StandardAero (SARO) Company Report

StandardAero, the world's largest independent service provider for jet engines, anticipates low double-digit growth in commercial and business aviation and high single-digit growth in military and helicopter segments.
The company expects Engine Services margins to bottom in 2025 and improve annually by 50-70 basis points going forward, with the LEAP and CFM56 Dallas shops reaching break-even in early 2026.
The Component Repair Services segment, which saw almost 400 basis points of margin improvement this year (2025), is expected to continue steady margin improvement, with current margins in the high 20s to 30% range.
StandardAero's board authorized a $450 million share repurchase, and the company expects to be an 80%-100% free cash flow generating business by 2028 or beyond.
The primary risk is material supply, which is being mitigated by significant investment in the component repair business (now approaching $750 million) and an asset management program for Used Serviceable Material.

Dec 10, 2025, 5:30 PM

Transcript

StandardAero Discusses Market Growth, Margin Expansion, and Capital Allocation

SARO

Guidance Update

Share Buyback

Revenue Acceleration/Inflection

StandardAero, the largest independent jet engine service provider, reports that all its end markets (commercial, business aviation, military, helicopter) are currently experiencing growth, with low double-digit growth in commercial and business aviation, and high single-digit growth in military and helicopter.
The company anticipates margin improvement in its Engine Services segment from 2025 onwards, driven by the LEAP and CFM56 Dallas programs reaching break-even in early 2026 and the removal of $350 million in low-margin pass-through revenue. Its Component Repair Services segment, which boasts 30% EBITDA margins, saw 400 basis points of improvement this year and expects steady future improvement.
StandardAero's board authorized a $450 million share repurchase and projects the company to become an 80%-100% free cash flow generating business from 2028 or beyond, following the ramp-up of current programs.
The company emphasizes significant barriers to entry in its industry, including extensive regulatory and OEM authorizations, a licensed workforce, and the necessity for expensive, specialized test cells, of which StandardAero operates more than 50.

Dec 10, 2025, 5:30 PM

Transcript

StandardAero Discusses Business Strategy and Margin Outlook at Investor Conference

SARO

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

StandardAero is the world's largest independent service provider for jet engines, operating for 115 years, with a diversified structure across commercial, military, business jet, and helicopter engine services to hedge against cyclicality.
The company benefits from significant barriers to entry, including long-standing OEM relationships, intellectual property protection, and a highly experienced workforce with an average tenure of 20 years for mechanics.
Engine Services currently operates at mid-teens margins, but expects margin improvement from a 2025 bottom, with historical annual improvements of 50-70 basis points. This is driven by the learning curve on LEAP and CFM56 programs, which are expected to break even in early 2026.
The Component Repair Services (CRS) segment boasts 30% EBITDA margins and is experiencing double-digit growth, serving as a key strategy to mitigate supply chain risks by restoring used parts.
While recent heavy investments in programs like LEAP and CFM56 have impacted cash flow, the company expects cash flow generation to normalize in the coming year, leveraging its balance sheet capacity for long-term revenue streams.

Dec 10, 2025, 5:30 PM

Transcript

StandardAero Authorizes $450 Million Stock Repurchase Program

SARO

Share Buyback

StandardAero announced its Board of Directors has authorized a stock repurchase program, effective immediately, to repurchase up to $450 million of its common stock.
Russell Ford, Chairman and CEO, stated that the program provides another tool for capital allocation to enhance long-term stockholder value and reflects confidence in the business's future.
Repurchases may be conducted in the open market, privately negotiated transactions, or other means, and the program is discretionary, not obligating the company to acquire any specific amount of common stock.

Dec 10, 2025, 12:30 PM

Press Release

StandardAero Reports Strong Q3 2025 Results and Raises Full-Year Guidance

SARO

Earnings

Guidance Update

New Projects/Investments

StandardAero reported Q3 2025 revenue of $1.5 billion, a 20% year-over-year increase, and adjusted EBITDA of $196 million, up 16% year over year. The company also raised its full-year 2025 guidance, now expecting total revenue between $5.97 billion and $6.03 billion and adjusted EBITDA between $795 million and $815 million.
Free cash flow for Q3 2025 was a $4 million use, primarily due to a $108 million increase in working capital from constrained parts. However, management expects a significant unwind in Q4, leading to a raised full-year 2025 free cash flow guidance to a range of $170 million to $190 million.
The company has made progress renegotiating several long-term contracts, expecting to eliminate approximately $300-$400 million of low-margin material pass-through revenue in 2026, which will result in higher reported margins and improved working capital efficiency and free cash flow conversion.
Strategic growth initiatives continue, with nearly 50 LEAP engine inductions by the end of Q3 2025 and expectations for over 60 by year-end, with LEAP revenues alone projected to reach $1 billion annually in the next few years. The company is also expanding its MRO facility in Winnipeg by 70,000 sq ft for CF-34 and CFM56 programs.

