million the any priorities to U.S. government with not relevant continue a for top refund The fighter are results we and the TransDigm. expect the this U.S. Going audit. remain work or the or IG, other $XX and
and TransDigm's with Vice roles well integration management a a Chairman, units, end part recently, the retired his Esterline Executive wanted retirement key fiscal of team quarter. Vice operating COO period. units as growth the of TransDigm, a of acquired and to the including the the of during Airframe He several We announce where first I Vice significant partner he Bob retirement. of Henderson. over over of been President in wish transaction. President, XX company's at Group oversaw in the has for Business his the served our operating most He Finally, TransDigm in entire range of years of Chairman, years Bob as Bob the member
driving with stating performance pleased time by that conclude aerospace and value me I'm commercial industry in our with for to challenging our stakeholders. Let this the company's commitment for the
cost the our on consistent full and forward from this fiscal you to we remain have we look strategy on come will structure our executing XXXX that continue and expect commercial to industry. us. of aerospace a to the always, our remainder journey to operating our expect value We as As strategy provide of the focused managing continue recovery
a Now it Jorge hand other let our few and items. to me performance to over review
