Is TDG (TransDigm Group Incorporated) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TDG is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in TDG.

TransDigm Group Incorporated is a major player in the aerospace and defense sector, designing and supplying highly engineered aircraft components. Its core products include mechanical actuators, ignition systems, specialized pumps, and cargo handling systems used globally by commercial and military aircraft manufacturers. For Muslim investors using HalalStocks.co.uk, TransDigm Group is currently classified as Doubtful under AAOIFI standards. While the company's core manufacturing business is perfectly permissible, it fails the financial screening due to excessive borrowing, meaning it is not currently suitable for a strict halal portfolio. The primary concern from an Islamic finance perspective is TransDigm's heavy reliance on interest-bearing debt, with its debt-to-market cap ratio reaching 46.1%, well above the 33% limit. On a positive note, the company maintains a clean revenue stream with 0.00% interest income and holds a compliant cash-to-market cap ratio of 4.3%. Investors interested in the aerospace sector should monitor TransDigm's balance sheet in upcoming quarters. If the company actively pays down its debt to bring the leverage ratio below the strict 33% threshold, it could eventually become a compliant investment option. TransDigm Group Incorporated operates in the Industrials sector under the Aerospace & Defense industry and is headquartered in Cleveland, OH, US. The company is led by CEO Michael J. Lisman and employs approximately 16,600 people.

TDG was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. TDG passed 3 of these 4 screens.

TDG was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.