Nov 10, 2025, 10:00 PM

Transcript

StandardAero Reports Strong Q3 2025 Results and Raises Full-Year Guidance

SARO

Earnings

Guidance Update

New Projects/Investments

StandardAero reported Q3 2025 revenue of $1.5 billion, a 20.4% year-over-year increase, and adjusted EBITDA of $196 million, up 16.1% year-over-year, with an adjusted EBITDA margin of 13.1%.
The company raised its full-year 2025 guidance across all key metrics, now projecting revenue between $5.97 billion and $6.03 billion and adjusted EBITDA between $795 million and $815 million.
Full-year 2025 free cash flow guidance was also increased to $170 million-$190 million, anticipating strong Q4 cash generation as working capital tied to constrained parts unwinds.
Strategic programs like LEAP and CFM56 DFW facility expansion are progressing, with both expected to become margin positive in early 2026, and the LEAP program alone projected to reach $1 billion in annual revenues in the next few years.
StandardAero is renegotiating contracts to eliminate $300-$400 million of material pass-through revenue in 2026, which is expected to improve reported margins, working capital efficiency, and free cash flow conversion.

Nov 10, 2025, 10:00 PM

Transcript

StandardAero Reports Strong Q3 2025 Results and Raises Full-Year Guidance

SARO

Earnings

Guidance Update

New Projects/Investments

StandardAero reported Q3 2025 revenue of $1.5 billion, a 20% year-over-year increase, and adjusted EBITDA of $196 million, up 16% year-over-year.
The company raised its full-year 2025 guidance, now expecting total revenue between $5.97 billion and $6.03 billion and adjusted EBITDA between $795 million and $815 million. Free cash flow guidance for 2025 was also raised to $170 million-$190 million.
Strategic initiatives include rapid growth in LEAP revenues, which are expected to reach $1 billion annually in the next few years, and planned expansions like the Winnipeg facility.
StandardAero is renegotiating long-term customer contracts to eliminate approximately $300-$400 million of material pass-through revenue in 2026, which is expected to improve reported margins and working capital efficiency.
Despite a $4 million use in free cash flow for Q3 2025 due to supply chain constraints, the company anticipates a significant unwind of working capital and exceptionally strong cash flow in Q4 2025.

Nov 10, 2025, 10:00 PM

Transcript

StandardAero Announces Third Quarter Results and Raises 2025 Guidance

SARO

Earnings

Guidance Update

Revenue Acceleration/Inflection

StandardAero reported revenue of $1,498.0 million for the Third Quarter 2025, marking a 20.4% increase year-over-year.
Net Income for Q3 2025 increased by $51.7 million year-over-year to $68.1 million, achieving a net income margin of 4.5%.
Adjusted EBITDA for the Third Quarter 2025 grew 16.1% year-over-year to $195.6 million, with an Adjusted EBITDA Margin of 13.1%.
The company is raising its full-year 2025 guidance for revenue to $5,970 - $6,030 million, Adjusted EBITDA to $795 - $815 million, and Free Cash Flow to $170 - $190 million.
Net debt as of September 30, 2025, was $2,265.3 million, resulting in a Net Debt to Adjusted EBITDA ratio of 2.9x for the trailing twelve months.

Nov 10, 2025, 9:17 PM

8-K

StandardAero Breaks Ground on Winnipeg Facility Expansion

SARO

New Projects/Investments

StandardAero (NYSE: SARO) has broken ground on an approximately 70,000 sq. ft. expansion of its Winnipeg facility, which will increase the building's footprint by 40 percent.
This investment aims to increase capacity and drive faster turnaround times for Maintenance, Repair, and Overhaul (MRO) services on GE Aerospace CF34-3/8 and CFM International CFM56-7B turbofan engines.
The project is supported by a $3 million contribution from the Manitoba provincial government and is expected to come online in the second half of 2026.
The additional capacity from this expansion is largely secured through long-term contracts, reinforcing StandardAero's commitment to its global CF34 and CFM56 customers.

Nov 10, 2025, 1:00 PM

Press Release

StandardAero Secures Engine MRO Contract with Mauritania Airlines

SARO

New Projects/Investments

Revenue Acceleration/Inflection

StandardAero has been selected by Mauritania Airlines to provide maintenance, repair, and overhaul (MRO) services for the CFM International CFM56-7B and LEAP-1B engines.
These services will support Mauritania Airlines' Boeing 737NG and Boeing 737 MAX 8 aircraft.
StandardAero has expanded its CFM56-7B MRO capabilities to its Dallas–Fort Worth facility to meet increasing demand.
The company has a strong financial profile, including 20.2% revenue growth over the past three years and a current market capitalization of $9.58 billion.