StandardAero (SARO) Company Report

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.

Oct 15, 2025, 1:01 PM

Morningstar

Gogo Announces Progress on Galileo STCs, HDX Antenna Shipments, and 5G ATG Development

SARO

Product Launch

New Projects/Investments

Revenue Acceleration/Inflection

Gogo has significantly expanded its Gogo Galileo HDX and FDX Supplemental Type Certificates (STCs), with 19 HDX STCs complete (covering 24 aircraft types) and eight FDX STC agreements in process (covering 24 aircraft types), enabling high-speed broadband for over 9,000 jets.
Shipments of Gogo Galileo HDX antennas have more than doubled, with over 150 units shipped compared to 77 at the end of the second quarter in 2025.
The company is advancing its Gogo 5G air-to-ground (ATG) service, with on-wing trials anticipated soon and more than 400 aircraft owners already pre-provisioned for the new ATG broadband capability.
Gogo is providing incentives for customers to upgrade from legacy ATG systems to the Gogo C1 unit ahead of the network cutover in May 2026.

Oct 13, 2025, 11:01 AM

Press Release

StandardAero Discusses Strong MRO Demand and Strategic Investments

SARO

Revenue Acceleration/Inflection

New Projects/Investments

M&A

StandardAero, an MRO provider with 115 years of operation, is experiencing unprecedented demand across commercial, military, and private aerospace sectors, driven by an aging fleet and increased flight activity post-COVID.
The company has strategically invested in capacity, including doubling its CFM56 capacity in Dallas and expanding its high-margin Component Repair Services (CRS) business, which has grown 600% in a few years to almost a $700 million business.
StandardAero has secured long-term contracts, with 80% of its revenue coming from such agreements, and is seeing airlines sign contracts for work extending to 2030.
The company raised its commercial aerospace outlook to the mid-teens range and is benefiting from strong demand in key platforms like LEAP (revenues tripled quarter-over-quarter), CFM56, CF34, and turboprop engines.
Following its IPO, StandardAero used $1 billion of proceeds to reduce long-term debt, lowering its interest burden by over $130 million annually, improving cash flow for further strategic investments and M&A.

Sep 10, 2025, 11:05 PM

Transcript

StandardAero Discusses Strong MRO Demand and Growth Initiatives

SARO

New Projects/Investments

Revenue Acceleration/Inflection

Debt Issuance

StandardAero is experiencing unprecedented MRO demand across its portfolio, including commercial aerospace, defense, and business aircraft, driven by increased flying activity post-COVID and an aging aircraft fleet.
The company has proactively invested in capacity, including doubling its CFM56 capacity in Dallas, and is seeing airlines sign long-term contracts for work extending to 2030, providing significant visibility.
StandardAero's Component Repair Services (CRS) business is a high-margin growth area, having grown 600% in just a few years and is now guiding towards an almost $700 million business.
Key growth platforms for the company include LEAP, CFM56, CF34, and HDF7000.
Following its IPO, StandardAero used $1 billion of proceeds to reduce long-term debt, resulting in a reduction of its annual interest burden by over $130 million.

Sep 10, 2025, 11:05 PM

Transcript

StandardAero Discusses Strong MRO Demand and Strategic Growth

SARO

Revenue Acceleration/Inflection

New Projects/Investments

M&A

StandardAero, a maintenance, repair, and overhaul (MRO) provider, is experiencing unprecedented demand across commercial, military, and private aerospace sectors, with 80% of its revenue from long-term contracts.
The company has significantly increased its capacity, notably doubling its CFM56 capacity at its Dallas facility, to meet the growing demand, with airlines signing contracts for work as far out as 2030.
Its Component Repair Services (CRS) segment, a high-margin business, has grown 600% in a few years from a $100 million business to nearly $700 million.
StandardAero raised its commercial aerospace outlook to the mid-teens range for the year, driven by strong demand for key platforms like LEAP, CFM56, and CF34.
Following its IPO, StandardAero used $1 billion in proceeds to reduce long-term debt, lowering its annual interest burden by over $130 million and improving cash flow for future investments.

Sep 10, 2025, 11:05 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for StandardAero.

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