TransDigm says public report on IG investigation could be released this summer

TransDigm executives said today the company is continuing to work through an audit with the Defense Department inspector general and anticipates a public report could be released before the end of September.

Company executives said during a call with analysts today they expect the audit to be similar in scope to previous audits.

After an audit released in 2019, the company repaid $16.1 million in profits the IG deemed excess.

Executives said today they do not want to speculate on the potential outcome of the new audit, but insisted TransDigm has a significantly improved relationship with DOD.

Asked whether the company might consider moving away from military work because of the distraction posed by the audits, Kevin Stein, TransDigm’s chief executive, said the company’s military businesses are “still great businesses.”

“This is part of the process of doing work with the government,” he said. “We understand that they are trying to get the best deal for their constituents. . . . It's a natural part of the process; I don't think we are afraid of it.”

“We now have regular reviews and meetings with the DOD, the [Defense Logistics Agency],” Stein added. “We're very connected and it's very different today than five, 10 years ago in terms of our connection.”